Reports have revealed the reason behind the termination of the agreement between the government of Sierra Leone and the Chinese Iron Ore miner, Kingho Railway and Port Company.
It would be recalled that in January 2021, the Government of Sierra Leone signed a lease agreement with the Kingho Railway and Port Company Limited to use, manage, maintain and rehabilitate the Railway and Port between Tonkolili and Pepel at Port Loko district for a period of two years.
According to a report by Global Times, the document had an option to terminate the contract after the end of the two years lease agreement.
It was learnt that when the lease agreement expired on 8th January 2023 while the Government of Sierra Leone received an attractive offer from a world-renowned company, called ARISE Integrated Industrial Platforms Limited.
It was also learnt that the new company promised to invest in developing the facilities and providing a level-playing field for other iron ore mining companies to avoid a monopoly.
Global Times also reported that the Cabinet, chaired by the President, looked at the new offer from ARISE and gave it the go-ahead in the best interest of the country.
According to them, the Government of Sierra Leone has already signed a lease agreement with ARISE Integrated Industrial Platforms Limited which was done on the 17th January, 2023.
The said deal is said to be for the development, expansion and management of the Pepel/Tonkolili Railway and Port.
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