Tag: infrastructure

  • DMO may raise N300b to  support budget, infrastructure

    DMO may raise N300b to support budget, infrastructure

    The Debt Management Office (DMO) is expected to raise over N300 billion this quarter to support 2014 budget and infrastructure development, analysts have said.

    Currencies Analyst at Ecobank Nigeria, Olakunle Ezun, said the debt agency will raise the funds through reopening of three-year, 10-year and a new issue of 20-year tenor.

    He explained in an emailed note that the debt agency this month alone, raised N100 billion through three offerings (all re-openings) of 13.05 per cent Federal Government of Nigeria (FGN) August 2016 bond; 14.20 per cent FGN March 2024 and 12.14 per cent FGN July 2034 bond. The stop rates, he said, were 11.123 per cent, 12.22 per cent and 12.389 per cent respectively.

    “In third quarter, the DMO plans to raise over N300 billion ($2 billion) through re-openings of 3-year, 10-year and a new issue of 20-year tenor to support budget and infrastructure needs,” he said.

    On the naira, Ezun said the currency’s short term outlook seems balanced and steady, but on the long term, the risk to the outlook is both on the upside and downside. “The upside risks are driven by the weakening global commodities prices and gloomy global economic outlook. The likely fiscal expansion prior to 2015 elections and reasonably strong liquidity growth continued to drive the downside risks to the naira outlook,” he said.

    He explained that while the CBN Governor, Godwin Emefiele’s forward guidance to steer economy to a low interest rate environment showed a clear departure from that of his predecessor era, his recent statement to sustain monetary policy stance until after the February 2015 elections supports naira above upper end of interbank plus or minus three per cent of N160 to dollar.

    “Nonetheless, there is high expectation that the rebased national accounts, in addition to a stable foreign exchange reserve and CBN’s tight monetary stance, would help support naira,” he said.

    The DMO said Nigerian companies have in recent months, issued nine bonds worth $30.4 billion in the International Capital Market.

    The Director-General of DMO, Dr. Abraham Nwankwo said the Nigerian companies took advantage of the window opened through the successful issuance of Nigerian Sovereign Eurobonds to successfully issue the international bonds.

    Nwankwo said the funds will be instrumental in helping Nigeria meet its infrastructural needs especially power. He noted that “for the first time in Nigeria’s economic history, the private sector has been enabled to access long-term funds from both the domestic and international capital markets. The successful issuances of three Nigerian Sovereign Eurobonds in the International Capital Market – one in 2011 and two in 2013 – have opened the window for Nigeria’s private sector to raise required foreign currency funds.

    The DMO chief said:  “They are now able to fund long-term real sector projects in agriculture, manufacturing, housing, mineral exploration and processing, infrastructure, for diversified and sustainable economic growth, towards employment generation and poverty reduction.”

  • DMO may raise N300b to  support budget, infrastructure

    DMO may raise N300b to support budget, infrastructure

    The Debt Management Office (DMO) is expected to raise over N300 billion this quarter to support 2014 budget and infrastructure development, analysts have said.

    Currencies Analyst at Ecobank Nigeria, Olakunle Ezun, said the debt agency will raise the funds through reopening of three-year, 10-year and a new issue of 20-year tenor.

    He explained in an emailed note that the debt agency this month alone, raised N100 billion through three offerings (all re-openings) of 13.05 per cent Federal Government of Nigeria (FGN) August 2016 bond; 14.20 per cent FGN March 2024 and 12.14 per cent FGN July 2034 bond. The stop rates, he said, were 11.123 per cent, 12.22 per cent and 12.389 per cent respectively.

    “In third quarter, the DMO plans to raise over N300 billion ($2 billion) through re-openings of 3-year, 10-year and a new issue of 20-year tenor to support budget and infrastructure needs,” he said.

    On the naira, Ezun said the currency’s short term outlook seems balanced and steady, but on the long term, the risk to the outlook is both on the upside and downside. “The upside risks are driven by the weakening global commodities prices and gloomy global economic outlook. The likely fiscal expansion prior to 2015 elections and reasonably strong liquidity growth continued to drive the downside risks to the naira outlook,” he said.

