EXCLUSIVE: Oyo Assembly Minority Leader, Alarape Commends Makinde Over APFA, Says Borrowing In Order

0 0

By Henry Odeh

 

The Minority Leader of the 9th Oyo state House of Assembly, Rt. Honourable Ashimiyu Alarape, has commended the Oyo state governor over his adoption of Alternative Project Funding Approach (APFA) for the implementation of capital projects spread across the state.

The former Speaker, who made this disclosure while speaking with journalists in his office at the Parliamentary complex on Thursday 12th November 2020 maintained that adoption of APFA style for projects implementation by the Makinde led government will enable it achieve much success in the area of infrastructural development.

Alarape, who currently represents Atiba state constituency at the Oyo assembly, said that even though excessive borrowing should not be encouraged, he noted that so long as borrowing is tied to infrastructural development and projects are genuinely implemented, it is in order to borrow.

He said: “You know a lot of people started with Public Private Partnership (PPP) but this alternative approach is a sort of modification to that one.

“We have experienced that before when Chief Bisi Akande was the governor of Osun state between 1999 and 2003 and before he came in there was no state Secretariat so, he now got a land and designed the structure of what the Secretariat will look like.

“Now, what he did was that he invited contractors that are willing to work and he said, we have money but we won’t mobilize any contractor until you are able to have certificate of completion up to 50%.

“The contractors agreed and they started work, that is exactly the reason why you have a sprawling state Secretariat in Osun state so this alternative approach to project funding too can be likened to that.

“Because it will help us to achieve one thing, quality job!, because by the time you loan which was supposed to be you know, usually before, what you do is that when somebody finishes a project you retain some amount of money so that you will use it to test quality of the job over time before you release that money, we call it retention.

“But in this case now, if you have done a job and somebody now spreads out the payment, you will be very careful because by the time you are doing it and now detect that the thing is getting damaged that means you will pay extra cost to repair it.

“So that means, you must be up and doing and doing it properly so that the person releasing money will be encouraged to release to you according to what you are doing, so I think it is a very good idea.

“I quite agree with the governor over that one because it is an improvement on public private partnership, because in PPP, if by the end of the day you complete the contract what it means is that you must give concession to the other person to use it for a period of time to make his money back including profit but this one is different.

“It is only an infrastructure that you don’t have any return over and you don’t have toll gates, you are not making money out of it but you ease movement of people so, you have only relaxed the payments to afford the opportunities of having multiple projects that is the meaning, so, if you are thinking of five you may roll out fifteen since it is not a straight jacket payment which means if you have fifteen this year, fifteen next year by the time you complete the projects the number of kilometers you must have covered will be very very high.”

Leave A Reply

Your email address will not be published.