Infrastructure Quarterly Vol 03 - 2014

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September 2014

Contents Bamanga Tukur Seven years after a ravaging fire incident reduced the Tejuosho Market in Lagos Nigeria to mere rubbles, the State Government last August commissioned for commercial use what is now known as Main Tejuosho Shopping Complex. The market had on December 18, 2007, been burnt down and reduced to rubbles and that costing the life of a gallant fire officer among other loses of property and wares which left most of the businessmen and women there wrecked.

SPOTLIGHT ON THE NIGERIA RAILWAY SERVICE

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In his address, the Managing Director of First Bank Nigeria Plc, Mr. Stephen Onosanya said the project was a typical example of how the Public Private Participation can be employed on infrastructure development. The project was a result of collaboration between Lagos State Government, Stormberg Nigeria Limited and First Bank Nigeria Limited and could be compared to any of such anywhere in the world since it offers more facilities.

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Prince Adeyeye drummed up this Administration's irrevocable commitment and massive deployment of resources to the development of the nation's road infrastructure, adding that, “I am pleased to note that the gains of improved and sustained government investment in the road sector are evidently manifesting nationwide�.

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DWC opened its doors to passengers in October 2013 and currently has a capacity of around five to seven million passengers annually. The expansion of DWC is part of DA's 'Strategic Plan 2020', which also plans for an increase in cargo growth from 2.2 million tonnes in 2010 to 4.1 million tonnes by 2020.

Nigeria's Federal Government has reiterated its readiness to realize the Vision 20:2020 on road infrastructure development in an effort to make up for the deficit in that sector throughout the country.


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News LEKKI TRADE ZONE GETS

$150M from the AfDB T

he Board of directors of African Development Bank Group (AfDB) has approved a total of $150 million fund to enhance the quick completion of the Lagos Lekki Free Trade Zone (LFTZ) project and other projects in Nigeria and Ethiopia as well as a multinational projects preparation facility. In a release made available by the bank, the AfDB revealed that it approved a total of $150-million senior loan for the construction of the Greenfield seaport in the Lagos Free Trade Zone. Following a 45-year concession granted to Lekki Port LFTZ Enterprise (LPLE), the special purpose vehicle of the Nigerian Ports Authority (NPA) under a build, own, operate and transfer scheme. “The loan is to cover the construction of port infrastructure such as breakwaters, quays, approach channels, dredging of the basin as well as captive utilities such as water and power. On completion, the port would handle 2.5 million 20-foot equivalent units (TEUs), 16.7 million tonnes (MT) of liquid cargo and 4.5 MT of dry bulk. Construction is expected to start in January 2015 with the container terminal operations expected to start in December 2018”, the statement said.

LAGOS COMMITTED TO STRATEGIC INNER ROAD DEVELOPMENT

PROGRAMME Lagos State Commissioner for Works and Infrastructure Dr. Femi Hamzat has reassured Citizens of Lagos that they would continue to enjoy the commitment of the State Government to having high quality infrastructure. According to him, the government is committed to building 21stcentury road infrastructure. “In this regard, we have put in motion a process of revamping the infrastructure of the State under the “Strategic Inner Road Development Programme”. The commissioner explained that in the spirit of that programme, the government of the state has identified roads that are high traffic bearing capacity of the roads adding that the major link roads were the first to be addressed before embarking on the arterial roads, which the state has also started focusing on. A typical example of such roads was the Oshodi roads. He recalled that it was at Oshodi that the Administration began its good works and assured that this will continue. “We have quite a number of road projects in progress within Oshodi. They include Oyetayo, Brown, Church, Kike Adeyemi and Adisa Ajibulu Streets (with Bridge component). Apart from these, our Sister Agency, the Public Works Corporation (PWC) in the last one year, has worked on 39 roads within the old Oshodi Isolo Local Government,” he said. He explained that when the level of disrepair of a particular road makes it rather a waste of funds to maintain then only palliative measure are applied before the commencement of the upgrade and rehabilitation of such roads as have been demonstrated across the entire State. The Commissioner also revealed that the Public Works Corporation has currently identified roads that are in dire need of maintenance and is already in the process of such maintenance. He said that over 1000 roads had been identified in the current year's programme. The speed of delivery, however, is a function of the weather condition.

Most construction and maintenance works are affected by rainfall. He however, blamed the condition of the roads, just like so many across the State, as a result of the road use culture which remains quite poor. Furthermore, he regretted that the blocked drains experienced in the state are a result of the people's habit of throwing waste in the drains. “Again there are those who illegally cut the tarred roads and dump petroleum products and water on the roads. It is all these habits and attitudes that we must work on in order to protect the infrastructure,” he said. The Commissioner said that obviously, the Administration could not move as fast as it desired on all of these roads at the same time because they are in a built up city. He assured that Enhanced construction/rehabilitation of roads has to be systematic while the state is at least moving and will work hard to increase the pace despite resource limitations.

Abuja Lightrail 53% completed Minister The minister of Federal Capital Territory Senator Bala Mohammed has said that the ongoing railway project was 53 per cent completed on Lots one and two. Speaking on the topic, “Investing in building a capital city'' when he hosted participants of the National Defence College Course 23, Mohammed, who was represented by the Permanent Secretary in the FCT, Mr. Obinna Chukwu, said the intergrated rail system was targeted at bringing thousands of commuters from satellite towns into the city centre. “Although contract for the project was awarded in 2007, the actual work began on the site with the procurement of the Chinese loan in 2012”, he said. The minister stressed that the rail network when fully operational will provide full time employment for 20,000 people, he added that the administration has set a benchmark of opening up, at least, 10 new districts by 2015,'' The minister bemoaned the increasing cost on resettlement and compensation which is becoming unwieldy. He said the FCT requires N200 billion to resettle and compensate those living in the Federal Capital City While highlighting the infrastructure deficit challenge in the territory, the Minister said the aggregate infrastructural development in the FCT, which had been funded mostly by government, was about 30 per cent. He blamed the infrastructure challenges on over population, the FCT was planned with only two million people in mind but its current population has exploded to five million, Mohammed said. “The demographics have shown the need for Abuja as emerging city to address the infrastructural deficit. The minister who gave a rundown on some of the ongoing projects in the FCT said the rehabilitation and expansion of Airport Expressway Lot one and Lot two has reached 90 per cent and 98 per cent completion respectively, the reconstruction of Lower Usuma Dam, Gurara Dam, Jere road project is now 93 per cent completed, he said.

Abia Govt.

in Tripartite Rural Development Projects Partnership As part of the move to put a lasting solution to infrastructure setback in Abia state, the Federal Government, government of Abia and the Africa Development Bank (AFDB) have launched a collaborative effort to enhance rural roads, erosion menace and waste management in the cities of Umuahia and Aba. The Country Representative of the bank, Dr.Usmane Dore, stated this in a preliminary visit to the state which was led by the Minister of Finance and the Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala. The team includes other AfDB executives comprising of the Country Director, Dr. Ousmane Dore, Chief Country Programme Coordinator, Andoh Mensah, Infrastructure Specialist, Reni-Callie Okoro and Principal, Water and Sanitation Tom Robert. The minister said, “I am here with the AfDB Team because of the commitment of President Goodluck Jonathan and I will take back the report to him. He has been very supportive to Abia state and without his approval; I would not have come here. Now, we have the opportunity to solve some of these problems given the support of Mr. President who directed that the AfDB works with Abia state to make things better”. Okonjo-Iweala said the Federal Government is on the mandate to enhance rural development in Abia state. The objective of the visit is that the AfDB has agreed to work with Abia State and bring some more benefits to cement the Governor's legacies in the state, she said. Receiving the team, the State Governor, Theodore Orji assured that the state will cooperate with the bank as it is ready to abide by the rules as well as contribute its quota to the project. Appreciating the federal government for the interest it has shown to Abia State, the Governor said there was need for an external body like the AFDB to assist the state as the problems were beyond its scope. He bemoaned the perennial problem of rural roads, erosion and waste management which have been a lingering plague ravaging the state despite the huge sums of money spent in the past to address the problems Speaking on the project tagged Rural Access Mobility Project (RAMP); the Country Director for AfDB said that the bank operated within the confines of its strategy that includes infrastructure development under the RAMP. “AfDB will concentrate in rural development,

waste management and erosion control especially in Aba and Umuahia.” he added. The AfDB team in company of the Minister and three state Commissioners for Works, Environment, Lands also visited and inspected some rural roads and gully erosion sites in Umuda Isingwu in Umuahia North LGA, Ohia and Ubakala in Umuahia South LGA. Speaking on the budget of the project, the AfDB said, “At this stage, we can't give costs because we need some sense of prioritization, not just scope of rural and urban roads but there is scope of gully erosion. And these need to be tackled including waste management. Put all together, we will be able to do the costing and based on the collaboration with the Federal Ministry of Finance, we will be able to come to our Board to request for such financing”. “ A lot of rural roads need to be upgraded. There are a lot of challenges but this collaboration is an opportunity that we have as a state to tackle them and be able to make impact that Abians can see”, the minister said. AfDB Country Director said: “We came for rapid assessment and based on what we saw the scope of the problem. We have taken note and will be doing a lot of technical analysis in the coming weeks to come up with plans adequate enough to basically deliver on this project.


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DEVELOPS 30-YEAR

INFRASTRUCTURE

MASTER PLAN

igeria's National Economic Council (NEC) has considered the final draft of the National Integrated Infrastructure Master Plan (NIIMP) tabled before it at

one of its meetings in Abuja. This was disclosed by Supervising Minister/Deputy Chairman, National Planning Commission (NPC) Amb. Bashir Yuguda, while speaking on the outcome of the National Executive Council (NEC) meeting in Abuja where it was discussed. Yuguda disclosed that the master plan was formulated to span for 30 years and would enhance infrastructure development in the country. He stated that the Integrated Infrastructure Master Plan which begins from 2014 would span through 2043 and will focus on key areas of infrastructure including energy, housing, agriculture, ICT, roads, and security. Amb. Yugudu who made the presentation to NEC pointed out that the Master Plan, is a total way of looking at the infrastructure stock in the country explaining that “the idea of the master plan is to look at the various sectors that make up the infrastructure in the country, develop a framework, develop monitoring and evaluation and also develop focused areas for us as a nation. IQ understood that the NEC has directed the National Planning Commission and the state planning/finance ministries to review the document in line with the council's observation as well as reflect the actual required funding in line with the value of the rebased economy. State governors have agreed to set up a technical committee to study and further enrich the document. This is in agreement with what NEC agreed concerning the scheme as a robust document that is well researched and is expected to last for about 30 years so, should not be a document that should just browse over. The document is expected to be resubmitted to NEC before the final approval of the Federal Executive Council (FEC). Designed to raise infrastructure stock as a percentage of the nation's GDP from current 35 per cent to a minimum of 70 per cent, Yagudu said the idea was to focus on key areas of infrastructure including energy, transport - rail, roads and aviation. Other areas to be covered are ICT, Housing and security, water, agriculture and mining. He regretted the low level of the country's core infrastructure level saying it is significantly below the target benchmark level. He identified the required investments to improve infrastructure in line with the country's growth aspirations.

LAGOS SETS DATE FOR ROAD CONSTRUCTION

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agos State government recently gave indications that the reconstruction of Sari Iganmu and Gaskiya College Roads within the Apapa-Iganmu Local Council Development Area of the State would commence by September this year. The two roads, awarded in 2014 measuring about 3.13km, is planned as 13.4 metres width dual carriageway with service ducts, asphalt pavement, pedestrian walkways and two new bridges. Special Adviser to the State Governor on Works and Infrastructure, Engr. Ganiyu Abiodun Johnson who re-echoed the commitment of the contractors to the project, Messrs Julius Berger noted that, barring all disturbances from the community, the project would be delivered in 20 months. The Special Adviser who spoke at the stakeholder's meeting held at Ladipo Primary School, OkeOga, Sari Iganmu, urged the community to embrace the project which will significantly impact on their lives. He warned that any incidence of disturbance would stall the project. He pointed out that the construction will address flooding issue and also create another bypass that allows linkage with Lagos-Badagry Expressway and other parts of Apapa, Engr. Johnson urged house owners not to shoot up housing rent on account of the road reconstruction. He explained that the State Government will pay compensation where there is a clear evidence of title in case the construction involves demolition of buildings in part or whole. He added that all those without title documents will also be assisted based on the merit of their case as presented to the Ministry. Engr. Johnson while imploring the contractors to ensure that residents of the area are given opportunity for employment and some level of supplies so as to bring democratic dividends then noted that the road is a public property that they must protect against vandalization. Responding to the issue of bypass that enables movement of goods and services, the Special Adviser assured that the alternative road, Fadaini Street will be rehabilitated with appropriate palliatives that will ensure it lasts.

