VIII. POVERTY REDUCTION THROUGH INFRASTRUCTURAL DEVELOPMENT

i. Energy

115. Since the financial year 2000, NAWEC's liquidity problem has been worsened by the depreciation of the Dalasi and the Iraqi war has also affected the global price of petroleum products. In fact, the price of a barrel of crude oil went up to $42, the highest in 10 years. In order to mitigate these losses, NAWEC was compelled to adjust its rates. Although tariffs were increased by 70% and 40% for electricity and water respectively in 2003, the anticipated benefits were eroded by oil price increases and the depreciation of the Dalasi. The outlook for 2004 would require further tariff adjustmnt.

116. Despite these constraints in NAWEC, moderate progress has been registered in 2003. The Greater Banjul Network Expansion Project financed by Import - Export Bank of Taiwan, is to be completed not later than the first quarter of 2004. The project will increase transmission capacity at Kotu Power Station and extend electricity to communities in the Greater Serrekunda and the Coastal Villages. The preparations for the rural electrification project are well at an advanced stage. Work on the project will commence in early 2004. For 2004 NAWEC intends to embark on the rehabilitation of generator No. 11, increase generator capacity and start preparation for the greater Banjul water supply project.

ii. Civil Works

117. The Gambia, like most developing countries, has invested and continues to invest massive resources in the improvement and expansion of its road network, in an effort to promote economic growth and social development. In a bid to help sustain these huge investments, the Gambia Roads and Technical Services Authority Bill, was recently enacted by this august Assembly. The Authority, which will be operational in 2004, will be responsible for the administration, construction and maintenance of all roads throughout the country. Its operations will be funded by a dedicated road fund where the proceeds from road related charges would be lodged and this would address the perennial problem of inadequate funding for maintenance, as well as, safe guard government's huge investment in roads. In addition, the Authority will to the extent possible, contract out road maintenance works to the private sector to help build up capacity, and to encourage local Gambian contractors to venture into the construction and maintenance of roads.

118. Regarding ongoing road projects, significant improvements were registered in spite of numerous constraints. The Kombo Coastal Roads Project has now been completed together with the first Phase of the Serrekunda-Mandinaba Road Project. The funding for the second phase of the project has already been secured from the Islamic Development Bank and work is expected to re-start soon. Significant progress has also been recorded on the 115 kilometre long Farafenni-Laminkoto road being funded by the Kuwait Fund, BADEA and Gambia Government to the tune of US$ 24 million. In 2004, work will commence on the Kerewan-Farafenni road and, hopefully, on the delayed five roads, the European Commission has pledged to finance (i.e. Barra-Amdalaye, Mandinaba-Selete, Soma-Basse, Transgambia and Basse-Sabi roads). Work on the main Mandinaba-Soma road is also expected to re-commence in 2004.

119. The serious threat posed by the advancing Ocean has now been curtailed with the commencement of the Coastal Protection Project being funded by the African Development Bank and The OPEC Fund. The work has now reached an advanced stage and is to be completed in a record time of seven months as opposed to the contract period of twelve months. This is due to the 24hr work schedule of the contractor, and the mobilization of additional equipment to sustain round the clock operations.

iii. Transportation

Mr. Speaker Sir,

120. The National Assembly Members are aware that The Gambia Public Transport Corporation (GPTC) has been going through a very difficult period following the transfer of Ferry Services, and also lack of spare parts for the aging fleet of buses, as well as shortage of buses.

121. The donation of Eight Pegaso buses by His Excellency Dr. Alh Yaya A.J.J. Jammeh in May 2003 opened the doors for further opportunities to acquire 20 standard Pegaso and 11 Articulated Mercedes Benz buses from TMB in Spain. The GPTC currently has a 98% nationwide coverage with buses and there are plans to operate 24-hour service when the road network improves.

122. In 2004, the Corporation will be restructured in line with its financial capability and current economic realities to reduce fixed costs, while existing depots countrywide are to be rehabilitated to better serve the travelling public. Financing for the 31 new buses was provided from the corporation's funds, and a loan of D2.5 million was secured from the Trust Bank to rejuvenate the aging fleet of TATA Buses.

123. The Corporation's performance this year shows a decrease in revenue of 43.2% or D13.5 million, while operational costs also decreased by 54.4% or D20.2 million. This was largely due to the hiving-off of the ferry services from the GPTC, and the marked reduction in the Operational fleet of buses due to old age.

124. The Gambia International Airline (GIA) continues to invest in ground support equipment in order to deliver excellent service to its customers. In this connection, the company spent D4.1 million in 2003 to purchase spares and a crew bus. The company plans to spend another D25 million in 2004 to purchase additional Ground Handling equipment. GIA has leased from Futura a B737-800 aircraft, and weekly flights to London have already commenced. The Futura cooperation has enabled the lease agreement to be structured in a way that would make the operation sustainable due to its competitive terms. The company is also planning to operate to the United States in 2004. The GIA Management is studying a number of proposals, and weighing possible options in this regard. Apart from royalty and handling income, Futura is helping GIA to acquire its Air Operators Certificate (AOC), which is necessary for GIA to operate its flights independently.

125. Meanwhile, GIA has received assistance from the British High Commission in September, 2003, which provided an expert to train its customer services staff in passenger profiling and document verification, to enable them detect forged travel documents easily, as this stands out as the biggest potential cost item for airlines operating to London.

