By December last year, the Government of Sierra Leone was very enthusiastic about the idea of having a private company to manage the Pepel Railway and Port. It therefore came as no surprise that, on 10th January this year, the Government of Sierra Leone wasted no time in terminating the Lease Agreement they had signed with Kingho Railway and Port Company in 2021 for the development and management of the Pepel Railway and Port. That singular but bold decision was commended by Sierra Leone’s donor partners including the EU and the World Bank.
On 17th January, 2023 the Government of Sierra Leone signed a Lease Agreement with ARISE Integrated Industrial Platforms for the development and management of the Pepel Railway and Port.
The question is still being asked: Why is Kingho showing eagerness to manage the Pepel Railway and Port? Experts have argued that, for the sake of transparency, no mining company should be allowed to manage the country’s only minerals Port?
It is alleged that, 30 percent of Iron Ore exported by Kingho is not disclosed to the Government of Sierra Leone. The Government only relies on data supplied to them by Kingho to determine royalty payment.
The Bank Governor, Prof. Karifa Kallon, disclosed recently that, between 2018 and 2022 Sierra Leone exported US$2.5Billion worth of minerals but received a paltry sum of less than US$200Million. This is not a fair deal by all standards.
Nobody knows why sales proceeds from minerals and produce exported out of this country are never remitted through the banking system. Exporters of minerals and produce sell foreign exchange offshore and collect the Leones equivalent in Sierra Leone.
Under-invoicing in the minerals sector is affecting the country’s economy greatly. How can the Government allow mineral companies especially Kingho to do self-declaration without any third party involvement?
We continue to argue that, a private company with the technical know-how to manage railway and port should be allowed to develop and manage the Pepel Railway and Port. That private company will provide a level playing field for all companies operating in the mining sector.
ARISE IIP have demonstrated seriousness in investing in Sierra Leone by establishing the country’s only Industrial Zone at Koya in the Port Loko district and they are finalizing arrangements for the return of passenger trains to Sierra Leone.
The ARISE IIP project is a game changer in Sierra Leone.
President Dr Julius Maada Bio should ensure that the ARISE IIP project is fully implemented for the good of the country.