In his remark, the Council boss, Dr. Adesola Adedayo expressed gratitude to the State Government for its determination to impact the Council Area. He noted that the construction and the features of the road will free up the council's present commitment on the road for other areas. He assured of the Council's support for the State Government in its quest for development of the State's infrastructure.

FG ASSURES

ON CRITICAL ROAD INFRASTRUCTURE

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he people of Delta State and Nigerians alike have been r e a s s u r e d b y Fe d e r a l Government readiness to deliver on the Presidential mandate of providing critical road infrastructure across the six geo-political zones of the country. The Minister of State for Works, Prince Adedayo Adeyeye stated this when benefiting communities of the Utor River Bridge in Delta, Edo and Anambra States, led by Community Leaders of Ebu- Illah, Emu Inyele and Igbedo, paid him a thank you visit in his office recently. He reiterated Mr. President's unalloyed commitment to deliver on critical road infrastructure across the length and breadth of the country. He disclosed that having known the pedigree of the Works Minister and his team who contributed immensely in the achievements recorded on roads and bridges across the country, he is sure that Nigerians will, once

more, experience unprecedented road infrastructure development if Nigerians will shun negative attitudes and embrace peace. Earlier in his remarks, His Royal Highness Chief Sunday Obiafulu Ofunne who led the delegation appealed that arrangement for a more permanent work should be made for the future dualisation of the Road so as to accommodate the envisaged high traffic volume when the bridge is eventually commissioned for public use. He added that the communities “are not unmindful of the construction of the Second Niger Bridge, adding that there is the need for a Bye pass to the existing road in accordance with original blue print.” In his vote of thanks, the Permanent Secretary, Dr. Abubakar Koro Muhammad, assured that all their demands, as promised by the Minister of State would be looked into and the Utor Bridge would be commissioned within the next two months.


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MULTIPLE HOTEL PROJECTS BY

by Kingsley Jeremiah

COMING TO NIGERIA...

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he Starwood Group, a global brand in the hospitality industry that manages Sheraton, St. Regis, Westin as well as Le Meriden Hotels among others, has said it would open five new hotels in Nigeria and complete other projects across African region by 2017. In Nigeria, the new investments include the 12 storey Four Points Hotel by Sheraton in Ikot Ekpene with 128 standard rooms, 16 suites and two presidential suits. The hotel is to be opened in 2015. Others include Four Points by Sheraton, Benin City; Four Points by Sheraton, Ibadan; Four Points by Sheraton, Ikeja; and Le Meridien, Ikoyi.

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he Managing Director/Chief Executive Officer, Financial Derivatives Company Limited (FDC), Mr. Bismarck Rewane, revealed this in his latest monthly economic news and views presented at the Lagos Business School's executive breakfast meeting recently. The expansion in Nigeria which is expected to invest over $US500 million into the Nigerian growing hospitality industry was made possible through partnership agreement with strategic partners in the country. The development is expected to add no fewer than 700 to 1000 hotel rooms in the country. Speaking on the expansion at the announcement of the signing of Four Points by Sheraton Ikot Ekpene recently, senior vice president acquisitions & development, Starwood Hotels & Resorts, Europe, Africa & Middle East, Bart Carnahan, observed that Nigeria remains an important market for Starwood, as the hotel group sees a significant opportunity in growing its mid-market brands, especially Four Points by Sheraton, in the country and throughout Africa. It would be recalled that in a recent visit to Africa, the Chief Executive Officer of Starwood Hotels & Resorts Worldwide, Frits Van Paasschen, announced that the organization would increase its African portfolio by nearly 30 per cent with 10 new hotels set to open over the next three years, adding more than 4,200 guest rooms to the continent and creating thousands of local employment opportunities. “Home to seven of the world's 10 fastest growing economies, there could not be a better time to expand our footprint in Africa. Also, from a vastly improving infrastructure, major investments from China, rapid economic growth, rising personal incomes and a growing middle class – we are seeing exciting changes that are driving the African future and we intend to be a part of it.” Paasschen said. In a press briefing in Lagos, the President of Global Development & Acquisition, Starwood Hotels & Resorts, Simon Turner, earlier announced

that Starwood will open three additional hotels in Nigeria by 2015, one property in Benin City and two in Lagos, while two others were to be completed in Ibadan and Ikot Ekpene. 'Nigeria is the most populous country in Africa and boasts the largest economy on the continent, after overhauling its Gross Domestic Product (GDP) presenting tremendous opportunities for the country to play a key role in our African expansion. With investor-friendly policies in place and on-going economic growth, Nigeria epitomizes the economic ascent of Africa as a development destination', Turner said. Starwood announced in a press release last year, a plan to have nearly 50 hotels in Africa, with new hotels confirmed to open in Nigeria, Egypt, Algeria, Libya, Senegal and Mauritius. The plan includes the debut of Starwood's ultra-luxury St. Regis Hotels & Resorts brand in the Africa/Indian Ocean region with the opening of The St. Regis Mauritius Resort & Spa, followed by the debut of the St. Regis brand in Egypt with The St. Regis Cairo, scheduled to open this year. The organization said it would add to the expansion of the company's well-established Sheraton portfolio in Africa with the opening of three new Sheraton hotels in Dakar (Senegal), Annaba (Algeria) and Tripoli (Libya) as well as a Four Points by Sheraton hotels in Oran, Algeria and a new Le Méridien hotel in Cairo. The accommodation and food services sector accounted for one per cent of Nigeria's Gross Domestic Product (GDP) in the first quarter of 2014, while experts had described the Nigerian hospitality industry as a key beneficiary of the surging domestic and foreign investments in the country. Data collected by the WHospitality Group had affirmed Nigeria as the fastest-growing hotel industry in sub-Saharan Africa.

According to the W-Hospitality report, demand for luxury hotel rooms in Nigeria's political capital, Abuja, and its commercial hub, Lagos, is complemented by rising demand for lower cadre hotel facilities in secondary hotel markets, including Port Harcourt, Ibadan, Enugu, Abeokuta and Kano.


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SYNAGOGUE

BUILDING COLLAPSE MOTHER OF TRAGEDIES? by Kingsley Jeremiah

Friday, 12th of September 2014, left negative remarks in the history of collapsed buildings in Lagos. Lagos has had series of collapsed buildings but the recent loss of the building belonging to Synagogue Church Of All Nations (SCOAN) is one that the world most especially relatives of victims of the incident may not forget easily.

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s church goers from across the world gathered at the SCOAN compound located in the busy Ikotun

Apart from the claim that the church does not have the permission to construct the building, a recent editorial has

suburb of Lagos to be healed of diseases, infirmities and whatever may perhaps had brought them

raised alarmed over the competence of Lagos state government to protect citizens' lives as records show

there, little did they know that dangers loomed ahead. The same center where healing and

salvation was a major business did not pave way for about 300 people who had their last breathe or sustained

reoccurring collapse in the state. “For a state that has suffered numerous building collapses in recent years, the Synagogue tragedy, except

brutal injuries.

investigations uncover deliberate sabotage, is a ringing indictment of the inadequacy of its building control and

Perhaps those poor souls died for work of salvation as the church pastor, Temitope Joshua said, but the whole

monitoring enforcement. It calls into question its capacity to ensure strict compliance with its building codes and the

scenario was like a stage for drama rather than reality owning to the disagreement on the number of casualties,

efficiency of its agencies to monitor and prevent such disasters. The building was being built in full public view at the

responses from the church leaders and the competence of Lagos State Building Regulatory Agencies.

densely populated Ikotun area of the city and effective monitoring by physical planning and building control

The National Emergency Management Agency indicates that 84 people were felled, many of them foreigners

officials ought to have noticed and acted accordingly” Osun Defender reported. In a statement made available to journalists, the General Manager of the Lagos State Building Control Agency, Abimbola Animashaun, and the officials of Lagos State Emergency Management Agency, the church did not have approval to add three floors to the original two-storey building. As all these ensue, South African officials said the incident was the biggest evacuation in the country since its independence some 20 years ago. “A 19-member medical team including specialised doctors, nurses and medical military paramedics took care of the injured on board a military C-130 aircraft” said Jeff Radebe, the minister in charge of Pretoria's response to the disaster. Radebe said, “Two orphaned toddlers – that lost their parents in the tragedy – were among the survivors that returned. Sixteen of the wounded were in critical condition, with some of them having had limbs amputated and one had developed gangrene in the toes. Others had developed kidney failure and were on dialysis. The building was initially a two-storey building used by the church as a guest house for visitors but was being raised to a five-storey building before it collapsed.

and mostly women, while 131 had been rescued alive, including a 45-year-old woman who survived after being trapped four days under the rubbles. But officials from South African put the total number of deaths at 115, citing unnamed personnel in Lagos as source. “We understand from our assessment team that the total number of people who have perished is now 115, but those are not all South Africans. South Africans (are) about 84 that have died.” South African officials said. According to press reports, the six-storey building suddenly caved in, burying hundreds of persons in the rubble. Conflicting accounts say the four upper floors were still under construction and that neighbours had noticed it sway in recent times, but this can only be confirmed by thorough investigation.


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he investors of the ongoing Ultra-modern Onitsha Mall has said the shopping center would be opened to customers by April next year as level of work at the site is almost at the verge of completion

Speaking at a retailers forum held recently at Protea Hotel, Ikeja Lagos on the development of the project, Senior Associate Investment Officer, Africa Capital Alliance (ACA), Tolu Sokenu said the 12,000 square meters retail mall would offer over 50 stores. Reviewing the project, ACA officials said the shopping center was being constructed under Private Public Partnership (PPP) with Anambra State Government. The project is anchored by Shoprite and supported by Diamond bank, officials said. The mall facility is expected to be managed by Broll Nigeria Limited, ACA said, adding that the mall would also have parks such as the Radisson hotel park inn. “It will also offer a serene shopping experience to retailers and customers with about 12,100 square meters of net lettable space� The mall which has over 500 parking bays with six local and international restaurants is expected to be one of the largest retail centres in the region It also revealed that the Shoprite side of the mall is 75 per cent completed as progress on mechanical, electronic and plumbing works show positive result. The firm stated that the $30 million project is targeted at all segments of the Onitsha population and its surrounding environs, adding that the shopping precinct is expected to become the main retail destination in the greater Onitsha region as well as a social destination for satisfying the shopping and entertainment needs of both the local population and international visitors to the region. The Mall, located at the side of the Onitsha Hotel and Convention Centre, is situated on vast ground that boasts of enough space for the level of commercial activities it will expectedly host. ACA consultant, Osita Okonkwo, said the project had full support of the state government and the local community as the government has provided major facilities around the location. Speaking on security, Okonkwo said mobile policing and private security operatives as well as closed-circuit television (CCTV) were set to be in operation 24 hours every day. He added that the administration of the past government of the state as well as the new government drastically curbed security challenges which were a major issue in the state. The former Governor of the state, Peter Obi earlier told journalists during the foundation laying ceremony of the mall that the project is part of a move to return Onitsha to its past glory as the number one commercial city in Nigeria and hosting the biggest market in West Africa. The mall will no doubt add a lasting touch to the quest for retail trading which is the prefered option for a common Easterner.

