May 14, 2021
By Mohamed M. Sesay
As the Fifth Parliament of the second Republic of Sierra Leone consensually endorsed and ratified the railway and portal lease agreement between the government of Sierra Leone and Kingho railway and Port Company Limited, the Leader of the Coalition for Change Party (C4C), Hon. Saa Emerson Lamina commended the economic viability of the agreement. He was particularly impressed about the one million two hundred and fifty thousand dollars (USD 1,250,000,000) that will be accrued by government as the annual rental fees from Mining companies.
He stressed the economic prudency of the agreement, observing that they might not have all the legal standings but for the Minister of Mines and Mineral Resources to have reached the conclusion of sending the agreement to parliament for it to be ratified will surely be a huge economic boost for the people of Sierra Leone.
He added that an agreement between the lessor and the lessee of about two hundred kilo meters of railway from Pepel to Tonkolili mines will end the monopolistic tendency of the past that was once created by Shandon Mining Company over the use of the railway.
“From the lease agreement, it will make Sierra Leoneans feel that this is a 100% perfect goal amounting to about one billion dollars. The people few years back were strangers to their own property but today, the railway is being owned by the people of Sierra Leone. Before 2027 expires, Sierra Leone now has the authority to call a consortium to manage this railway. Mr. Speaker Honorable Members, with this new agreement, Sierra Leone will benefit in the sum of one million two hundred and fifty thousand dollars which is going to be a boost to the country’s economy”, he said.
He added that the new Kingho railway agreement also gives the leverage for the expansion to Bumbuna as well as to Kambia in years to come which means, several Sierra Leoneans will have jobs opportunities.
He referenced section 54 of the Mines and Minerals Act which gives Sierra Leone the authority to own an asset at the termination of particular mining company and renders their assets to be the property of the Government of Sierra Leone. He also commended the Minister of mines and such agreement adding that, the agreement has brought a valuable asset to Sierra Leoneans and Sierra Leonean children for generations to come.
Commending Members of Parliament for the swift ratification of the Kingho Railway agreement, the Minister of Mines and Mineral Resources Timothy Kabba also lauded the collective support shown by Members of Parliament towards the agreement assuring that, the agreement is going to expand the economic benefit for Sierra Leone. He added that mining companies will still benefit from duty free weavers as indicated in the Mines and Minerals Act and therefore, assured Members of Parliament that nothing has changed with regards to duty free weaver of mining companies.
He reiterated that the benefit of the Railway and the expansion of the railway will be an unprecedented economic boost for the country. He further lamented that the railway is going to make sure that the mining sector becomes competitive. He concluded that the asset will definitely give the people of Sierra Leone and the government the opportunity of 1.25 million dollars as rental fees annually as supposed to five hundred thousand dollars if the old arrangements were to stand.
In his closing courtesy, the Speaker of Parliament Dr. Hon. Chenor Abass Bundu encouraged the Chairman of oversight committee on mines and Minerals Resources in Parliament to apply the toughest rules of oversight and vigilance in ensuring that whatever that have been agreed to is honored and respected by the two parties.
He added that there is no intention wherein one company will have monopoly over the use of the railway. He concluded by advocating for equal access to the facility by all companies without unnecessarily obstacles.