Calabar water scheme as benchmark for PPP projects in Nigeria
The World Bank assisted Calabar water scheme, started over seven years ago, producing five other urban water projects posits as benchmark for PPP projects in-country, writes BEN EGUZOZIE.
By late 1999, Cross River State Government completed the conditions required in securing over $141 million loan initially applied for about 1992, from the African Development Bank (AfDB), for the construction of an urban water supply system for Calabar, the state capital.
By 2001, Calabar residents got their first public water supply, many years after the over 98-year old colonial built water system had packed up. Homes in the state capital began receiving reticulated pipe borne water, effectively treated and supplied purely at commercial rates, since the new ‘ADB Water,’ as it was called was wholly a public private sector participation (PPP) arrangement.
By far, the water began flowing, devoid of the then NEPA [National Electric Power Authority] electricity supply irregularities. At the take-off of the Calabar Urban Water Scheme, about 350,000 people were reached. Soon many more people began demanding for the water connected to their houses, as they noticed that water was flowing regularly, whether or not there was power supply.
There arose a need to expand the scheme beyond the Calabar Municipality, to Calabar South Local Government Area, the once seedy down town Calabar, which stops only at the snout of the Calabar River, which is a channel inlet of the Atlantic Ocean. Same was for up north of the capital, to Odukpani and Akamkpa, two adjoining local government areas.
By 2005 – 2007, expansion had taken water supply to Calabar South and up to Odukpani, Akamkpa LGAs, and nearly touching parts of Ediba, Itigidi. At the onset of the Governor Liyel Imoke administration in 2007, only about 600,000 people in the urban and semi-urban communities in the state had access to potable water, leaving over two million without access. The administration then began working for more water projects, this round the state.
“Provision of potable water and access to water has been on the top of our agenda as an administration. It is our vision that if we can deliver on our projects to the people across the state, then we would achieve the vision of making life easier and reducing poverty; while improving on overall well-being of the citizenry,” said Governor Imoke.
He established a full-fledged ministry of water resources, up from the old Water Board. There was enhanced coordination of activities in the water sector. There was a series of targeted and effectively executed water projects: such as the extension/ densification of the Calabar water distribution system, with laying of additional 144 km distribution pipeline, additional 20,000 service water house connection, a total of more 38,800 metered water service houses in Calabar, Akamkpa, Ugep and Ediba. The Itigidi and Ikom I water projects got off the ground at the total cost of N5.4 billion, funded by the First Bank of Nigeria (FBN) Plc development of water supply system.
The success of the Calabar, Itigidi and Ikom water stories has since been followed with the securing of $143.9 million World Bank and AfDB additional financing for Ogoja, Ikom II (phase two) and Itigidi II loan agreement signed, including subsidiary agreement.
This was under the Second National Urban Water Sector Reform project – a World Bank initiative. Then came the FBN Plc funded Itigidi, Ogoja and Obudu quick impact emergency rehabilitation at N0.9 billion, which has been completed. This led to increase in cash operating ration from 30 per cent to more than 50 per cent, with revenue increasing by 300 per cent, serving an additional 250,000 people.
The Obubra, Okpoma and Ikom II (phase two) water are planned for completion early 2015, and would serve additional 500,000 people.
All these have attracted additional international donor supports to the state’s water sector. Samplers: €3.0 million EU donation, and $200 million World Bank, IDA, and AFD support. Then came the European Union (EU) assisted Small Town Water Schemes for Bateriko in Boki LGA, Abia (Etung), Ofumbongha (Obubra), Asiga (Yakurr) and Okoyong (Odukpani). These provided water supply to additional 35,000 consumers. Also, there was maintenance and rehabilitation of water supply infrastructure at the prestigious Obudu Ranch Resort, the Bebi Airstrip, Utanga and Creek Town.
Last week, the state was afoot with another water project, this time for Ogoja, the northernmost town, five hours drive from Calabar. Governor Imoke, while signing the agreement for construction of the N2.6 billion Ogoja Water Scheme with a Chinese company, CGC Nigeria Limited, said, ‘the World Bank assisted Calabar water scheme today has become a benchmark for PPP projects, not only in Nigeria, but in the West African sub-region. He stated that the state was proud to partner the global financial institution “to ensure millions of Nigerians have access to water.”
This effectively brings to N8.9 billion total sum so far spent by the Imoke administration in providing urban water, while the World Bank contribution comes to over $495.3 million.
He told Ye Seijium, the managing director of CGC, a company registered in Nigeria 31 years ago, which would construct the Ogoja water project, that the Ikom I water scheme valued at N5.3 billion was funded by the state, while its phase II is being funded by the World Bank. He explained that the Ogoja water project will cover Ogoja, Bekwara and Yala LGAs.
According to him, the project will be constructed for sustainability, and will be managed under a PPP, to address the challenges involved in delivering water to the benefitting communities, in tandem with the state’s large scale urban water dream.
BusinessDay gathered that over 1.2 million people have access to clean potable in Cross River as of Q4 2013. After a recent week-long media tour of projects in all the 18 LGAs, it was found that in most parts of Calabar metropolis, Akamkpa, Odukpani, Itigidi, Ediba, Ugep up to Ekori, Obubra, Ikom urban, clean water supply by the World Bank model, is already taken as given.
This is corroborated by a recent survey by some credible agencies which proved that water supply is regular, reliable and available 24 hours a day, seven days a week (24/7). Same would be for Ogoja, Bekwarra, Yala and Obudu LGAs by next when the Ogoja project would have been delivered.
The World Bank (and AfDB) assisted water supply feat in Cross River, with support from other donor agencies to the tune of $200 million and €3.0 million from the EU, is a test case of what government should do in a PPP approach. The state government’s commitment to servicing its loans from the World Bank kept more support funds flowing into the state. More money came in as grants.
Meanwhile, the urban water success story has been further complemented by remarkable gains in rural water supply and sanitation (RUWATSSA) initiative from the Tulsi Chanrai Foundation, an international support body. The non-profit organisation has been responsible for providing similar water provision service to most of Cross River’s rural communities.
BEN EGUZOZIE