CATEGORIES: Infrastructure and Others

The IFC is considering lending $50m to Lagos State for the development of two ‘Quality Bus Corridors’

The International Finance Corporation, member of the World Bank Group, is currently considering lending the Naira equivalent of up to US$50 million over a 10 year period to the Lagos State Government for the development of two ‘Quality Bus Corridors’ or QBCs.

The two QBCs identified for IFC financing are Command – Abule Egba (6 km) and Ile Iwe Junction – Ile Epo (4.3 km), both along existing road networks in the low-income areas of Lagos where the BRT and LRT do completely cover. The project activities will include road infrastructure improvement, rehabilitation of pedestrian walkways to improve walking conditions and accessibility to public transport services, rehabilitation of drainage, improvements of road junctions, provision of dedicated lanes for public transportation buses and construction of a new bus terminal for each QBC (a hub passenger pick up and drop off) and installation of a number of additional bus stops/flags at each QBC.

Within a 400 meter radius of the two corridors, data published by the IFC suggests that up to 10,400 passengers pass through the region every hour during peak periods. As 75% of this passenger traffic is with public transportation, the IFC is confident that developing these QBC’s will help reduce travel times and improve road safety. Based on IFC’s Industry Specialist projection, the project is expected to generate an estimated annual timing savings of about 282,800 hours per year and this, in turn, translates to an estimated economic value of time savings of $175,000 a year. The number of passengers benefiting from the project per day is expected to be circa 157,000.

The IFC published its intention to consider and potentially invest in this project as part of their Access to Information Policy (AIP), which seeks to provide accurate and timely information to its clients, partners and stakeholders.

 The QBC’s are part of the Lagos State Transport Master Plan Project (LSTMPP), an ambitious city-wide reform of the public transportation services in Lagos, which was developed in part with financing from the World Bank, and, some of which is being implemented by the Lagos Metropolitan Transport Authority (LAMATA). LAMATA is the transport planning, implementing, regulating and franchising authority of the Lagos State Government.

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