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DELTA BUDGET 2015 PROPOSAL (FULL TEXT FOR THE RECORDS)

ubudgADDRESS BY HIS EXCELLENCY, DR. EMMANUEL EWETA UDUAGHAN, CON, THE GOVERNOR OF DELTA STATE, AT THE PRESENTATION OF THE YEAR 2015 BUDGET PROPOSALS TO THE DELTA STATE HOUSE OF ASSEMBLY, ON WEDNESDAY, 17 DECEMBER, 2014

Rt. Hon. Speaker,
Honourable Members,

I am delighted to present proposals for the Delta State 2015 budget to this Honourable House for consideration and appropriation. As you are all aware, the 2015 budget would be my last budget since becoming the Governor of Delta State in 2007. Today’s event therefore represents for me, a majormilestone in the life of my administration, which has already entered the concluding stages of its tenure.
2. Mr. Speaker, Honourable members, when this administration took over the mantle of leadership in 2007, I pledged to provide a more efficient government that will embody the vision of a politically united, socially integrated, stable, economically prosperous and well-organized State, with equal opportunity for all Deltans. In all modesty I believe we have tried to actualize this pledge given the plethora of infrastructural development and other achievements we have recorded in the socio-economic transformation of our beloved Delta State.
3. Indeed, Mr. Speaker, Honourable members, after a critical review of our performance, so far, it is refreshing to note that this administration has with the cooperation and understanding of all stakeholders been able to meet some of the critical challenges of our shared vision for Delta State.We can with a good measure of certainty say that this administration has brought peace, tranquillity and accelerated development to the state.
4. Although this is not an occasion for a valedictory speech – I believe I shall have the privilege of addressing this house before the end of this administration – I wish therefore to place on record my appreciation of the support I have enjoyed from this noble House,which contributed immensely to the remarkable achievements of this administration.I dare say that achievements recorded so far by this administration have been due to teamwork amongthe various arms of government.
5. Mr. Speaker, Distinguished Honourable members, in the years that we have been in office, we have faced challenges that stretched our resolve. We have worked diligently to deliver on the promises we made despite these challenges. The flood crises of 2012 and the Ebola outbreak this year cannot be easily forgotten. Luckily for us, we have a functional institutional structure that to a great extent helped in addressing these challenges. I am profoundly thankful to God Almighty for His mercy, grace, inspiration and guidance these past seven and half years.
6. As we prepare to exit office next year, it is the avowed resolve and determination of this administration to finish strong. In this regard, it is gladdening to underscore that Delta State provides viable investment environment given its comparative advantages as a leading producer of oil & gas. The State is also strategically located and accessible to other parts of Nigeria by any means of transportation. Furthermore, Government has invested heavily in security to create a safe and secure environment. We have a breed of young, educated and active population. Accordingly, we are committed to striving assiduously to deliver on the provision of critical infrastructures which this administration has set out to establish to support investors and improve business environment in our State in pursuit of our vision of Delta Beyond Oil.
7. At this juncture, Mr. Speaker, Honourable members of the State House of Assembly, permit me to quickly review the Year 2014 Budget before presenting to you an outline of the Year 2015 budget proposals for the State.

COMPONENTS OF THE 2014 BUDGET
8. In the 2014 fiscal year, a budget of N450,738,227,082 (four hundred and fifty billion, seven hundred and thirty eight million, two hundred and twenty-seventhousand, eighty-two naira) was approved for the services of the State Government. The amount is made up of a recurrent expenditure budget of N161,736,440,073(one hundred and sixty-one billion, seven hundred and thirty six million, four hundred and forty thousand, seventy-three naira) and a capital budget of N289,001,787,009(two hundred and eighty nine billion, one million, seven hundred and eighty-seven thousand, nine naira). The profile of the 2014 budget is as follows:

(A) REVENUE
S/N Sources Approved 2014 Budget % Appropriation
i Internally Generated Revenue 62,493,600,528 13.86
ii Statutory Allocation Including Mineral Revenue Derivation 229,315,948,494 50.88
iii Value Added Tax 10,376,666,433 2.30
iv Other Capital Receipts 148,552,011,627 32.96
Total 450,738,227,082 100.00
(B) EXPENDITURE
S/N Details Approved 2014 Budget % Appropriation
i Recurrent Expenditure 161,736,440,073 35.88
ii Capital Expenditure 289,001,787,009 64.12
Total 450,738,227,082 100.00

YEAR 2014 REVENUE BUDGET PERFORMANCE (JANUARY TO SEPTEMBER)
9. The State Government, during the nine months of January to September, 2014, recorded total revenue receipts of N213.500bn,representing an overall revenue budget performance of 63.16% over expected proportionate receipts of N338.053bn. Out of this amount, the sum of N144.677bn was received as Statutory Allocation from the Federation Account. The amount represents 84.12% performance in relation to the proportionate estimate of N171.986bn. On the other hand, the sum of N7.235bn was recorded as receipts from Value Added Tax (VAT) out of the proportionate projected receipts of N7.782bn, representing a budget performance of 92.97%.
10. Furthermore, the sum of N32.715bn was recorded as Internally Generated Revenue (IGR) for the period January – September, 2014, out of the projected revenue of N46.870bn, representing a budget performance of 69.80%. Also, the sum of N28.871bn or 25.91% was received from other capital revenues against the proportionate budget of N111.414bn during the period under review. The breakdown of the revenue receipts from individual revenue sources is provided hereunder:

