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Delta state 2010 Budget Speech

April 8, 2015

SUSTAINING THE DEVELOPMENT MOMENTUM IN DELTA STATE
GOVERNOR EMMANUEL UDUAGHAN (RIGHT) PRESENTING THE 2010 APPROPRIATION BILL TO RT HON. MARTIN OKONTA, SPEAKER, DELTA STATE HOUSE OF ASSEMBLY AT THE HOUSE MAIN CHAMBERS IN ASABA. I am indeed very delighted to be here before this Honourable House today, in fulfillment of constitutional requirement to present the budget proposals of the Delta State Government for the 2010 fiscal year.

2. Mr Speaker, Honourable Members, before delving into the business of the day, let me state that on assumption of office, we faced the challenges of peace and security in our coastal towns and villages. This situation greatly affected the revenue of the State as most of the oil pipelines and other installations were vandalized. All stakeholders eventually settled for dialogue instead of violence leading to the amnesty programme. We thank Almighty God that the programme has succeeded, which in itself, throws up its own challenges that we are already addressing. I am happy to report that this encouraging development is already impacting positively on the lives of our people, the national and State economy.

3. Furthermore, Mr Speaker, Honourable Members, I have come before this Honourable House with a budget proposal, which has been painstakingly articulated to enhance the effort already made and the strategies government has put in place towards the development of the State. Our ultimate desire is to lay a formidable foundation so that future development efforts would not be largely dependent on oil revenue receipts.

4 Distinguished ladies and gentlemen, we want to have in place within the life time of this administration, a Delta State, which is not dependent on revenue proceeds from crude oil sales for its development as we envision ‘A Delta State without Oil’. I do not envisage or promise that the journey towards achieving this objective would be easy. Indeed, the mileage covered so far, has been difficult but the effort has been rewarding and we are resolved to sustain the momentum. I assure you that government will continue to do everything possible and seek the face of God Almighty to ensure a peaceful and enabling environment for judicious utilization of available resources to improve the quality of life of our people and for businesses to thrive.

5. Permit me at this juncture, Mr. Speaker, Honourable Members, to express my profound gratitude to all of you for the understanding, cooperation and unalloyed support of this honourable House, which facilitated and lightened the tasks of governance. The relationship between the executive and legislative arms of government in Delta State, has since the inception of this administration on May 29, 2007, been harmonious. I solicit the deepening and sustenance of this cordial relationship as it is the effective elixir for government to remain focused and determined to deliver on the promises made to our people during the electioneering campaigns.

6. Mr. Speaker, Honourable Members of this House, we have a dire need to re-invigorate and re-focus our efforts towards charting a new course for the State through the economic and infrastructural development programmes and projects, which we commenced since the inception of this administration. I wish to commend this Honourable House for the passage of the Delta State Integrated Development Agency Law, the Fiscal Responsibility Law, Public Procurement Law and the State Internal Revenue Consolidation Law. The passage of these laws forms the foundation for a systematically organized economy that would be self-sustaining in the future.

7. Government will continue to nurture and provide necessary institutional support to DESOPADEC, which is already being re-organized, to enable the agency discharge its assigned roles creditably. We shall also continue to maintain and exploit our relationship with the Niger Delta Development Commission to ensure that it discharges its responsibilities to our State. Our interaction so far is yielding positive results.

8. Mr. Speaker, Honourable Members of this House, it has become apparent that we cannot continue to rely on statutory allocation from the Federation Account. We believe, Mr. Speaker, that the State can realize huge revenue receipts from taxes, which is the backbone for the development and sustenance of the economic and infrastructural development of contemporary societies like ours. We have therefore taken concrete steps to reinvigorate our tax institutions through the reform of the Delta State Internal Revenue Board.

9. I wish to express my sincere appreciation to this Honourable House for providing the platform for the reforms through the prompt passage of the Delta State Internal Revenue Consolidation Law, 2009. The law certainly will improve tax administration, tax revenues and enhance the ability of government to fruitfully pursue the diversification of the State’s economy and to create more wealth and generate employment for the teeming youth population of our State. Distinguished ladies and gentlemen, we are committed to the rapid development of the State and no effort would be spared to actualize this.

