World Bank Okays N45b for Nigerian Roads

THE World Bank has approved $390 million (N45 billion) credit facility to support the Federal Government's road sector reform programme.

The World Bank Country Director, Mr. Onno Ruhl, disclosed this yesterday in Abuja at a workshop on "Road sector reform: The way forward", organised by the Ministry of Transportation in collaboration with the Bureau of Public Enterprise (BPE).

According to him, $330 million of the facility would mainly support the Federal Government in the introduction of long-term performance-based contracts under the Federal Roads Development Project.

Ruhl, who was represented by Mr. Justin Runji, explained further that the balance of $60 million would support government's efforts to address rural transport needs, adding: "The amount will support Kaduna State, which is among the first of the states that will benefit from rural access and mobility projects."

He said the bank approved the fund to Nigeria with the belief that the country has the capacity of setting best practice standards in road transport in the region.

"Under the Nigerian transport sector-related reforms, we understand that the government would be redefining its role from that of an exclusive provider of infrastructure to a role of infrastructure ownership and facilitator of better infrastructure provision and usage."

"In roads, these reforms will result in adoption of modern, commercially-driven, market-oriented, road management principles thus providing favourable environment for Public Private Partnerships (PPP) and more participation by road users", he said.

According to him, "we believe that these reforms will result in many significant improvements in road management, including budgetary savings, more streamlined bureaucracy, increased professionalism, greater transparency in procurement, and a more strategic approach to road planning and financing."

In his remarks, President Umaru Musa Yar'Adua said the reforms in the road transport were to create an enabling environment for Private Public Participation (PPP) and involve road users in the development and management of roads in the country.

The President, who was represented by his deputy, Goodluck Jonathan, noted: "We are all witnesses to the significant improvement in the operational performance of our seaports due to private sector participation."

"It goes without saying that other government ministries and agencies need to step up action to achieve greater private sector involvement in public services. The Federal Ministry of Transportation, which is today the country's largest infrastructure ministry, must lead the way in the development and actualisation of the PPP strategy," he said.

He said: "We need to note that for any reform in our road sector to be worthwhile, we must evolve inter-modal transport strategies, and as such, pay adequate attention to other means of transportation such as railways, inland waterways and air transport."

The President, who said the ministry was making efforts to rehabilitate the existing rail lines in the country, added that "funds will soon be released for the completion and commissioning of the remaining 19-kilometre stretch of the Ajaokuta-Itakpe-Warri standard gauge line."

In her goodwill message, Director-General, BPE, Mrs. Irene Chugbue, said the alarming situation of poor road conditions contributed greatly to high vehicle operating cost and reduced the competitiveness of the country, especially its exports to the international markets.

According to her, "as at the beginning of 2008, about 40 per cent of federal roads have been estimated to be in less than satisfactory conditions while the percentages are much higher for many states and local governments."

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