S/N Sources Approved 2014 Budget Proportionate Budget Jan-Sept, 2014 Actual Revenue Jan – Sept, 2014 % Per
i Internally Generated Revenue 62,493,600,528 46,870,200,396 32,715,528,774 69.80
ii Statutory Allocation Including Mineral Rev. Derivation 229,315,948,494 171,986,961,371 144,677,769,773 84.12
iii Value Added Tax 10,376,666,433 7,782,499,825 7,235,712,873 92.97
iv Other Capital Receipts 148,552,011,627 111,414,008,720 28,871,107,589 25.91
Total 450,738,227,082 338,053,670,312 213,500,119,009 63.16

11. The above revenue receipts represent an aggregate increaseofN8.196bnor 3.99% over the sum of N205.303bn recorded for the corresponding period of January to September, 2013. Statutory Allocation has a significant decrease of N9.549bn or 6.19% over the sum of N154.227bn recorded for the same period in 2013. Contained in this amount is the SURE-P fund of N10.666bn received for the period January to September, 2013. It is worrisome to note that there was a huge decrease of 15.60% in the receipts from the internally generated revenue from which N32.715bn, was received this year as against N38.761bn received for the same period in 2013. In fact, it was the N28.871bn received from other capital receipts that accounts for the 3.99% increase.

YEAR 2014 EXPENDITURE BUDGET PERFORMAMNCE (JANUARY TO SEPTEMBER)
12. As for expenditure, a total sum of N188.791bn was spent during the period January – September, 2014. Out of this amount, the sum of N135.752bn was spent on recurrent items as against a proportionate approved budget of N121.302bn representing a budget performance of 111.91%. The breakdown is summarized below:
RECURRENT Approved 2014 Budget Proportionate Budget Jan-Sept, 2014 Actual Expenditure Jan – Sept, 2014 % Per
i Personnel Costs 64,223,825,162 48,167,868,872 50,482,980,762 104.81
ii Overhead Costs 59,181,061,650 44,385,796,237 41,055,190,712 92.69
iii Con. Rev. Charge 38,331,553,261 q 28,748,664,946 44,214,078,203 115.35
Total 161,736,440,073 121,302,330,054 135,752,249,676 111.91

13. The sum of N289bn was budgeted for Capital Expenditure. During the year, actual expenditure for the period, January-September, 2014 was N53.039bn as a against the proportionate budget figure of N216.751bn representing a budget performance of 24.47%. A breakdown of the Sectoral performance for the period is as follows:
Capital Approved 2014 Budget Proportionate Budget Jan-Sept, 2014 Actual Expenditure Jan – Sept, 2014 % Per
i Economic 97,930,944,353 73,448,208,265 12,180,511,865 16.58
ii Social 58,844,493,420 44,133,370,065 7,537,315,076 17.08
iii Environmental 58,215,211,681 43,661,408,761 5,049,890,417 11.57
iv General Administration 34,011,137,554 25,508,353,166 9,719,153,034 38.10
v DESOPADEC 39,000,000,000 29,250,000,000 18,552,469,276 63.43
vi Contingency Fund 1,000,000,000 750,000,000 – 0.00
Total 289,001,787,009 216,751,340,257 70,120,349,301 24.47

YEAR 2015 BUDGET
14. Mr. Speaker, distinguished Members of the House, having given a brief review of the implementation of 2014 budget and taking into consideration the vagaries in crude oil prices with its consequences for revenue receipts from the Federation Accounts and the fact that this administration is winding down, I wish to announce a budget proposal of N327,682,982,917(three hundred and twenty seven billion, six hundred and eighty two million, nine hundred and eighty-two thousand, nine hundred and seventeen naira) for the services of Delta State in the 2015 fiscal year. This amount comprises N161,606,428,928(one hundred and sixty one billion, six hundred and six million, four hundred and twenty-eight thousand, nine hundred and twenty-eight naira) or 49.32% for Recurrent Expenditure and N166,076,553,989 (one hundred and sixty billion, seventy six million, five hundred and fifty-three thousand, nine hundred and eighty-nine naira) or 50.68%for capital expenditure.
15. The year 2015 budget proposal shows a decrease of N123,055,244,165 (one hundred and twenty three billion, fifty five million, two hundred and forty-four thousand, one hundred and sixty-five naira) or 27.30% when compared to the year 2014 approved budget of N450,738,227,082 (four hundred and fifty billion, sevenhundred and thirty-eight million, two hundred and twenty-seven thousand, eighty-two hundred naira)
16. The 2015 budget is driven by the successes recorded in various sectors of the State’s economy in the past seven years up to the 2014 Budget of Consolidation, Sustainable Economic Growth and Development. The 2015 budget is aimed at consolidating the achievement of 2014 budget as well as completing all on-going projects and programmes that will facilitate the fulfilment of the administration’s goal of making Delta State one of the most industrialized and developed States in Nigeria by 2020. Priority is given to the completion of on-going projects in the areas of rural and urban road network and infrastructure, security of life and property (including logistics support for law enforcement), healthcare and education. Other focal areas are transportation, rural and urban electrification, the environment, agriculture, youths and sports, culture and tourism.