10. Let me reiterate that the cardinal pivot of this administration remains the three-point agenda of Peace and Security, Human Capital Development and Infrastructural Development. Our mission to actualize this agenda has given birth to the State Vision 2020 project, which has become the formidable platform on which the roadmap for the all round development of the State is being articulated by eminent Deltans from both the public and private sectors.

11. So far, the reports of the various Sub-Committees and Thematic Groups of the State Vision 2020 Steering Committee have been deliberated upon by the Vision Council. The reviews directed by the Council on the reports are currently being undertaken by the various sub-committees towards the eventual production of the Delta State Vision 2020 Document, which will be the perspective plan for the future development of the State up to the year 2020.

12. In previous years we have continued to lay emphasis on welfare schemes such as free maternal healthcare, free rural healthcare, Micro-Credit Scheme, scholarship scheme, transport, among others. In the coming year, we shall improve on our public transportation schemes by providing forty eight seater mass transit buses for urban transportation. This, we believe, will greatly improve transportation for the ordinary citizens of the State.

13. Mr. Speaker, Members of this Honourable House, the 2010 budget proposal, which I am presenting today, is a product of an in-depth review of the lessons learnt during the last two years of this administration. The proposals reflect current economic realities against the backdrop of prevailing global economic realities. It is a budget of consolidation for sustainable development.

14. Mr. Speaker, Honourable members, permit me at this juncture, to proceed with a review of the performance of the 2009 Budget and thereafter, present the Budget for 2010.

COMPONENTS OF THE 2009 BUDGET
15. In the 2009 fiscal year, a budget of N237.63bn was initially approved for the services of the State government. However, on account of some exigent development imperatives, supplementary appropriations totaling N19.01bn was approved by the State House of Assembly in the second quarter of the year. Consequently, the State had a revised budget of N256.64bn for the 2009 fiscal year. The amount is made up of a recurrent expenditure budget of N88.56bn and a capital budget of N168.08bn. The profile of the 2009 budget was as follows:
(A) REVENUE
S/No. Revenue Profile Approved 2009 Budget % Appropriation
i Internally Generated Revenue 35,200,428,749 13.72
ii Statutory Allocation 152,709,858,460 59.50
iii Value Added Tax 5,766,686,806 2.25
iv Other Capital Receipts 62,963,322,025 24.53
Total 256,640,296,040 100

(B) EXPENDITURE
S/No Expenditure Profile Approved 2009 Budget % Appropriation
i Recurrent Expenditure 88,556,964,982 35
ii Capital Expenditure 168,083,331,057 65
Total 256,640,296,040 100

YEAR 2009 BUDGET PERFORMANCE REVENUE
(JANUARY 2009 TO SEPTEMBER 2009)
16. The State government, during the nine months of January to September, 2009, recorded a total revenue performance of N125.09bn. Out of the total receipts of N125.09bn, the sum of

N73.36bn was received as Statutory Allocation from the Federation Account. The amount represents 64.06% of the proportionate estimate of N114.53bn. On the other hand, the sum of N4.28bn was recorded as receipts from Value Added Tax (VAT) out of the proportionate projected receipts of N4.32bn representing a budget performance of 99.13%, while the sum of N15.74bn was recorded as Internally Generated Revenue (IGR) out of the projected revenue of N26.40bn, representing a budget performance of 59.65%. The sum of N31.68bn or 61.11%, was received from other capital revenues against the proportionate budget of N47.22bn during the period under review. The breakdown of the revenue receipts from individual revenue sources is provided hereunder:
S/No Revenue
Sources Approved Proportionate Budget Jan-Sept 2009 2009 Actual Revenue Jan – Sept, 2009 % Performance
i Internally
Generated
Revenue 26,400,321,562 15,747,643,773 59.65
ii Statutory
Allocation 114,532,393,845 73,369,283,085 64.06
iii Value Added Tax 4,325,015,105 4,287,421,246 99.13
iv Other Capital Receipts 47,222,491,519 31,689,829,530 67.11
Total 192,480,222,030 125,094,177,634 64.99

17. Above revenue receipts represent a 3.61% drop from N129.61bn recorded for the corresponding period of January to September, 2008. The area that was significantly affected is the Statutory Allocation from which N115.47bn was received in 2008 as against N73.36bn received for the same period in 2009. This is a pointer to the need to explore viable and credible ways of improving our revenue.

