LAGOS MEGA CITY BUSINESS EXPO 2008

Investment potentials and policies of Lagos State.

DELIVERED BY OLA ORESANYA MANAGING DIRECTOR, LAGOS WASTE MANAGEMENT AUTHORITY September 2008

Preambles
Lagos is a mega city with a population estimate of about 17,552,942 (2006 Census projection, by Office of Central Statistics, Alausa). Has an annual growth rate of 6 8% The city of Lagos generates about 9000 metric tonnes of waste daily. The generation per capital (GPC) is put at 0.5kg/person/day.

P I E CH A RT SH OW I N G T H E % VOL U M E D I ST RI B U T I ON OF W A ST E ST RE A M

GL A SS 5% P A P E RS 10%

P L A ST I CS 15% METALS 5% T EXT IL ES 4%

FINE S 8%

P U T RE SCI B L E S 8%

VE GE T A B L E S 45%

ThenewLagosMegaCitywaste managementprojectionplan

Year

Area

Population

Generation rate/day

Ton/day 4+

Trucks 1

1945 > 200km2 1967 1200km2 1976 10,000km2 1990 35,000km2 2006 < 40,000km2 2015 < 60,000km2

40,000 0.1 (E) 1,500,000 0.12 (E) 3,200,000 5,000,000 18,000,000 23,000,000 0.2 0.25 0.4 0.7

180 6 (2 trucks) 640 100 (35 trucks) 1250 210 (70trucks) 7200 1200 (400 500 trucks) 16,100 2500 (800trucks)

PRIVATIZATIONSTRATEGY
ECONOMIC GROUPS High Income High Medium Medium Low Medium Low Income PREDOMINANT ZONES South East (V. I, Ikoyi etc) North Central (Ikeja GRA etc.) South Central (Surulere etc.) North East (Somolu etc.) West (Ajegunle, Alimosho, Ojo etc) STRATEGY Franchising Concession/Franchising Ditto Contracting/Franchising Contracting/Open Collection/Pre collection

Efforts so far!!!
The State Government recently granted approval for the construction of a new landfill site in Epe (South East of Lagos), while 2 other sites are being proposed at Ikorodu (NE) and Badagry (SW). There are also 2 waste conversion plants in the State, the Compost plant at Odogiyan, Ikorodu and the Plastic Recycling plant at Ojo Local Government Area

Challenges
Climate conditions Human Capacity Quality Capacity Building Cultural and Socio economic factors Budgeting Funding Technology Energy

COM PARISON OF SW M BUDGET PROVISIONS IN SELECTED CITIES OF THE W ORLD AS AT 2006

12

10

P E RC E NTAG E

N ew Y o rk L o n do n 6 I sta n bul T E H RA N L A GOS 4

0 New Y ork London Istanbul TEHRA N LA GOS

C ITY

COMPARISON OF SWM BUDGET PROVISIONS (% ) IN SELECTED CITIES OF THE WORLD AS AT 2008

12

10

New York London Istanbul TEHRAN LAGOS LAGOS '09

0 New York London Istanbul CITIES TEHRAN LAGOS LAGOS '09

CHART SHOW IN G W AST E CO LLECT IO N ( 1980-2007)

4,000,000

3,500,000

3,000,000

2,500,000 TONNAGE

2,000,000

1,500,000

1,000,000

500,000

0
19 80 19 82 19 90 19 96 19 98 19 94 20 00 19 84 19 88 20 04 19 86 20 02 20 06 19 92

YEARS

 Construction of 20nos. Transfer Loading Stations throughout the State in the next 7years (2008 2015). Construction of additional 3 IWMF in the metropolitan Lagos. Attainment of 35% compliance in zero waste initiative within the next 4 years.

InvestmentOpportunities
Solid Waste Management project and programme in Lagos will require investment to the tune of about N30billion and N40billion in capital and recurrent expenditure respectively, within the next 3years (2008 2011).

Cost Profile index

S/N MSW activity
Required Demand

gap 1 2 3 4 5 6 7 8 9 10 Containers Collection trucks Sweepers Disposal Sites TLS Communal waste depot Resource recovery Plants/Equipment Monitoring vehicles Utility vehicles 6000 650 50 4 10 50 10 30 100 20 4000 450 50 3 10 50 8 27 80 20

30% demand target (000,000)

40% target + 5% inflation (000,000)

30% target + 10% inflation (000,000)

Unit cost (000,000)

TOTAL (000,000)

216 4,050 225 1500 1950 75 120 810 72 120

302.4 5,670 315 1575 2730 105 168 1134 100.8 168

237.6 4,455 247.5 1650 2145 82.5 132 891 79.2 132

0.18 30 15 1,500 650 5 50 100 3 20

756 14,175 787.5 4,725 6,825 262.5 420 2835 252 420

TOTAL

31,458

Sectors worth investing in, include;

Recycling Sector Composting Landfilling Incineration Landfill gas to energy

What is Lagos State Offering?

Adequate land space Provision of required tonnage of for any waste management facility. Construction of 20nos. TLS in the State which would be available for management by PSP Available market for products from the waste management facility. Tax holiday to encourage investors at early stage. Information dissemination/public enlightenment on the benefit of technological integrated waste management facility. Provision and construction of landfills which will also be made available to competent PSP operators to manage Provision of infrastructure to serve the location of the facility.

List of successful investors in Waste Management Sector

Earthcare PSP Operators Jebba Paper Mill Ojo plastic recycling plant.

Potential Investors in Lagos State Integrated Waste Management System

Ned Bank Capital Travant Capital Signature Waste Management Ltd. Shangai Asset Resources Management UBA Global Market Entag Engineering Macpresee Konsadem Associates Southpole carbon Market

LAWMAs Technical Partners

Clinton Foundation (Clinton Climate Initiative) World Bank USTDA Indigenous Banks UNDP DFID

CONCLUSION

 Investment in municipal solid waste management sectors is a major panacea/catalyst required to stimulate the much desired macro - economic growth in Lagos State.

 THANK YOU FOR LISTENING.