SOURCES OF FUND
17. The main sources of funds for the 2015 budget are:
Sources Proposed Budget 2015 Percentage %
i Internally Generated Revenue 61,807,557,497 18.86
ii Statutory Allocation Including Mineral Revenue Derivation 208,873,059,258 63.74
iii Value Added Tax 12,489,588,002 3.81
iv Other Capital Receipts 44,512,778,161 13.58
Total 327,682,982,917 100.00
INTERNALLY GENERATED REVENUE
18. Mr. Speaker, Honourable members of the House, given the vagaries in the global oil markets, it will be imprudent for us to make ambitious revenue projectionswithout appropriate alternative sources of generating revenue. The Board of Internal Revenue (BIR)is beingstrengthened to improve its revenue generation machinery. Some strategic measures we took to support the BIR in revenue mobilization include the granting it autonomy to the Board; the reorganization of the Board’s management and administrative structure; the automation of the Board’s revenue collection mechanism; the establishment of a good Database Management System (DBMS) and Tax Administration for the Board. With the passage of the Delta State Internal Revenue Consolidation Law 2009, our revenue generationimproved remarkably. The trend recently however, shows a marginal drop in the IGR. It became obvious therefore, that we need to take another look at the provisions of the law, to accommodate new revenue sources that have been identified, but not contained in the law and review rates to meet current economic realities. During 2015 fiscal year, our Revenue Services will increase its focus on yet to be exploited revenue sources.We are taking steps to ensure that taxes are paid as at when due and more importantly, encourage a culture of voluntary compliance through constructive engagement. We are also exploiting strategies that will minimize leakages in the system. I therefore, wish to sincerely appeal onceagain toour people to obediently meet their civic obligations to the State.
19. It is in view of thevarious measures we are taking towards improving our internally generated revenue, that we are expecting the sum of N61.807bn or 18.86% expect revenue receipts from Internally Generated Revenue in 2015out of total projected revenue as against the sum of N62.493bn under the 2014 budget. The IGR estimates for 2015 is marginally lower than the 2014 approved estimates by N686m or 1.10%.

STATUTORY ALLOCATION
20. The sum of N208.873bnor 63.74% of projected total revenue is expected from Statutory Allocation from the Federation Account in the 2015 fiscal year. This amount is less than the sum of N229.315bn budgetedfor 2014 by N20.442bn or 8.91%. Thedecrease is attributed to projections consequent on thedecreased revenue performance at the end of third quarter of 2014owing todeclining crude oil prices.

OTHER CAPITAL RECEIPTS/MISCELLANEOUS
21. In 2015 budget proposal, Capital Receipts have been scaled down from N148.552bnin 2014 to N44.512bn in 2015( i.e. reducedby N104.039bn or 70.04%).The position is underscore by the need for caution and desire to instil greater fiscal discipline into the system. With the Delta beyond oil mantra, we hope to attract Foreign Direct Investments (FDI) which will also in turn increase our revenue base. We are counting on improved revenue receipts from our internally generated revenue sources.

RECURRENT EXPENDITURES
22. The aforementioned total recurrent expenditure estimates for 2015 of N161.606bn ismade up of personnel costs of N68.531bn (sixty eight billion, five hundred and thirty one million naira) or 42.41% and overhead costs of N51.337bn (fifty one billion, three hundred and thirty seven million naira) or 31.79%. The Consolidated Revenue Fund Charges has a proposed sum of N41.696bn (forty one billion, six hundred and ninety six million naira) or 25.80%. On the whole, the recurrent proposal for 2015 is lower by N130m or 0.08% when compared with the sum of N161.736bn approved for 2014.The recurrent expenditure estimates is summarized hereunder:

Items Proposed Budget 2015 Percentage %
i Personnel Costs 68,531,968,520 42.41
ii Overhead Costs 51,377,979,541 31.79
iii Consolidated Revenue Fund Charges 41,696,480,867 25.80
Total 161,606,428,928 100.00

CAPITAL EXPENDITURE ESTIMATES
23. The proposed capital expenditure estimates for 2015 is N166.076bn (one hundred and sixty six billion, seven six million naira). The proposal is N122.925bn (one hundred twenty two billion, nine hundred and twenty five million naira) or 42.53% lower than the 2014 capital budget of N289.001bn (two hundred and eighty nine billion, one million naira). The sectoral breakdown of the capital expenditure estimates is as stated hereunder:

Sector Proposed Budget 2015 Percentage %
i Economic 50,322,824,859 30.30
ii Social 29,202,566,209 17.58
iii Environmental 25,438,731,940 15.32
iv General Administration 26,112,430,982 15.72
v Delta State Oil Producing Areas Dev. Commission 34,000,000,000 20.47
vi Contingency 1,000,000,000 0.60
Total 166,076,553,989 100.00