EXPENDITURE (JANUARY TO SEPTEMBER, 2009)
18. As for expenditure, a total sum of N114.20bn was spent during the period January – September, 2009. Out of this amount, the sum of N61.63bn as against a proportionate revised approved budget of N66.41bn representing a budget performance of 92.79%. A total of N48.62bn or 91.95% accounted for Personnel and Overhead costs as against the proportionate revised budget of N52.88bn. The sum of N13bn was spent on Pension and Gratuities, Statutory Salaries, 10% Statutory Allocation to Local Government Councils, 2.5% Allocation to Local Government Pension Fund as against the approved revised budget of N13.54bn for the period. This represents a performance of 96.01%.The breakdown is summarized below:
S/No
Recurrent Expenditure Approved Proportionate Budget Jan-Sept 2009 Actual Expenditure, Jan.-Sept, 2009 % Performance
i Personnel Costs 28,711,326,038 26,144,813,020 91.06
ii Overhead Costs 24,169,009,241 22,480,450,331 93.01
iii Con. Rev. Charge 13,537,388,459 13,003,203,333 96.05
Total 66,417,723,737 61,628,466,684 92.79

19. The sum of N151.95bn was budgeted for Capital Expenditure, which was subsequently revised to N168.08bn. During the year, actual expenditure for the period, January-September, 2009 was N52.57bn as a against the revised 2009 proportionate budget figure of N126.06bn, representing a budget performance of 41.70%. It is important to note that out of the actual capital spending of N52.57bn, DESOPADEC accounted for N20.86bn. This represents 39.67% of the total actual capital spending. A breakdown of the Sectoral performance for the period is as follows:
S/No Sector Approved Proportionate
Budget Jan-Sept 2009 Actual Expenditure, Jan.-Sept, 2009 % Performance
i Economic 31,405,256,621 10,835,647,602 34.50
ii Social 19,517,984,446 4,887,478,720 25.04
iii Environmental 38,372,050,634 12,252,996,339 31.93
iv General Administration 13,892,206,592 3,735,366,568 26.89
v Delta State Oil Producing Development Commission 22,500,000,000 20,855,883,370 92.69
vi Contingency
Fund 375,000,000 – 0.00
Total 126,062,498,293 52,567,372,599 41.70

YEAR 2010 BUDGET
20. Mr. Speaker, distinguished members of the State House of Assembly, I have just given a brief review of the implementation of the 2009 budget. Permit me to present to you, the budget for the 2010 fiscal year.

21. Mr. Speaker, members of this Honourable House, this is the third budget that will be implemented by my administration and I will like to seize the opportunity to provide the framework for economic prosperity. A key objective of this administration’s economic policy is to become the commercial and industrial hub of Nigeria and West Africa. We shall consolidate the gains we have recorded in the last two years in office and hope that the various strategies already being explored by government will help us achieve our objectives.

22. Mr. Speaker, distinguished honourable Members, it is with great joy that I present to you a budget proposal of N235.71bn for the 2010 fiscal year. The amount is made up of N96.19bn or 40.81% for Recurrent Expenditure and N139.51bn or 59.19% for Capital Expenditure.

23. The year 2010 budget proposal shows a decrease of N20.93bn or 8.16% when compared to the year 2009 approved budget of N256.64bn. The decrease is due to our cautionary approach to revenue projections as a result of the instability in oil prices in the international market.

24. Hon. Speaker, members of this Honourable House, we intend in the coming year, to continue to maintain a close watch on our budget and fiscal management processes Accordingly, we have put in place, more efficient ways of doing government business. Our budget and expenditure control processes have been institutionalized through the Fiscal Responsibility Act and the Public Procurement Law. We hope by these measures, to achieve greater fiscal discipline and prudence, which will lead to sustainable expansion in our infrastructure and service delivery; tailored to impact positively on the lives of our people.