    He explained that while the CBN Governor, Godwin Emefiele’s forward guidance to steer economy to a low interest rate environment showed a clear departure from that of his predecessor era, his recent statement to sustain monetary policy stance until after the February 2015 elections supports naira above upper end of interbank plus or minus three per cent of N160 to dollar.

    “Nonetheless, there is high expectation that the rebased national accounts, in addition to a stable foreign exchange reserve and CBN’s tight monetary stance, would help support naira,” he said.

    The DMO said Nigerian companies have in recent months, issued nine bonds worth $30.4 billion in the International Capital Market.

    The Director-General of DMO, Dr. Abraham Nwankwo said the Nigerian companies took advantage of the window opened through the successful issuance of Nigerian Sovereign Eurobonds to successfully issue the international bonds.

    Nwankwo said the funds will be instrumental in helping Nigeria meet its infrastructural needs especially power. He noted that “for the first time in Nigeria’s economic history, the private sector has been enabled to access long-term funds from both the domestic and international capital markets. The successful issuances of three Nigerian Sovereign Eurobonds in the International Capital Market – one in 2011 and two in 2013 – have opened the window for Nigeria’s private sector to raise required foreign currency funds.

    The DMO chief said:  “They are now able to fund long-term real sector projects in agriculture, manufacturing, housing, mineral exploration and processing, infrastructure, for diversified and sustainable economic growth, towards employment generation and poverty reduction.”

  • ‘Energy theft, obsolete infrastructure, others crippling power supply’

    ‘Energy theft, obsolete infrastructure, others crippling power supply’

    Abuja Electricity Distribution Company (AEDC) has identfied energy theft,  weak and obsolete infrastructure, vandalism and some customers’ unwillingness to pay as some of its post-privatisation challenges.

    These challenges, it said, were affecting its ability to ensure stable power supply to its customers.

    Its Executive Director, Commercial Services, Mr. Ernest Mupwaya, who spoke in Abuja yesterday said the management of the power firm has acquired and installed 140 transformers valued at over N200 million to replace faulty and obsolete ones.

    According to him, the firm is also in the process of procuring additional 200 distribution transformers  with a combined capacity of 80MVA  valued at N260 million.

    He said the procurement of the facilities is a demonstration of the firm’s  commitment to offer improved service delivery to customers in the Federal Capital Territory (FCT), Abuja.

    He spoke while making a presentation at a Customer Consultative Forum  held for electricity consumers in Apo, Lugbe, Kuje and Gwagwalada Districts of the city.

    He said the company has, since   the conclusion of the privatisation process last year, been able to upgraded a transformer in Lokoja, Kogi State and had added 15MVA to the network of Abuja DISCO.

    According to him, the firm has also completed another 15MVA in Suleja, Niger State.

    Mupwaya said the company also completed the  construction of a total of 49.5 kilometres of high tension (HT) lines between January and March this year to enhance network reconfigurations and reinforcements.

    He added that the firm also completed 33KV power evacuation project in Gwagwalada, which added 80 megawatts (Mw) to the network and boosted power supply in Kwali, Yangoji, Abaji, and other communities in the area.

    He urged customers to channel their complaints to the call centre that operates 24 hours for prompt action.

    According to him, the company will hold  similar customer consultative forum in other parts of the FCT, as well as in Kogi, Nasarawa and Niger states.

    Chairman, Customers Consultative Committee in Gwagwalada Area Council, Chief Eze Elendu, said there is a significant improvements in power supply in the area. He assured of the readiness of consumers in his  community to partner the AEDC to address challenges of vandalism, electricity theft and refusal by some customers to pay for energy consumed.

    The Chief of Kaduna Community in Gwagwalada, Chief Sunday Audu, who represented the Emir of Gwagwalada appealed for greater partnership between AEDC and the traditional rulers in its coverage area.

