50 mln US dollar for Lagos Urban Transport
World Bank Board Approves Additional US$50 Million for the Lagos Urban Transport Project
Washington, United States of America – The Board of Directors of the World Bank 2007-04-10 approved an International Development Association (IDA) credit* of US$50 million for the Lagos State Urban Transport project. This is an additional funding to the original Lagos State Urban Transport project of US$100 million.
This additional financing will help finance costs associated with completion of the original project activities resulting from unanticipated cost overrun.
“The cost of road works has increased by over 60% since appraisal in 2002 due to increase in price of diesel and petrol as well as depreciation of the naira. These two factors have led to an increase in the price of basic construction materials like cement, sand, stone, bitumen, fuel and also an increase in equipment and labor costs”, said Justin Runji, the World Bank Task Team Leader of the Project.
The additional financing is expected to also scale up the bus services enhancement component, which is critical to attaining the project development objective of improving efficiency of public transport network.It will assist in the implementation of a pilot bus franchise scheme along Iyana Ipaja-Ikotun/Igando corridor.
Infrastructure such as bus shelters, lay-byes, street lights, traffic lights and others necessary for bus franchise operation, including terminal rehabilitation would be provided on the Pilot bus route.
It is expected that this would result in passenger transport services being provided on the corridor by high capacity buses operating under exclusive franchise designed and regulated by Lagos Metropolitan Area Transport Authority (LAMATA).
The project is to be implemented by Lagos Metropolitan Area Transport Authority (LAMATA), the state organization responsible for management of transport infrastructure and services in the metropolis.“One of the main reasons behind Bank’s favorable consideration of the application for additional financing was the overall good performance of the Lagos Urban Transport Project in terms of utilization of the initial $100 million allocated to the project”, said Hafez Ghanem, Country Director of the World Bank in Nigeria.
For more information on the World Bank’s work in sub-Saharan Africa visit: www.worldbank.org/afr
For more information on the World Bank’s work in Nigeria visit: www.worldbank.org/nigeria
For more information about this project visit: web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=368896&menuPK=368930&Projectid=P102029