25. Permit me, Mr. Speaker to once again, re-iterate that in line with our Three Point Agenda of Peace and Security, Human Capital Development and Infrastructural Development, the Year 2010 Budget would be geared towards poverty reduction and empowerment of our citizens, increased access of citizens to improved quality healthcare, social services and infrastructure aimed at attaining the Millenium Development Goals. Other objectives of the 2010 Budget include the enhancement and exploitation of Public-Private-Partnership in all aspects of economic and social development of the State to foster the generation of more employment opportunities, diversification of the economic base of the State and redirecting the role of Government to that of a facilitator and provider of enabling environment for the private sector to thrive and create wealth.

SOURCES OF FUND
26. The main sources of funds for the 2010 budget are:
S/No. Sources of Revenue Amount
(N) Percentage
(%)
(i) Internally Generated Revenue (IGR) 65,856,881,966 27.94
(ii) Statutory Allocation 143,097,576,860 60.71
(iii) Value Added Tax (VAT) 5,280,000,000 2.24
(iv) Other Capital Receipts/Miscellaneous 21,472,478,730
9.11
Total 235,706,937,556 100

INTERNALLY GENERATED REVENUE
27. Considering the general reduction in the average revenue accruing to government from statutory sources in recent times, government will, in the 2010 fiscal year, put in place, appropriate strategies to improve the Internally Generated Revenue performance. With the passage of the Delta State Internal Revenue Consolidation Bill 2009, the Board of Internal Revenue, a key player in revenue generation, will be strengthened to improve its tax administration machinery. These measures explain why we are expecting the sum of N65.86bn from Internally Generated Revenue in 2010 as against the sum of N35.20bn under the revised 2009 budget. The IGR estimates for 2010 is higher than the 2009 approved estimates by N30.66 or 87.10%.

STATUTORY ALLOCATION
28. Statutory Allocation from the Federation Account is the principal source of revenue of government. We have proposed the sum of N143.10bn in the 2010 budget as Statutory Allocation. The amount is N9.61bn or 6.29% lower than the 2009 revised budget figure of N152.71bn.

OTHER CAPITAL RECEIPTS/MISCELLANEOUS
29. The sum of N21.47bn is proposed as Capital Receipts/Miscellaneous for 2010. This will be financed from receipts from the State investment portfolio and possible debt financing to fund critical infrastructural projects if the threat of dwindling oil revenue receipts does not abate. I wish to note that this will only be as a last resort and it will be well thought through by government. Mr. Speaker, if this becomes necessary, I will count on the cooperation of this honourable House.

RECURRENT EXPENDITURES
30. The total recurrent expenditure estimates for 2010 is N96.19bn made up of personnel costs of N42.50bn or 44.80% and overhead costs of N35.16bn or 36.55%. The personnel cost proposal for 2010 is higher than the 2009 revised personnel costs of N38.28bn by the sum of N4.22bn or 9.90% while the overhead costs of N35.20bn proposal for 2010 is higher than the 2009 revised overhead costs of N32.23bn by N2.93bn or 8.34%.

CONSOLIDATED REVENUE FUNDS CHARGES
31. For Government to meet its Consolidated Revenue Charges, the sum of N18.54bn is proposed for 2010. The components of the consolidated revenue funds charges are as indicated hereunder:
S/No. Component of the
Consolidated Revenue
Funds Charges Amount
(N) Percentage
(%)
(i) Remuneration of Statutory
Office Holders 96,218,658 0.52
(ii) Pensions and Gratuities 3,844,354,545 20.74
(iii) Contributory Pensions 3,612,268,227 19.47
(iv) Internal Debt Service 50,000,000 0.27
(v) Loan Repayment – Domestic 4,249,531,923 22.92
(vi) Loan Repayment – External 680,190,162 3.67
(vii) 10% Allocation to Local
Government Councils 5,927,119,377 31.97
(viii) 2.5% Contribution to Local
Government Pension’s
Funds 77,513,516 0.42
Total 18,537,196,408 100