  • ‘Lagos needs $50b for infrastructure upgrade’

    ‘Lagos needs $50b for infrastructure upgrade’

    That Lagos is a huge construction site with the light rail, the Lagos/Badagry Expressway, Ketu/Ikorodu highways, housing projects and other developmental projects in various stages of completion is an understatement. However, in this interview with the Commissioner for Works and Infrastructure, Dr. Femi Obafemi Hamzat, he tells Okwy Iroegbu-Chikezie that the government requires excess of $50 billion to pull through these many projects in her quest to make Lagos a mega city. Excerpts:

    The State Government has embarked on the construction of light rail as an alternative means to road transportation, what is the progress report?

    Let me explain it this way. When you carry people predominantly, it is a light rail, but when it is heavy duty goods like diesel, cars, etc, it is heavy rail. But, in most part of the world, it is light rail. It is the ecology or engine behind the rail system. Now, what we are doing in Lagos is the light rail, which is the one you are talking about. We have identified seven corridors in Lagos State where there can be rail.

    So, to identify them differently, that is why we have the blue line and the red line. Those are the two that we are promoting. But there is also the green-yellow and others that we have identified, just like in London where you have the northern line, jubilee line, among others, so that people going from one location to another can know which route to take.

    The same thing also applies in the United States where you have the 1st, the 2nd, the 3rd, the 4th, the 5th, the 6th lines so that you know which one to take. The blue line is from Okokomaiko to Marina. That is the one that we have started. At Orile, we are already building the stations.

    What is the duration of the project?

    Technically, duration is always difficult to say. Because duration is also a function of many things, we are doing the roads in segments. We are starting from Okokomaiko, National Theatre, Mile 2 and so on, the idea is to link up the state. We know we have Nigerians who have constructed rails in other parts of the world. So, we brought them. We said, ‘come home and do the job, instead of us getting experts from all over the world.’ The challenge is that in our generation, nobody has built any rail. The last one was built by the whites in 1903. So, it looks like it is difficult. My ultimate goal is to get the engineering right, do it well and, as I said earlier, much depends on funding.

    What is the state of the Lagos- Badagry Expressway?

    We are doing two-city changing projects; the rail and the 10-lane road project from Eric Moore to Badagry. The major challenge we are facing is funding because it is a project that will span many years. Even though we have medium frame term of budgeting framework, you plan resources a year, but you plan projects for many years.

    So, the first lane is from Eric Moore to Mazamaza, which is already completed. That is Lot 1. The second stage is Lot 2, which is from Mazamaza to Okokomaiko. In doing that, the challenge is, we are through with the rail. Now we are building stations at Mile 2, Orile and in two other places.

    There are two set of contractors working there. What we decide to do is we are doing relocation of services. We decided to slow down to see the total alignment for the two. So, the first challenge we are having is project interface. The second problem we are having is that these are different contractors, with different plan organisation, hierarchy and so on.

    There will be interface problems in some cases. So, as they are building those stations, we deliberately slowed down the road at that place. In fact, those stations are now above 90 percent, so that the road contractor can now go in and do full work, instead of 20 or 25 percent.

    So, the challenge is funding and the fact that we are doing two heavy projects. Ordinarily, when you are doing a road, you have to secure the right of way and so many other challenges, but when you are now doing a 10-lane it is a serious work. In the middle of that, there is also going to be a BRT. There will be a rail, there will be BRT. Now you must also know the challenges of securing the safety of the interfaces between the rail.

    Is the completion date of 2015 for the Lagos- Badagry Expressway sacrosanct?

    I told you the challenges that we are also having. Let me give you the statistics of this road. In order for us to do Lot 2, that is Mazamaza in front of the first gate to Okokomaiko, you need 1.7 million cubic metre of sand. Now, let us put that into perspective. If you lay two metres of sand, you will go to Sokoto and come back. That is the implication of having 1.7 million cubic metre of sand. Now, getting that sand in itself is a challenge and you must get it from somewhere. Now, you go into the deep sea and pump. It is possible that you don’t get sharp sand.

    There are instances where you get sludge. We will not allow you as a contractor to put sludge on our road. Really, there are various factors. The resources are also important to us because we won’t shut down other projects. But given every other thing that we now know, we should be able to finish around 2014- 2015.

    What is your view about Lagos generally?

