Investors from Asian countries have shown interest in the Lagos Rail Mass Transit project for which the Lagos State Government is committed to building its infrastructure.

The investors’ interest followed guarantees of security of investment and adequate legislation by Lagos State Governor, Mr.  Babatunde Raji Fashola (SAN) for the eventual concessionaire who would operate the rail system.

Speaking at an investors forum in Dubai, United Arab Emirate, Governor Fashola, who was represented by his deputy, Mrs. Adebisi Sarah Sosan, said the guarantees are evidenced through the Public Private Partnership (PPP) law being passed, support through legislation and financial of other infrastructure projects such as Lekki Infrastructure Project, the Bus Rapid Transit System and numerous others.

Governor Fashola said the guarantees were fashioned to aid infrastructure deficits which the state face and this has resulted in the development of some major projects including the $432 million Lekki Infrastructure Project, 16,500 hectare Lekki Free Trade Zone to be an industrial and business hub offering international businesses various incentives, $5 billion Atlantic City Project which involves reclaiming over eight kilometres of land along the Bar Beach for residential and office spaces, development of the 1.5 billion 4th Mainland Bridge – a 26 kilometre bridge linking Lekki and Ipakodo and $2.5 billion upgrade of Lagos-Badagry Expressway, a 10-lane highway linking Lagos to neighbouring West Africa States.

He said the state government sees the functioning of a metro rail network as another piece of the puzzle to fix the infrastructure deficit in Lagos, while alluding the feat already recorded by the Bus Rapid Transit system from Mile 12 to CMS which he launched in March 2008 and had at the end of October carried over 30 million passengers.

In order to kick-start the rail project, the Governor disclosed that the state government has adopted a seven rail line network developed by the Lagos Metropolitan Area Transport Authority (LAMATA), two of which are to be implemented a matter of priority. The two lines are the Red Line (Agbado to Marina) and Blue Line (Okokomaiko to Marina).

The two lines which would collectively carry an average of 1.6 million passengers daily, Governor Fashola said would provide investors very high returns on their investment and a 25- year financial model had been used for estimating the project cash flows and returns for them.

To underscore government’s readiness to fund the infrastructure for the rail project, Governor Fashola disclosed that “provisions have been made within the state’s annual budgets (2008-2011) for funding the rail infrastructure for both priority lines and the state will also float rail infrastructure bonds on the state capital markets.”

He highlighted the benefits of two rail lines to include creating opportunities for commercial and business activities, improving access to Central Lagos and act as a catalyst for investment promotion, economic growth and social inclusion.

The Governor said the rail lines would ensure that demand for housing in metropolitan Lagos would be shifted to the suburbs, reduce travel time by private vehicles from Lagos Mainland to Lagos Island as well as improve the quality, accessibility and affordability of rail public transport.

“New towns will evolve leading to the creation of sustainable jobs and employment opportunities. Vehicular emissions and air pollution resulting from traffic congestion would be significantly reduced and contribute to a cleaner environment. Apart from the capacity to move a greater number of people, rail transport is twice as efficient as travel by car. It reduces operational costs and consequently, tariffs paid by the commuting public. Travel times are much more reliable and are relatively unaffected by weather conditions and accidents” Governor Fashola stated.

In a presentation, the Managing Director of LAMATA, Dr. Dayo Mobereola assured investors that Lagos State remained investors’ haven and that government was desirous of delivering infrastructure for the two rail lines by end of 2011.
Dr. Mobereola said the government was pushing ahead at integrating all the modes of transportation and called on investors to come to Lagos and invest.

For more information, please contact:
Kolawole Ojelabi
External Relations Specialist
Lagos Metropolitan Area Transport Authority (LAMATA)
Tel: 01-2792778-82 Ext. 200, 01-7905343; Fax 01-2792783
Mobile: +2348038556452