Babajide Sanwo-Olu, the governor of Lagos, is seeking investors for the proposed $1.9 billion purple and green rail lines.
Sanwo-Olu spoke on Thursday at the ongoing Africa Investment Forum (AIF) Market Days in Rabat, Morocco.
Speaking on the state’s investment strategy for the purple rail line, the Sanwo-Olu said the project represents a viable investment opportunity with promising returns.
The governor said his administration is excited to move forward with the project and ready to be flexible with the investors to ensure its delivery.
He said the purple rail line project would connect Lagos and Ogun states.
“The purple rail line is a 60 km electrified rail system that will include 16 stations and seamlessly integrate with existing metro and bus services to enhance connectivity,” Sanwo-Olu said.
“It is projected to serve over 300,000 passengers daily, significantly reducing greenhouse gas emissions by encouraging a shift from road to rail transportation.”
Sanwo-Olu told funders that the immediate requirement was $866.05 million, which would cover survey and design as well as civil works.
He said in the short-to-medium-term funding projection, the state would need $602.81 million and $497.7 million in the long-term funding plan.
The politician stressed that the state is working towards a transportation master plan that would be brighter, more effective, efficient, sustainable, and safer.
The governor said the state is ensuring integrated transportation systems and mass transits in order to reduce traffic and the number of hours spent commuting — which would ultimately lead to improved health and wellbeing of the masses.
He said each of the corridors had a bus rapid transport (BRT) and waterway transportation route to take commuters off the major roads, thereby decongesting traffic.
“Two of the stations that were built on the same line are also connected with water, rail and BRT altogether,” he said.
‘THERE WOULD BE NO BACKLASHES, DISPLACED PERSONS WOULD BE COMPENSATED’
Sanwo-Olu assured the investors of the state’s willingness to ensure that there are no disturbances or backlashes from displaced communities.
“The government would even pay compensations to displaced persons where necessary, so no additional burden is brought to would-be funders,” he added.
“We don’t want to lock in anything, we know all the various options. We understand how some of these things work.
“We’re willing and ready to make those transactions work. We’ve seen from our experience how to guarantee revenue assurance.
“We have a payment system under the cowry card, which is where we’d block leakages to a large extent and the same contactless card, we can use it on our bus, train and ferry where you’d have it all integrated.
“On a daily basis, they know what the traffic is and what is due to everybody. Whatever, based on the study or the ridership guarantee, we would look at it.”
Sanwo-Olu said said the state government would need “to either top up on other forms of revenue that can help out in terms of advertising rides on the corridor.”
The Cable
