By politico staff writer
The Government of Sierra Leone has signed an agreement with ARISE Integrated Industrial Platform LTD for the expansion of the Pepel Port and Railway.
The project’s business plan, financial model and pre-feasibility studies are estimated at 476 million dollars covering the refurbishment of the Pepel Tonkolili Railway, and the Pepel Port- Railway connectivity to Marampa mines.
It is also set to introduce passenger rail services and rail connection to Guinea.
The signing of the agreement was done by the Minister of Mines and Mineral Resources, Musa Timothy Kabba together with his Finance counterpart, Sheku Ahmed Fantamadi Bangura and the Managing Director of ARISE IIP, Jesper Harring Boll.
According to the mines minister, the agreement is part of the bigger reforms in the mining sector, where the government intends to open the space for more players to participate.
He described ARISE IIP to be a “credible company with a reputation” for developing and managing infrastructure in Africa. “This agreement is taking a government asset from monopoly to be more accessible” he added.
Kabba said revival of mining operation in the country requires significant investment in infrastructure for it to fully benefit from the growth of its mining output.
He said the agreement signed involves a lease that will give a 10% free carry to the Government of Sierra Leone. He also said that the agreement will further provide access to rail and port facilities to other bulk mineral producers in the northern corridor.
ARISE company is to introduce passenger rail services that will enhance an increase in mineral export with an additional 20 Million metric tonnes which is said to be providing 10% dividend to Government. It will also increase better mobility, trade for communities and annual royalties PAYE and other taxes.
In his statement Finance minister Bangura referred to ARISE as a “sector specialist firm” with a proven record across Africa in managing infrastructure. He said the signing came in after having several consultations, and approval from cabinet with concurrence from his ministry.
He pointed out that they signed the agreement in the best interest of the government and people of Sierra Leone, noting that the agreement will be taken to parliament for ratification.
Speaking on behalf of ARISE, MD Boll stated that ARISE is a conceiver, developer and operator of high-added-value infrastructure committed to making Africa thrive with an investment of several billion dollars. He also spoke about the company having a good track record across many countries in Africa like Benin, Togo, Gabon, Cote d’Ivoire, Chad, DR Congo and Rwanda.
He went on to say that, ARISE IIP identifies gaps in African countries that unlock value and creating new industries that will transform and maximize production, efficiency and cost to generate growth and local value addition.
The expansion project is expected to increase economic activities by providing jobs for Sierra Leoneans and enabling passengers’ locomotion from Tonkolili through Bombali to the Port Loko district.
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