ibadan thinkoyo presentation v3

8/13/2019 Ibadan ThinkOyo Presentation v3

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DISTINGUISHED LECTURE SERIES

THINK OYO

INFRASTRUCTURE : A CRITICAL INGRIDIENT

FOR NATIONAL DEVELOPMENTBY

DR KADRI OBAFEMI HAMZAT

HONOURABLE COMMISSIONER

LAGOS STATE MINISTRY OF WORKS AND INFRASTRUCTURE

@

THE CIVIC CENTRE, IDI APE, IBADAN

9TH MAY 2013


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Outline

Opening Remarks

Infrastructure & Economic Growth: Thesynergy

What has worked- Brazilian Experience

The Lagos State Experience

Lessons for others

A South West Agenda

Conclusion


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Opening Remarks

Interests in infrastructure development is worldwide.Therefore it is not a surprise that the concerns overinfrastructure deficit are echoing throughout our nationand this gathering is also not an exception.

It is clear that infrastructure where well implemented,is directly correlated with development of anyCommunity.

Citizens especially, in democratic countries make thissole demand on their government.


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Opening Remarks

What is infrastructure ?

Infrastructure generally refers to basic structures

and facilities that enabled the accomplishment ofgoals. It includes water, energy, transportation,communications, and the like.

Theres a distinction between social and economic

infrastructure. While both are significant, oneprovides more direct economic purpose than theother.


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Opening Remarks

Economic Infrastructure includes:

Utilities such as: power, piped gas, telecommunications,water and sanitation, sewerage and solid waste disposal;

Public Works: Roads, Bridges and Drainages; Other transport sub-sectors: railways, waterways and

seaports, airports and urban transport systems.

Infrastructure is an increasingly attractive asset class tolenders and equity investors alike. This is a good time fornations to take advantage of infrastructure investmentopportunities.


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Opening Remarks

The role of infrastructure development has beendocumented in several studies. It is well acceptedthat the development of infrastructure is a majordeterminant of economic growth. In contrast, thelack of infrastructure hinders sustainable growthand poverty reduction.

A World Bank study of 39 African countries

covering 1990-2005 shows that infrastructuredevelopment yields great growth payoffs


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Opening Remarks

Classification of Functions of Government (COFOG) is critical to themonitoring and direction of policy choices in any jurisdiction.

There are 9 conventional classifications of COFOG:1. Economic Affairs

2. Education

3. Health

4. Housing and Community Amenities

5. Recreation, Culture & Religion

6. Public Order and Safety

7. Environmental Protection

8. Governance General Public Service

9. Social Protection

The classification above dictates the distribution of budget and how

each government should operate.


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Infrastructure & Economic Growth: the Synergy

Direct investment in

infrastructure: Stimulates economy

activities and affects Gross

Domestic Product(GDP)directly;

Reduces transaction andtrade costs, thus improvingcompetitiveness;

Creates Jobs;

Ensures poverty reduction;

Improves human lives.


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Infrastructure & Economic Growth: the Synergy

In the US, between 1950 to 1979, public investments incore areas such as transportation (roads and Bridges),water management, and electricity transmission grew at anaverage annual rate of 4.0 percent. Overall economic

growth (GDP) averaged 4.1 percent per year over thatsame period.

Whereas, Between 1980 2007, public investment growthreduced dramatically, to an average 2.3 percent. GDP

growth also fell in this period, to a 2.9 percent averageannual rate.

Clearly, there is a direct correlation in investment ininfrastructure and GDP growth.


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What Works:

BRAZIL Experience


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BrazilsExample:#3 world's largest road network ( US is #1) and China is #2)

Brazil is the worlds fifth-largest economy,

overtaking Britain andFrance. By 2025 SoPaulo will be its fifth-wealthiest city, accordingto PwC. The EconomistNov 2011


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BrazilsFacts

Land Area: 8.5 million km2.

Population is 192m (5thmost populated country in the world,following China, India, the United States and Indonesia).

Population Growth Rate: 1.2% since 2004; expected to reach203 million in 2012.

A federation of 26 States; 5,560 municipalities and 1 FederalDistrict.

34 public ports and 128 private terminals along the 8.000km coastline, with possibility to double its number

Total of roads and highways is approximately 1.1 million miles(1.5 million km), reflecting an increase of more than 300percentin the last two decades.


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Brazils Infrastructure

Since the 1970's, Government accorded priority to funding ofroads and highways, which transport about 85 percent ofBrazil's population and goods.

In January 2007, Brazil announced a new 4-year programme

for economic growth, the Programa de Acelerao doCrescimento(PAC), based on investment of USD$236 billionin infrastructure, especially in roads and electricity, but alsowater, sanitation and housing.

