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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Brazils Infrastructure
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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Brazils Infrastructure
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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Brazils Infrastructure
Private investment in infrastructure grows as the public investment increase
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Brazils Infrastructure
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