The Alternative Project Funding Approach: Your Questions Answered

Q: What is the Alternative Project Funding Approach (APFA) being utilised by the Oyo State Government to execute capital projects?

A: The APFA being utilised by the Oyo State Government is a means of funding infrastructure development whereby the contractor for the project funds the project and is repaid by the government over a period of time.

---

Q: Why is the Alternative Project Funding Approach (APFA) being utilised by the Oyo State Government to execute capital projects?

A: Using the APFA enables the government to carry out critical infrastructure development without having to pay at least 30% of the cost of the projects upfront. This means the government can fund more projects as the repayments are spread over a period of time. In some cases, repayments continue even after the project has been completed.

---

Q: Which projects are being funded using the Alternative Project Funding Approach (APFA)?

A: The following projects are being funded using the APFA:

---

Q: Will the Alternative Project Funding Approach (APFA) leave debt for subsequent administrations?

A: There are no repayment terms outside the duration of the current administration’s tenure. All projects currently being executed using the APFA are set to be repaid before May 2023.

---

Read our previous post answering your questions about the Ibadan Urban Flood Management Project (IUFMP) here.