24. Mr. Speaker Sir, and Honourable Members, May I at this juncture highlight some salient areas of the capital proposals as contained in the estimates of the 2015 draft budget.
SECTORAL HIGHLIGHTS
ECONOMIC SECTOR
Agriculture
25. We have sustained our focus on agriculture as a tool towards achieving our drive on a Delta beyond oil. We are encouraging our youths to invest their energy and resourcefulness on farming activities through which unemployment, hunger and malnutrition would be reduced. We are implementing a well-articulated agricultural and poverty alleviation programmes for Delta State and this we are doing in collaboration with the Federal Government and the private sector. To further boost mechanized agriculture and improve the productivity of farmers through our extension services, we procured modern tractor and implements for sale to farmers at subsidized rate across the State. These include 82 Units each of farm tractors, tillage implements (Plough, Harrow and Ridger), tipping trailers, combine maize planters, Rice planters and Rotary slashers.
26. Mr. Speaker, Sir, fish farming has become a major source of employment. We promote the growth and development of fisheries activities through fisheries surveillance and direct assistance to fish farmers and this has improved the lives of our people immensely. Today we have about 4,780 fish farmers in the state as against less than 200 in 2007. This is a reflection of the awareness created on the economic potentials of fish farming. The sums of N500m and N1bn are proposed for the Agricultural Youth Development Programme and Procurement of Modern Tractor Equipments for farmers respectively for the 2015 fiscal year.
Finance and Investment
27. Delta State is growing steadily, and for us to achieve the vision of Delta beyond oil, we invested massively in the state’s economy. The development of Delta Leisure Resort at Oleri and the Animal game reserve at Ogwashi-Uku are two foreign direct investments in the tourism industry. On completion, both projects will have employment capacity of about 6,000 people as well as increase our internal revenue generation. The sum of N500m is provided to sustain the development of the Resort in 2015.
28. Our vision in taking Delta beyond oil is about creating opportunities for private enterprises to prosper. It is also about stimulating the ingenuity of our people to do well. In doing this, we have institutionalized a legacy of prosperity in the state by developing skills to enhance human capacity, boost production and export of quality non-oil products that will diversify the economy as well as improve the lives of our people. This we have done through our Micro Credit and SME Schemes. The scheme as at date has empowered a total of 10,810 cluster groups of entrepreneurs made up of 111,312 persons. Of this number, 67,861 are females, while 44,854 are males empowered in various small businesses.Our people naturally, are blessed with entrepreneurial spirits that can be used to explore competencies in creativity and exploit emerging business trends. To further strengthen the scheme, we keyed into the CBN’s N220 billion Micro, Small and Medium Enterprise Development Fund. The Fund is meant to assist and support enterprise development by providing entrepreneurs with access to low cost fund with a single digit interest rate of about 9%. For administrative efficiency, the Delta State Micro, Small and Medium Enterprise Development Agency was established and backed by appropriate legislation in accordance with the Central Bank guidelines for participation in the CBN’s N220 billion Micro, Small and Medium Enterprise Development Fund.
29. We are looking forward to the completion of the massive Delta City Mall currently under construction in Effurunwhich will host the international shopping facility ‘Shoprite’ amongst other businesses. It will improve the economic activities of the State. The construction of the City Mall at Asaba has also commenced. Both malls will provide job and business opportunities, not only to Deltans but non-Deltans as well.
30. Another critical initiative of this administration is the Warri Industrial Business Park (WIBP). It is conceived as one of the key strategies of this administration to diversify the State’s economic base, attract new businesses into the oil city and stimulate business. Construction Work on the startup area has commenced. Other development partners have keyed into the project in the areas of power, gas and real estate development. On completion, the Park will be an environment friendly mix-use industrial park that will provide a range of services for both industrial and service companies. It will offer unique investment opportunities in the free market environment. Incentives will be available to local/foreign investors. The sum of N2.5bn is provided to continue the development of the Warri Industrial Business Park in 2015.
31. Mr. Speaker, Delta State is at the forefront in Information and Communication Technology. Beyond the deployment of appropriate software for the automation of our financial management system, we embarked on Information and Communication Technology (ICT) Park.The concept of the Information and Communication Technology (ICT) Park was nurtured to diversify the domestic economy of Delta State beyond oil. To demonstrate the importance of the park, the Nigerian Communication Commission, one of the core tenants has commenced the buildings of the Digital Bridge Institute for South South region. Other investors have also indicated interest to be part of the initiative. The sum of N560m is set aside for the ICT Park in the 2015 fiscal year.
Energy