PAC is largely financed through the public sector, and itstimulated economic activities through subsequent investmentby the private sector: Extra spending has been earmarkedfor roads and electricity generation, drivers of economic

growth which, it says, will bring extra private investment in

their wake.


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PAC 2, released in March of 2010, a continuation of thePAC 1 project, promised spending of US$582 billion from2011 to 2014

In 2009, Brazilian Govt. announced a US$900 billioninvestment program over the 2011-2014 period toimprove its roads, railways, and ports. Part of thatmultiyear commitment is a $19 billion-plan to build a

high-speed rail that will connect Rio de Janeiro and SoPaulo.

1. Government launches PAC economic growth programme 25 January 2007ww.brazil.org.uk/newsandmedia/pressreleases_files/archive-10.html

2. Brazil Ministry of Transport


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Main PACs Projects: Highways

Construction of new highways 2,989 km Expansion of the existing road capacity 1,926 km Rehabilitation of the existing road network 53,585 km

Railways Rail network capacity increase Expansion of the rail network (12,000 km): 2,700 under construction;

1,500 to be built; 5,300 under studies & design; 2,500 under analysis Inland Waterways

Construction of inland waterway terminals in Amazonia

Construction of locks Incentive to Ship building (Financing)

Construction of ocean-going, coastal, maritime aid and river vessels(384 vessels, 103 of which finished)

Construction and modernization of 8 shipyards

Source: Brazil Ministry of Transport


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Private investment in infrastructure grows as the public investment increase


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How did Brazil do it?

Regulatory Frameworks - PPP

Tax Breaks to Private Sector Firms

Road and Railroad Concessions

Investment in infrastructure projects with strongpotential for generating economic & social returns

Synergy among Infrastructure projects

Rehabilitation of existing Infrastructure


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Lagos Experience

States Vision :

Turning Lagos into Africas Model Megacity

and Global Economic and Financial Hub

States Policy Thrust:

Poverty Eradication and Sustainable EconomicGrowththrough Infrastructural Renewal andDevelopment


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Lagos Experience

We have continued to improve our strategies atdelivering on this mandate.

Outcome of Ehingbeti 2012

Theme: BRICS to BRINCS - PATH as Catalyst Power

Agriculture

Transportation

Housing


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Lagos Experience

Our strategy has a solid base, its not by happenstance; It

is borne of the projection that Nigeria has the potentialto be a global economic player and Lagos must be thekey to that growth .

And the Southwest must provide the Leadership forpath Nigerias economic emancipation.


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Lagos Experience - Global Growth and New Business Hubs

Next Eleven

BRICS Globalisation

The world over, global businesshubs are rapidly emerging that

Possess extraordinary economicstrengths

Secure multinational

connectivity and Foster strong demographic

development

The Next Eleven (N-11) are

forecast to experience a rapidly

expanding economic growthsimilar to the BRICS before them

West Africa is firmly on

course for future develop-

ment and prosperity


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Global ContextAfrican Business Hubs

Winning strategy connection to all

international hubs

Concentration on

corridor development

Strong links to a stronghinterland

In 2030, trade betweenChina and Nigeria

will be eight times largerthan in 2010!

is forecasted to be thesingle greatest increase inbilateral trade worldwide

Transport is a key tool foreconomic leadership

20102030


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ECOWAS

is the fastest growing

economic union worldwide(GDP growth: 7% p.a.)

Nigerias GDP is growing

even faster (8% p.a.)

Lagos contributes 30% ofNigerias GDP

Lagos GDP is already

larger than that of Ghana

Lagos population is now

over 20 million

Dakar

Abidjan

Accra

Lom

Lagos

West African Business Hubs

Lagos is the West Africanbusiness hub


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KEY PREMISE- ROAD NETWORK: TRANS AFRICAN HIGHWAYS

Roads

Lagos is a nodal point

of four Trans-African

highways to:

Dakar

Mombasa

Algiers

Cape Town

Lagos is already West

Africas transport hub

3

8

7

2 3


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NATIONAL CONTEXT

A well-developed

transport sector forms

the backbone for all

economic growth.

Nigeria lacks an

efficient intermodaltransport system,

especially on national

corridors

The existing Nigerian

Transportation Master

plan (NTM) lays the

right foundations to

promote infrastructuredevelopment

Lagos needs an intermodal

transport system to enable

it to foster Nigerias growth


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Road Transport Infrastructure

Road infrastructure in Lagos (express roads)

Ota

Ojo

Gulf of Guinea

Lagos Lagoon

Shagamu

Apapa

Lekki

Ifo

Agege

SomoluLAGOS

Ogun

Loburo

Ikorodu

Individual Transport Systems

Road key performancesindicators for Lagos are clearly

behind those of Beijing, China

Performance

indicators

Lagos

StateBeijing

Total in km 7,598 12,852

Inh. (in m) 20.6 19.6

km/ 1,000

persons0.36 0.65

Lagos main road network

lags behind the fast-growing built-up area

Source: ProgTrans based on Federal Republic of Nigeria (2006)

Source: www.china.org.cn;

Nigerian National Bureau of Statistics (2010)

Remark: Lagos road network

including unpaved roads!