    Lagos is a city that elicits a strong emotional response from both those who know it and those who don’t. Experiences are varied but everyone can generally agree on one thing – it is without doubt the home of ambition, of dreams and endless possibilities. The western media’s definition of Lagos as an overpopulated city with crumbling infrastructure is a reductionist western view of a city which over 21 million people – from across the country as well as many parts of the world – proudly call home.

    The only true identity anyone can claim for Lagos comes from its people and their heritage. Lagos is the collective hope and ambition of those twenty-one plus million people. Without them, Lagos would be inconsequential. They are the reason why our great city is the single largest market in Africa. They are the reason why Lagos is the only other financial services hub in Sub-Saharan Africa after Johannesburg. It is a place where every single person, regardless of ethnicity, financial status, gender or religion, wakes up every day believing that life-changing opportunities can and, indeed, will be found just around the corner. It is this ‘human infrastructure’ that makes this great city the most independent state in Nigeria today. Despite encumbered natural resources, (encumbered because of our warped federalism), Lagos is and has always been a city of endless possibilities and a shining example to the country, and other cities in West Africa.

    As an emerging megacity, what are the challenges you think confront Lagos?

    Lagos, like any other megacity, has more than its fair share of challenges to contend with. To help us reach our destination, we need good men and women – ordinary citizens, civil servants, politicians and entrepreneurs – to accept the challenge that our ambitions and aspirations demand of us. To roll up our sleeves with tenacity and great resolve to work together to realise our dreams and aspirations for the city of Lagos.

    The physical and social infrastructures that we are building are designed to enable our people achieve their goals. Without these infrastructures, Lagos cannot function properly, serve its increasing number of inhabitants or compete on a global scale. The roads and bridges that we build will connect businesses to their markets, people to jobs, the sick to the hospitals and tighten the fabrics of the family unit. The water works we provide must deliver a reliable, usable water supply that supports our health and well-being and that of our families. The power solutions we put in place must provide the electricity we need to grow our businesses, do our jobs, educate our children and live our lives.

    From your own point of view, what are that infrastructural challenges inherent in the city?

    Infrastructure is without a doubt the most visible and impactful development deficit we have today. The amount of money required to meet the needs of an increasing population is more than $50 billion over the next 10 years. Raising this vast sum of money will not be easy and requires us to collaborate with the private sector through Public Private Partnerships (PPPs) to accelerate the delivery and maintenance of this much needed infrastructure. When we consider the value of these PPPs, we must assess them against our own benchmark, which takes into the account the needs of the people that will drive our development.

    While addressing our ‘hard infrastructure’ needs, we must, in tandem, address our soft infrastructure needs. And by soft infrastructure I mean human infrastructure, our most distinguishing feature and the true asset of Lagos State. There can be no sustainable infrastructure development without sustained human capital development. It is the combination of the simultaneous investment in these two areas that will impact positively on Lagos States development trajectory. Creating an enabling environment for this approach to development requires an integrated and pragmatic approach to policy formulation and implementation. It requires us to build on the giant leap embarked upon by the current administration to place the state in an enviable position among cities around the globe. We must focus on more than just feeding the ‘stomach infrastructure’ of our people; or just concentrating on physical infrastructure. We must in essence address how physical infrastructure affects stomach infrastructure. We must focus on the full breadth of our human infrastructure requirements.

    How can we tackle the socio-economic conditions in Lagos?

    Increasingly, it is clear to me and others that we must as a people focus on some key issues which relate to sustaining the socio-economic development of Lagos State.  These issues are very close to my heart and in my view hold the key to continuing on current path of turning Lagos into Africa’s model mega city, and the economic heart of the continent.  This is important for me as someone who has over eighteen years’ private sector experience and also as a public servant in Lagos State for the past 10 years in different capacities. It is therefore easy to view Lagos from different prisms.

    To my mind, there are four themes that we must work on over the next decade. They are service delivery, ensuring that we continue to build the infrastructure to meet our needs today, and for the future while focusing on efficient revenue generation and the best use of public funds.