According to a United

Nations Habitat report in 2009, Onitsha is the 5th fastest growing city in the world with over 1.5 million people. A commercial city that claims one of the biggest markets in Africa is currently experiencing rapid infrastructural changes such as the dredging of the River Niger for a new inland port as well as the construction of the 2nd River Niger Bridge, which will serve as an additional gateway from South East Nigeria to the rest of the country.

$30MILLION

ONITSHA MALL OPENS APRIL 2015


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TEJUOSHO

Redefining Lagos Shopping Experience An aerial view of the shopping complex interior

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even years after a ravaging fire incident reduced the Tejuosho Market in Lagos Nigeria to mere rubbles, the State Government last August commissioned for commercial use what is now known as Main Tejuosho Shopping Complex. The market had on December 18, 2007, been burnt down and reduced to rubbles and that costing the life of a gallant fire officer among other loses of property and wares which left most of the businessmen and women there wrecked.

However, the route to the reconstruction of the commercial outfit began to take effect when the government heeded the advice of the unsafe state of whatever remained of the old structure which at the time showed structural failure. And according to the Governor, Raji Fashola, “We took a painful decision of pulling down the old structure and rebuilding it.” The process was thrown open to promote private participation through a bidding which was won by Stormberg Nigeria Limited who turned out to be the best bidder. The financing, however, went to First Bank Nigeria Plc which is also financing other world class projects in the state and the country including the Lagos State owned Eko Atlantic City and Adeniran Ogunsanya Shopping complex in Lagos. Other projects outside Lagos include the Rainbow Town in Port Harcourt as well as other market projects in Abuja, Owerri.and Port Harcourt. Tejuosho Market came into existence 39 years ago (1975) when the then military Governor of the State, Brig. Gen. Mobolaji Johnson (retd) commissioned the first outfit. But while commissioning the phase one of the new Main Market, the Governor, Raji Fashola whose tenure remains barely eight months to pack up promised that the phase two would be completed whether he is there or not. According to him, the market is billed to become a one stop shop for Lagossians and other businessmen and women from across the West African coast who would stand to benefit from the good road network running through the currently rehabilitated Lagos Badagry expressway transverse through Lagos to Badagry and linking the West African countries. Apart from the road transport, the Blue Line of the Lagos state light rail from Okokomaiko will link up with Main Tejuosho Shopping Complex. Speaking on the facilities provided, he said they were state of the art facilities including car park for 800 car spaces. He warned that this should serve as parking space and should not be turned to trading space. Flaunting the juicy facilities the market offers, the Governor said

2640 lock up shops have been provided in the first phase; whereas no klee klamps were originally provided, 573 were later designed but with high demands 1251 had to be provided. Others include banks spaces, two ramps for the physically challenged people, crech for children, dedicated fire station. Other enticing facilities meant to woo businessmen to the Main Tejuosho Shopping Complex include 24 hour security services, Police post, waste management services, Fire Fighting equipment, fully serviced shops, experienced facility managers, public conveniences, eateries, water scheme, power back up system, adequate lighting, CCTV among others. The Governor assured that government has made sure that the convenience of both the traders and shopping population is taken care of by ensuring smooth movement into and out of the vicinity which informed the repair of the Lawanson – Tejuosho road damaged during the construction of the market. He commended First Bank for providing mortgage for a period of eight years for interested businessmen who want to acquire shops at the market. In his address, the Managing Director of First Bank Nigeria Plc, Mr. Stephen Onosanya said the project was a typical example of how the Public Private Participation can be employed on infrastructure development. The project was a result of collaboration between Lagos State Government, Stormberg Nigeria Limited and First Bank Nigeria Limited and could be compared to any of such anywhere in the world since it offers more facilities. He explained further the categories of people the mortgage covers including former tenants, owner occupiers and landlords urging interested investors to come up as they stand to enjoy generous interest rates. The ultra-modern four storey

building has altogether 4,000 business units. The Project Manager, Mr. Obafemi Onosile gave more insight to the facilities saying that there are ample staircases at an average 10 meters apart, four goods/passenger lifts, fire detectors, three generating plants of different capacities – 250, 400 and1,000 KVA; over 10 exits in every floor, numerous escape routes including four exterior routes. Also provided are generous convenience points including 134 public toilets, 32 toilets and 40 others.

An aerial view of the shopping complex from the side showing the fire escape.


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FG LINKS ROAD IMPROVEMENT

TO SOCIAL INTEGRATION

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ederal Government of Nigeria has reiterated its resolve to improve the road sector for enhanced economic activities and social integration in the country. This disclosure was made by the country's Minister of Works, Arc. Mike Onolememen recently when he stated that on assumption of office, the President, Goodluck Jonathan's administration inherited federal roads which were generally described as “death traps” as many road projects were either abandoned or moving at snail speed due to paucity of funds. He reasoned that from about 5,000 kilometers of fair roads in 2011, that at present about 25,000 kilometers of the 35,000 kilometers of federal roads are now in good and motorable condition, with some of the road alignments comparing favorably with roads in the developed parts of the World. He added that throughout the six geo- political zones, travel times have been reduced between origins and destinations, cost of vehicle maintenance have been drastically reduced, accidents and carnage on Nigerian roads have been reduced due to better pavement design and construction, and economic goods are now better distributed through the nation's arterial roads with better turn-around times that lead to more profits for entrepreneurs. He however added that with the advent of the Subsidy Reinvestment and Empowerment Programme (SURE-P) that ensured additional funding of selected projects in the road sector, which has resulted in enhanced service delivery in the sector and led to the remarkable progress witnessed in 2013 on the dualization of four (4) key arterial roads across the country. These include the Dualization of Abuja-Abaji-Lokoja Highway, KanoMaiduguri Highway, and the rehabilitation of Onitsha-Enugu-Port Harcourt Expressway, Benin-Ore-Shagamu Expressway, LagosShagamu-Ibadan Expressway, as well as the construction of the new Loko-Oweto Bridge over River Benue in Nasarawa and Benue States, and the early works on the 2nd Niger Bridge in Anambra and Delta States, among others. The Minister recalled that the Ministry is currently executing 184 No. contracts across the Country, majority of which were inherited by this Administration and progress have been made with the rehabilitation, construction and expansion of key arterial projects, including but not limited to the following:

Dualization of Abuja-Lokoja–Benin Road in FCT, Kogi and Edo States. Dualization of Kano-Maiduguri Road in Kano, Jigawa, Bauchi, Yobe and Borno States. Dualization of Suleja-Minna Road in Niger State. Reconstruction of Onitsha-Enugu-Port Harcourt Highway in Anambra, Enugu, Abia & Rivers States. Reconstruction of Benin-Ore-Shagamu Expressway in Edo, Ondo and Ogun States. Reconstruction of Lagos-Shagamu-Ibadan Expressway in Lagos, Ogun and Oyo States. Construction of Loko-Oweto Bridge over River Benue in Nasarawa and Benue States. Construction of the 2ndNiger Bridge in Onitsha/Asaba in Anambra and Delta States. Reconstruction of Mokwa-Bida Road in Niger State. Reconstruction of Akure-Ilesha Road in Ondo/Osun State. Reconstruction of Sokoto-Tambuwal-Jega-Birnin Yauri-Kontagora-Makera Road in Sokoto, Kebbi and Niger States. Reconstruction of Vandeikya-Obudu Road in Benue and Cross Rivers States, among others. The Minister stated that in addition with the enormous resources, the Federal Government is putting into the development of roads across the country; it is pertinent to understand some of the social challenges the ministry has had to contend with since assumption of duty in the road sector. These include the insurgency in the North-Eastern part of the country, excess axle load of trucks beyond acceptable tonnage on highways, indiscriminate cutting across the highways, burning of tyres on the roads, erection of bumps on roads, destruction of road furniture as well as encroachment on right of ways. The cumulative summaries of projects in the six (6) geo-political zones as by the Minister are listed in the table below:


#PROJECTS

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he Minister of Works, Arc. Mike Onolememen, at the presentation of his Ministry's achievements for the past three years of President Goodluck Jonathan's administration said that effort in the sector had shown a clear understanding of the positive connection between good road network and economic growth. The Minister said that prior to the advent of the President Jonathan's administration, the federal road network was in such deplorable conditioned that they were referred to as “death traps� due to paucity of funds or technical challenges. He said a remarkable transformation had taken place making the roads no longer death traps rather serving as economic arteries through which commerce flowed from one part of the country to another. Arc, Onolememen stated that the Federal Government's on-going rehabilitation, construction, expansion and maintenance of major arterial highways across the country have brought a new lease of life to citizens and road users, adding that from about 4,500km of fair roads in 2011, to more than 25,000km of the 35,000km of federal roads now in good and motorable condition, with some of the road alignments favourably compared with roads in the developed parts of the World. The Minister said with the on-going progress in road sector, the travel times between origins and destinations, have reduced, cost of vehicle maintenance have equally reduced, accidents and carnage on the roads have also reduced as a result of better pavement design, construction, modern road markings and signages. The Minister stated that economic goods are now better distributed through the arterial roads with better turn-around while more time are devoted to productive activities which at the same time catalyze growth in the Gross Domestic Product {GDP}. Onolememen said the Transformation Agenda in the road sector had largely been achieved with the introduction of Subsidy Reinvestment and Empowerment Programme {SURE-P} which provides additional funds for selected projects in the road sector, saying that this has led to remarkable progress experienced in 2013 on the dualization of five major arterial roads across the six geo-political zones of the nation. The dualised roads include Abuja-Abaji-Lokoja H i g hway, Ka n o - M a i d u g u ri H i g hway, t h e reconstruction of Onitsha-Enugu-Port Harcourt, BeninOre -Shagamu and Lagos -Shagamu -Ibadan Expressways. He said the proceeds from SURE-P were also applied in the construction of the new Loko-Oweto Bridge over River Benue linking Nasarawa and Benue States and Second Niger Bridge in Onitsha/Asaba linking Anambra and Delta States. The Minister said as at the end of 2013, each geopolitical zone in Nigeria witnessed enhanced construction activities, covering a total corridor of 6,500km, adding that despite the daunting challenges in revenue inflow by the administration of President Goodluck Jonathan since 2011 when he came into office, the Federal Ministry of Works has completed Sixty-two road projects nationwide and currently executing 184 projects across the country including those inherited from past administrations

3YEAR SCORECARD

Works Minister scores Jonathan's Administration high on roads

projects#TEJUOSHO

especially in the area of rehabilitation, construction and expansion of key arterial projects with a view to ensuring their earliest completion He also stated that the Federal Ministry of Works has currently embarked on emergency intervention in some critical highways infrastructure such as the ApapaOshodi Expressway that provides access to Tin Can Island and Apapa Ports in Lagos State, as well as Access Road to Mosimi Depot in Ogun State. In 2013 , Federal Ministry of Works awarded 51 road projects nationwide the Minister said, he added that the Federal Government in her effort to strengthen the capacity of the Office of the Surveyor-General of the Federation, awarded the contract for the Acquisition and Utilization of Multi-User License and Satellite Imagery equipment and the project is about 80 per cent completed. Arc. Mike Onolememen said that under his leadership, the Ministry had sustained the implantation of a number of policy initiatives by this administration and that they have started to impact positively on service delivery in road sector across Nigeria. The Minister further said that the Ministry had submitted two proposed bills to the Federal Executive Council for the road sector reform. The two bills are: the Federal Road Authority and National Road Fund which will not only attract both foreign and local investors after enactment into law by the National Assembly, but will take on the toga of sustainability in road development in Nigeria. Under the years in review, the Minister said the Ministry had flagged-off two projects under the Public Private Partnership (PPP) initiative, the projects are the Second Niger Bridge linking Onitsha and Asaba in Anambra/Delta States being undertaken by the NSIAJulius Berger Consortium and the Apakun/OshodiMMIA Expressway in Lagos State being handled by CHEC Consortium. He pointed out that to curb road abuse, the Ministry is in the process of establishing a Road Asset Management System (RAMS) with assistance from the World Bank, adding that when this takes off, it would be a Decision Support System that will create a database on the Federal Highway such as traffic, axle loading, road conditions, right of way, etc which will enable the Ministry to plan, budget and prioritize its project scientifically. Arc.Onolememen explained that, the Road Sector Development Team (RSDT) unit of the Ministry manages roads, bridge infrastructure, institution strengthening and reform programme with assistance from multilateral agencies such as World Bank, African Development Bank (AfDB) and Japanese Government Grant for policy & Human Resource Development under the platform of the Federal Roads Development Project (FRDP). He further stated that RSDT has since 2011, completed the rehabilitation of four roads, and carried out periodic maintenance of fourteen roads. The Unit is currently rehabilitating two highways in Nigeria. The Minister further stated that Federal Roads Maintenance Agency (FERMA) had in the past years maintained a total number of 22,500 kilometers of road corridors and 80 number bridges of different lengths across the nation. In addition, the Agency had mobilized 7,179 Youth, trained and engaged for road maintenance under SURE-P in 2013 for aggressive maintenance of Federal roads across the nation.


