PUBLIC COMMUNICATION BRIEF ON OPERATIONS

FEDERAL REPUBLIC OF NIGERIA

CNG 1053

LAGOS STATE STRATEGIC TRANSPORT MASTER PLAN PROJECT 1

TABLE OF CONTENTS

I - SECTOR AND ISSUES............................................................................................................3

1.1 - PRESENTATION OF THE SECTOR....................................................................................3
1.2 - GOVERNMENT POLICY..................................................................................................4
1.3 - IMPORTANCE FOR THE COUNTRY................................................................................. 4
II - BORROWER/BENEFICIARY............................................................................................. 4
III - THE PROJECT..................................................................................................................... 5
3.1 - OBJECTIVES.................................................................................................................. 5
3.2 - PROJECT CONTENT....................................................................................................... 5
3.3 - FINANCIAL VIABILITY OF THE PROJECT........................................................................7
3.4 - INTERVENORS AND OPERATING METHOD..................................................................... 7
3.5 - PROJECT IMPLEMENTATION SCHEDULE........................................................................ 8
IV - EVALUATION OF PROJECT IMPACTS.........................................................................8
4.1 - PROJECT CONTRIBUTION TO SUSTAINABLE DEVELOPMENT ISSUES.............................. 8
4.2 - ENVIRONMENTAL AND SOCIAL RISKS.........................................................................10
4.3 - SUPERVISION-EVALUATION AND INDICATORS............................................................10
4.3.1 - Supervision-evaluation mechanism........................................................................... 10
4.3.2 - Impact indicators....................................................................................................... 10
V - PROJECT FINANCING...................................................................................................... 12

1
 List of acronyms

AFD Agence Française de Développement

BRT Bus Rapid Transit
ESIA Environmental and Social Impact Assessment
ESMF Environmental and Social Management Framework
ESMP Environmental and Social Management Plan
FMOF Federal Ministry of Finance
GDP Gross Domestic Product
GHG Greenhouse Gas
IRR Internal Rate of Return
ITS Intelligent Transportation Systems
LAGBUS LAGBUS Asset Management Limited
LAMATA Lagos Metropolitan Area Transport Authority
LRT Light Rail Transit
LUTP Lagos Urban Transport Project
MUSD Million United States dollar
NGN Naira
Q1 First Quarter
Q2 Second Quarter
QBC Quality Bus Corridor
RAP Resettlement Action Plan
USD United States dollar

2
I - SECTOR AND ISSUES

1.1 - Presentation of the sector

A highly constrained urban development. The economic capital of Nigeria, Lagos is the most
populated city in Africa with a steadily growing population currently estimated at 21 million
inhabitants. Nigeria is both the largest country in Africa in terms of population (estimated at 180
million) and gross domestic product (over 400 billion USD). GDP per capita is around USD
2,600. However, wealth is unequally distributed; poverty is widespread with more than 60
percent of the country's population living on less than $ 1.25 a day. Nearly half of the population
lives in urban areas and the latter is growing at an accelerated rate (4.7% per year on average
since 2010). Given the growth of the city, urban mobility is key towards ensuring an inclusive
city, where people including the poorest and most vulnerable have access to jobs and services; a
‘livable’ city that masters air quality and traffic congestion; ultimately, a low-carbon emission
city since mobility generally represents between 20 and 40% of a city's GHG emissions.
Urban mobility is facing numerous challenges. Under the combined pressure of growing
demography and economic growth, the demand for mobility will continue to increase in the
coming years. Despite the encouraging initiatives already undertaken by Lagos State and
LAMATA, mobility in Lagos remains today characterized by:
 Public transport services still mostly provided by informal and unregulated actors.
Minibuses (danfoes) account for the vast majority of trips (46%). Although they offer a
flexible transportation service to commuters at barely zero-cost (direct cost) for the state,
they operate in a disorganized manner and contribute significantly to the city’s
congestion and air pollution profile, especially on the main roads.
 A predominance of walking trips, which accounts for two out of five trips (40%, all
modes) mainly attributed to the poorest and to women. The individual car ownership in
Lagos (80 vehicles per 1000 inhabitants) remains weak even though it is growing rapidly.
The modal share of individually owned cars is estimated at 11% of all mode trips.
 A level of congestion already very high despite the low rate of motorization. The
authorities have largely invested in the development of road infrastructure, as evidenced
by the construction of numerous road viaducts and flyovers. Despite these investments,
the level of congestion is still worsening and results in an alarming deterioration in
mobility conditions and air quality. On the main roads, average peak-hour speeds
regularly drop below 10 kmph. Pedestrians are the first victims of frequent accidents.
 Institutional public transport still underdeveloped. The professionalization of the
informal sector was initiated through the operation of first BRT line, with the
restructuring of bus operators’ associations into a new bus ownership system entrusted
with the operations of the first BRT; followed by the creation of LAGBUS, a public
entity saddled with the responsibility of operating buses and regulating sub-operators in
Lagos State with a universal license granted by LAMATA. However, the BRT system
currently accounts for only 2% of all modal trips. The share of water transport, which has
also been regulated since 2008, has doubled since 2012 and now stands at 1% of all
modal trips.
 Public regulation to be consolidated and required integration between modes.
LAMATA, as the authority in charge of planning and administration of public transport
supply, is leading the bus sector reform program in consonance with already existing
mass transport facilities and those under construction. There is therefore strong
integration needs between current and upcoming modes (buses, reformed buses,
waterways, BRT and LRT).

