THE GAMBIA: BUDGET 2003

BUDGET SPEECH 2003

PROGRAMME BASED BUDGETING FOR EFFICIENT RESOURCE ALLOCATION AND USE WITH A POVERTY REDUCTION DIMENSION

Mr Speaker Sir,

149. Government continues in its restructuring of the energy sector with the objective of providing efficient, reliable and affordable energy services to the population.

150. Some of the major projects that NAWEC envisages to implement in year 2003 include the rural electrification project to the cost of $18 million and the construction period is expected to last for 21 months. $15.5 million has been earmarked for The greater Banjul area network rehabilitation project, $1.5 million for the Gunjur water project and $1.4 million for the water supply and sanitation study. All works shall start effective 2003.

Mr Speaker Sir,

151. Substantial progress has been achieved in the road sub sector since last year. The 80km Kombo Coastal Roads Project has now been completed, while the Serrekunda to Mandinaba road is well advanced. Similarly, on the North Bank, work has commenced on the newly signed Farafenni-Laminkoto road project which to be completed within 2 years. Financing has also been secured to construct the Kerewan-Farafenni road and the call for tenders for its construction is expected in early 2003.

152. The reconstruction of the important Badala Parkway and its extension to intersect the Bakau access road has now been completed. This has helped ease the traffic congestion problem on the Westfield-Brikama road and provides satisfactory access to the Tourism Industrial area.

153. As we foster decentralization of development, all regions of the country will have their share of road development. Therefore Government will do its utmost to ensure that the fast deteriorating Soma-Basse road receives due attention. Through the same sources, the upgrading of the Basse-Sabi and Basse-Koina, Mandinaba-Siletti and the TransGambia is expected late 2003.

154. Arterial access roads that have an impact on poverty alleviation in the dense settlements in the Greater Banjul Area have been identified for upgrading to a bitumen standard. Among this lot is the Tabokoto-Sinchu Alagi and the Kotu Silo roads on which construction has started. GAMWORKS has also tendered the reconstruction of ten roads in this category, and work is expected to commence by early next year.

155. In our continued effort to seek a more permanent and viable solution to the crossing problem across Banjul-Barra in particular, and to improve on the regional transportation system in general, Government has now secured assistance from the EU to finance a pre-feasibility study to put a bridge between the North Bank and the Greater Banjul Area. The study is expected to commence very soon.

156. Immensely disturbed by one of the most severe environmental hazard currently taking place in The Gambia, Government has vigorously sought financing and has signed a $17 million contract to restore the beach that was lost as a result of coastal erosion. Action will be taken to mitigate further erosion and beach restoration works will commence early next year.

Mr Speaker Sir,

157. The National Transport Policy which outlines the mission, policy objectives, strategies and programme of action essential for the realization of the objectives in all sub sectors has since been adopted by Government. Similarly the formulation of the National Transport Plan covering the modes of transport in the country and their development plan has also been adopted for implementation.

158. 2002 has witnessed considerable achievements in the transport sector with the acquisition of the new ferry "Johe". Together with "Barra" and the extension of the scheduled times, the queuing of traffic problem that was almost a trademark at both ends of the ferry terminals has now been eliminated. In this way goods and services stand a better chance of reaching their destinations in shorter periods with all the inherent benefits accruing.

159. This year has been a very difficult period for the GPTC due mainly to low bus availability and an unprecedented rise in the cost of operation. Increase in the cost of spare parts due to escalating foreign currency exchange rates, and an unwarranted hindrance in Senegal of the Inter-State (Banjul-Dakar-Banjul) Service resulting in substantial loss of revenue and customer loyalty.

160. Despite these problems, the GPTC maintains its role as a service provider that has an impact on poverty reduction. Routes in the rural areas, littered with highly populated villages and towns use GPTC services as a cheaper and sometimes the only available means to reach medical services. The Peri-urban integrated school transport service also serves as an important tool in providing access to education.

