The Delta State Government on Tuesday disclosed that the State Economic Team will study an investment proposal for building a rail transportation system in the state.
The State Deputy Governor, Sir Monday Onyeme stated this when he received the Managing Director and Chief Executive Officer of Jezreel Engineering Services Limited, Mr Duke Jerome-Scott who visited his office at Government House, Asaba.
Onyeme said that the construction of rail system and its funding was huge and highly capital intensive hence the federal government found it difficult to successfully rehabilitate and construct proposed rail system across the country.
He said though rail was a good means of transportation of goods and services when good system of rail transportation cuts across different parts of the country.
Onyeme, however, said the investors option of Sukuk funding of projects was long tenure, slow and unusually prolonged and delayed project delivery time.
According him, the Benin-Auchi dual carriage road being funded through the Sukuk financing is ongoing after many years. The deputy governor advised on other financing options instead of Sukuk.
Earlier, the Managing Director and Chief Executive Officer, Jezreel Engineering Limited, Mr Duke Jerome-Scott, presented a general investment proposal for the state, particularly the rail project and the construction of a Resort Centre.
He said his proposal for a rail system in the state would create jobs for the teeming youths, increase internally generated revenue, as well as provide social services to the people.
Jerome- Scott proposed different rail routes such as Osubi-Effurun- Agbarho – Ughelli – Patani, while another line would be from Agbor – Umunede – Ogwashi-Uku – Asaba – Bridge Head, as well as from Warri axis to Sapele -Oghara -Koko.
He said his proposal would take advantage of the existing federal government rail line from Ujevwu in Udu local government to Itakpe in Kogi state and pay royalties to the federal government like what was done in Lagos state.
According to him, the proposed funding is through the Sukuk financing model because of its long tenure rather than going to the conventional banks with high interest rates.
Jerome-Scotta, said the rail would also cover some local areas in the three senatorial districts.