3
 1.2 - Government policy

A proactive policy for sustainable urban mobility. The state of Lagos is particularly proactive
and ambitious in managing urban mobility. A dully assigned urban transport authority, the Lagos
Metropolitan Transport Authority (LAMATA) was created in 2002 with the technical and
financial support of the World Bank1; and has since then acquired adequate technical and
financial capacities. The first sub-Saharan Africa Bus Rapid Transit (BRT) corridor developed
by LAMATA was inaugurated in 2008 and extended in 2014 (35 km in total), with funding from
the World Bank and AFD2. The Lagos State Transport Master Plan, updated in 2015, guides all
developmental interventions in the sector. The first line of LRT (blue line, 27 km) is under
construction in view to be commissioned at the end of 2019. A second line of BRT (24 km) is
also under construction with its commissioning targeted for end of 2018. The other priority
projects, such as Light Rail Transport (LRT) and BRT mass transit lines, bus sector reform
program, and the Lagos Urban Mobility Improvement Program object of the current AFD
support, have been the subject of studies performed by international consultants with the support
of LAMATA's technical teams3.
A paradigm shift. Despite a continued effort, the mobility conditions in Lagos metropolis still
remain very difficult. Lagos State government has initiated a radical paradigm shift and seeks to
develop a more sustainable mobility model by promoting a more massive, multimodal and
structured public transport, and a more balanced sharing of the public space between different
users and modes of transport. In Lagos, public transport remains dominant, mainly due to the
low car ownership rate and the over-reliance of the many low-income residents. Lagos State
government is therefore seeking to develop a metropolitan public transport system combining
quality of service, efficiency, accessibility, reliability, safety, reduction of polluting emissions
and socio-economic and financial viability; so as to be able to contain the rate of motorization,
congestion, noise, security risks and pollution.

1.3 - Importance for the country

The Federal Government’s strategy document, “Vision 20:2020”, focuses on the need to
improve living conditions for 50% of the population living in urban areas. In addition to Lagos,
several large cities in the country are faced with problems of rapid urbanisation: Abuja, Ibadan,
Jos, Kano, Kaduna, etc. At federal level, it is expected that the project will be a replicable
experience.

II - BORROWER/BENEFICIARY

The AFD financing will take the form of a sovereign loan to the Federal Republic of Nigeria,
which will be on-lent to Lagos State under the same financial terms and conditions.

III - THE PROJECT

1 LAMATA is the first in Sub-Saharan Africa to have successfully established an Authority for urban transport
regulation
2 Lagos Urban Transport Projects (LUTP) 1 and 2. LAMATA has directly managed the proceeds of the loans from
the World Bank (LUTP 1 - $ 50 MUSD and LUTP 2 - $ 194.5 MUSD) and AFD (LUTP 2 - $ 100 MUSD)
3 Lagos mass transit alternative study, final report, Systra, 2014 ; Development of bus route Network for Lagos
State, final report, ITP 2015 ; Lagos Strategic Transport Master Plan Project 1 studies, final report, LAMATA,
2017 ; Quality bus corridors, and Marina and Mile 2 interchanges Feasibility Study, final report, Systra, 2017