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93%

93% of Nigerias container

transport is turned around in the

two ports in Lagos

Lagos Port Container Traffic Volumes

93%

Lagos ports in 2008:

Share (%) of national in-/outbound

container

Lagos: Port Infrastructure

Source: National Bureau of Statistics (2010)


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The Responseis a

Transportation Master plan


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Lekki Ikoyi Link Bridge


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Lekki Ikoyi Link Bridge -@ night


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Expansion of the Ketu Ikorodu Road

The State Governmentawarded the contract forthe expansion of the ofthe road leading from

Ojota to IkoroduTownship

The road is to bedeveloped into a 6 lane

way with bus stationsand dedicated lanes forBRT buses at the Centre

Pedestrian crossings Walkwa s etc.


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Lagos Badagry Expressway:


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Lagos Badagry Expressway:


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PROJECT IMPACT: Employment BreakdownFor LIB; LBE; Isheri Osun

Engineering & Consultancy 550

Surveyor/QS/PM 22

Operations 7,000

Supervisors 61

Labourers 25,000

Drivers & Support (Direct & Indirect) 17,000

Security 400

Business Development 5


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LAGOS- LEKKI EPE EXPRESSWAY


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PROJECT IMPACT: Employment Breakdown

This does not include employees of 25 Sub contractors.

LAGOS- LEKKI EPE EXPRESSWAYBusiness Management 20

Engineering 250

Surveyor/QS/PM 22

HR & Admin 12

Operations 512

Supervisors 61

Labourers 1,050

Drivers & support 200

Security 219Store/Procurement 44

Information Technology 12

Business Development 3


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2013/11/27

Proposed Additional Roads for Lagos 2020

40


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4th Mainland Bridge

Conceptual Proposal

Lekki

MasterplanLekki FreeTrade Zone

Lekki

Airport

Port@

LekkiExisting

Structure

2013/11/27 41


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Lekki

MasterplanLekki FreeTrade Zone

Lekki

Airport

Port@

Lekki

Conceptual Proposal

42

4th Mainland Bridge

Existing

Structure

2013/11/27


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Lessons Learned

Lagos experience has shown that investment in infrastructurewill always positively affect growth and development of theeconomy;

States must identify and promote road networks in line withits potentials and realities;

State resources are never going to be enough; partnerships arethus necessary - PPP is one of the best ways to promoteinfrastructure growth;

Every infrastructure development has an influence on jobcreation and socio economic life of the communities.


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Lessons Learned

Citizensinvolvement

Stakeholdersmeetings;

Advocacy; Platform for

citizens tocomplain,compliment ormakesuggestions;


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Lessons Learned

Weve learned that with

infrastructuredevelopment, we haveto concentrate on

preserving the Statesinvestment ininfrastructure, henceLagos State now has the

Infrastructure AssetManagement Law

The Office hasdeveloped frameworksfor the Operation andMaintenance of States

Schools, Hospitals andother Health Facilities,Medical Equipment,Courthouses, Sports

Facilities, and Historicaland Cultural Assetsamongst others.

S th W t Ni i Th P ibiliti


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South West Nigeria : The Possibilities There was recently a call for the integration of S/W Nigeria; it

conceptualises socio economic integration by leveraging on

cultural affinity of the people. Substantially, the plan includes an economic agenda. At the

heart of which is the identification of cross cutting routes thatcan be explored for development. They can be both inter andintra city

It is obvious that some strategic roads in the axis will provideseveral benefits for her people:

Ibadan - Osogbo - Offa

Abeokuta - Ibadan - Akure Ibadan - Saki - Iseyin

We must continuously search for alternative routes to theFederal Government owned and managed road network

S th W t Ni i Th P ibiliti


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South West Nigeria : The Possibilities

Both Interstate Highways and Intra-City roads offer each ofthe constituents State in the zone absolute opportunity to

create jobs and development for the prosperity of herpeople.

Imagine the possibility of a light rail system linking Lagosto Ekiti, Ondo, Oyo, Ogun, Osun and perhaps Edo

State. With about 150 km/h you can commute betweenOshogbo and Lagos in 1 hour and 15 minutes and Ibadan toLagos in 45 minutes.

This will prevent social dislocation of families, and rural

urban drift.

We can create new towns and better planned developments


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In conclusion, sustainable infrastructure

development is an active ingredient in creating asustainable environment, one which the nextgeneration can inherit.


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Thank you

and

God Bless

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