Processed gold bars. (-)

Eastern Equatorial State has been assured of its inclusion in the government’s gold-for-roads initiative following discussions between the National Minister of Roads and Bridges, Peter Lam Both, and a state delegation led by Governor Louise Lobong.

The talks on Wednesday focused on how the state’s mineral resources could be leveraged to upgrade roads connecting Eastern Equatorial State.

Governor Lobong had previously expressed concerns after the government announced the gold-for-roads project, which was approved by the national cabinet with a $2 billion budget to construct roads in Bahr el Ghazal and the Equatoria region.

Under the project, Juba has contracted the international firm Shamrock to build the roads, using revenue generated from gold mining.

Julius Molinga, Chairperson of the Eastern Equatorial State Parliamentary Caucus in the National Assembly, confirmed that the Ministry of Roads and Bridges has included the state in phase two of the initiative, which uses gold as collateral for nationwide road construction.

“We came here for an inquiry, to find out exactly from the mouth of the horse who happens to be the Minister, as to why Eastern Equatorial is not having a share in the whole plan,” Molinga said.

“After a very satisfactory description of the government’s plans, we felt that we have not been left out. These are pilot projects. If they are done very well, I think we will come in.”

A spokesperson from the Minister’s office added that Eastern Equatoria, which has rich gold resources, is expected to perform strongly in the next phase.

The minister reportedly promised that the Ministry of Roads and Bridges will ensure that companies involved in the project extend road construction into Eastern Equatorial State.

Under this deal, Shamrock will construct over 1,000 kilometers of asphalt roads while also carrying out gold mining operations in South Sudan.

According to the Minister of Information and national government spokesperson Ateny Wek Ateny, the shareholding structure is as follows: Shamrock will hold 65% of the project, with the government keeping 35%.

Of Shamrock’s 65%, 5% will be set aside to compensate communities affected by the project, leaving the company with 60%.