4
 3.1 - Objectives

The purpose of the project is to improve the living conditions of the inhabitants of Lagos urban
area and to promote the sustainable urban development by setting up a more efficient and
effective public transport system. The project has several specific objectives:
 the rehabilitation of urban roads and the creation of a minimum of eight Quality Bus
Corridors (QBC) and the creation of two multimodal interchanges (Marina and Mile 2),
 the provision of technical support for project implementation and management, thematic
studies, and the improvement of transport system planning and management capacities.
The project is expected to benefit a minimum of 1.5 million inhabitants who will have direct
access to the QBCs, as well as a cumulative 1.1 million users per day for the intermodal
interchanges (total boarding and alighting, 620 000 for Mile 2 and 480,000 for Marina). In
addition, the expected daily traffic on the QBC is estimated at 640 000 passengers.

3.2 - Project content

The project is the first phase of the implementation of the Lagos State Strategic Transport Master
Plan and has four components combining physical investments (component 1, 2 and 4) and non-
physical investments (components 3). Components 1, 2 and 3 are to be financed by AFD. The
concept of the project was developed by LAMATA in 2016 on the basis of preliminary studies
and in connection with the Lagos State government’s bus sector reform program. These
conceptual studies were reviewed, refined, calibrated and validated in the process of a feasibility
study specifically conducted for this project in 2017 by the consulting firm SYSTRA under an
assignment funded by AFD.
Component 1 - Urban Infrastructures: Quality Bus Corridors (141 MUSD Exclusive of
Taxes). This component comprises eight (8) Quality Bus Corridors, with a total length of 43 km,
and covers the road infrastructure necessary for a high-performance bus service on priority
corridors connected to the mass transit network (Light Rail Transport and Rapid Transit Bus) 4.
The future bus services to be thereby operated will have the two functions as commuters services
along these corridors and as well as feeders to the existing public transport network. Once
reconfigured according to a ‘complete street’ approach, the road network will benefit all users
and will allow for a more balanced space sharing between the different modes of transport
(general traffic, public transport and pedestrians) 5. The following are planned for each of these
corridors:
 a scalable rehabilitation work according to the current state of each of the roads
 the setting up of bus stops (location, geometry, furnishing, signage, traveller information)
with a number of berths for buses sized according to the operating plan (number and type
of services) and stops in correspondence with the mass transport routes (management of
correspondence flows);
 taking into account non-motorized modes by creating sidewalks, protected pedestrian
crossings and pedestrian bridges (to ensure ease of access and safety for the pedestrian);

4 The 8 QBCs selected are: Oujuelegba-Idi Araba, Iju Ishaga-Abule Egba, Iyana Iba-Igando, Ketu-Alapere
Akanimodo, Onipanu-Oshodi, Iyana Ipaja-Ayobo, Yaba-Lawanson, and Anthony-Oshodi. Any modification or
addition of QBC other than these 8 QBCs will have to receive AFD’s prior approval
5 LAMATA, with the support of UNEP has developed in 2017 a guide for the integration of non-motorized modes
(NMT) in its transport and developmental projects (Lagos NMT Policy, ITDP, 2017). These principles will be
adopted in the design of QBCs, particularly with regards to accessibility, road safety and in consideration of
pedestrians.