32. We have invested in the massive acquisition of power supply infrastructure throughout the state. Our intention is to ensure that our people enjoy efficient service delivery in electricity supplyin all communities in the State and enhance the standard of living as well as drive socio-economic and industrial growth and development. As you are well aware Mr. Speaker, State Governments in the past had no roles in the electricity power supply sector except by interventions in the provision of power distribution infrastructure due to poor performance of PHCN in connecting communities to the national grid, expanding and maintaining existing power supply network to meet growing demand.
33. We get about 100 megawatts (MW) of electricity power from the national grid which is far short of the about 1008 mw required. To address this shortfall, this administration has implemented over 415 power supply projects in the State since its inception in May 2007 up till date. These include theBulk Purchase of additional 262 (Nos) Transformers to complement the injection of over 2000 distribution transformers of various capacities. Also, 48 injection power transformers of various capacities namely 15MVAs, 7.5MVAs, 2.5MVAs and construction of more than 1,500km of 33kv and 11kv overhead high voltage lines using 5,500km of aluminium conductor as well as 1,100km of low voltage lines using 5,000km of aluminium conductors were executed. A notable project of the State Government in the power sector is the development of a 128 MWDelta State Independent Power Plant (IPP) project at Oghareki, Delta State, which has attained an advance stage of completion.
34. We introduced the use of generator powered street lights, which has attained national prominence due to power shortage and today we have 6,126 street light poles made up of generator and solar powered street lights. I can confirm that security at night and night life itself has been greatly enhanced with this initiative; Government shall continue to pursue vigorously efforts aimed at illuminating our cities, towns and communities with both conventional and renewable energy system. The state also has investments in some of the recently privatized power companies such as TranscorpUghelli power plant, Vigeo power plant and Eurafic power plant with sizeable shareholding in them.We can safely say Delta State is well positioned to adjust to the dynamics of the post PHCN era.A total sum of N7.351bn has been allocated to boost electricity supply throughout the State in 2015. Out of this amount, N4bn is set aside for the completion the IPP project.
Roads/Bridges
35. We have worked tirelessly towards having good network of roads across the state. We have constructed over 1,206 kilometres of road, 663 kilometres of concrete-lined drains, 17 bridges of various spans have been completed and another 25 bridges are in various stages of completion. Some noteworthy roads that we are constructing are the 149 kilometres Asaba-Ughellidualisation, the 24 kilometre Trans Warri-Ode Itsekiri access roads with 22 bridges, the dualisation of the 33.6 kilometres Ugbenu-Koko road and the Effurun-Osubi-Eku road amongst others. As part of Government’s effort to improve traffic between the Asaba Capital City and the satellite towns, work has commenced on the dualisation of Asaba Okpanam road with drainage aspect since recession of the 2014 rains. The drainage which are intended to arrest the devastating erosion in that area as well as ameliorate flooding in Okpanam road and environs in Asaba metropolis. The Asaba Okpanamdualisation road project which is scheduled for substantial completion in May 2015 will eliminate the traffic gridlock during peak hours and substantially reduce induced man-hours losses while its drainage aspect will arrest the devastating flood and erosion along the route. Also under construction are the Nnebisi/Okpanam/Anwai road flyover and Effurun Roundabout flyover which are due for completion early next year. The construction of Airport Road by Okumagba Avenue flyover will commence soon. Mr. Speaker, in the 2015 fiscal year, the sum of N7bn has been provided for the Ughelli-Asaba Dual carriageway, N3bn for the Trans-Warri Roads project, N2bn for the Ugbenu–Koko road, N3bn for the Effurun-Osubi-Eku Road, N5bn for the Completion of Fly-Overs in Warri/Asaba and N600m for Construction of Umeh Road, among other critical road projects.
Transport Development
36. We can proudly say we have recorded remarkable success in the transport sector. As an important component of the State Economy, our policy on transport is to provide safe, reliable, sustainable, effective, efficient and integrated transport operations and infrastructure that will best meet the needs of passenger and freight services. In pursuit of this policy, Government purchased and distributed 170 Taxis, 805Nos. 18- Seater Toyota Hiace Buses, 9Nos. 38 Seater Nissan Civilian Buses, 50Nos. Marcopolo Buses, 30Nos. Innoson-IVM6125 Series Customized Buses and 10Nos. Tata Buses. This resulted to mass removal of almost all the rickety buses and taxis in the State and has given a facelift to the roads in the Urban Centres.
37. Mr. Speaker. You will agree with me that at a point, commercial motorcycles (popularly called Okada) riders became a threat not only to the safety, but security of our people and so became necessary to ban them. To ameliorate the hardship which the people would face after the ban on Okada riders, we had to consciously and systematically deploy 3,073 units of tricycles. This has resulted in the reduction of accidents and robbery cases in the affected areas.
38. We have also made significant progress in riverine transportation. So far we have constructed 31 concrete jetties. We have also procured and distributed 130 boats for the riverine mass transit scheme. As part of our urban renewal scheme and enhancement of the transportation system in the state, the state government is constructing 30 bus shelters and four city bus terminals. Of special interest are the Ultra-modern Bus Terminals in Asaba and Warri for which the sum of N1.3bn has been allocated.