    Others are  job creation, providing the opportunities our people need to fulfil their ambitions; knowledge and skills, enhancing the ability of our people to improve themselves and build an economy and workforce that meets our future needs in order for our youths to employ their God-given talent, and lastly health and well-being; ensuring that our people have access to health services and can live in an environment that enables all of us to be and do the best that we can, for ourselves and our families, and of course the great state of Lagos. The target is clear we must build a state that our children will be proud to inherit.

  • US, Nigeria collaborate on infrastructure financing

    US, Nigeria collaborate on infrastructure financing

    Nigeria and the United States are exploring options to leverage on President Barack Obama’s $14billion investment pledge in Africa for an effective financing structure for infrastructure in Nigeria.

    The Minister of Industry, Trade and Investment, Olusegun Aganga, and the US Commerce Secretary, Penny Pritzker, agreed during a bilateral meeting at the just-concluded US-Africa Summit, that increased investment in infrastructure would further improve the Nigerian business environment, adding that Obama’s focus on power was particularly encouraging.

    While both countries agreed to work on the financial structure for infrastructure within the next few weeks, Pritzer noted that US companies were eager to do business in Nigeria due to the ongoing reforms in critical sectors, adding that they could also leverage on the US export assistance facilities in existence around the country.

    Aganga, who spoke to reporters in Washington DC, during the Summit, said, besides the investment commitments and The Memorandum of Understandings that were signed during the summit, most investors agreed that Nigeria has the most robust, clear and friendly policies on power, which other African countries should try to emulate.

    He said, “This means we already have an enabling environment that will encourage more investors to come and invest in the sector. In fact, what these investors were saying was that many of our sectoral policies, which we have put in place already have encouraged them to come and invest in Nigeria.

  • School appeals for infrastructure

    School appeals for infrastructure

    An appeal has been made to the Lagos State government to rehabilitate structures at the Abina Omololu Primary School, Surulere.

    Parents and teachers lamented the deplorable state of the infrastructure, which has forced some parents to withdraw their wards from the school.

    Abina Omololu is a merger of two schools, Abina Primary School and Omololu Primary School.  The junior pupils (nursery 1 to primary three) were housed in the structure on Abina Street, off Randle Avenue, Surulere. The senior pupils (primary four to six) were housed on Omololu Street.

    However, following the dilapidation of the facility on Omololu Street, the senior pupils were moved to Abina Street last September.

    A source at the school said efforts to get the government to intervene in the school did not yield the desired results.

    “We have written to the government many times but got no response.  We have been losing pupils because of the unavailability of a modern school structure.  We decided to relocate them to Omololu when we saw that many parents were taking their children away. Even the present structure is both small and dilapidated and we record injuries on daily basis while the pupils play,” he said.

    A parent, Mrs Ebolg Ike, appealed to the government to respond to the letters people in charge have written.

  • Infrastructure Bank 2013 profit before tax hits N875m

    Infrastructure Bank 2013 profit before tax hits N875m

    The Infrastructure Bank Plc,  recorded a profit before tax (PBT) of N875 million in 2013 compared with N82 million achieved in 2012.

    This is an increase of  N793 million, according to the  Chairman of the bank, Alhaji Lamis Dikko.

    Speaking   at the bank’s 3rd Annual General Meeting (AGM)  in Lagos, Dikko said that the bank’s total expenses in 2013 stood at N757million as against the N586 million recorded in 2012.

    He attributed the growth to the bank’s strength of transaction advisory offering; ‘one-off capital cost’ and well-managed operational cost.

    According to him, the bank remained optimistic on the economic outlook, adding that all the indicators projected continuous growth trend of the past decade.

    Dikko also said that Nigeria had continued to attract high level of foreign Direct Investment (FDI) in spite of the nation’s security challenges.

    He  was optimistic  that the Federal Government’s reforms and investment in the energy, agriculture and manufacturing sector would lead to significant job creation in the country.

    He also added that the key enabler for the growth was the provision of improved and increased infrastructure.

    Dikko said that the mandate to act as an advisor and fund arranger to the Federal Government showcased the bank’s potential in serving as a partner of choice for both the public and private sectors.

