Speeches

Building Infrastructure For A Megacity: Vision & Practice

Nov 18, 2009 - I am indeed delighted this morning to welcome all our friends, visitors and participants from far and near to the Lagos State Infrastructure Forum 2009.

This event is a follow-up to the highly successful one held in London, UK last December. Our objective is to sensitive and engage the local international business community about the diverse investment opportunities available as we develop the infrastructure required to improve the quality of life of our people and to realize our vision to be Africa's model megacity.

INTRODUCTION
Let me at this onset emphasize the fact that we did not choose to be a megacity. It is a status that we have acquired as a result of urbanization and the increasing movement of people from diverse places into our city/state.

A megacity is usually defined as a metropolitan area with a total population in excess of 10 million people. Some definitions also set minimum levels for population density (at least 2/000 persons/square km). Megacities are characterized by rapid growth, new forms of spatial population density, and both formal and informal economy, as well as poverty, crime, and high levels of social fragmentation.

A megacity can be a single metropolitan area or two or more metropolitan areas that converge. The United Nations categorises any urban agglomeration with a population in excess of ten (10) million as a megacity.

In the world today, about 1.3 billion people live in cities and Lagos is one out of the 19 megacities. With a population of about 18 million and growth rate of about 6%, Lagos has been projected to emerge as the 3rd largest megacity in the world with a population of 24.5 million (UN Habitat) after Tokyo and Bombay by the year 2015. The government of Lagos State has thus embraced the task of transforming Lagos into Africa's model megacity and indeed the state of our dreams.

CHALLENGES OF ADMINISTERING MEGACITIES
Because the classification as a megacity is a matter of status, it has consequences which are a mixture of challenges and opportunities. Naturally given the size and population of Lagos and other mega cities, the issues associated with administering them are also of mega proportions.

For instance megacities require mega social services ¬investments in educational facilities; health care, services; youth, social welfare and employment initiatives and other social and infrastructural facilities commensurate with their size and population. They are associated with a high degree of pollution and environmental consequences.

In this age, when concerns about climate change are at the top of the global agenda, the issue of pollution of the environment associated with all human societies, but pronounced in megacities is also a big concern.

Mexico City for instance, (population of 8 and 19 million in the City and Metropolitan area respectively) lies in a basin over two kilometers above sea level, which acts as an efficient pollution trap. In that city (and I might add our circumstances in Lagos are similar) vehicle and industrial emissions combine with intense tropical sunlight to produce huge levels of photochemical smog that irritate eyes, damage 'lungs, trigger heart problems and harm plants.

Problems of crime and insecurity may also naturally be accentuated in megacities not just Lagos, but others such as New York, Johannesburg, Mexico City and similar bustling cities.

With the convergence of people of different stripes and background, and with the social issues of unemployment, housing, drugs and youth restlessness associated with large' cities, offering effective policing and security is another critical challenge.

The scale of disasters in megacities may also be expected to be significantly bigger than in smaller towns and cities. In Tokyo which is earthquake prone, a government study revealed that a 6.9 earthquake directly under the city could kill 13,000 people, destroy 800,000 homes, and leave 6.5 million stranded, putting the chances of it hitting Tokyo before 2034 at about 70 per cent.

But there are far worse scenarios. A magnitude 8 earthquake similar to one that struck in 1923 could kill 150,000 and destroy 2.6 million buildings." Similar problems are associated with flooding such as Hurricane Katrina which ravaged New Orleans, Louisiana, USA in 2005.

In Lagos State we have embraced and are irrevocably committed to tackling these challenges with vision and determination.

Our huge investments in education and healthcare are designed to provide the human capacity for business and other 'Stakeholders to operate sustainably. We have established a security trust fund in partnership with our local business community which has helped to strengthen the capacity of our law enforcement agents to respond to the challenges of saving lives and properties.

By any measure, our efforts have succeeded in reducing crime and insecurity in Lagos State to the barest minimum. Recent data released at the end of the 3rd Quarter for the year shows an overall result of 79.9 in crime reduction.

This takes me to perhaps the biggest challenge of administering megacities - the challenge of funding, sustaining and upgrading infrastructure, which is the subject of this forum.

The Lagos State Government has conceived this forum as an opportunity to showcase to international and domestic investors as well as infrastructure companies our policy thrust, planning priority and the investment environment; and to also present specific infrastructure projects and investment opportunities in Lagos State particularly, in sectors such as, intermodal passenger transport, housing, hospital management, water provision, waste management, power, toll roads and the Lekki Free Trade Zone project.

MEETING THE INFRASTRUCTURE CHALLENGES IN LAGOS STATE
Since the return to democracy in 1999, we have moved assiduously in Lagos State towards our objective of becoming a modern global megacity, a model for Africa and indeed one of the best in the world.