VISION

20:2020

#BRIDGES&ROADS

A

bridges&roads#NIGERIA

NIGERIA GOVT PLEDGES ITS COMMITMENT

gains of improved and sustained government investment in the road sector are evidently manifesting nationwide”. He noted that since government alone cannot fund road infrastructure development with the annual budgetary allocations, private sector is required to sustain the huge investments, while calling for partnership between the Government and the private sector in a Public - Private -Partnership (PPP) model. Prince Adeyeye further reasoned that a good road network is an essential pre-condition for socioeconomic development and the Federal Government will not relent until this is achieved. As such, he opined that the establishment of the National Road Fund and Federal Roads Authority will form the basis and take-off point for a self sustaining road infrastructure road map for the country.

Nigeria's Federal Government has reiterated its readiness to realize the Vision 20:2020 on road infrastructure development in an effort to make up for the deficit in that sector throughout the country.

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his pledge was made by the Minister of State for Works, Prince Adedayo Clement Adeyeye at a reception organized on his behalf recently in Lagos by a media outfit, City People Magazine. The Minister pointed out that the administration has embarked on an ambitious programme to restore and modernize the country's road network. This, he said would be achieved through enhanced government investment, as well as, participation of private sector and multi-lateral development institutions. He added that the Federal Government is already putting in place best practices, to drive Public-Private- Partnership (PPP) in road sector development and all other areas of development. Prince Adeyeye drummed up this Administration's irrevocable commitment and massive deployment of resources to the development of the nation's road infrastructure, adding that, “I am pleased to note that the

s part of the ongoing dualisation project of the Benin – Lokoja expressway Nigeria's Works Minister, Arc. Mike Onolememen recently commissioned a pedestrian bridge by the Auchi Polytechnic main gate. The Minister who represented President Goodluck Jonathan at the commissioning ceremony said the completed pedestrian bridge was intended to beef up the safety of the students around the busy Benin-Lokoja expressway currently being dualized. He explained that the Mr. President gave approval for the provision of a pedestrian bridge at the Polytechnic main gate and also the construction of two other bridges with longer spans to ensure durability of the structures and safety of users. Other projects also commissioned by Onolememen were River Okio Bridge, Wepa Bridge and the Ekperi-Fugar road off Auchi Polytechnic-Ekperi-Agenebode Road. Onolememen also said the commissioning were in fulfillment of the campaign promises of President Goodluck Jonathan led administration to ensure safety of lives, property, improved road infrastructure and replacement of sub-standard bridges across the nation. He added that the construction of the two bridges will ease and improve the transportation of farm produce and goods within and outside Edo state and empower the communities on the alignment. He added “the projects will substantially improve the safe crossing and movement of people in a manner that will ensure the achievement of the common objective on road safety in Nigeria and most importantly to save lives”. The Minister noted that the pedestrian bridge most importantly will drastically reduce fatality on the roads as the risk of crossing the expressway and also the deplorable nature of the existing bridges have become a thing of the past. He thereafter urged the communities to guard the projects and remain faithful as the Transformation Agenda of President Goodluck Jonathan is still on course. He warned that the pedestrian bridge should not be turned into a trading zone as there will be sanctions against such action. The Rector of Auchi Polytechnic, Mrs. Phillipa Idogho, expressed her gratitude to the Federal Government for the long awaited pedestrian bridge which will reduce carnage on the road which often results to rioting by the students who in turn cause more damage to the school and the community in general. Barrister Anthony Innih on behalf of the community leaders and the people of Edo State, thanked the Minister for his effort in bringing succour to the people of Edo State and for making them beneficiary of the President's Transformation Agenda and pledged their unflinching support to the administration of President Goodluck Jonathan.

FG in EDO COMMISSIONS BRIDGES, ROAD

The new Sapele-Benin Road, Benin City, Nigeria.


#BRIDGES&ROADS

bridges&roads#LAGOS bridges&roads#NIGERIA

minister of works

BETWEEN POLITICS & SUSTENANCE OF LAGOS APAPA–OSHODI EXPRESSWAY REHABILITATION

Among the plethora of challenges hindering the growth of businesses in Nigeria, the decadence of infrastructure takes the top spot. Thus, Nigerian entrepreneurs are used to infrastructural challenges which have forced several businesses to stop operations, while others are ailing.

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hile Lagos State Government and many manufacturers doing business in Apapa Axis of the state cried wolf, fingered politics intrigues in the entire process and held Federal Government responsible for the decay, other experts believe that infrastructural upgrade in the zone could make the difference. The Apapa-Oshodi Expressway which is a 27.5km road that was constructed between 1975 and 1978 and it is a Federal Government road. That is the more reason why it is worrisome to stakeholders why the Federal Government has abandoned the Apapa-Oshodi Expressway, despite the N2 trillion revenues that comes into its coffers yearly from the location. Aware of the importance of the road, the Federal Government had in November 2010 awarded a N6.2 billion contract for its reconstruction to Julius Berger and Borini Prono who are yet to deliver 40 percent of the work that is required to be done. Contrary to observer's notions, the Minister of Works Architect Mike Onolememen, in subsequent inspection of project visits said he was pleased with Julius Berger's pace of work, adding that government was perfecting plans to take on the Apapa-bound carriageway on the expressway.

He said then, “As we speak, we are finalizing plans to ensure that the other side of the road is taken on immediately. We are making plans to ensure accelerated funding of the project which is important and germane to the nation's economy because the road leads to the two busiest seaports in Nigeria.” Before it got to its present sordid state, Minister of Finance and coordinating minister for the economy Dr (Mrs.) Ngozi Okonjo-Iweala , along with other ministers, in 2012, also visited the Apapa-Oshodi Expressway and the port axis and assured that the road would be fixed and traffic nightmares a thing of the past. As it is now, several potholes on the expressway have turned into gullies and vehicles are trapped and containers upturned. The access roads to Apapa and Tin Can Island ports have deteriorated such that it has now become difficult for the importers to take delivery of their consignments after customs clearance. Overtime, hopes of the residents and motorists appeared to have been dashed because the Oshodi miscreants menace and that of Apapa are different ball games. Motorists are not only lamenting the rising life threatening

Loveth Okonoboh

insecurity in commuting on the expressway but the colossal loss of man hour on the road. After waiting endlessly for the Federal Government to fulfill its promises of fixing the expressway, Lagos State is now trying to explore other options of freeing the road of traffic snarl. Lagos State Governor Mr. Babatunde Fashola said the Federal Government had failed in its responsibilities on the expressway because it is playing politics with peoples welfare. He said he is relying on promise by the operators to organize the parking of their tankers in a way that traffic could move on the road, adding that if they complied voluntarily there would be no need for enforcement. Fashola wondering asked, “Why are we transporting fuel by road, why can't we do it by rail? Now make no mistake about it. There is a side of their business that we must listen to. We are the ones using the fuel and about 3,000 trucks load here every day and they have to come here. So, this is the place we put fuel, why can't we pump fuel across the country, from Atlas Cove to Mosinmi and all of that. Why are those facilities not working, what has happened to them?”


#BRIDGES&ROADS The governor despite all the challenges vowed to end the perennial vehicular congestion before his tenure in office ends. He said, “This is clearly a multi-agencies problem involving the agencies of the Federal Government: Nigeria National Petroleum Corporation (NNPC), Federal Ministry of Works and ports managers. “It is when people don't comply voluntarily that you need enforcement. When people comply voluntarily, there will be no need for enforcement”, adding that Government only intends to make the tanker operators realize the amount of pain they are causing residents and other businesses in the area by their operations. “What we intend to achieve here is to make the tanker operators here, NUPENG and their affiliates, to understand that their business operation is inflicting pain on residents of Apapa and once they understand that, it is important then to see what kind of empathy that they bring to the business.” The Governor hoping it was an easy problem to confront said the operators had agreed that they would make some changes within one week. He added that, “It is easier for me when a man says I am willing to change my ways that is hurting people. If we don't see that change, we know what to do on behalf of taxpayers and on behalf of the people who we represent.” Expressing the determination of Government to ensure that other businesses survive in Apapa, Fashola said owners of the oil companies that have tank farms in Apapa would visit the area from time to time as a group to see for themselves how they make profit at no cost on the ordinary citizens. “I think once they see this I am sure we will begin to see some organization and some empathy” he said, adding that easing traffic on the road would only constitute a temporary and relieving measure and that some of the questions that should be asked included what kind of business and economy the people want to run as a country and why fuel is being distributed with so much pain? Fashola asked some questions that seek answers saying, “Is it a business and an economy that causes pain? Why is this, the only place where fuel is being distributed with so much pain? So, what are the NNPCs of this world doing? Where is all the money that is coming out of this port going? At some point it was reported that in half a year this port made N1.4 trillion' where did the money go, why didn't we put it back into this business?” "The bridge coming into Apapa is threatened. It is just incomprehensible to me. I have never seen a nation that behaves like this in its commercial capital. “We won't give up, this is our job. It is a problem created by men and must be solved by men. So, we won't give up, we will continue to flush the traffic. We are working on inner roads in Apapa, about seven to eight inner roads are undergoing construction even for contractor working on the roads cannot move equipment to site because of the failure of Federal Government. In the interim stakeholders are of the opinion that respites could come to the residents and motorists living in that axis if only the Nigeria National Petroleum Corporation (NNPC) stops the pumping of fuel to tank farms located along Trinity-Tin Can-Creek road axis pending the repair of the road. Unfortunately, the chairman of the Presidential Taskforce on Monitoring, Performance and Evaluation, Sylvester Monye said such agreement reached by the stakeholders was yet to be complied with. Corroborating Monye, the General Manager (administration) of the Nigerian Association of Road Transport Owners (NARTO) Aloga Ogbogo said the

bridges&roads#NIGERIA

fashola/lagos

NNPC was yet to comply with the position reached at the meeting. The Lagos commissioner for Transportation Kayode Opeifa lamented that the non compliance with an earlier agreement three years ago for trucks entering Apapa to utilize one lane of the roads is responsible for the sordid state of the Apapa axis. If the pains of the motorists and residents caused by congestion and its negative impact on the economy will be ameliorated there is urgent need for infrastructural upgrade too at the ports. He said AP Moller was operating with only two cargo handling equipment meant to handle forty to fifty containers. According to him, system breakdown within the ports from time to time was another major contributor to Apapa congestions as hundreds of trucks, in the absence of parking lots, are forced to stay on the roads. Meanwhile, the Federal Government hitherto assured of its preparedness to rehabilitate the road to boost economic activities in the commercial zone. According to Alhaji Kabir Abdullahi, the Director, Federal Highways (South West), Julius Berger Plc will soon begin work on Phase II rehabilitation of Oshodi/Apapa Expressway, reiterating that the rehabilitation of the highway was a top priority for the Federal Government. “We have several projects in the South West on our priority list but Lagos/Ibadan Access rehabilitation and Phase II of Oshodi/Apapa Expressway reconstruction, Julius Berger would handle it and God willing, would start work on the bad portions in the next couple of weeks.” For the engineer supervising the Project, Mr. Godwin Eke, the phase II of the project would cover about three Kilometers and would be reinforced to cater for the heavy traffic on the road. He explained that Phase I started from around Trinity bus stop to Sanya while Phase II would start from Cele area to link Sanya bus stop area on the Apapa side, noting that phase II would be constructed with strong materials to accommodate heavy traffic on the axis. According to him, “Beachland Estate around Trinity was originally not part of the project but containers were falling every day. “It was supposed to have been done by Borini Prono but because of funds they could not handle it. Given the fact that Lagos as presently constituted is one of the fastest growing mega cities of the world with its attendant challenges, among which are a record population of over 18 million people, it is believed that it needs the best of infrastructure and accessible roads.