CAPITAL EXPENDITURE ESTIMATES
32. The proposed capital expenditure estimates for 2010 is N139.51bn. The proposal is N28.57bn or 16.99% lower than the 2009 revised capital budget of N168.08bn. The decrease is due mainly to the planned approach to capital expenditure in the coming year and the resolve of government to minimize borrowing as much as possible in the coming year except otherwise compelled by drastic reduction in statutory revenue receipts. Specifically, the sectoral breakdown is as stated hereunder:
S/No. Sector Amount
(N) Performance
(%)
(i) Economic 39,098,969,532 28.03
(ii) Social 17,255,855,418 12.37
(iii) Environmental 35,595,797,556 25.51
(iv) Administration 17,063,513,561 12.23
(v) Delta State Oil
Producing Areas
Dev. Commission 30,000,000,000 21.50
(vi) Contingency Fund 500,000,000 0.36
Total 139,514,136,067 100

SECTORAL HIGHLIGHTS
33. We are resolute in our drive to stimulate economic growth by providing conducive operating environment and opportunities to expand and increase economic activities and productivity in our State.

34. Accordingly, as was the case last year, the sectoral allocation of funds in the 2010 capital budget proposals is skewed in favour of the economic and environmental sectors, which are the development and growth drivers of the State’s economy. The economic sector includes Energy, Commerce and Cooperatives, Industry, Agriculture, Finance, Transportation and Tourism. The environmental sector includes Water Resources, Urban and Regional Planning, Sewage and Housing. We believe that our emphasis on the economic and environmental sectors will fast track the development of our State by stimulating private economic activities, towards boosting personal incomes in the State.

35. At this point, Mr. Speaker, distinguished honourable members, I crave your indulgence to provide insight into some of the policy thrusts of Government as contained in the estimates of the 2010 draft budget.

AGRICULTURE
36. We have consistently focused on the drive towards massive production of food for our increasing population and the production of industrial raw materials through the establishment of small and medium scale enterprises. Government has since the inception of this administration, paid considerable attention to this sector. We are collaborating with all stakeholders with a view to encouraging our people, through direct or indirect assistance, to engage in agricultural activities that would eventually lead to increased agricultural productivity in the State. We shall continue to provide extension services and farm inputs to our people at subsidised rates. I am happy to announce to you that our Youth Empowerment through Agriculture and the Peasant Farmers Support Programmes are yielding the desired results. In view of the remarkable progress being made in these areas, government has set aside, the sums of N500m for each programme in the proposed budget estimates for the 2010 fiscal year.

INDUSTRY
37. One of the instruments this administration is using towards gradual industrialization of the State is the Delta State Micro Credit Scheme (DMCP). This scheme took off effectively on December 14, 2007 and as at October 30 2009, it has empowered a total of 3,876 cluster groups or 42,473 persons where 27,072 are women and 15,401 are men. The Delta State Micro Credit scheme has brought government to the doorsteps of the people. The programme has been instrumental in sowing hope and putting springs in the footsteps of rural and urban poor in the State. The sum of N1bn is proposed for markets in Sapele and Ogheye. The State government has acquired license for the Koko Export Zone, while the sum of N500m is proposed for development of the EPZ.

38. Micro Credit funds are disbursed through twenty seven accredited Micro Finance Banks based in the State. We do this after careful due diligence. The loan is interest free, and the outreach of the programme covers the entire State, cutting across gender. The Delta State Micro Credit Scheme is therefore a pragmatic approach that focuses on interest of the mass of the people with a genuine consideration for their needs. The scheme is a strategic approach of the Delta State Government towards achieving sustainable development. A sum of N250m is proposed for Micro Credit Scheme in the 2010 budget as beneficiaries are already paying back collected loans and arrangements have been firmed up with financial institutions to extend loans to peasant entrepreneurs in the State.

TRANSPORT
39. Delta State has continued to maintain momentum in the provision of safe, adequate, efficient, reliable and fully integrated transport system that will best meet the needs of our people. Government will continue to build a strong financial base for the creation, maintenance and upgrading of transport infrastructures where private sector participation shall be intensely encouraged. In 2010, emphasis will be on the improvement of land transportation and safety as measures that will reposition the urban and rural mass transit programme. The pace of the various ongoing construction works – highways, intra and intercity roads and rural roads, will be increased to ensure their speedy completion. Construction on the Agbarho-Okan road and bridges has been completed. Also completed is the Koko-Egbelemeji road. Construction works on Gbaregolor–Ogiagbene road, Asaba-Ase-Abari road, Okerenkoko-Kokodiagbene, Ubafan-Madagho road and Sapele-Abigborodo-Arowon roads are at various stages of completion.