    Also speaking, the bank’s  Managing Director, Mr. Adekunle Oyinloye, said its  profit impacted positively in its current earnings per share of 54 kobo in 2013, compared with 20 kobo recorded in 2012.

    Oyinloye said that a key highlight of the year under review was the increase momentum in the transaction advisory and fund arranging business that represented tangible evidence of the bank competitive advantages.

    He also said that the continued demand for infrastructure assets nationwide and the need for the delivery though alternative financing method through its project opportunities, supports the belief that the current trend was sustainable.

    “The micro economy environment remains stable and promising.”

  • Ladoja, Akala left decaying infrastructure, says Oyo APC

    Ladoja, Akala left decaying infrastructure, says Oyo APC

    The All Progressives Congress (APC), Oyo State chapter, has said the bridges which collapsed in Ibadan during the 2011 floods were products of the decay left behind by the administrations of former Governors Rashidi Ladoja and Adebayo Alao-Akala.

    The party was reacting to a statement by an aide to Ladoja, who spoke on the state of bridges in the state capital.

    The APC said: “Politicians, who always seek to reap from where they did not sow, have made Apete their new Mecca. One Peoples Democratic Party (PDP) governorship pretender promised to give the people electricity, which is a Federal Government’s responsibility. Even Ladoja, whose government was known to be drab, inactive and laid-back, has been promising Apete people heaven and earth. The people know who has buttered their breads between our government and these emergency friends of Apete people.

    “I urge the people to notice a life sworn to lie-telling that has become the pastime of the Accord. First, he said 60 people died at Apete. Any passably intelligent person knows that this is a terrible lie. Second, he said Minister of Finance, Mrs. Ngozi Okonjo-Iweala, accused him of mismanaging the N100 billion monthly budgetary allocation for Oyo State. We are aware that Mrs. Okonjo-Iweala is too intelligent to make this statement and indeed never uttered this Accord fraudulent lie. Even the Federal Government knows that its monthly allocations to Oyo can’t pay workers’ salary alone.”

  • Infrastructure and social development

    BIG infrastructure projects are by their nature, social investments, especially in developing markets, where the provision of basic services is often lagging far behind the needs of fast growing populations. The provision of power, water and transportation infrastructure are often taken for granted in the developed world, but serve an undeniable social purpose in Africa.  The electricity that we deliver to rural villages can be the difference between a school student’s ability to do his homework or not. The water we supply dramatically affects the health of those given access to it. Similarly, the roads, bridges and railway lines we construct make it easier for people to get to their respective destinations.    The jobs that are created by infrastructure projects themselves deliver a social return and we are proud that in Lagos about 423,000 jobs have been created on infrastructure projects over the last three years. These are the considerations that we take into account when examining each and every one of the projects we embarked on.

    Lagos is not alone in Africa in having to address a vast infrastructure challenge. The World Bank estimate is that Africa faces infrastructure investment deficit annually of US$93 billion for at least a decade. That is far beyond the capacity of African governments to address alone. Alternative sources of finance must be found, wherever we are on the continent and so, while providing a social good, infrastructure projects are increasingly required to also deliver a commercial return to those willing to invest in it as an asset class. One of the most impressive achievements in the infrastructure space over the last decade has been the ability to deliver on projects that attract international investment. De-risking infrastructure investment in Africa, while delivering a strong commercial return means that going forwards, we should be able to attract more and more of the investment we need to bridge the gap.

    In 1999, following the return to democracy and the election of Asiwaju Bola Tinubu as Governor of Lagos State, the revenue of the state was certainly not enough to deal with challenges facing the state. The revenue generating ability was limited and the needs of citizens immense. It was clear that unless a financial reengineering took place, the state would neither have the resources, nor the capacity to deliver on what it required to build the city. I have been lucky enough to serve in both the administrations of the Asiwaju, and his successor the current Governor of Lagos State, Babatunde Raji Fashola and I am proud to have been involved in delivering such a revolution.

