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Lagos Water Infrastructure Deal Raises Transparency Concerns

Strategic Insights

— 1 min read

A Memorandum of Understanding (MoU) between the Lagos State Government and the Belstar/ENKA consortium to rehabilitate and expand water infrastructure has drawn criticism from Corporate Accountability and Public Participation Africa (CAPPA) due to a lack of transparency. The NGO has expressed concerns about the secretive finalisation of the agreement, unclear contractor profiles, vague project details, undisclosed costs, and the involvement of the US International Development Finance Corporation (DFC). CAPPA has warned against privatisation, citing evidence of higher tariffs and inequitable access in public-private partnerships.

Key Takeaways:

  • CAPPA has raised concerns over the lack of transparency in the Memorandum of Understanding (MoU) between the Lagos State Government and the Belstar/ENKA consortium to rehabilitate and expand water infrastructure.
  • The NGO has criticised the agreement's secretive finalisation, citing it as an affront to democratic accountability.
  • CAPPA highlighted several issues, including unclear contractor profiles for Belstar Capital and ENKA, vague project details, undisclosed costs, and the role of the US International Development Finance Corporation (DFC).
  • The NGO questioned whether the completed waterworks will remain under public ownership and control or be privatised.
  • CAPPA warned against privatisation, citing global evidence of higher tariffs and inequitable access in public-private partnerships.
  • The NGO urged the government to publish the MoU, hold a public forum, and commit to public ownership of water infrastructure.

Statistics:

  • The Lagos Water Corporation (LWC) is responsible for providing water services to the city of Lagos, which has a population of over 21 million people.
  • The projected cost of the water infrastructure project is not publicly disclosed.
  • CAPPA has highlighted that public-private partnerships in water infrastructure have led to higher tariffs and inequitable access in many countries.

Sources:

  • A statement by Robert Egbe, CAPPA's Head of Media and Communication (Source: CAPPA)
  • A statement by Akinbode Oluwafemi, CAPPA's Executive Director (Source: CAPPA)

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