40. In this post-amnesty period, government will partner the Federal Ministry of Niger Delta and the Niger Delta Development Commission on the construction of inter nodal transportation system in the region. Government will key into the rail system and the Lagos-Calabar coastal road in such a way that it will boost economic activities in the State.

41. The infrastructure development strategy of this administration has crystallized in a more specific manner with the coming on stream of the Asaba Airport project. This is an international passenger and cargo airport designed to take advantage of the growing business opportunities within the State and across the Niger. Our advantageous geographical location offers us enormous opportunities to be a choice position for businesses in this area.

42. Government is conscious of the challenges facing commuters in Delta State. To provide comfortable and affordable transportation for our people, government acquired one hundred Toyota buses for the Delta State Urban Bus Transit Scheme to ease movement of people and goods. Government has gone into partnership with private transporters to ensure that the scheme is successful. Riverine transportation will also be given a much needed boost this year to reverse the effects of its neglect over the years.

43. In the 2010 fiscal year, government has set aside funds towards maintaining the tempo of work on the various dualisation road projects. For example, the sum of N9bn is provided for the Ughelli – Kwale – Ogwashi-Uku – Asaba dual–carriage way; N1.5bn for the Ugbenu – Koko Road; N1.5bn for the Effurun–Osubi–Eku Road and N2bn for the construction of the Ode-Itsekiri Road, while N1.5bn is proposed for purchase of equipment for Direct Labour Agency.

FINANCE AND INVESTMENTS
44. The Warri Industrial Business Park (WIBP) 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. This is encouraged by the return of peace and stability to the city. The Park is envisioned to reshape the economic potentials of Warri and the State at large. We are adopting the Public-Private- Partnership option in driving the project as we feel that government should restrict itself to the role of an enabler and facilitator of economic activities. The sum of N 300m is proposed to facilitate the development of the park, which in the long run, will improve industrialization, capacity building and standard of living the State. A secure Industrial Park with world class facilities will reverse capital outflow from the State and attract both foreign and local investments.

45. Another strategy we shall use to induce investment in Delta State is the enhancement of easy access to land by investors. On the successful conclusion of the Land Information System Project, the problems of double allocation will be eliminated as it will ensure prompt issuance of Certificates of Occupancy.

HEALTH SECTOR
46. This administration remains committed to our health policy, which is to provide quality, effective, efficient and accessible health services in the State. We shall improve on quality and free maternal care to our pregnant women and children under five years, thereby reducing infant, child and maternal mortality. The sum of N300m is proposed for the free maternal healthcare in the 2010 budget. There is plan to commence Free Health Care for the elderly above 65 years from next year. During the 2010 fiscal year, efforts will be made to complete ongoing projects, renovate and expand existing health infrastructure. In particular the construction of Asaba central hospital will receive more attention. For the purpose, the sum of N300m is proposed in the 2010 budget. The sum of N1bn is also proposed for the completion and take-off of the State teaching hospital Oghara. Our hospitals and primary healthcare centres will be re-equipped with modern equipment. The sum of N500m is earmarked for the Eku Baptist Hospital which the government has taken over.

47. It is hoped that the health indices of the State particularly the maternal, child/infant mortality, HIV/AIDS prevalence will improve while malaria, tuberculosis and vaccine preventable childhood killer diseases, will be greatly reduced. To boost the morale of health workers and to increase proficiency, continuing professional education for health professionals in the State will be undertaken.

