It has been confirmed by the Global Times that, Kingho Railway and Port Company Limited trading as Leone Rock have clandestinely but successfully negotiated a new 20-year agreement with the Government of Sierra Leone for the management of the Port and Railway in Pepel in the Port Loko District.
The initial 2-year agreement between the Government of Sierra Leone and Kingho Railway and Port Company for the management and operations of the railway and port was terminated by the Government of Sierra Leone on 10th January, 2023.
Even though Kingho was given a six monthsโ notice to pack and leave the Pepel port vicinity, the company did not comply with that instruction from the Government of Sierra Leone. The company threatened to take legal action against the Government of Sierra Leone. They were demanding a US$200 Million compensation from the Government of Sierra Leone for breach of agreement. That matter never went to court after senior Chinese government officials in Beijing intervened on behalf of Kingho.
After the Kingho Agreement was hurriedly terminated in January last year, by the Attorney General and Minister of Justice, ARISE Integrated Industrial Platforms Limited was invited to negotiate and sign an agreement with the Government of Sierra Leone for the development, expansion and management of the Pepel Railway and Port. The ARISE Agreement was approved by the Cabinet but was never ratified by Parliament.
ARISE IIP have gone ahead to procure brand new passenger trains for the project which are expected to arrive here on 26th October, 2023. ARISE still believes that they have an enforceable agreement with the Government of Sierra Leone which has not been terminated.
Meanwhile, sources familiar with the new 20-year negotiated agreement with Kingho described it as โThe best agreementโ ever signed between the Government of Sierra Leone and a private company.
The new agreement makes no provision for a tax waiver. All taxes including GST will be paid by Kingho to the Government of Sierra Leone. The Government of Sierra Leone is expected to receive payment for every metre of Iron ore exported out of this country by Kingho.
Meanwhile, ARISE IIP now finds itself in a very embarrassing situation. Their legal advisers declined to comment on the issue last night.
Kingho currently enjoys a high-level of support from well-placed people in the Government including hired consultants.
Investigations continue.
See the letter from ARISE below.
