– Chinese investors threaten to pull out of a major rail deal if Ambode’s re-election bid is thwarted
– The investors are said to be agitated that if Ambode fails to return as govenor, the new government may not key into the projects
This Day reports indicates that the rift between Governor Akinwunmi Ambode and Asiwaju Bola Tinubu may affect Foreign Direct Investments (FDIs) valued about $1.4 billion into Lagos state.
Government sources quoted in the report lamented that the rift had already taken international dimension, warning that some Chinese investors are already threatening to pull out of a major rail deal if Ambode’s re-election bid is thwarted.
About a fortnight ago, the source explained, Ambode attended the 2018 Beijing Summit of the Forum on China-Africa Cooperation, during which the governor signed a Memorandum of Understanding (MoU) on power, rail, road and light-up Lagos projects.
After the summit, he said: “There should be follow-up meetings in Lagos. Representatives of Beijing investors, especially Power China, were in Alausa this week. But they could not really get things done due to this intra-party crisis. We are talking about $1.4 billion investment coming to Lagos alone.
“This crisis has already taken international dimension. The investors are agitated that if Ambode loses out, the new government may not key into the projects. Apparently, their confidence is becoming weak about this market.
“The projects include the Okokomaiko-Badagry wing of the Lagos Light Rail (Blue Line), red line, light-up Lagos and embedded power project. Apart from Beijing investors, the crisis has started taking toll on an agreement the Ambode administration signed with a French multinational, Alstom SA to complete the rail project.”
Ambode’s political future has been under threat since Tinubu’s Mandate Movement, threw up the managing director of Lagos State Development and Property Corporation (LSDPC), Babajide Sanwo-Olu, to challenge the governor at the party’s primary scheduled for Tuesday, September 25.
Also in the race, is another strong contender, a former commissioner for works and Infrastructure, Dr. Obafemi Hamzat, who has the backing of an equally powerful group, the Justice Forum.
The chairmen of the 57 local council development areas in Lagos had also declared support for Sanwo-Olu.
After much pressure, Tinubu, however, shifted some ground on Monday, September 17, by agreeing to refer the matter to the Governor’s Advisory Council (GAC), the body that advises the governor and the party leader on matters of state as well issues that concern the party.
In the event that Ambode does not get the support of GAC, an aide of the governor said,
“Ambode did not prepare for the prevailing circumstances,” said the aide, “therefore, he does not have alternative plan to respond to his dilemma.”
Can Ambode Get a Second Term Without Tinubu’s Approval? – Nigeria Street Gist on