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Abuja-Kaduna Rail 85%COMPLETE

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inister of Transport, Sen. Idris Umar, has said that the AbujaKaduna Standard Gauge Rail Modernisation Project was 85 per cent completed. Speaking at a ceremony to mark the attainment of 100km of track-laying for the railway modernization project in Doko Kaduna State recently the minister said that work on the project would be completed in the next three months. “Today, in less than one year, the construction has attained over 100km out of 186km. In the next three months, the track will be completed. “All the materials required are already on ground to achieve the completion and availability of the rail line'', he said. Umar said the major constraints encountered in the construction were in Abuja and had been overcome. He added that the constraints of water interference at kilometre 19 and some estates built along the rail line in Kubwa were resolved. The minister urged the Chinese Civil Engineering Construction Company handling the project to continue with the zeal and determination with which they started.


#AROUNDAFRICA

newsAROUNDafrica#INFRASTRUCTURE

ETHIOPIA PROJECTS GETS $106M FROM AFDB by Kingsley Jeremiah

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he African Development Bank (AfDB) is investing a multi- million dollar in project developments in Ethiopia. A statement from the bank shows that $5-million equity investment contribution was made to the establishment of Kukuza Project Development Company (KPDC) in Ethiopia, the new firm would focus on early-stage design and preparation of African infrastructure projects. “KPDC will assume turnkey responsibility for preparing the contractual, technical and financial arrangements of its projects, and marketing such projects to a range of potential private and publicprivate investors for onward implementation”, AfDB said. The company expects to process between two and four new infrastructure projects per year. Thus, in 10 years the company aims to develop 30 to 40 projects for a combined possible investment of over $5 billion. Other initial investors in KPDC include Allied Investment Partners (AIP) of Abu Dhabi, India Exim Bank and State Bank of India (SBI), one of the world's leading project finance banks with a 10 per cent market share and an extensive network of Indian investors amongst its active corporate clients. The release also revealed that a loan of $91.10 million and a technical support grant of €7.63 million ($10.06 million) from the Rural Water Supply and Sanitation Initiative (RWSSI) Trust Fund was approved to finance mega water, sanitation and hygiene program in Ethiopia which it said was one of the biggest of such projects in the world. The One Water, Sanitation and Hygiene National Programme (OWNP) is expected to deliver improved and sustainable water supply facilities in rural and pastoral areas, institutions and urban areas; improved sanitation facilities and better hygiene; improved WASH sector capacity for planning, budgeting, monitoring, reporting and sustaining services at decentralized and federal levels.

Mozambique

by Kingsley Jeremiah

Dredging Moputo Port Quays With Italeni

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n a statement made available recently Chief Executive Officer for the Maputo Port Development Company Mr. Osório Lucas, said the development would ensure that all the Port quays are returned to their designed depth.

The organization said it had signed a Memorandum of Understanding with Transnet National Ports Authority in June last year to use Italeni, a 750 m3 grab hopper dredger, to ensure that both ports are committed to strengthening relationships. “The MoU with TNPA has resulted in the training of employees at TNPA's Maritime School of Excellence, the acquisition and refurbishment of Ntwanano tugboat (on its way to Maputo), as well as the new dredger vessel- Italeni which will be heading to the Port of Maputo in two weeks' time to assist with the dredging of the port”. “The signing of the Italeni contract is evidence that the Port of Maputo and the ports of South Africa are not in competition but are collaborating to realize the regional economic integration as the world is pinning its hope on the African continent for economic growth. These are benefits of a relationship that started a few years ago,” said Lucas.

Ethiopia Commissions Road Connecting Kenya The Yabelo-Mega road that connects Ethiopia and Kenya has been commissioned and is open for traffic. Speaking at the commissioning ceremony, Ethiopian Minister for Transport, Workneh Gebeyhu, said the road is one of several many projects underway in the country aimed at linking Ethiopia with its neighbors through infrastructure. The Ethiopia president of the Oromia Regional State, Muktar Kedir, who lauds the initiative, said the road plays a critical role in connecting different Zone, enhancing provision of health, education and other public services to the local communities. Ethiopian Roads Authority (ERA) said the construction of the road lasted for over three years and had cost the authority 740 million Birr in expenses.

UAE for WEST AFRICA $19Billion Fund for Infrastructure

by Kingsley Jeremiah

U

nited Arab Emirate construction giant, Trojan General Contracting own by

Sheikh Tahnoun bin Zayed Al Nahyan Royal Group and Earth Capital as well

as other Arab Gulf companies, have committed $19 billion investment fund to

boost infrastructural development in eight West Africa countries. The eight West African nations that include Benin

Speaking during the signing ceremony at the forum where

1.98 billion in projects for roads, bridges, airports and a

Republic, Burkina Faso, Ivory Coast, Mali, Niger,

no fewer than 16 agreements were retained, the President

thermoelectric plant in Benin, Guinea-Bissau and Niger

Senegal, Togo and Guinea-Bissau secured the deal at the

of Benin Republic, Thomas Yani Boyi said his country and

while Omani company Hasan Juma Backer Trading &

just concluded West African Economic and Monetary

other African countries had a lot of natural resources and

Contracting has promised $700 million for the development of a “dry port” in Côte d'Ivoire.

Union, (WAEMU) International Conference held in

wealth and that Dubai had become a center of business

Dubai, United Arab Emirates, Associated Press Reports.

to reckon with in harnessing those potentials.

A statement made available at the conference stated that

Trojan General Contracting and an environmental sector

the investment deals would tackle sectoral projects which

investment fund Earth Capital made the largest

include roads, railways, airports, energy, food security

commitment of $16 billion deal. Also, Emirati subsidiary

and water.

of the Indian industrial group Essar agreed to invest $


#AVIATION

dubai#AVIATION

DUBAI SETTING TRAILS IN

AVIATION INDUSTRY by Kingsley Jeremiah

The craving for construction and rapid economic growth in Dubai took another height recently as the country's ruler Sheikh Mohammed bin Rashid Al Maktoum approves $32 billion to ensure that the country receive posers in aviation industry.


#AVIATION

dubai#AVIATION

Painting: waelswid on deviantART

DUBAI Setting Trails In Aviation Industry

According to the airport authority, “the new airport's uniqueness lies in a radically new approach to ensure that the latest technology and efficient processes will cut the time spent completing travel formalities and reduce walking distances, enabling passengers to make fast and efficient connections between hundreds of destinations worldwide The CEO, Griffiths said the expansion was “a vital investment in the future of Dubai”. The aviation sector was projected to remain a “cornerstone of Dubai's economy”, and was expected to support more than 322,000 jobs and contribute 28% per cent of Dubai's gross domestic product by 2020, he revealed. “The announcement of this development is both timely and a strong endorsement of Dubai's aviation industry. With limited options for further growth at Dubai International (DXB), we are taking that next step to securing our future by building a brand new airport that will not only create the capacity we will need in the coming decades but also provide state of the art facilities that revolutionize the airport experience on an unprecedented scale.” DWC opened its doors to passengers in October 2013 and currently has a capacity of around five to seven million passengers annually. The expansion of DWC is part of DA's 'Strategic Plan 2020', which also plans for an increase in cargo growth from 2.2 million tonnes in 2010 to 4.1 million tonnes by 2020. Visitors to Dubai's current main airport have grown on average by 15% annually. In June this year, the International Monetary Fund predicted that the UAE's economic growth is expected to be 4.8% in 2014 and about 4.5% in coming years, supported by “megaprojects” such as the successful bid for Expo 2020.

DUBAI’S AVIATION CITY RULER OF DUBAI, Sheikh Mohammed bin Rashid Al Maktoum

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ecorded as the most populous city and emirate in the United Arab Emirates (UAE), and the second largest emirate by territorial size after the capital, Abu Dhabi, Dubai is expanding its global business status to make the Al Maktoum airport world's transport hub for passengers and cargo. “The project which is expected to be completed in two phases, the first phase is expected to take between six and eight years to complete and will see the const- ruction of two satellite buildings with a collective capacity to handle 120 million passengers annually and receive up to 100 A380 aircraft “at any one time, while the following phase will be expanded incrementally.

ENSG Approves 2 Billion Naira Developmental Projects

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nugu State government has approved N2 Billion for the execution of various infrastructure developmental projects in the state. Speaking at a press briefing after a recent executive meeting in the state, the State Commissioner for Information, Mr. Chuks Ugwoke, said the fund would enhance the speed at which the projects would go. Ugwoke revealed that a total of N271 million was approved for the execution of the 2013 track Water projects in some local governments including: Awgu, Enugu East, Nkanu West, Nsukka and Igbaeze South local councils. He also said about 48 million was approved for the purchase of equipment at the Ministry of Transport (MOT) Test Station, Base Workshop, Enugu. According to the Commissioner, the equipment is in line with the State Government's vision to provide, safe, reliable and functional transport system in the state. He added that when fully installed and functional, it will reduce road accident and enforce safety standards by all cadres of motor vehicle operators in the state. Ugwoke also added that N686 million was approved for the procurement of civil works in the 2013 MDG projects in the state, noting that the approval covers jobs in health and education sectors in Enugu East local government, Nkanu West and Awgu as well as in Udi, Nsukka and Igboeze South. Other sectors include road which gulp about N739 million and energy N261 million.

According to the plan made available to the public, titled “Dubai Airports' Strategic Plan 2020” launched in 2011, “It is designed to provide capacity to accommodate that growth with the primary focus directed to expand- ing Dubai International (DXB) as the most expedient and efficient way forward”, Paul Griffiths, CEO of Dubai Airports said. “The programme includes the construction of Concourse A (completed in January 2013), the doubling of capacity at Terminal 2 (by the end 2014), the construction of Concourse D (2015), Concourse C upgrade (after completion of Concourse D) to accommodate Emirates as the sole user,combined with associated stand upgrades, enhancements to airfield and air traffic control capacity, as well as the upgrading of existing facilities to improve the passenger experience”. “Passenger facilities will also continue to be expanded at Dubai World Central (DWC) to accomm- odate traffic that cannot be accommodated at DXB. Recently Dubai's hotel rooms was rated the second most expensive in the world after Geneva, significantly the country has boosted its economy with the tourism, aviation, real estate, and financial services sectors.