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  functional and geometry upgrade of congested intersections in order to improve on their
general capacity and conditions for bus services, and the implementation of specific
measures such as the creation of dedicated bus approach lanes at traffic lights;
 the deployment of a management and information system with a strong digital content
(ITS, intelligent transport system);
 the construction of bus depots and maintenance centres (optimized to serve several
corridors);
 project design and supervision services (detailed engineering, preparation of tender
documents and works supervision).
Component 2 - Urban Infrastructures: Multimodal Interchanges (42 MUSD Exclusive of
Taxes). This component involves the construction of two multimodal interchanges at Marina and
Mile 2 and finances the functional integration of four public transport modes: (i) LRT line; (ii)
BRT line, (iii) passenger waterways transportation routes, and (iv) bus and interstate bus routes
(in the case of Mile 2 only). The two sites of Marina and Mile 2 have been selected due to their
importance in the transport scheme and with regards to their current and future urban centrality.
The project will handle the management of connecting passengers’ flows while ensuring
adequate accessibility for users from around the interchanges. The LRT, BRT and waterways
infrastructures are being funded separately. Component 2 will therefore finance the
infrastructures specifically required for the intermodal operation of the interchanges: buildings,
equipments, passenger information and signage, correspondence rooms, pedestrian transfer
between modes and access to the interchanges, bus hub, and commercial areas. This component
also includes project design and supervision services.
Component 3 - Support for project implementation and management, thematic studies,
improved planning and management capacity of the transport system (17 million MUSD
Exclusive of Taxes). This component will finance project management and monitoring
activities, as well as institutional development and capacity-building activities for the regulation
of the Lagos State transport sector. LAMATA has already drafted the terms of reference for
most of the related subcomponents and studies. This component includes:
 support for project management and implementation, including a specific component to
support the transition of the sector;
 thematic studies;
 a contribution to LAMATA's operating expenses for project management and capacity
building.
Component 4 - Acquisition of the bus fleet (102 MUSD Exclusive of Taxes to be funded by
Lagos State) and granting of operating franchises. Corridors are today mostly served by
informal minibuses (danfoes). In parallel with Component 1, the acquisition of the bus fleet for
the commercial operations of the QBCs is the responsibility of Lagos State as part of the State-
wide bus sector reform program. According to the feasibility study, the fleet required for the
operation of the 8 QBCs prioritized for development under the project is estimated at 473 twelve
(12) meters long buses, for an estimated investment of 102 MUSD. Through Lagos Bus Service
Limited, LAMATA will grant the required operating franchises for all bus routes along the eight
(8) QBCs.

3.3 - Financial viability of the project

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A project designed to achieve ‘fare recovery’. The project was designed to ensure that the
revenues generated cover operating and maintenance costs, eliminating the need for operating
subsidies and ensuring the ‘fare recovery’. The financial analysis shows that the revenues will
cover the operating and maintenance costs of the QBCs and the two interchanges. The revenues-
to-expenditures ratio is estimated to be greater than 1.55 for each of the QBCs (1.80 on average
for the 8 QBC). Under these conditions, it would be possible for Lagos State to recover all or
part of the cost of the rolling stock, while maintaining the fares at an affordable level for the
population. The revenues-to-expenditures ratio for the two interchanges is estimated at 1.31.
Revenues generated by the interchanges will proceed from a puncture on ticket prices (92% of
total revenues) and rents collected from the rental of commercial space (8% of total revenues).
Lagos State has decided to maintain the same level of fares on each of the QBCs as being
currently charged by danfoes along each of the corridors. Depending on the distance and each of
the corridors, the average fare will vary between 50 and 150 NGN (between 0.12 and 0.36
euros).

3.4 - Intervenors and operating method

The Federal Republic of Nigeria, represented by the Federal Ministry of Finance (FMOF), is
the borrower of AFD loan and is responsible for repaying the loan to AFD. The loan shall be on-
lent to Lagos State which is entirely responsible for the implementation of the project and also
the future owner of the infrastructure so financed. From a legal point of view, a financing
agreement will be signed between AFD and the FMOF; an on-lending agreement will be signed
between the FMOF and Lagos State under the same financial conditions, while an on-granting
agreement will be signed between Lagos State and LAMATA in order to transfer the proceeds of
the loan to LAMATA in the form of a grant. After the completion of project, the resulting
investments shall be transferred to Lagos State by LAMATA. For reference, these dispositions
are similar to those adopted for the AFD financing under LUTP 2. The disbursement of funds to
LAMATA may be executed in the form of advances, direct payments to contractors (for invoices
over USD 5 million) or refinancing of project related expenditures pre-approved by AFD.
LAMATA – The project implementing unit. LAMATA is responsible for the procurement and
management of construction and consultancy services, and shall be accountable for the
observance of environmental and social obligations, for the preparation of quarterly progress
reports and requests for drawdowns. This was already the case, successfully handled, under
LUTP 2 which was co-financed by the World Bank and AFD (for which the World Bank
guidelines were applied). In view of an adequate support, engineering design and supervision
consultants will be recruited by LAMATA through international competitive bidding.
Private sector contribution. LAMATA, through Lagos Bus Service Limited, will be
responsible for granting franchises for bus operations on the QBCs. Two interchange manager
contracts will also be awarded for the operation and maintenance of the Marina and Mile 2
interchanges. LAMATA will receive assistance from a specialized consultant for the operations
of the QBCs and the interchanges (component 3).
Procurement. The procurement of all contracts funded by the AFD loan shall follow the
Guidelines for the procurement of AFD-funded projects in foreign countries 6. Unless otherwise
agreed, No Objection from AFD shall be sought at relevant steps of the procurement processes.
AFD procurement templates will be used for the procurement processes 7.
3.5 - Project implementation schedule

