Governor of Lagos State, Mr. Akinwunmi Ambode has said that his administration would launch a public transportation infrastructure bond of N100 billion.
This bond is expected to span between seven to 10 years to implement the proposed Bus Reform Initiative aimed at giving residents of the state an integrated public transportation system.
Ambode, during an interview session with journalists, said that N30 billion sinking fund had been set aside for the initiative to take off later this year.
He said the reform was targeted towards providing a viable alternative by which Lagosians commute daily, explaining that the initiative is a three-year plan aimed at introducing over 5000 air-conditioned buses to replace the yellow commercial buses, popularly called Danfo, which according he said was no longer befitting for the State’s mega city status.
“We decided that the best thing is to allow the yellow buses go and so the Bus Reform Initiative itself is a three-year plan of 2017 to 2019 in which it intends to bring in new buses of 5,000 units in the three-year plan,” he said.
“The bigger size buses will take 70 people and then the medium range buses will take 30 people. We believe that the middle range buses will be supplied up to 70 per cent of the total volume which will amount to about 3,600 units and then the longer range in that direction.”
On funding the initiative, the Governor said, “You are aware that the Federal Government paid the refund of the Paris Club Loan last December and this is a money belonging to the State Governments due to the refund and so Lagos State decided not to touch its share of the Paris Club refund. Right now, we have a sinking fund of N14.5billion that is already put in place to drive this public transportation bond.