Governor of Enugu state, Sullivan Chime (third right) inspecting project plan


#INTERNATIONAL

MEXICO’s Freight Rail

international#MEXICO

DOT HOLDS SESSION OVER FOUR CORNERS FREIGHT RAIL

Kingsley Jeremiah

M

exico's Four Corners freight rail may soon become a reality as Department of Transportation holds a meeting with the local officials and other stakeholders on issues relating to the rail project among others. At the planning session which was held at Farmington Civic Centre, the New Mexico Department of Transportation agreed that a railroad was needed from Thoreau to the Four Corners to transport goods that support oil drilling, agriculture and other industries, The Daily Times reported "If we don't have that infrastructure, we're not going to get those volumes in energy production," the Chief Executive Officer of Four Corners Economic Development, Ray Hagerman said. No fewer than 30 officials from the Navajo Agricultural Products Industry, San Juan County, Farmington, Bloomfield, Aztec, energy companies, banks, manufacturing businesses and other economy-driving groups met at the Farmington Civic Center to give input on the statewide plan. The railroad wasn't the only issue discussed, as officials also maintained that highway maintenance will be more important if San Juan Basin energy development drives more freight trucks into the region, and the traffic is already disturbing some communities. The region's air freight, they said, is also limited. The rail project which is handled by a coalition of investors is expected to cost

$533 million. It would start from the Gallup/Thoreau area in northwestern New Mexico at the I-40 Transcontinental Railway to San Juan County, N.M. It is a complex project that would vastly expand economic opportunities for private industry, railroads, tribes and government entities if implemented. It was however learnt that the department of transportation is studying the possibility of laying the railroad along state Highway 371, but it would cross through tribal, state and federal lands. Officials had said the project would enhance movement of people, farm crops, coal, oil and gas thereby reducing traffic congestion. Farmington Mayor Tommy Roberts, a report by Free Press, says, “We look at our region of the state from an economic-development perspective and see very little infrastructure in place that can draw developers to the area. The talk of a freight rail is giving rise to talk of new industry in the area.” “Rail service can reduce shipping costs of industrial and agricultural products and spur investment in new or expanding regional industries. It is expected that hydraulic fracturing within the San Juan Basin may be able to tap oil and gas reserves in amounts that are not practical for shipping by newly constructed pipelines, and the region has ample coal reserves which can be exported to foreign markets less expensively if truck shipping to loading facilities at I-40 is replaced by rail”.


#INNOVATION

china#INNOVATION

BREAKING THE RECORD China Defies Records in Sea-bridges Invention

E

Every day records are being challenged, in the area of sea bridge, the world was dared recently as China sets a record by constructing the longest sea bridge in the world with a-three-way 26.4 miles long, 10ft wide which is supported by about 5, 200 pillars. The world's longest cross-sea bridge guzzled about ÂŁ1billion to build and became operational recently. It stretches five miles further than the distance between Dover and Calais. Named the Jiaozhou Bay bridge, it links China's eastern port city of Qingdao to the offshore island Huangdao. The project which started since 2006 was handled by two separate contractors and it is almost three miles longer than the previous record-holder - the Lake Pontchartrain Causeway in Louisiana. The bridge is expected to carry more than 30,000 cars a day, and will reportedly cut the commuting time between Qingdao and Huangdao by up to 30 minutes. However, this record may not last as China has started other sea bridge projects to challenge the world with longer bridges China officials announced earlier that workers had begun constructing a bridge to link southern Guangdong province with Hong Kong and Macau. The bridge is estimated to cost ÂŁ6.5billion and would be nearly 30 miles. It is set to debut in 2016, officials said. It would also be designed to cope with earthquakes up to magnitude 8.0, strong typhoons and the impact of a 300,000 ton vessel. This sounds interesting but that also would not last long. China officials revealed that both structures will be flout by another longest bridge in the world with 102 miles in length.

by Kingsley Jeremiah

The Longest Bridge in the World


#MARITIME

nigeria#MARITIME

UNVEILED!

by Kingsley Jeremiah

NPA UNVEILS E-SEN; RECORDS 15.4% INCREASE CARGO THROUGHPUT

AS part of the commitment to enhance quick service delivery

“Analysis has confirmed that most of the ports recorded

and improved development in international trade and vessel

increase in the Gross Registered Tonnage (GRT) of vessels

turn-around time in Nigerian Ports, the Nigerian Ports Authority

mainly due to the capital and maintenance dredging of the

has introduced Electronic Ship Entry Notice (E-SEN) as a

channel by our Joint Venture (JV) Companies, namely the

replacement to the manual process.

Lagos Channel Management (LCM) Company, for the

Speaking at the ceremony to unveil the new innovation in

management of the Lagos channel and the Bonny Channel

Lagos recently, the Managing Director of Nigerian Ports

Management (BCC) Company for the management of the

Authority (NPA), Habib Abdullahi said the manual process is

Bonny channel.

fraught with challenges, such as, duplication of requests

Meanwhile, NPA has earlier said its Cargo Throughput

among others.

had increased by 15.4 per cent in the first half of 2014.

He added that the manual process also slows response to

The NPA in a press release signed by the Assistant General

requests due to delayed verification and validation of ship

Manager, Public Affairs, Musa Iliya, said the cargo

data. He said the introduction would reduce inconveniences

throughput stood at 41,317,962 million metric tons,

people face in traveling back and forth between designated

showing an increase of over the 35,812,858metric tons

Ship Entry Notice (SEN) offices to pick up their SEN certificates

achieved in 2013.

and ports of discharge.

Giving the breakdown of the cargo throughout, IIiya said,

He said the NPA had consequently integrated an online

Liquefied Natural Gas (LNG) shipment stood at 23 per cent

payment platform on the E-SEN application. It will simplify the

while General Cargo increased by 1.3. Others include Dry

a

Bulk Cargo with 5.9 per cent increase, refined Petroleum

link to the world economy thereby encouraging international

payment processes to NPA and enhance the provision of

product was at 3.6 per cent, Laden Container throughout

trade, Abdullahi said. Speaking on other assorted issues and successes recorded since he assumed office two years ago, Abdullahi, said the NPA had granted technical approvals to Digisteel Limited and MRS Oil & Gas to expand their services at Ogogoro and TCIP as measure of encouraging private participation in port development. According to Abdullahi, to accommodate the rapid expansion and development in the port, “we are intensifying effort in the final production of a National Port Master Plan”. “As you are all aware, the biggest vessel to call at any port in West Africa (WAFMAX) with a length overall 232.33 metres and capacity of 4,500 TEUS (Twenty-Foot Equivalent Units) requiring draught of 13.5 Meters has started visiting our ports due to our consistent dredging campaign. The weekly call of the WAFMAX vessel to Lagos and Onne port is a great achievement” he said.

was at 14 per cent and Empty containers, amounted to 364,745TEUs, showing a growth of 14.2 per cent over the 2013. He also said a total of 154,846 units of vehicles were handled in the period under review showing an increase of 16.5 per cent over the same period of 2013 figure of 132,930 units. While making the analysis in other areas in the port for the first half of 2014, IIiya said a total of 2,719 ocean going vessels called at all Nigerian Ports showing an increase of 12 Per cent over the figure of 2,427 vessels in 2013. In the area of Gross Registered Tonnage (GRT), he said 70,659,820 Metric tons vessels called at the ports in the first half of 2014 and this indicates an increase of 17.57 per cent over the corresponding first half of 2013.


nigeria#OIL&GAS

#OIL&GAS

NNPC, JV PARTNERS &

GAS-TO-POWER INFRASTRUCTURE DEVELOPMENT...

NIGERIA WAITS Nnamdi Uzondu

The power reform programme of the Nigeria’s Federal Government initiated by the regime of former President Olusegun Obasanjo in 2004 for which an Act of the National Assembly was enacted is designed to be accompanied by a massive gas-to-power infrastructure development in the country. The gas-to-power infrastructure is to supply gas feedstock to all the thermal power plants scattered in parts of the country. Apart from the existing old gas plants owned by the Nigerian National Petroleum Corporation, (NNPC), and its various Joint Venture Partners (JVP), there are new gas plants that are marked for development under the new power reform initiative. These plants are also to be handled by the NNPC in partnership with its JV firms.

PHOTO According to Prof. Chinedu Nebo, Minster of Power, the various power projects are meant to supply gas to the country's 10 Independent Power. Projects ( IPPs), scattered in parts of the country under the Nigerian Integrated Power Projects, (NIPP). The NIPP, as contained in the power reform agenda, is a collection of several power plants being developed by the Nigerian government to be sold to private individuals to manage. The agency of government handling these IPPs as a holding company is the Niger Delta Power Holding Company, (NDPHC) which is currently liaising with the Bureau of Public Enterprises (BPE), to privatize the 10 IPPs in the country. Available information indicates that the 10 IPPs have a combined total power output capacity of over 5,000 mega watts (MW), a capacity that could

be raised by nearly 100 per cent upon completion and expansion. Already, according to Prof. Nebo , the Federal Government has voted a princely $450 million budget to effectuate the gas-topower project in the country. He had explained that the money would be released from the $1 billion Euro bond secured by the Federal Government to improve the power sector. Hear him: “Of the $1 billion Euro bond, there is about $450 million dollars allocated for improvement of gas infrastructure. Nigeria has

enough gas, much more than enough, but there are things that have to be put in place and part of this include right pricing for domestic gas. The price of domestic gas does not encourage producers. “Government has actually taken a step by addressing this-in creating a new tariff. I believe that this tariff will enable right price for domestic gas supply. Government is also trying to address gas infrastructure challenges. The first segment is the EastWest axis, Government is putting in billions of naira to address that. The next is the South-North, the South South to North axis”.

Prof. Nebo who also doubles as an Anglican Clergy and a former Vice Chancellor of the University of Nigeria, Nsukka, added thus: We understand' that that will take over four billion naira, about 450 million US dollars to be drawn from the Euro-bond So, there is a gas master plan and soon, the issue of gas would be settled. Unfortunately, several months after the minister gave these assurances, there seems to have been no tangible progress in the gas-to-power development infrastructure by the NNPC and its JV firms. In fact, when the

Petroleum Minister, Mrs. Dieziani Alison-Madueke and the immediate past Group Managing Director, NNPC, Mr. Andrew Yakubu , appeared before the National Assembly (NASS) to defend some of the activities and finances of the Corporation, they both claimed, though separately, that the gas-topower projects were on course. The minister in particular, explained that the Federal, government was interested in seeing that the projects were completed in good time, hence, the arrangement to fund some of them through the Euro-bond loan. According to her, the gas-to-power projects , are at the heart of the plans by the President Goodluck Jonathan, administration to transform the economy of the country and to lift her into the club of the 20 biggest economies in the world by 2020. Nigeria is


nigeria#OIL&GAS

#OIL&GAS currently occupying the 26th position in global economy, while standing atop the pack as Africa's biggest economy with a Gross Domestic Products (GDP), of nearly 4,000 billion, closely followed by South Africa and Egypt. The 10 power plants are located in Calabar, Cross River state Capital; Egbema in Imo State; Ihovbor in Edo State; Gbarain, Sapele in Delta State; Omoku in Rivers State and Alaoji in Abia State. Others are Geregu II; Olorunsogo II in Ogun State and Omotosho II in Ondo State. These 10 IPPs which have a combined capacity of over 5,000 MW are supposed to be completed between 2014 and 2015 to enable the country beef up her national grid capacity to 10,000mw. Nigeria curenlty has about 5,000mw in her grid, although the peak demand is over 9,000mw. This means that the country requires over 4000 Mw to meet her peak capacity. It is expected that by 2015, the country would have attained, at least, 10,000mw to meet her peak demand with 1,000mw to close up existing suppressed demand or to stand as redundant capacity. The delay in the completion of these gas-to-power projects is therefore, hurting to the economy. But what is causing the delay? According to Independent Power Producers Association of Nigeria IPPAN, the cause of the delay is multi-faceted. The association had complained to the government about the frustrations being experienced by its members in obtaining waiver certificates from the Nigerian Customs Service, NCS, to enable them clear their gas infrastructure construction import materials. Our Correspondent gathered that under the new import policy, the federal government granted waivers on all gas-related construction materials and equipment to encourage and fast-track the country's gas development and exploitation. The import waiver is the sole responsibility of the president, who currently exercises authority through the Coordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo Iweala. Although our findings showed that some of the waiver certificates have been released, a lot more are still outstanding thereby delaying the clearance of the gas equipment at the ports. The association whose views were presented by former Information Minister, Prof. jerry Gana, also complained about the fear of possible lack of patronage in buying off the electricity or power generated by IPPAN members. They demanded a guarantee from the Federal government that all their output would be purchased by government in case of failure by the Distribution Companies, DISCOS, to keep pace with the Volume of power produced by IPPAN. According to him IPPAN wants a guarantee with the bulk traders, in the likely event (that) they are not ready to pay, the government support fund will then be used to clear such payment. The guarantee fund can target between 5000mw to 10,000mw power generation.” He also captured the waiver challenge this way: “We have been having problem with waiver clearance for importation of gasrelated machinery and equipment as it takes time to approve an explication by our members to obtain waivers on import duties for heavy gas-related machinery and equipment, even though