161. Government continues to exploit opportunities for the development of air transport and particularly expanding airport infrastructure and improving services to accommodate the start of the Gateway project and to create a bandwagon effect in all connected sectors of the economy. A contract was signed with CSE to commence the civil works component of the Airport Improvement Project, the implementation of which is advancing very well. During the course of 2003, the construction of an additional taxiway and the re-surfacing of the runway are all expected to commence.

162. 2002 started on a much quieter note for air transport affected particularly by the events of September 2001 and the subsequent withdrawal of Sabena Airlines, our biggest single scheduled carrier from Europe at the time. However, this downward trend was reversed with the introduction of more scheduled flights four months into the year.

163. It is heartening to report that SN Brussels Airlines replaced Sabena in April this year with three weekly flights initially, later increased to five in June. Sierra National Airlines (SNA) too has re-routed one of its two weekly flights to fly out of Banjul direct to London. These services have significantly boosted Banjul International Airport's connectivity particularly to Europe and beyond.

164. 'Air Guinea Express' replaced Air Guinea as a carrier to Labe in the Republic of Guinea. Air Mauritania also recommenced its operations recently. In addition, Air Senegal International will extend its operations to Freetown from the Gambia. The foregoing developments augur very well for the gradual, but steady development of our envisioned 'hub and spoke' operations, which places the Gambia strategically at the node of a regional, inter-continental and trans-Atlantic air transport network.

165. Following our success story in the area of aviation security which led to the clearance of Banjul International Airport for use as last point of departure to the US, the GCAA continues to crave for a full ICAO compliance status. Significant investments are made in developing the required capacities in systems, procedures and human resource in the area of security and safety oversight. Currently preparations are underway for an ICAO inspection sometime during the course of next year. We are confident that at the end of this exercise the GCAA will attain the status that will enable our own registered aircraft to fly into any airspace without restriction.

166. Passenger traffic at BIA in the first half of the year under review amounted to 154,468, recording a slight drop on 2001 for the same period. This trend is likely to be reversed in the second half of the year and the annual passenger traffic figure in 2002 is estimated to increase by 15% over 2001 to 367,335.

167. In a bid to liberalize air transport, Government has negotiated bilateral air transport agreements with its international partners. The objective is to open more access points worldwide thereby broadening the market and creating the opportunity for fair competition. Already re-negotiations have been concluded with Belgium and the United Kingdom. The process continues with other aviation partners.

168. GIA also plans to introduce a B737 to replace the ATR-42 currently being operated to Dakar and Freetown. This will address the capacity limitations of the latter with regard to both passenger and cargo. There are also plans to extend the present network to include Abidjan, Accra and Lagos. Preliminary discussions have been held with Kenya Airways to provide a connecting service to our passengers to east and southern Africa. Discussions are far advanced with Future airlines of Spain to launch a Banjul-London service.

169. Ground handling form the core activity of Gambia International Airline (GIA). Consequently, heavy investment in ground support equipment is being done to give unrivalled service to make Banjul one of the best handling stations in Africa. In this regard, a high loader at the cost of D7m was recently acquired from FMC Corporation in the United States. GIA is planning to do a feasibility study to build a Cargo Village, an exclusive cargo-processing zone to enable GIA process and handle cargo for worldwide destinations.

170. The GPA is currently engaged in the implementation of the Banjul Ports Project II - Utilisation of Savings, jointly funded by the Government of The Gambia and the African Development Bank (ADB). This project relates to a series of modernization works to cater for present and anticipated traffic in the years ahead.

171. In this regard, the Government and the Authority have deemed it necessary to review the development of the Port of Banjul and related port, maritime and commercial activities, and to update the 1992 Feasibility Study and Port Master plan to map out the future direction of the GPA. The project also involves the rehabilitation of Old Banjul Wharf and a contract of Euro 517,825 or D9.7 million has been signed with Sinco Spa from Senegal, who are now mobilizing to commence works.

172. Starting now till the end of 2003, renovation work will take place on the Banjul and Barra Terminals. Bambatenda and Yellintenda Terminal will be reconstructed, including the construction of a slipway at Yellitenda. There will be three additional ferries from Ukraine for Banjul/Barra and Transgambia crossings.

