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The Alternative Project Funding Approach: Your Questions Answered

Picture of the Airport-Ajia-New Ife Road with a spur to Amuloko taken on July 31, 2021 funded by the alternative project funding approach

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:

PROJECTS BEING FUNDED USING THE ALTERNATIVE PROJECT FUNDING APPROACH

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.

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