Federal Government has said it will grant waivers on such importations. We are soliciting that the Ministry liaises with other ministries to facilitate this.” Our findings also showered that pipeline vandalism has contributed to the delay of the gas-to-power projects. A recent report by the Department of Petroleum Resources (DPR), whose duty is to regulate and monitor the oil and gas activities and operations, indicated that no fewer than over 1,000 line breaks were recorded in the Escravos– South West axis in the last two quarters. The celebrated Arepo pipeline break in which some four engineering staff of the NNPC and their local guide to locate a vandalized portion of a pipeline at Arepo, Ogun State typifies the savagery exhibited by these vandals. According to the DPR and the NNPC, the cost of pipeline vandalism is enormous to the economy. And whereas, the target is always crude oil pipelines, the gas pipelines are not spared because the vandals can hardly distinguish the crude pipelines from the gas pipelines. The tragedy of human elements has contributed to making the realization of the gas-to-power projects a lingering expectation. Meanwhile, some of the projects are being delayed due to unresolved issues between the operators and the host communities. Although the Shell Development Company, SPDC, has denied any such development, there are indications that the host community of its Assa gas project which straddles between Assa North to Ohaji Egbema, in Imo state is being delayed due to unresolved issues surrounding the Environmental Impact Assessment (EIA), report. The development has also in the past raised some agitations, in the host communities leading to series of trouble-shooting by the parties involved. A spokesperson from SPDC however insisted that despite the agitation the company carried out the EIA evaluation is in line with laid down Act of 1992. “We registered the project with the Federal Ministry of Environment and the Department of Petroleum Resources verified the proposed project site and field scoping workshops with communities in Imo State, regulators, journalists, the National Petroleum Investments Management Services, NAPIMS, and Imo State Government officials on July 12, 2012,”the Shell official said recently. The official also added thus: “Field data gathering was conducted with the active participation of regulators, community representatives and Imo state Government officials. “The draft EIA report was then displayed on July 14 – August 11, 2014 at Centres in Egbema, Owerri and Abuja as approved by the Federal Ministry of Environment. The Ministry is now collating comments from the unions display centres in readiness for a panel review meeting which concludes the EIA delivery process.”

Even then, it must be pointed out that it is not only Shell that is facing this kind of challenge. Other oil firms are also in similar difficulty. For instance, the various communities surrounding the Excravos, where Chevron operates from have in recent times also demonstrated against the operation of the oil firms. The implication of all these is that the gas-to-power infrastructure development of the federal government is being delayed. And, as long as they remain uncompleted, the country will have to keep groping in darkness in search of elusive stability in power supply. The delay in these gas projects is especially unacceptable when it is realized that some of the IPPs have been completed and only awaiting to be streamed into the national grid as soon as the gas feedstock projects are ready to deliver gas to them for operations. How long will this waiting be? Perhaps, the NNPC and its JV firms should provide the answer.

QUOTE


#POWER&ENERGY

world#ENERGY

SOLAR POWER INSTALLATIONS JUMP TO A NEW ANNUAL RECORD

New analysis by the Worldwatch Institute examines global trends in solar power

T

he year 2013 saw record-breaking growth for solar electricity generation as the photovoltaic (PV) and concentrated solar

thermal power (CSP) markets continued to grow. With over 39 gigawatts installed worldwide, the PV solar market represented one third of all newly-added renewable energy capacity, write Worldwatch's Max Lander and Climate and Energy Intern Xiangyu Wu in one of the Worldwatch Institute's latest Vital Signs Online trends. Solar PV installations nearly matched those of hydropower and, for the first time, outpaced wind additions. Even though photovoltaics continue to dwarf CSP capacity, the CSP market also had another year of impressive growth. By the end of 2013, a total of 19 countries had CSP plants installed or under construction. Consumption of power from PV and CSP plants increased by 30 percent globally in 2013 to reach 124.8 terawatt-hours. Europe accounted for the majority of global solar power consumption (67 percent), followed by Asia (23.9 percent) and North America (8.1 percent). Worldwide, solar consumption equaled 0.5 percent of electricity generation from all sources. Despite the record growth in installations, global investments in solar electricity were down 20 percent (from $142.9 billion in 2012 to $113.7 billion in 2013), reflecting a significant decrease in costs. In July 2014, global PV module spot prices reached an

·China installed 12.9 gigawatts of PV, the most ever installed in one year

all-time low of $0.63 per watt. For the first time, Asia

by any country. The country's momentous expansion was fueled largely

overtook Europe as the largest regional market.

by its feed-in tariff (FIT) program, which supports large, grid-connected

While global PV module production increased by

utility-scale projects as well as distributed generation projects. However,

only 3 percent over 2012, module shipments jumped

grid connections are struggling to keep up with the rapid pace of China's

by 24 percent, signaling an easing of oversupply

PV deployment. ·Europe installed close to 11 GW of PV. This represented the second annual decline in installations after peaking at 22.3 GW in 2011. In Germany, a reduction of FIT rates and an increase in regulations for utility-scale projects contributed to the fall in installations.

problems. Prospects are bright for solar development as prices continue to fall and approach grid parity in an increasing number of contexts. Rooftop solar is already less expensive per megawatt-hour than retail electricity in Australia, Brazil, Denmark, Italy, and Germany. Estimates now also show that PV has

·North America added 5.2 GW of PV. The United States installed the third most PV worldwide, with 4.8 GW. ·In Central and South America, solar development has been sluggish. Despite power consumption more than doubling in 2013, the region still

become price-competitive without subsidies in 15

accounts for a small fraction of the world's solar power.

countries. For 2014, solar installations are estimated

·The Middle East and Africa had little PV activity, with the exception of

to reach 40-51 gigawatts.

Israel and South Africa, which added 420 MW and 75 MW,

Country Highlights from the Report:

respectively.

(Culled from Worldwatch)


#POWER&ENERGY

world#ENERGY

A lot of reforms have been going on in the power sector in Nigeria of recent but how much of the effects are Nigerians enjoying especially those in the manufacturing sector? The Managing Director/ Chief Executive Officer, Coleman Technical Industries Limited, Mr. GEORGE OLUTOPE ONAFOWOKAN, who spoke to IQ man DACHI MADUAKO feels that the power reformation succeeded in dropping public monopoly to private monopolies. Extract.

POWER REFORMATION:

“WE ONLY DROPPED PUBLIC MONOPOLY TO PRIVATE MONOPOLY”


#POWER&ENERGY

world#ENERGY

Q. Sir, how do you see the current reformations in the power sector and the future of Nigeria in this wise? I think the current reformations in the power sector, we haven't decentralized well enough in terms of what we have done on privatization. What I mean basically, we dropped government monopoly to private monopoly. Because what we have with the DISCOS are individuals involved who have become their own individual distribution zones but under privatized. Now who is competing with who for what? How do you drive down fast or how do you improve services if there is nobody competing with each other? Ibadan zone is still Ibadan zone, Eko zone is still Eko zone. They cannot even trade in each other's zone, neither are there any people coming into those zones to create distribution and generation competitions. So, that is the only set back we have had with this privatization on the power sector with the move for privatization of more power in the industry. And I think if the government can see how they can correct that in terms of policy, I think we can strike a way forward. But the right way is to actually move the power sector into private hands and I support that. Q. In other words, there is still hope for this nation in the privatization? Yes, there is, there has to be hope that things will be done right, investments will be done into this sector, maybe not as fast as we are expecting because if we look at it, the power sector. A lot of companies that have bought into this idea did borrow a lot of money and so, we are now with the companies heavily borrowed, how do they make new investments? And with the type of power sector we have from the DISCOS to the GRANSCOS which are the power generating companies. We still need a lot of investments, even from what they have done. I think Coleman is renowned for quality because: One; our watchword has always been quality and

Q. Coleman is purely a Nigerian outfit, what is the concept behind this organization?

two; as Nigerians, we need to be proud of what we do. I am a passionate Nigerian that believes that

Yes, Coleman is definitely a purely Nigerian owned company. What our main core

us as a team, the Coleman team aims towards quality. We check our quality all the time and process the

whatever a Nigerian is doing should be in a way to be able to compete anywhere in the world. And for business is, is to manufacture Coleman wires and cables. We are local producers of all types of wire from power cable to the distribution cables, telecoms cables and now we are going into high voltage distribution end, making us the first producers of such in the

quality assurance keenly. We have ISO 9,000 and we have 2008 quality assurance. We have put a lot in quality assurance on our cables and even on our processes and I think that key has kept us where we

West African Coast and the sixth largest producer in the continent of high voltage

are and our ability to continue with the implementation system and better technology and the use of

cable up to 33 KVA.

technology and fundamentally being able to keep the standard of the high quality.

Q. when did this company come into operation? We came into operation in 1975 as a company that was meant to go into certain manufacturing of coolers and fridges and the rest of them, but later a company that was

Q. Sir, fake products especially electrical parts are everywhere in Nigerian market. Has any of your products been faked? How do you manage to check infiltrations and do you have any relationships with SON?

a trading company in those industrial products. By 1997 and there about 1998, a company that turned from industrial trader to a production company of power cable

I think we work more on trying to check infiltrations of our cables than actually looking for those who are

mainly voltage wire cables from Ikotun at that time our main office.

faking cables. Faking cables will always exist; because there are sub standard cables. SON is doing its

Q. Nigeria is an open market nation where indigenous companies struggle hard to survive in the face of stiff competition with foreign products. How have you fared?

Odumodu. I have seen a lot of improvement on what they are doing now and we have seen a lot of

best at least they are doing a lot more than they used to do under the current Director General, Dr,

cables being impounded both in the markets and in the warehouses. So, for us, it has not been too much of noise because we always make sure that we increase volume because I think one of the key criteria to

I think for Coleman, we have fared well, the reason being that what we sell is quality and I think over the years we have been on the helm of affairs foe 14 going to 15 years

scarcity, to imitation, to advocation of purchase is one availability of the products and as long as you try

now and I think the major thing that we have seen in Nigerian market is that quality has

and make sure that your cables are available which means to continue to expand our own ability, we

now been a watch word and we could actually say that we are one of the only few

are curtailing that part of the business from our own business.

industries if not the only one that people would say buy made in Nigeria over a foreign one. There are too many disadvantages of foreign cables vis a vis, the quality of what

Q. What is your relationship with SON?

we make here.Aand the standards that we have in Nigeria are under the NIS standards are very high standards that keep light safe but the foreign cables that come

Ans: Well, I think our relationship with SON is very cordial, we encourage them in any way we are able

into Nigeria really have no control; have no set standards; some majority of the time,

to and I think under what they have been doing recently, I think we have seen a lot of improvements in

almost 99 percent of the time do not meet Nigerian standards. So, that, be it as it may,

the standards of goods in Nigeria and even in the standards of goods produced in Nigeria because I

affects in comparison to our own cable. It's really incomparable. Made in Nigeria

think level of leadership has been a lot more focused on standards rather than just focus on inspection.

cables, Coleman Cables is far better than the foreign cable. That has made us

So, those changes have helped our industry and have helped drastically reduce the import of

Coleman Cables stand out. Coleman Cable is a household name and making us stand

substandard goods in Nigeria.

out over the imported cables. Q. Coleman is renowned in Nigerian markets because of the quality of your products. What is the secret behind this?

Q. So, how is your distribution network to ensure your products get all over the country? In every area, from distribution, to transmission, to generation, there should be competition for this


#POWER&ENERGY

programme, we should allow others to come in easy, without too much strain. I think the majority of problems in the power sector is that there is so much bottleneck that it creates hindrances to we Nigerians.