The project disbursement forecast is anticipated as follows:

6 https://www.afd.fr/sites/afd/files/2017-09/directives-passation-marches-etats-etrangers-english-version.pdf
7 https://www.afd.fr/en/responding-bid-invitation

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 MUSD Q1 Q2 Q3 Q4 Total
2018 5.0 5,0 10.00
2019 5.0 5.0 15.00 54.9,0 79.9
2020 10.00 15,0 12.45 25,0 62.45
2021 15.00 6.00 15.00 6.55 42.55
2022 3.4 1.7 5.1
total 200,0

The years 2018 and 2019 (Q1 and Q2) will be devoted to project setting-up activities with (i) the
recruitment of the project management and supervision consultant, (ii) the completion of detailed
studies, and (iii) the completion of thematic studies. Works are expected to be completed in 2020
and 2021. The commissioning of the project (8 corridors and interchanges) is planned for 2021
and 2022.

IV - EVALUATION OF PROJECT IMPACTS

4.1 - Project contribution to sustainable development issues

Dimension 1. Economic Development

Beyond an urban road rehabilitation program for the benefit of all its users ("complete street"),
the project promotes a greater efficiency of the public transport network, improved connectivity
within Lagos State and its balanced development: in this respect, it has a strong territorial
dimension. It will provide a more efficient public transit service. It will replace informal modes
of transport on high demand corridors with higher capacity vehicles. The two interchanges will
allow for capacity optimization of all modes of the public transport network while enhancing
already made investments in respect of mass transportation (LRT and BRT). The project will
have a positive socio-economic impact on Lagos State. The (economic) IRR of the project is
estimated at 20.6%, affirming its economic viability (the cumulative IRR of the 8 QBCs is
estimated at 21.2% and that of the two interchanges puts at 19.3%). These high values ​attest to
the project’s robustness in the case of overruns of investment costs or a decrease in passenger
ridership.
Dimension 2. Social well-being and reduction of social imbalances
The project will result in an improvement of the individual welfare of the inhabitants of Lagos
State and especially the most vulnerable. with regards to its 41 km long cumulative service, to its
eight feeding points into the mass transit network and to the creation of two city transport hubs,
the project will benefit the entire population of the metropolis and will directly serve a large and
socially diverse population (1.5 million people live within a 500 m radius of a QBC bus stop).
The project will improve people's access to basic services and to jobs, and will particularly
benefit households that cannot afford to own a vehicle, which the current delinquency of public
transport leaves without other alternatives than the unreliable informal public transport and/or
walking. The project will also have positive effects in terms of road safety. Extensive
stakeholders’ consultations are planned during the detailed design phase. The introduction of
QBCs by Lagos State will allow for a sustainable transformation of the sector through the
professionalization of the informal transport system.
Dimension 3 - Gender equality
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The project aims to ensure the effective access of all users to the new public transport system.
The design will focus on creating good accessibility and safety conditions along the QBCs and
around and within the two interchanges. Public street lighting and surveillance cameras installed
in the interchanges will improve safety conditions. All of these measures will be greatly
beneficial to women and to the most vulnerable. Based on past experience in the framework
LUTP, LAMATA is already sensitized on gender mainstreaming in public transport projects and
has already involved some non-governmental organizations active in this field in order to be
dully consulted during the project design phase. A target of a minimum of 25% of female
employed by the project during the construction phase and operation phase has been set.
Dimension 4 - Preservation of Biodiversity, Management of Environment and Natural
Resources
The project will provide for measures seeking to avoid or minimize the negative impacts that it
is likely to generate.
Dimension 5 - Fight against climate change and its effects
Mitigation - The project is aligned with the climate policy of Nigeria which has ratified the May
2017 Paris Climate Agreements, and which seeks to contribute to a low-carbon trajectory
through the adoption of urban mobility solutions promoting a shift to public transport. The
feasibility study indicates that the project would save about 14,900 teqCO 2 / yr.
Adaptation - The project provides for adaptation measures. It is postulated that temperatures,
rainfall occurrences, floods and winds are the main risk factors resulting from climate change.
These risks are expected to be factored into the design of the project with a focus on pavement
structures and materials, adequate drainage system for all structures, natural ventilation, growing
of vegetation and planting of trees where space allows.
Dimension 6 - Sustainability of project effects and governance framework
The decision-making processes (consultation and participation), information and transparency
drives to be implemented under the project are assessed as sufficient to have positive impacts on
the institutional framework beyond the project cycle. LAMATA has emerged as the result of
ambitious institutional reforms characterized by a significant progress in the governance of the
sector and the management of urban transportation in Lagos. LAMATA's competence, know-
how, ability to assume its responsibilities and to innovate have been demonstrated and gradually
reinforced since its creation and throughout the projects it has implemented (notably with the
technical and financial support of World Bank and AFD). The project builds on these successes
and will contribute to the consolidation of LAMATA’s role as the transport authority of Lagos
State.

