Abuja, the Federal Capital Territory is indeed a beautiful city with potentials to be amongst the top 10 capital cities in the world. But in recent times, the city is experiencing rapid population growth, housing deficit, rising cost of rent to mention but a few. Its infrastructure are clearly overstretched with a population figure of about four million people against the projected 2.5 million.The FCT ministry as a fact needs to start thinking of alternative means of funding infrastructure development in the city other than relying on budgetary allocations, which has proven inadequate over time.Whilst we must understand that inasmuch as it is the responsibility of government to provide the needed infrastructure, emphasis should be made on government leveraging on private sector finance and expertise to free up public funds to develop other critical sectors like education and health.(A good example is the recently launched FCT Land Swap Model.)The Senator Bala Mohammed-led administration has embraced this school of thought with the FCT Land Swap Initiative, recently launched with the aim of bridging infrastructural deficit and accelerating delivery of affordable housing in the FCT. To put it simply, the Land Swap Model is an initiative whereby land would be given to real estate developers in a Greenfield district in exchange for infrastructural development. It is a form of Public Private Partnership initiative and is quite fascinating too because PPP initiatives have provided a principal vehicle for direct investment into public utilities and infrastructure given the shortage of public funds in most developing countries. For the records, the aggregate infrastructure development in the FCT since inception 36 years ago has not been more than 25 per cent and over 90 per cent allocated plots have not been developed because of lack of adequate infrastructure. And to think that plots in more than 15 districts have been allocated 100 per cent without budgetary allocation for infrastructure in those districts is worrying. Other factors such as the constant influx of people from all parts of the country and paucity of funds are some of the challenges confronting the evolution of the city. Also, information gathered from the FCT ministry indicates that about 100,000 people come into the city daily and out of that figure, 10,000 remain behind. The layman's explanation is a three bedroom apartment meant to accommodate a family of four persons, but accommodates a family of 10. Obviously, the facilities would be overstretched. This is the case of the FCT. More importantly that Abuja is the centre of unity and significant in the life of Nigeria as its capital, and as a result people are bound to troop in droves for various purposes,hence the need to ease the pressure on existing facilities by opening up new districts. This is why the Senator Mohammed-led administration should be commended for the Land Swap Model. It is indeed a brilliant initiative and it should not go unnoticed hence this piece. The FCT Land Swap Model will open up new districts if all goes according to plan, where the private sector will be incentivised to provide the required infrastructure within the districts in exchange for 60 per cent of buildable plots in the district, while 40 per cent would be retained by the Federal Capital Territory Administration for allocation. This is obtainable in developed nations and indeed a welcome development in this clime. Then government's emphasis will be to provide the policy, legal and regulatory environment for seamless private sector participation in developmental efforts which is more or less a win-win situation. With this, the projection by the FCT ministry to develop at least 10 new districts by 2015 might just be possible especially as the Caraway Dallas District development in Phase IV south district of the FCT is well underway. The Caraway District is located along Keffi Road, adjacent to highbrow Sunrise Estate and the Mogadishu Barracks with a total land area of approximately 222 hectares divided into 413 plots that consists of 339 residential, 52 diplomatic, 7 commercial and 15 others (Green & Institutional). The project is to provide integrated civil infrastructure at an estimated total cost of N26 billion. The interesting part of the model is that 60 per cent of the 222 hectares ( 247.8 plots) would be allocated to the developer, Plethora Realty & Facility Managers Limited, but not after providing 16.7 km of roads of varying specified sizes, 16.4km of storm water drains, 21.2km of foul water drains, 22.3km of water distribution lines, 19.9km of street lighting lines, 27.6km of electrical power distribution line, 14.5km of telecommunication ducts and 3 Nos. mini sewage treatment plants. Little wonder the enthusiasm shown by major real estate developers in the country. Some might anticipate a situation whereby cutting of corners by developers in active connivance with officials of the supervisory agencies might be the case.There are measures in place to guard against such. Part of the strategy is for the developer to provide a commitment fee of N350 million on presentation of a business plan to fund physical plan, preliminary design, detailed engineering design, and survey plan and feasibility studies. Also, the required infrastructure in the district must be provided within a maximum period of 48 months under strict compliance with FCDA specifications and standards for district infrastructure works. Also, as part of measures to ensure strict compliance, the developer shall not commence real property development or sale of any land in the district until it achieves at least 35 per cent of functional infrastructure works. On the release of land titles to the developer,15 per cent of the Rights of Occupancy shall be released to the developer on evidence of transfer of 15 per cent of the infrastructure cost to the project account, 80 per cent of the Rights of Occupancy shall also be released on the basis of interim measured certificates, the minimum value of which shall not be less than 20 per cent of the Infrastructure works and 5 per cent retained till after the retention period of 12 months. This initiative is beyond infrastructure and expansion; it is about easing the pressure from the city centre. It is about creating jobs for our youths and making housing affordable to the people, thus bringing a new lease of life to FCT residents. This model should be given all the necessary support if we are serious about bridging the housing deficit in the FCT. I commend the FCT minister Senator Bala Mohammed for this rare display of ingenuity. Ocheja can be reached via Jocheja@yahoo.com
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