Q. Sir, what about the pre paid meter, they are

world#ENERGY

own side of this, we don't get the service, we don't get deliveries,

content law, we don't have a country local content law, we have

but we get increases. So, for the little you are even getting, you are

a local content law that actually affects oil and gas, we don't

paying so much for these services that are not good enough. So,

have local content law that affects everything. The rest is policy,

that I think has always been the strain everybody looks at tariff

with policy, there is no penalty for flaunting it. For a law, there

increase as. If tariff increase comes, and services are improved,

would be a penalty for flaunting it. So, we need to have a

delivery of power is better, then I think we will not be complaining

situation where we have laws backing local content use. So, the

about it. But it is not so.

nowhere to be found and the public is crying out for this?

Q. Do you think we can win the war against fake products?

We actually have pre paid meter companies in Nigeria that

government is not using enough local cables, we can do a lot more, our capacity is not fully utilized because we are not getting more patronage from the government and importation still is the watchword. You see everybody wants to take the

can manufacture and assemble them. At least I have been to

Yes, we can. I totally believe we can win the war against fake

money abroad and buy abroad than actually buy locally. It

one factory before and there are a couple of them in Nigeria. I

products. But it will take the effort of everybody. It will take laws, it

saddens us that we put so much investment into this business

think the key issue of pre paid meter happens to be the enthusiasm to put them in place. There is no point putting a pre

will take policies, it will take SON, it will take the police, it will take

and we are not being patronized.

literally everybody. But one key part of stopping things like that is

Q. So, now, what is your advice to the government and to the

leadership. We must have good leaders at the helm of affairs of

paid meter if I am not going to have light and I am paying for it.

this government that are in charge of affairs. I think where the

So, those are the key hindrances to pre paid meter sub status.

leadership is good, we have a chance of reducing if not stopping

And also, the investment in it is irrecoverable, so all those things are things that need to be done, looked at critically, how do we pay for these meters? What are we charging for these

fake and sub standard cables in our country. This brings me back to the SON issue, if you look at the current leadership of SON

consumers? My biggest advice to the consumers would be if you want cable, buy local, buy the government cable or any cable nearest to you, because that gives you peace of mind, the major advantage also of the product of Coleman is our investment, we are making over 10 billion naira worth of investment in Nigeria

compared to the previous one which I can say did nothing in its

at the moment to be the first producers of medium voltage

tenure, compared to this one, we have seen more seizures of

cables this year, to be first producers of high voltage cables, Tv

meters that make the substance of pre paid meters be

cable we have seen in two years than we have seen in 20 years,

cable this year and also network cable. So, we are pioneering

something to talk about well enough? But for now, it seems an

and it is impacting our industry positively, it is impacting other

a lot of cable for Nigeria and West Africa this year which is a

hindrance because we are making it one. I don't think it's an

industries positively because the standards are being adhered to.

hindrance, if the charges are in place, people will buy pre paid meter. And pre paid meter I think should be the right choice for everyone.

Q. The tariffs that are charged and the rumor that they are going to increase the tariffs is putting a lot of fear in the mind of the public, what do you think about this?

If people bring in standard cables, we will compete with them, not when they bring in sub standard cables. Q. What about patronage, are you being patronised, both by government and companies and organizations that need your product? I think local patronage is still not good enough, the local content

huge investment. We have a passion for this country and the only way we can move forward in this country is make sure things‌ that we can grow beyond being dependent on importers and as one that believes so much in manufacturing and industrialization of this country that the necessity of our growth is dependent on us and not outsiders pushing this actual growth through building more capacity in our business. Q. To the government?

law on oil and gas, yes, it's been set up but is not pushing the

To the government, I think the need to do a lot more, they need

IOCs enough. Unfortunately, there is no local content law overall

to do a lot more, they need to look at how to improve form the

on Nigeria, it is only affecting oil and gas.

SMEs side, they need to look at how to create better finances for SMEs, how to create better finances for industries and

I am not really bothered about the tariff increase because the tariff increase would happen whether we like it or not. Inflation, all sorts would break parameter. But I think why people get apprehensive is that after tariff increase happens; there is still no improvement in the services. So what exactly are we being charged these tariff increases for? So, I don't think people are complaining or bothered about the tariff increases if they are getting the service for the tariff increase. But on our

Q. Can you explain further the IOC issue?

manufacturers, how to grow the economy using good financing methodology to grow on the micro and macro side of it. So if we

IOC is the International Oil Companies. The International Oil Companies themselves are not pushing to adhere totally to local content oil and gas law if they can avoid it. But the local content board is doing a good job, they have done a good job since they

can continue to create incentives like CBN did years back, I think those incentives need to continue to push this economy in the right direction where nobody is talking about reduction and interest rate because that might affect us. But we need injection of incentives, incentive based finances which they did with

have been in existence and I believe that they can and will do a lot

CBN intervention Fund. It's basically an Intervention Fund that

better. Now with regards to the same way we have the local

needs to come up at ready time, I think there is one there now.


#OIL&GAS

ceramics

Why Nigeria Is Not Tapping Into $408 Billion Ceramics Industry

I

n the 1970s and 80s, Nigeria's industrial sector witnessed a remarkable boom. With abundant raw materials in virtually all the sectors, coupled with the availability of human resources, the fortunes of operators in the industrial sector experienced significant boost. Within this period, for instance, several ceramics manufacturing concerns sprang up across the country, riding on the back of the nation's abundant solid mineral resources particularly ceramic raw materials such as alumina, carbon, clay, feldspar, kaolin, quartz, silicon, and zirconium in the local manufacture of ceramic products. The raw materials are easily found in all the geo-political zones of the country. Some of the ceramics manufacturing concerns that dotted the industrial landscape then included Modern Ceramics Industry Umuahia; NigerianItalian Ceramic Product Industries, Ifo, Ondo State; Ceramic Manufacturers Limited, Kano; Eleganza Ceramics Industries and Richware Ceramics (both in Lagos), among others. The activities of these firms once held the collective hope and aspirations of Nigerians that the nation's age-long over-dependence on revenue from the oil & gas industry would soon be a thing of the past. The thinking was that the operations of these once vibrant ceramic companies constituted a strategic effort at diversifying the economy. But that has been the case. Instead, most of them have since shut down, dashing the hopes of Nigerians of a possible shift away from the nation's over-dependence on proceeds from oil. Several local companies, which delved into the industry in the past were snuffed out by unfavourable manufacturing climate due to policy somersaults, smuggling, and influx of sub-standard products, among others. Because of the high mortality rate of these companies, most of the ceramics needs of the country are met by imports from Asia and Europe. Nigeria currently imports over $600 million worth of ceramics products annually, occupying 9th position among world's ceramics consumers, according to a Professor of Ceramics Engineering, Patrick Eguakhide Oaikhinan. Prof. Oaikhinan, who is also Chief Executive Officer (CEO), Epina Technologies Limited, a consultancy outfit, also said Nigeria remains the only country among the emerging economies without export. This means that Nigeria is yet to tap into the lucrative global ceramics market projected to reach $408 billion by 2018, according to the renowned Professor.

nigeria#OIL&GAS The global ceramics market is projected to hit $408 billion by 2018. Rather than ride on the back of her abundant solid minerals deposits and initiate appropriate strategies to tap into this lucrative market for ceramics, Nigeria continues to import over $600 million worth of ceramics products annually. Experts blame this on dearth of skilled manpower and industries to process raw materials for the production of ceramic products.

Story: Mary Chikezie


nigeria#OIL&GAS

#OIL&GAS The Professor, who spoke at an event in Lagos to announce preparations for the forthcoming 'First International Ceramics Trade Fair' in Nigeria organised by his company, expressed regrets that Nigeria has no appropriate strategy in place yet for the development of ceramics industry that could create over 1.2 million direct and indirect jobs. “There is need to bring together a network of partners from across the world to set a new paradigm for the development of the ceramics industry in Nigeria,” he stated, noting that “it is expected that the fair would provide a launch pad for networking, collaboration, and discussion on the advancement of ceramics products.” The need for such networking and collaboration, he said, had become necessary in view of the fact that ceramics could be deployed in various applications such as aviation, automotive, construction, electronics, household, and medical sectors; components and assemblies for industries as diverse as chemical, petrochemical, beverage, power distribution, mining, and textiles, among others. To drive home his point, Prof. Oaikhinan listed some specific uses for advanced ceramics to include gas turbine airfoils, rotors, combustors, and exhaust; electronics/optical laser positioning mirrors and packaging, and amour. Others are furnace radiant heaters and fans; hot gas filtration; fuel cell membranes; metal casting immersion heaters, among others. The Director General, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Mr. John Isemede, said that because of the diverse use of ceramics, Nigeria has to look inwards and develop the raw materials that are abundant in the country rather than depend solely on import. “What people are going to the Far East to import, we have the raw materials here in Nigeria. Why we are having problems in Nigeria is because the private sector is not working with the universities. The government is also not doing same. With all the research centres in the country it is a pity that we do not have a functional ceramic sector in spite of the fact that we have all the raw materials needed to set up such,” he said. Similarly, the Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf, said that the fact that oil prices are crashing is signaling the beginning of trouble for Nigeria and means that there is need to create an enabling environment in the form of infrastructure and quality of institutions and

policies to develop the solid mineral sector of the economy. While expressing regrets over the nation's dependence on oil and gas, he warned that the consequences would be dire if anything goes wrong in the world oil market. Apart from lack of government patronage and robust policy to support the development of the solid mineral sector, experts say that lack of requisite skill and manpower as well as industries to process raw materials for the production of ceramic products are responsible for the comatose state of the sector. “There is lack of significant number of professionals with appropriate skills and expertise in the ceramics manufacturing business in Nigeria. “The gap in skills is a big blow to the captive industry. Our local ceramics manufacturing businesses are struggling to process their own raw materials. This is because they mostly lack knowledge of the chemical and mineralogical compositions, physical and mechanical properties of these raw materials,” Professor Oaikhinan told IQ in an interview. He said, for instance, that there is no higher institution in Nigeria that offers training in ceramics science and engineering despite its strategic importance in the actualisation of the administration's transformation agenda. Despite the industry's capacity to create over 1.2 million direct and indirect jobs, Nigeria is yet to borrow a leaf from a country like India where about 5.5 million of its people are directly and indirectly employed by the tile industry, which is a sub-industry of ceramics, according to managing director, German Engineering Federation, India, Rajesh Nath. Oaikhinan threw more light on the capacity of the ceramics sub-sector to generate tons of jobs. He said: “We have various departments that can create these jobs. There is the raw materials unit, as well as the processing unit across the industry. We have the body forming unit, the drying and firing unit, the glazing unit, inspection and packaging unit and laboratory and quality control unit. The glazing unit is an industry on its own. Assuming that we have 40 sanitary wares manufacturers which can engage 500 Nigerians directly, in total, 20, 000 people would have been engaged. In ceramics we have over 15 strong areas such as floor and roof tiles, table wares, pipes, technical ceramics, porcelain, among others, that can engage 500,000 Nigerians.'' He also pointed out that the industry's capacity to churn out indirect jobs is quite huge. “People will work as distributors, marketers, carpenters, brick layers, interior decorators, among others. The research we have carried out shows this can create over 1.2 million jobs comprising of over 51 per cent of female workers,'' Oaikhinan said, adding that he has approached the Nigerian University Commission (NUC) to discuss the possibility of establishing

departments of ceramics in the universities and polytechnics, but is yet to get a favourable response from them. While berating government on the auto policy, he noted that the nation cannot possibly have a viable auto industry without functional ceramic industries. According to him, 50 per cent of car parts and accessories are made from ceramics. The sector, he also said, holds the key to moving the energy sector forward in the nation's quest to improve electricity supply. He said most of the parts needed by the electricity distribution and generation companies (DISCO's and GENCO's) are made from ceramics. Would the numerous benefits and applications of ceramics in various sectors galvanise government and members of the private sector to collaborate and revive the once vibrant sub-sector? The raw materials are in abundance. The human resources are also in large supply. What is probably in short supply is the political will on the part of government to initiate policies to encourage local and foreign operators in the subsector. This is so considering the fact that the sudden disappearance of ceramics manufacturing outfits from the industrial landscape poses serious threats to the realisation of Federal Government's industrial revolution plan.


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