4.2 - Environmental and social risks

The overall ranking of the project is A. The project is rated B+ for the environmental safeguards
and A for the social safeguards. An Environmental and Social Management Framework (ESMF)
and a Resettlement Policy Framework (RPF) for the people affected by the project were
prepared by LAMATA with the support of a local consulting firm8. These documents were found
satisfactory, with the understanding that for each corridor, detailed environmental and social
impact assessment (ESIA), environmental and social management plans (ESMPs) and
resettlement action plans (RAPs) will be produced by consultants selected through an
international competitive bidding process, in accordance with the World Bank environmental
and social standards, in parallel with engineering studies. These documents will have to be
validated by the AFD before their submission to the Federal Ministry of the Environment by

8 Environment and Social Management Framework, Sustainability, October 2017; Resettlement policy framework,
Sustainability, October 2017.

9
LAMATA and before the launching of the tenders for works. The
resulting environmental measures and requirements provided for
in these documents will be included in the tender documents and
then in the works contracts.
Environment - The project provides for the mitigation of negative impacts that it is likely to
generate. The negative environmental impacts anticipated relate mainly to construction activities
and are linked to traffic disturbances, noise impacts, dust and the handling of construction
materials and their related vehicular movements. The project will have largely positive effects
during operation phase, in particular on the acoustic environment and the quality of the air with
the reduction of the congestion that it will induce. The project will ensure the use of energy
saving lighting devices and the enforcement of environment friendly construction methods that
limit the use of natural resources by exploring the possibility to reuse existing materials rather
than resorting to quarry operations. This will reduce the transportation of filler materials or
excess materials and the potential significant nuisance in urban areas (traffic congestion, dust,
greenhouse gas emissions, etc.) as well as in rural environment areas (opening of quarries, risk of
materials dumping in areas of ecological interest).
Social - Social aspects have been integrated into the project concept and at early stage of the
feasibility studies in order to preserve their positive dimension and minimize the negative ones.
The choice of the QBCs to be financed by AFD took into account social criteria in order to avoid
neglecting already disadvantaged communities. Accessibility and adequate lighting of bus stops
have been adopted as design principles in order to improve the current situation for vulnerable
people (safety for women, accessibility for people with reduced mobility). In order to minimize
involuntary resettlement, it was agreed that QBC development activities shall be restricted to
existing government rights-of-way9. The multimodal interchanges at Marina and Mile 2 will be
developed on land already identified by LAMATA and belonging to Lagos State Government.
According to the RPF, a total of 3,581 people could be impacted by the project (2,684 for the 8
QBCs and 897 for the 2 interchanges), mostly small traders and craftsmen, street vendors,
hawkers on public rights of way. LAMATA will be responsible for the preparation of the RAPs
and their implementation. In addition, LAMATA is committed to hiring in priority (through
future operators of the QBC bus routes) current Danfoes drivers and their support personnel for
bus operations on the future QBCs bus routes. A technical assistance will support LAMATA in
proceeding in this social transition (census, public information, drafting of new franchise
agreements).
4.3 - Supervision-evaluation and indicators

4.3.1 - Supervision-evaluation mechanism

The project will be closely monitored by the AFD country offices located in Abuja and in Lagos
and through regular supervision missions from AFD headquarters. LAMATA will have to
submit quarterly progress reports on the project. LAMATA proposed to implement a system
performance and economic indicators monitoring mechanism. The monitoring and evaluation
mechanism is a permanent function within LAMATA, under the authority of its Director,
Corporate and Investment Planning.

