Lagos City Infra (IFC-40065)

Countries
  • Nigeria
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
LAGOS STATE GOVERNMENT
The holder of the loan, grant, or other investment.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Sep 13, 2018

Disclosed by Bank Apr 2, 2018


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Project Description
Project Description

 Lagos State is one of the 36 States of the Federal State of Nigeria, and is divided into 20 Local Government Areas. Among the latter, 16 of them form Metropolitan Lagos. Metropolitan Lagos is one of the world’s largest cities with a population estimated at approximately 17 million with anticipated growth taking it to 25 million by 2025. The population is highly mobile and largely reliant upon public transport; however, the lack of an organized public transport network has led to inefficiencies in its provision and a low level of service to those who use it. Existing public transport has been widely described as chaotic, inefficient, expensive, low quality and dangerous both in terms of road traffic accidents and personal safety.

The proposed project involves a strategic engagement with Lagos State to support the development of two Quality Bus Corridors (“QBC”) (the “Project”). The development of the two QBC’s will cost approximately US$50 million. IFC’s proposed investment will be an A loan of the Nigerian naira (“NGN”) equivalent of up to US$50 million. The QBC’s are part of the Lagos State Transport Master Plan Project (LSTMPP), an ambitious city-wide reform of the public transportation services in Lagos, which was developed in part with financing from the World Bank, and, some of which is being implemented by the Lagos Metropolitan Transport Authority (LAMATA). LAMATA is the transport planning, implementing, regulating and franchising authority of the Lagos State Government.

The two QBCs identified for IFC financing are: Command – Abule Egba (6 km) and Ile Ile – Ile Epo (4.3 km), both along existing road networks. The project activities will include road infrastructure improvement, rehabilitation of pedestrian walkways to improve walking conditions and accessibility to public transport services, rehabilitation of drainage, improvements of road junctions, provision of dedicated lanes for public transportation buses and construction of a new bus terminal for each QBC (a hub passenger pick up and drop off) and installation of a number of additional bus stops/ flags at each QBC. Buses will be sheltered, maintained and refueled at a bus depot (one of up to four that will be set up as part of the LSTMPP 1 to serve all the QBCs).

The Lagos State Government will restrict the movement of all existing local modes of transport (i.e. motorcycles, and tricycles) on the QBCs. The danfoes (local buses) will be replaced with new buses run by LAMATA appointed private operators. Motorcycles and tricycles will provide feeder services from the inner routes or adjoining streets, which will be inaccessible to the new buses, into the QBCs.   

There is a combined population of around 292,000 persons within a radius of 400 meters around these two corridors and about 10,400 passengers pass through them per hour during peak hours. Considering 75% of this passenger traffic is with public transportation, developing these QBC’s will help reduce travel times and improve road safety. The project will support improved access to jobs and services, while achieving environmental objectives of reducing air pollution and carbon emissions.   

Pre-feasibility studies for both the QBCs have been completed. It is anticipated that detailed project design and relevant environmental and social studies, including a project specific Environmental and Social Management Plan (ESMP) and Resettlement Action Plan (RAP), will be completed by the second quarter of 2018. The construction work is expected to be completed by 2019.

Investment Description
  • International Finance Corporation (IFC)
Contact Information

Akinyemi Ashade Honorable Commissioner

Ministry of Finance, Block No 12, The Secretariat, Alausa,

Ikeja P.M.B 21297

ACCOUNTABILITY MECHANISM OF IFC

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