173. The Government's decision to create a separate Department of Communication, Information and Technology (DOSCIT) underscores the great importance these fields play in economic development. The use of modern Information and Communications Technology to benefit trade, industry, and social sectors cannot be overemphasised. ICT, from now on will continue to be part of our priority projects in all sectors.

174. The opportunities provided by Information and communication technology cannot be properly harnessed in the absence of a proper legal and regulatory framework. In this regard, DOSCIT will be formulating a regulatory and legal framework to address emerging issues especially the licensing procedures as demands for telecommunication services increase. The existing National Communication and Information Policy document (NACIP) will be reviewed and The Draft Telecommunications Law will soon be finalized to address issues relating to tariffs for interconnection, and a host of other service issues.

175. A review has been undertaken of the licensing fees for radio stations, Internet Service Providers, GSM operators, and Cable TV Providers as well as license fees for V_SAT services. This move will boost the revenue contributions of the new Department of State.

176. Gamtel has grown over the years to register substantial improvement in the Telecommunications sector of this country and would continue to grow to satisfy the needs of the nation. Gamtel continues to honour its obligation to GRTS by providing the annual subvention of D3 million with technical support provided to Department of State for Communication, Information and Technology.

177. The total budgeted telecoms investments for the year 2002 is approximately D400 million which would include payment for the cable project and network expansion among others, which will substantially reduce the waiting list in both Urban and Rural Areas for enhanced subscriber connections. Other investments for the year 2002 include upgrading of the Satellite Earth Station with Standard A Antenna, which will increase International Access.

178. Gamtel planned to lay Fibre Optic Cables from Barra to Basse and also use wireless telephone technology to connect over 30 villages in the Rural Areas. This contract has already been signed with Siemens, valued at $10 million will last for about one year. The relocation of the Gamtel Services from Westfield to Mandinaba is budgeted at D30 million but due to road construction of the highway linking Serrekunda and Mandinaba these funds are still to be fully utilized.

179. For the year 2003 Gamtel will embark on projects to expand the network and provide more access to the telephone system. Alcatel of France and SIEMENS of Germany are the potential contractors and the contract sum is expected to be $54 million, which is approximately D1100 million. This project will be in phases and will increase revenue considerably. The project will provide telephone throughout the country and shall connect additional lines of 230,000. A recently concluded deal with Alcatel intends to expand GSM telephone connectivity from 60,000 lines to 120,000 lines.

180. Since the inception of Gamcel in May 2001, the company has achieved its target of having the capacity to provide GSM services to more than 30,000 customers. Gamcel plans to increase the capacity of the network subscribers to 120,000 by end 2003. This expansion project will cost over Euro 4.6 million and involve a major expansion on the current Mobile Switching Centre and the installation of several radio sites. The radio sites will be added to increase the capacity and coverage of the network. Most of the new radio sites will be installed in the provinces where coverage needs to be improved. The configuration of some of the existing antennas will also be changed to enhance coverage.

181. 2003 will witness the beginning of a transformation process of the Post Office from that of a government department to a semi-autonomous or self-accounting status. This involves according the institution limited financial and managerial independence to start operating within a commercial environment. Depending on its performance, it will be transformed to a full-fledged public enterprise in the year 2004 or 2005.

182. With the change in status, the efficiency of the Post is expected to improve through the recruitment of professional managers, who will also have the vision of elevating the standards to an acceptable level and the dynamism of introducing revenue generating services such as courier, money transfer and internet services.

183. This year, the Post Office signed a three-year Integrated Project with the Universal Postal Union amounting to D2.3m. Government contributed D1.2m of this amount. In the next three-years, the project will provide equipment and training to the department complement government's aims and objectives of an improved and efficient postal system.

184. In a bid to further improve the operational and financial performance of the Company, MSA Co. Ltd. continues to consolidate the gains registered so far in its diversification programme to increase its market share of the private sector coupled with an ambitious marketing strategy. The diversification programme focuses on steel fabrication, hiring of trucks, plant and equipment, the operation of a motoring school as well as providing on-the-job training for graduates of the NYSS, GTTI, President Award Scheme and other Private Institutions and auto-engineering workshops.