EDUCATION
48. A good educational system is the bedrock for improving the quality of life of a people and the development of a qualitative labour force. In this direction, government’s focus on the strengthening of the education sector will remain as vehement as ever. Keeping faith with the human capital development agenda, the education sub-sector will continue to be given the adequate attention it deserves. In addition to infrastructure, funds will be made available to build the capacities of teachers through regular training under the institutional strengthening programmes. Government will also continue to rehabilitate, renovate and expand existing infrastructure at the basic and secondary levels of education to lay sustainable foundation aimed at making our schools, centres of excellence. Specifically, the State government is proposing to spend the sum of N800m towards the upgrading of selected secondary schools including the model schools while the sum of N1b is for infrastructural development in primary and secondary schools. The effort at making tertiary education in the State more clement would be sustained. Now that the Delta State University is gradually moving to its permanent site, efforts would be made to make it functional. The sum of N1.5bn is proposed as expenditure on various projects and programmes earmarked for the three campuses of the university. Provision has been made in the 2010 budget for the take-off of Open-University in three centres in the State – Asaba, Sapele and Warri as it has been observed that Delta State is among the few States that are yet to have the Open-University fully operational.

ENERGY
49. In the face of the grave situation of the power sub sector in the State and indeed the country, the need for government to be proactive in pushing the frontiers of the strategic development of power supply infrastructure across the State need not be over stressed. Government is therefore poised to sustain the efforts already being made in the areas of power transmission and distribution in the State. During the 2010 fiscal year, the focus of government shall be on the consolidation of the gains of previous years.

50. It is worthy of note that the streetlights in Asaba, the State capital and Warri, the commercial and industrial hub of the State, have continued to impact significantly on the socio-economic activities of Deltans. Moving at a reasonable pace, government shall extend this service to a few more locations in the 2010 fiscal year. The effort to illuminate our cities, towns and communities at night to enhance security and night life is being vigorously prosecuted through the deployment of both conventional and renewable energy systems. The sum of N1.2bn has been set aside for the purchase and distribution of transformers, reinforcement and upgrading of existing power supply. A commensurate number of solar powered streetlights are to be installed in various locations in the State in the 2010 fiscal year to complement generator-powered streetlights, while growing our solar streetlights portfolio.

51. To create access to a mix of energy services in the State, government has commenced action to develop a natural gas master plan. The sum of N1.12bn is proposed for the establishments of a Gas Utilization Scheme in 2010 budget. The plan will assist government in realizing the objective of leveraging on natural gas for accelerated industrialization of our dear State through Public-Private-Partnership. In addition, government will intensify efforts to actualize the State’s Independent Power Plant project. Government is collaborating with local and foreign partners in view of the huge capital outlay required to realize the project. The sum of N7bn is provided in the 2010 proposed budget estimates for the project.

ENVIRONMENT
52. A closer look at the environment shows that environmental pollution and degradation occasioned by oil and gas exploration and exploitation has in some cases, resulted to major security issues, which have negatively impacted the economy of the State. Many towns are being ravaged by flood and government had to respond immediately to combat the menace, which had become an annual occurrence. It has become quite obvious that lack of maintenance of existing and complete absence of drainages is the major cause of flooding in the State. The sum of N1.760bn is proposed for drainages in Asaba, Warri and Ughelli, while the sum of N500m is set aside for the acquisition of equipment for the State Waste Management Board. Government will continue to give vent to the numerous environmental problems, which deserve urgent attention. In 2010, the principles of the promotion of public participation in environmental decision-making and the integration of environmental consideration into development planning and project implementation will be adhered to.

YOUTHS AND SPORTS DEVELOPMENT
53. Government will continue to collaborate with development agencies to positively engage our youths in meaningful ventures. Development training programmes are being designed to attract repentant militants and school dropouts particularly in the riverine areas, as an avenue for re-integration into society. The maritime sector, a highly lucrative and bedrock of the world economic system, is a major target in this regard.

54. Delta State is known as the number one in sports in the Federation. This administration intends to maintain and sustain this exalted position now and in the future. The State in the last nine years, has achieved huge successes, particularly, at national sports festivals where we won first place in Bauchi, Abuja, Abeokuta and this year at Kaduna. These feats were achieved, because of government’s steady resolve to provide the necessary facilities and environment required to promote sports in the State.