    From less than 700,000 registered tax payers when our party took office, we now have over 4.2 million. From a state budget of N69 billion per annum we now have a budget of N497 billion per annum. At that time, the state of Lagos did not have a single public ambulance, from rickety garbage collection to an organized garbage collection leading to advance recycling and sorting. Managing 10000 tones of waste on a daily basis, and creating jobs for thousands of Lagosians

    But as we have grown the state budget, so the challenges facing the government have also increased. From a population of 5.9 million in 1999, we now have over 21 million people and our population is believed to be growing at over six percent per annum; that is 10 times faster than New York or Los Angeles. Despite our ability to successfully increase the state’s revenue generating capacity, our physical infrastructure requirements continue to place significant demands on our balance sheet.

    We have to be able to invest faster than the state budget allows us to if we are to expedite the delivery of services to the masses. That is why Public Private Partnerships are so important and why we will continue to use them to find new and innovative ways to deliver the services our citizens need and deserve.

    For us, the concept of PPP goes beyond the simple structure of partnerships between the public and private sectors to reflect the lens through which we assess their potential impact.

    The first “P” is for People. All the projects we consider must fulfill the people of Lagos’ needs expeditiously, efficiently and economically. If they do not improve public service delivery, they are not considered as relevant initiative.

    The second “P” is for Possibilities. Removing the need for the government to use only its own funds we are able to consider a far greater wealth of possible projects and initiatives than we could without.

    The third “P” is for performance. For every project, we must set clear benchmarks, milestones and deliverables to audit the performance of the project against the promise. If they do not deliver tangible benefits, they must be held to account.

    Using PPP for social infrastructure?

    Classically, the concept of PPP in social infrastructure is about leveraging the capacity and skill of the private sector to enhance the delivery of social services such as education, health, shelter and security. All of which are equally important to the future development and prosperity of Lagos and its people. Many people often misinterpret this as the need to build physical assets, like hospitals and schools. The reality is that it can be much simpler than that. Let me cite a few examples: As the commercial nerve centre of Nigeria, Lagos is home to some of the world’s largest companies as well as our own emerging indigenous private sector with a rapidly growing need for skilled labour. Every private sector leader I meet with is crying out for improvements in the relevance and skill by our university and Polytechnic graduates. Therefore, it becomes imperative to revamp and restructure our education curricula with a view to ensuring students acquire the right skills for employment, entrepreneurship and innovation, and we need to provide greater access to technical and vocational training. By doing so with a forward looking understanding of the needs of the private sector (a partnership), we can drastically improve the skills of our young people, and so their ability to secure sustainable employment, but also support even faster economic growth. I am of the opinion that better educated workforce will only increase our ability to attract investment. As such, we partnered with Samsung to build an academy that teaches electronics at a practical level. Besides, we have the following infrastructure to boost our water provision: Akute 10.15 MW plant, necessitated by the need to stop fueling with 33000 litres of diesel; Island IPP supplying electricity to government facilities such as General Hospital, Island maternity and a host of others; Alausa IPP supplying government offices with constant power.

    Finally, our vision for Lagos is to create a Mega City of the future. To do that we have to make decisions that show we have a “Mega Heart”. The social impact of the projects we initiate is the only true rationale for delivering them. Our challenge is to match the delivery methods to the expectations of our people.

     

    • Hamzat, Honourable Commissioner for Works and Infrastructure, Lagos delivered this paper at the Nigeria Infrastructure Building Conference.

  • Infrastructure: A panacea for sustainable growth

    Infrastructure: A panacea for sustainable growth

    Experts at a workshop organised by the Nigerian Institute of Quantity Surveyors (NIQS) identified the role of infrastructure in emerging economies of Africa as the fulcrum for national development and sustainable growth. Assistant Editor MUYIWA LUCAS takes a look at the outcome.

    Infrastructural develo-pment in any country is the fulcrum for its economic advancement.

    So, when the Nigerian Institute of Quantity Surveyors (NIQS) chose to deliberate on the theme: Towards sustained growth of emerging economies in Africa – The Infrastructural imperatives at its workshop in Osogbo, Osun State capital, many agreed that it was apt.

    With sub-themes, such as “Efficient project management of infrastructure in emerging economies of Africa;” “Effective cost management of infrastructure development as a sine-qua-non for growth in emerging economies,” and the “Sources and alternatives of Financing Infrastructure in emerging economies,” the tone was set for the deliberations that have charted a new course, not only for practitioners, but for the country in view of its quest to be among the 20 leading economies in the world soon.