Our initiatives have encompassed all the challenges of megacities I highlighted previously including investments in social services, security, environment and infrastructure. These efforts commenced before I became Governor in 2007 under my predecessor Asiwaju Bola Ahmed Tinubu who laid the foundation for many of the initiatives this government is now vigorously pursuing.

These efforts have been sustained and re-doubled during the tenure of the present administration. We are for instance continuing the construction of the Lekki¬ Epe Expressway through a public~private partnership arrangement with the Lekki Concession Company. The project is designed to open up the Lekki axis which is the fastest growing corridor in our state for more investment.

We have also completed the implementation of a very successful Bus Rapid Transit (BRT) Plot Scheme; Africa's first of its kind which has radically improved public transportation in Lagos State. The scheme also has considerable elements of private sector involvement.

We are currently extending the operation of the scheme to other routes not presently covered in order to avail other residents of the benefits of the scheme.

We have awarded the design and build contract for our light rail projects for operation and bids for maintenance concessions have been received from interested investors.

We are currently constructing 3 (three) major jetties at Ikorodu, Badore and Osborne in addition to about 10 (ten) others which require upgrade and which we intend to offer to investors to provide water crafts and operate passenger transport on the water ways.

Many of these schemes are structured as public-private partnerships (PPP) based on our faith in private capital and entrepreneurial management working in concert with a focused and strategic public sector to deliver world class services to our people.

We have improved our town planning processes and systems in recognition of the importance of proper urban planning in building a viable and modern megacity. We have already engaged reputable international consultants to develop a regional plan for Lagos State and have developed model city master plans for the component cities within Lagos.

It is our intention to develop transport infrastructure on road, rail and water that inter-connect these cities and promote even development across the State.

As I mentioned earlier, we are developing a Lekki Free Trade Zone including a sea port, airport and financial centre along our Lekki corridor also in partnership with the private sector. We have various other initiatives regarding toll roads and bridges in addition to the Lekki-Epe Expressway which we seek to execute in conjunction with private partners.

We are exploring opportunities in independent power generation and distribution which would allow us provide power to meet the needs of businesses, factories and residents alike.

We have developed the framework for an efficient, private sector driven model for health care delivery waste management, potable water provision and affordable housing. These and other strategic sector¬ specific initiatives would be discussed in greater details in the course of this forum.

INSIGHTS FROM COMPARISON MEGACITIES
We are of course prepared and indeed enthusiastic about learning from the experience of other mega and global cities which have valuable lessons for us to learn from.

I am happy to note that the programme for this event includes insights from Singapore and Bombay with whom we share similar attributes and challenges.

These experiences reinforce our belief that our challenges are not unique and that from them can emerge enormous opportunities of prosperity.

LEGAL AND REGULATORY FRAMEWORK
One of the" things we have done to realize these opportunities is to develop an appropriate legal and regulatory environment to facilitate investments in infrastructure by the private sector.

These include among others, the Roads, Bridges and Highway Infrastructure (Private Sector Participation) Development Board .Law of 2004, the Lagos State Water Sector Law 2004, the Lagos State Urban and Regional Planning Law 2005, the Lagos Metropolitan Area Transport Authority Law 2007, the Lagos State Waterways Authority Law 2008.

In addition we have set up a Public-Private Partnership Office headed by a Director-General with strong private sector background to drive our private sector participation policy thrust.

Because of the critical nature of the enforcement of law and order to peace and stability and consequently to investment development, we have reviewed provisions of the Criminal Law, enacted a new Magistrates Court Law and a Lagos Arbitration Law in order to increase capacity to enforce laws and to provide a platform for prompt resolution of commercial disputes.

We are already constructing a Lagos Arbitration Centre which has received exciting statements of patronage, intent and affiliations from within and outside the country.

FINANCING THE LAGOS MEGACITY
The Lagos State Government is putting its money where its mouth is concerning the resources required to bring our infrastructure to the level of a modern megacity.

In this regard, we have consistently devoted a minimum of sixty percent (60%) of yearly budgetary resources towards, infrastructure renewal and expansion. We however recognise that our resources alone will not be sufficient to achieve the Lagos of our dreams.

Beyond resources, we also require private sector expertise and project management know-how, as well as international experiences to succeed. This forum therefore is expected to act as one of the many platforms for delivering the opportunities that are inherent in the challenges.

CONCLUSION
Once again I welcome all our visitors and participants to this Forum and I invite you to join us as we realise the Lagos vision of becoming Africa's model megacity. As I wish you an exciting and fruitful deliberation, that I hope will lead to a mutually beneficial collaboration, I thank our partners, the Commonwealth Business Council for their commitment and faith in the Lagos Project.

Thank you.

Eko oni baje o!

Babatunde Raji Fashola, SAN
Governor of Lagos State of Nigeria