126. The first phase of Banjul International Airport Improvement Project is now completed. The airport is now equipped with modern aeronautical and air traffic control equipment, a first class link road with dual carriageway from the main highway and fitted with street lighting throughout. A 640kva generator was commissioned as part of the July 22 celebrations in 2003. The construction of the aircraft taxi way will soon commence in line with the resurfacing of the runway. In addition, the expansion of the apron to accommodate additional aircrafts that are commensurate with the expected increase in traffic is also expected to take off in 2004.

127. Pursuant to improving the Port's operation and throughput capacity, attracting new Shipping Lines, and improving ships' turn around time, The Gambia Ports Authority procured and commissioned new Cargo Handling Equipment in April 2003. These include 9 Terminal Tractors and Trailers, a Mobile Harbour Crane with 40 MT lifting capacity and 6 Forklift Trucks valued at Euros 1 million, 1.40 million and 1.63 million respectively.

128. To improve the revenue generating capacity of the ferries, The Gambia Ports Authority has not only procured 2 new Weighbridges to be located at Essau and Bereto, but a D4.5 million contract has been awarded to a local contractor to conduct works for the 2 new weighbridges plus the rehabilitation of the weighbridge at Jenoi and Barra Ferry terminals. These works have already commenced and will be completed by February 2004.

129. The Gambia Ports Authority entered into a contract in 2002, with Kiev Shipbuilding and Repair Yard of Ukraine (KSSRY) for the construction and delivery of 3 Ferries valued at US$6.65 million. The ferries are scheduled for delivery in mid 2004. In a bid to enhance efficiency and productivity levels of Dockworkers, the Authority deemed it necessary to reform the Dock Labour scheme. The reform proposal has now been forwarded to the Government for consideration. The reform, amongst other things, would enhance dockworkers' productivity; provide better pay, improve conditions of service as well as medical and training incentives.

iv. Telecommunication, Information and Postal Services

Mr. Speaker Sir,

130. The opportunities provided by information and communication technologies cannot be properly harnessed in the absence of proper policy guidance, as well as an institutionalized legal and regulatory framework. In this regard, the Department of State for Communication, Information and Technology (DOSCIT) is in the process of formulating an Information, Communication and Technology (ICT) policy to address emerging issues in this dynamic sector. Assistance to this regard has already been secured under ECA National Information and Communication Initiatives (NICI) programme for Africa in order to develop a robust and cohesive national programme. Moreover, under the framework of the African Information Society Initiative, The Gambia was recently designated to become a model for e-Government in Africa. This will improve effective public service delivery and strengthen the economy's productive and social sectors in their mission to reduce poverty and facilitate economic development.

131. Gamtel continues to honour the obligation to GRTS by providing the annual subvention of D2 million whilst providing technical and financial support to the Department of State for Communication, Information and Technology. This year Gamtel signed a contract with Airspan for the provision of Wireless Local Loop Systems, which will provide 2,000 lines to 30 villages in the North Bank, Lower River and Upper River Divisions. This project is to be completed by the end of December 2003. Another contract was signed with Alcatel to upgrade the switches in Serrekunda, Kotu and Bundung, and will create an additional 3,000 lines for Serrekunda and its environs. All this form part of Gamtel's Global Expansion Project, the aim of which is to create 230,000 lines over the next five years. When completed, this will give the Gambia the highest telephone penetration ratio in Africa of 1 telephone line for every 5 inhabitants, compared to the existing ratio of 2.70 lines for every 100 inhabitants.

132. Gamtel's total expected Capital Expenditure for 2004 is D1.67 billion, out of which D1.44 billion is expected to be external financing, and the remaining D0.23 billion will be the company's funds. For the year 2004, Gamtel will embark on further projects to expand the network and provide more access to the telephone systems countrywide. A contract was recently signed with Alcatel for Euros 28.9 million to expand the switch to create 36,506 lines in the Grater Banjul Area and 8,448 lines in the Rural Areas. Gamcel has embarked on an expansion policy to increase the capacity of the network to 120,000 lines and 38 radio sites including a new Intelligent Network Platform. The project cost of over Euro 4.6 million and is expected to be complete by the end of this year. Plans are underway to install a second switch with an initial capacity of 60,000m in the fourth quarter of 2004 to cater for the growing demands for cellular services. This will include 12 additional cell sites, most of which will be located in the rural areas to complement Gamtel's efforts for improved rural communication.

133. In addition, Gamcel continues to expand internationally by providing roaming facilities to its customers abroad through agreement with 25 partners most of which are in Western Europe, Africa and North America with an estimated 30 of these agreements planned for 2004.

134. Based on the satisfactory performance of the Gambia Post Office (GPO) during the year following its transformation to a semi-autonomous department, a Divestiture Task Force is currently working on a cabinet paper for the Gambia Post Office GPO to become autonomous by April 2004.

135. The three-year Integrated Project signed with the universal Postal Union has begun operations and besides vehicles, computers and other office equipment to be received, managerial training for staff has been successfully completed.

136. The Government Information Service Department has completed a computerized photo library project with assistance from UNESCO, to preserve and maintain photographs. The project was conceived to arrest the fast deteriorating quality of photographs of historic value, collected over a period of three decades, on account of poor storage condition. Hence at present, old and new photographs are effectively preserved in digital form, which can be retrieved easily for newspaper publication, and made available to the public for a fee.

vi. Maintenance Services Agency (MSA)

137. During year 2003, the company stepped up its programme of diversification into steel fabrication, hiring of trucks, plant and equipment, the collection and sale of scrap metal, providing on the job training for graduates of the NYSS, GTTI, President Award Scheme and similar private institutions as well as specialized engineering services to various Auto-Engineering Workshops throughout the country. The company also carries out the testing of all tourist taxis for road-worthiness, and have developed the capacity and infrastructure to conduct such tests on all types of vehicles.

 

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