    Principal Partner, Cost Concepts Management & Associates, Tunde Adesiyan, in his paper on “Efficient project management of infrastructure in emerging economies,” stressed the need for efficient project management of infrastructure which he said had become imperative given its importance of physical development and economic growth of a nation.

    “The amount of financial and human resources committed to these projects have made them important for consideration of economies of scale to determine where and when to embark on these projects,” Adesiyan said.

    For him, apart from the basic principles of project management, which revolve around initiating, planning, implementing, controlling and closing, there is the need to further understand the culture of the people to wards the success of project management of infrastructure. He said project management of infrastructure should continue three to five years into the life of the infrastructure before other levels of management take over.

    Vice President (West), African Association of Quantity Surveyors (AAQS) and Managing Partner, CONSOL Associates, a firm of International Construction & Development Consultants, Obafemi Onashile, charged quantity surveyors to devise strategies to continually position themselves for maximum efficiency in infrastructural development and economic growth. This, he believes, will enable professionals to maximise their fortunes.

    From the various presentations, it was clear that economic growth in emerging economies of Africa, including Nigeria, is being hampered by poor infrastructure, such as lack of adequate power supply, inadequate and poor state of transport networks, telecommunication deficits, inadequate water supply and waste disposal problems, short-fall in health and education facilities.

    Besides, the speakers were emphatic that for any African nation striving to belong to the top 20 nations by 2020, efficient cost management culture must be imbibed as a national policy, while effective and efficient management of infrastructural projects should be given prominence and high priority by governments, organisations and individuals.

    They further admonished that there should be massive investment to address the challenges and short-falls, noting that because cost is essential, the services of quantity surveyors have become inevitable and imperative in all aspects of infrastructure projects, including budgeting, financing and management in order to get value for money invested.

    The workshop also noted that governments alone cannot bear the financial burden of providing adequate infrastructure considering the huge capital out-lay required. Consequently, integration of private sector investors into the conception, planning, design, construction and maintenance of infrastructure is imperative in Africa to accelerate infrastructure provision to the citizenry, meaning that the Public-Private Partnership (PPP) procurement models must be encouraged and sustained.

    It was also canvassed that there should be an establishment of African Infrastructure Development Bank (AIDB) or African Construction Development Bank (ACDB) as a new infrastructure funding framework similar to existing models in China, India and Malaysia. This, it is believed, will provide the much-needed long-term finance at low interest rate to contractors, subcontractors and suppliers. The bank is expected to be private-sector driven to minimise bureaucracy while government provides “seed money”.

    To serve as motivation for practitioners, especially quantity surveyors, a systematic review of professional fees charged by these group was also recommended, in the hope that such gesture would galvanise them to play the much-desired roles in efficient and effective delivery of infrastructure projects. Importantly, the forum canvassed for a collaboration among professional bodies, the professionals and even client organisations involved in infrastructure development to enable them eradicate fraudulent practices and eliminating areas of disagreement in the documentation and cost management of infrastructural projects.

    The appointment of quantity surveyors in the departments of finance, budget and or planning of ministries was recommended to ensure probity and accountability of public funds invested in infrastructure as such surveyors would help to carry out the audit of projects. To ensure timely payment to contractors necessary to prevent abandonment of infrastructural projects, enactment of a law to institutionalise Payment Bond was also canvassed.

    For surveyors to play their role, they have been charged to acquire and exercise competency of cost control and exhibit due diligence in the cost management of the nation’s vast infrastructure. This is taking the centre stage of infrastructure development and to take advantage of the emerging opportunities. Besides, surveyors, it was submitted, should be willing to break the jinx of conservatism and embrace the fluidity of best practice and innovation, while the NIQS should also tap into the gains of international best practices as done by the Royal Institution of Chartered Surveyors.

    There should also be a collaboration between quantity surveyors in the Diaspora and the NIQS to tap into the advantage of working across cultures to build local competences.

    That is not all, a quantity surveyors academy was also recommended.