4.3.2 - Impact indicators

Objectively Sources and means Critical

Intervention logic
verifiable and of verification assumptions

9 However, the RPF provides for the possibility of land acquisition if it is proven essential for the project. Any
acquisition of land must be specifically justified and is subject to AFD’s approval

10
 quantifiable
indicators

LAMATA
Improvement of the
successfully
living conditions of the
grants bus
population of Lagos Bus operators:
Goals Travel time franchises on
metropolis by promoting operational data the basis of
the implementation of a
performance-
more efficient and
based contracts
effective public transport
and level of
system
services.
The consultant
responsible for works
Number of new bus supervision: project
Strengthen the public The
stops on the implementation
transport system of Lagos project’s corridors report construction
Specific metropolis. companies are
objectives Improve the management Average waiting Users of bus services: of quality
time at bus stops perception surveys by
capacity of the public LAMATA
transport system in Lagos CO2 emissions The operators
metropolis along the project’s Consultants:
are of quality
corridors Assessment Studies
of GHG Emission
Reductions
The consultant
Number of bus responsible for works
corridors supervision: project
The bus corridors have The
rehabilitated implementation
been rehabilitated implementation
Number of buses report
Expected Buses are deployed on of both the
results rehabilitated bus deployed on Bus Operators: ESMP and the
corridors Operational Data RAP is
corridors
rehabilitated The consultant satisfactory
Interchanges have been
Number of responsible for works
developed
interchanges supervision: project
developed implementation
report
Project Development of a network of quality bus corridors
activities
Development of two multimodal interchanges integrating urban train, BRT bus and
public waterway transport
Project management and monitoring, institutional development and capacity building,
thematic studies

V - PROJECT FINANCING

The total cost of the project is 356.4 MUSD. The Lagos government will fund the entire bus fleet
required for the operation of the QBCs, the duties and taxes of all project components, and the

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resettlement action plan. The AFD loan will co-finance all components 1, 2 and 3 of the project
(excluding taxes).
Amount Equivalent AFD Gvt
Project cost (estimate) %
in MUSD in MEUR MUSD MUSD
1 - Urban infrastructures - QBCs 141,0 120,5 141,0 - 40%
Civil works (roads, lighting, equipment, bus
114,5 97,9 114,5 - 32%
stops)
ITS (centralized operating system, passenger
3,0 2,6 3,0 - 1%
information)
Consultancy – Design, procurement and
11,8 10,0 11,8 - 3%
construction Management (CBQ) (10%)
Contingencies (10%) 11,8 10,0 11,8 - 3%
2 - Urban infrastructures - Interchanges 42,0 35,9 42,0 - 12%
Civil works and equipment (Marina) 22,1 18,9 22,1 - 6%
Civil works and equipment (Mile 2) 12,9 11,0 12,9 - 4%
Consultancy - Design, procurement and
3,5 3,0 3,5 - 1%
construction Management (10%)
Contingencies (10%) 3,5 3,0 3,5 - 1%
3 - Project management, studies, running 17,0 14,5 17,0 - 5%
Studies – Support to project management (*) 4,2 3,6 4,2 - 1%
Studies – Strategic and Thematic (**) 8,6 7,4 8,6 - 2%
Contribution LAMATA administration cost 1,9 1,6 1,9 - 1%
Capacity building/development 0,8 0,7 0,8 - 0%
Contingencies 1,5 1,3 1,5 0%
4 - Components to be funded by Lagos State 156,4 133,7 - 156,4 44%
Equipment – Rolling stock (bus fleet) 102,6 87,7 - 102,6 29%
Resettlement (compensations) 2,4 2,1 - 2,4 1%
Duties and Taxes on all project components 51,4 44,0 - 51,4 14%
Total 356,4 304,7 200,0 156,4 100%
Note 1 : the details of each component is described in section 3.2 – Project description
Note 2 : conversion rate Euro/USD : 1,17.
(*)E&S studies, support to project implementation and operation, financial audit,
communication and sensitization
(**) Transport masterplan (2040), Projects feasibility, Traffic management, Stations integration
(TOD) Fret masterplan

Amount in Equivalent
Proposed financing plan %
MUSD in MEUR

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AFD - Loan 200,0 170,9 56%
Lagos State 156,4 133,7 44%
Total 356,4 304,7 100%

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