39. We have also made notable in-road into air transportation. The Asaba International Airport which is fully owned by the Delta State Government and the Osubi airstrip with a 1.8km runway, built by Shell, and operated in partnership with other oil companies are two airports located in Delta State.We have started the construction of a second runway of 4.2km of the Osubi to accommodate bigger aircrafts. The Asaba international airport serves Delta State, as well as the neighbouring Eastern States. With the location of the two airports in the State, air transportation is within easy access to Deltans. Facilities at the airports will continue to be upgraded to meet international standards. In this regard, a total of N2bn and N3bn are proposed for the Asaba and Osubi airports respectively.
Education
40. We have recorded huge returns on our investment in education as a major component of the human capital programme of the three point agenda. We are reducing burden on parents by introducing various scholarship schemes which include Delta students in Law school, Aviation, overseas postgraduate, first class degree, children of deceased civil servants, and the physically challenged. So far, a total 1,651 Deltans have benefited from government full scholarship. We are also paying bursary allowance of N20,000 to Delta State students in the tertiary institutions across the country.
41. We have also made huge impact in the provision of infrastructures required for the effective and efficient administration of our tertiary institutions. The Faculty of Engineering, Delsu Oleh campus; male students accommodation at Asaba campus; the Senate/Administrative building Delsu Abraka; the library complex at Asaba campus, amongst many others. In response to the increasing demand for tertiary education, the State Government approved the setting up of additional four new polytechnics at Sapele, Bomadi, Aboh and Abigborodo which are gradually being developed. Our basic and secondary schools have also received a sizeable government attention by making sure that education is almost free with qualitative and quantitative improvement all around. Over 142 primary schools and 34 secondary schools have been reconstructed and remodelled with modern facilities.
42. Also, 13 selected secondary schools have been upgraded to international standards. To meet the growing demand for education, we have to build additional 147 primary schools to add to the existing 1,146 public primary schools in the state bringing the total public primary schools to 1,293 schools. Furthermore, 54 new secondary schools were added to the existing 412 public secondary schools making it 466. Besides, government has been responsible for the payment of all levies and fees for pupils and students in the state including external examinations conducted by WAEC and National Business and Technical Examinations Education Board (NABTEB) since 2008. To strengthen capacity of our teachers, 32,565 primary school teachers were trained to improve their teaching abilities.
43. Mr. Speaker we have through Education Marshals initiative contained rising incidence of out-of-school children in the state. This programme is aimed at eradicating ‘Street Culture’ to bring about ‘Learning Culture’ Our target is to reduce the presence of our children in the street and take them into class rooms. So far, a total of 196,180 out-of-school children have been rescued from the streets and returned to schools. This is made up of 97,944 boys and 98,236 girls. Expectedly, it has helped in the implementation of the Child Rights Act, 2010. The Delta State Education Marshal Bill which is in its final stage of legal draft will further strengthen the initiative. In the 2015 fiscal year, the sum of N3bn is budgeted for primary and secondary schools infrastructure developmentand N2bn for the four New Polytechnics in the State.
Health
44. Healthcare is a key part of the Human Capital Development. Our objective is to make quality health care delivery available, accessible and affordable to all Deltans and other residents. We have substantially reduced mortality and morbidity in the State. Our approach is holistic, and focuses on the upgrade of health infrastructure in the urban and rural areas through the provision of specialized health care system.
45. The Rural Health Scheme, in particular has facilitated health care services to the door-steps of our people, particularly those in the rural and riverine areas at little or no cost to them. The Free Maternal Health Programme supports the pursuit of Goal 5 of the Millenium Development Goals (MDGs). The target is to reduce maternal mortality rate of about 800 per one hundred thousand births in the State. The programme covers ante-natal care, normal delivery, provision of routine drugs throughout the duration of pregnancy and up to six weeks after delivery including caesarean sections.
46. Most of the older hospitals in the State have undergone physical renovation, and new ones built in areas (particularly Local Government Headquarters) where none existed, bringing the total number of functional hospitals in the State to sixty-three (63). The renovated and newly constructed hospitals have been progressively equipped and re-equipped with both basic and specialized equipment and ultra-modern patient care facilities.
47. Our healthcare system performance has been encouraging and in many aspects within a touching distance of the MDG goal. For instance, maternal mortality rate in 2008 was 395 per 100,000 live births, in 2013 it came down to 188. Ante-natal clinic attendance was 166,061 in 2008, and with advocacy and health education programmes in 2013, ante natal clinic attendance increased to 372,441. Infant mortality rate is now 12 per 1000 live births. The progress is encouraging and very positive. Through our rural healthcare programme we have also touched lives of the vulnerable groups in the society.

48. At the tertiary level, this administration completed the Delta State University Teaching Hospital, Oghara, which can compete favourably with other teaching hospital in the West African Sub region. Following the breakthroughs we had with knee replacement surgery and kidney transplant at the Delta State University Teaching Hospital, Oghara our healthcare system achieved national prominence. The institution is serving as manpower development centre and referral to other health institutions within and outside the State. Government has also rendered assistance to patients by providing 75% subsidy for renal dialysis.
49. We have completed the 100-bed Integrated Mother and Child Care Centres (MCC) at the Central Hospitals Warri and Ekpan. We have rehabilitated and remodelled Eku Government Baptist hospital and equipped with state of the art equipment. Worth mentioning Mr. Speaker, is the construction and remodelling of the Asaba Central Hospital, which is near completion. To sustain our effortsthe sums of N2bn each is set aside for the Teaching Hospital, Oghara and Central Hospital, Asaba. In addition, N500m each is provided for Eku Baptist Hospital, and Maternal and Child care Centres in Warri and Ekpan.
50. May I, Mr. Speaker, use this opportunity to once again thank Nigerians for their cooperation in addressing the Ebola crises, especially those in the healthcare sector who risked their lives to curb the spread of the deadly disease. I wish to commend the Federal Government in particular for the timely response to curtail the spread of the virus. I am proud to say that due to our institutional structures, we in Delta State were fully prepared to contain the spread. In 2015, we intend to establish a Public Health Laboratory in the State to combat communicable diseases such as the Ebola virus Disease (EVD), HIV and tuberculosis. The reference laboratory shall be fully equipped with the latest functional medical facilities to serve the above diagnostic needs of the State.
Social Development and Sports
51. Mr. Speaker, Sir, after the 2012 Olympics where Nigeria had her worst performance, it became apparent that we needed to chart a new course for our sports development. A first step towards this was the first National Sports Summit hosted in Asaba by the Delta State Government. It had in attendance the best brains in sports administration in Nigeria. The fallouts of the summit are being systematically and strategically implemented by Government. Our number one position in sports in Nigeria today is incontrovertible and this laudable achievement is coming on the backdrop of sports development being undertaken by this administration. Government will continue to support sports men and women, both nationally and internationally.
52. We have impacted positively on the wellbeing of our people in the rural areas through our community driven development intervention programmes. This we have done by providing access to social amenities and infrastructures like markets, schools, health centres, rural electricity and waterprojects to enhance their welfare. We have through this programme encouraged our communities to participate effectively in governance. We have also embarked on the training of people in these communities to equip them with requisite knowledge and skills for effective execution, maintenance and sustenance of these projects. This has increased awareness in community ownership and involvement in project execution and sustainability. It will also interest you to note Mr. Speaker, that there has been tremendous increase in sensitizing the rural populace in the area of participation in governance as to identification and prioritization of needs of their communities.
53. We have also made remarkable impact on youth development where we have committed huge resources, in view of its importance as a tool for promoting and sustaining peace and security in the State. The youth programs are designed to change the repentant youths and school dropouts to make them self-reliant, in so doing taking them off the streets. To facilitate this, twelve Youth Development and Skill Acquisition Centres across the State have been built and equipped by this administration. To further strengthen our human capital programme, we sent 147 youths recently, to Trinidad and Tobago for skill acquisition in areas that will impact the state’s economy. This will improve the skill sets of the youths and replicate lessons from Trinidad and Tobago in Delta State. A total sum ofN2.7bnhas been allocated to this sub-sector.
ENVIRONMENTAL SECTOR
54. Our dream for tomorrow is to have a cleaner, healthier and sustainable environment particularly, in our homes, streets, markets and schools. We are also monitoring and controlling flood and coastal erosion, encouraging tree planting to regenerate our forests, landscaping and beautification of streets and highways. The global issue of climate change adaptation and mitigation has also remained in the front burner of this Administration.
55. You will recall Mr. Speaker Sir, the 2012 flood crises that ravaged our cities and towns. That incidence opened our eyes to adopt pre-emptive measures toward addressing flood and erosion issues. We shall continue to clear the drains and creeks in major towns and cities across the State. This will allow for the free flow of run-off water and thus preventing flood and erosion in major towns and cities. In fact, you would have observed that the continuous clearance of drains and canals across the state in the past three years has drastically reduced the incidence of flooding as was recorded in the past. We have not lost sight of the degradation process of our coastal region and to this end we are adopting strict environmental protection policies that would ensure the protection of our shorelines. The sum of N2.1bn each has been allocated for the Warri and Asaba drainage projects.
56. In our resolve to address the problem of waste management and create jobs and wealth for our people, we are establishing an Integrated Waste Management Facilities for the recycling of glass, rubber/plastics, compost biodegradable waste and incineration of waste in Asaba and Igbogidi, near Warri. The Asaba plant is already undergoing test running, while that of Igbogidi is under construction. The sum of N1.1bn is provided for the completion of the project in 2015.
57. To ensure enforcement of our environmental sanitation laws, we introduced the Environmental Sanitation Marshals in some selected towns across the State namely Warri, Asaba, Ughelli, Sapele, Agbor, Ozoro and Oghara. The marshals has mandate to act as public watchdogs in the area of Environmental Sanitation such as checking of indiscriminate dumping of refuse in streets, drains, checking of street trading, etc.
58. Mr. Speaker Sir, Distinguished Honourable members, as you may have observed, our cities and towns are progressively wearing new looks. We are resolute on our drive tokeep Delta State clean and beautiful. Apart from the aesthetic value, our beautification project is associated with; it also helps to reduce the effect of global warming, improved public health through cleanliness & disease control, economic opportunities through provision of jobs & wealth creation. Some of the activities include landscaping, erection of important monuments, provision of fruit stands and snack shops, placement of identification signage, construction of gardens & recreation parks, ornamental tree planting major roads in the State, etc. To continue with the beautification of our towns, the sum of N1bn is set aside for the junction improvement projects.
Housing
59. We are grappling with increasing demand for housing, particularly in Asaba. This is not surprising as Asaba is regarded as the fastest growing new city in Nigeria today. It is also a transit town for travellers. Last year, we embarked on the construction of low and medium housing scheme for civil servants. It comprised of 50 units of 1 bedroom, 50 units of 2 bedroom, and 30 units of 3 bedrooms. It will ease the pressure on public officers when they are allocated these houses on completion and give them a new lease of life. This is aside several other housing schemes located in other parts of the state. The sum of N500m is earmarked for the completion of the housing estate in Asaba next year.
Special Infrastructure Development
60. Mr. Speaker, Sir, this administration created a Directorate for Special Infrastructure to fast track infrastructural development in the state. Some projects classified as ‘Special’ are excised from the responsibilities of other Government Agencies and executed through separate Project Implementation Committees. Some of the special projects are being financed with the Delta State Development Bond. With this strategy, we reduced bureaucratic bottlenecks and improve on the infrastructure development in the State.
Infrastructure Development Bond
61. The desire by the State to accelerate infrastructure development and ensure a better life for all Deltans put some level of financial pressure on the State as it tried to prudently allocate resources for competing needs. In a bid therefore to finance its revolutionary infrastructural development initiatives, the Government considered the option of tapping into the domestic debt market to raise adequate funds to help bridge the funding gap between funds from both internally generated sources and the Federal Government’s Allocation and the States actual funding requirements, based on its developmental plan.The choice of bond as a funding option, therefore Mr. Speaker, was informed by the fact that they were cheap, fiscally prudent and convenient source of funds with longer tenor that tend to offer liquidity advantages. The projects executed from the bond proceeds include Road & Bridges, Schools, Hospitals, High and Customary Courts, Industrial Parks, Water, and Transportation. The bond has been efficiently utilised. So far a total of 103 projects have been completed.
DELTA STATE OIL PRODUCING AREAS DEVELOPMENT COMMISSION DESOPADEC
62. This administration through DESOPADEC, has impacted on the oil producing communities by building infrastructures such as roads, schools, hospitals, electricity, water, which in the past had been neglected. It is gladdening to note that the Commission has been well positioned to support our development efforts. In line with the funding requirement therefore, the sum of N34bn (thirty four billion naira) representing 50% of projected derivation revenue receipts from oil accruable to Delta State, is set aside for the development of oil producing communities in the 2015 fiscal year.
GENERAL ADMINISTRATION
63. We have made considerable efforts at improving our office infrastructure, fit for working comforts. With the completion of the new State Secretariat Annex and acquisition of other public buildings, Government has substantially reduced its presence in rented private owned buildings. The construction of a new Government House and the completion of Office of the Head of Service Complex at Asaba will further improve the office accommodation situation in the State.
64. For effective administration of justice in the state, we embarked on massive construction, rehabilitation, furnishing and equipping of High Courts, Magistrate Courts and Judges’ Quarters’ throughout the state. The state’s Justice System has grown positively particularly in the areas of advocacy, promotion of criminal justice and conflict resolution through mediation to ensure that the agenda of Government is achieved.
65. The State currently is peaceful and safe and we will not relent in our commitment to the security of lives and properties of Deltans as this is a basic requirement for ensuring the continuing growth and development of the State and well-being of its citizens. To sustain this situation, over 241 operational, patrol, Armoured Personnel Carrier and other security vehicles have been provided to support security agencies. This is aside other logistics support, financial assistance as well as security gadgets and equipments that were provided.
66. We embraced the full automation of our financial management and reporting processes. The system is currently undergoing upgrade and expansion as part of the public financial management reforms driven by the World Bank. The project, on completion, will improve transparency and accountability in managing our resources.
67. Mr. Speaker Sir, this administration knows that observance of enacted appropriation law, high fiscal discipline, strict adherence to due process and the exercise of a good measure of control over expenditure are necessary ingredients for the achievement of desired results. These virtues have been the driving force behind it in the past seven years.
CONCLUSION
68. Mr. Speaker, honourable members of the House, I sincerely express my deepest gratitude and that of the entire executive arm of this government to you for your support these past years. Indeed, the entire people of Delta State have immensely befitted from the peaceful and cordial relationship between this honourable House and other arms of government. We greet you all. I wish to also use this opportunity to thank all public and civil servants for their untiring and unwavering support these past seven and half years.
69. As we steadily and gradually move towards the termination of this administration, I want to assure all Deltans that we are leaving behind institutional structures that the incoming administration would build on. We remain dedicated to the promotion of the best interests of our people. We will carefully and strongly follow the path of honour in the pursuit of our objective of providing qualitative infrastructure and services for our people.
70. Having restored peace and security during these past seven years, I wish to remind us all, Mr Speaker, honourable members that we need to sustain the energy and resources in building peace and harmonious co-existence in the State. We are one big family; let us continue to live as one.
71. Mr Speaker and distinguished members of this honourable House, I thank you for your kind attention. I wish you peace, love and God’s protection and guidance in all your present and future endeavours. Merry Christmas and happy New Year in advance!
72. Thank you and God bless us all.

Office of the Governor,
Government House,
Asaba.

December, 2014.

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