DELTA STATE OIL PRODUCING AREAS DEVELOPMENT COMMISSION (DESOPADEC)
55. In line with the funding prescription of the law setting up DESOPADEC, the sum of N30bn 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 2010 fiscal year. It is expected that a greater part of the fund will be channeled towards infrastructural development in the oil producing communities. Government will
continue to monitor the activities of the Commission to ensure that the funds disbursed to it are appropriately utilized and accounted for. It is gladdening to note that the Commission is being positioned to support our development efforts. Out of the 1,198 projects embarked upon as at 2009, 447 projects have been completed, while 260 of this have been commissioned.

BUDGET IMPLEMENTATION
56. Mr. Speaker, Members of this Honourable House, this administration must be focused and proactive if we must take our beloved State to the expected height of development. This has informed our reform effort anchored on the three-point Agenda of Peace and Security, Human Capital Development and Infrastructure Development.

57. Let me emphatically declare, distinguished ladies and gentlemen, that we are very conscious of the commitments we are making in the budget proposals before you. In furtherance of our efforts to extend and expand the development and growth of the State, Government, in the coming year, will continue its deliberate focus on infrastructural development and such other programmes tailored to sustain prevailing peace and security in the State, create wealth and employment opportunities for our teeming youth population and improve the wellbeing of the generality of our people.

58. In keeping with our avowed commitment to good governance, I wish to assure you of our resolve to faithfully prosecute the policies, programmes and projects enshrined in the 2010 Budget document. In this pursuit, Government will:
(i) ensure the new rates of Government services are implemented and that the State Board of Internal Revenue is backed to perform its responsibilities creditably and in accordance with the Revenue Act, to meet the funding requirements of the State for development;
(ii) continue to monitor on-going projects through the instrumentality of the various monitoring organs in place, to ensure that projects are faithfully executed by contractors in strict compliance with project designs and specifications to ensure appropriate value for money;
(iii) strengthen and support the Ministry of Economic Planning to continue to monitor compliance and scrupulous adherence to Due Process by Ministries/Departments/Agencies in procurement processes and listing of certified jobs for payment;
(iv) encourage Ministries/Departments/Agencies to ensure that greater importance is attached to the monitoring of their on-going projects;
(v) encourage Local Government Council chairmen to take special interest in projects being executed in their domains by Ministries/Departments/Agencies of Government, assist in the monitoring of such projects and promptly report all shoddy and sub-standard jobs done or being done for appropriate action by the State Government; and
(vi) severely sanction any public official whose conduct results in the State being short-changed in its investments in projects.

CONCLUSION
59. Mr. Speaker, distinguished members of this honourable House, permit me, once again, to express my profound appreciation and, indeed, the appreciation of the executive arm of government to you for making the presentation of the budget proposals and the attendant Appropriation Bill for 2010 possible.

60. Distinguished ladies and gentlemen, our ability to satisfy the craving of our people for improved wellbeing and development, depends on how well our development programmes and projects are conceived, planned and executed. Let me, therefore, remind us of the need for this honourable House and the executive arm to continue on the path of cooperation and collaboration in the pursuit of infrastructural development and the provision of qualitative services to our people. With a good measure of budget discipline and with God on our side, we shall all work assiduously for Delta State to truly become a land of promise and fulfillment.

61. As an administration, we are not unmindful of the heavy burden and responsibility we carry. We are conscious of the huge expectations of our people – young and old, men and women, able and disabled. Nor are we unmindful of the challenges that our people face and endure.

62. Our goals are to lighten the burden of our people, reduce poverty by providing jobs, houses, security of lives and property; improving schools, clinics and the environment, facilitating and creating functional infrastructure, like electricity, water, good roads, industrial development and providing life more abundant.

63. We are however, aware of our limitations as a government. We cannot do it alone and we do not have all the answers.

64. We therefore, seek the continued cooperation, support and collaboration of all citizens of the State. It has become necessary for all stakeholders, including the Organized Private Sector and indeed, the Federal Government, to partner the Delta State Government in the onerous task of transforming our dear State into a first world status. With our highly endowed natural resources and our rich and resilient cultures, there is no doubt that our State will continue to play a unique role in the socio-economic well-being of our nation.

65. Mr. Speaker, I wish to note with humility that our administration in the last two years has shown exceptional determination to match its words with deeds. With the active support and assistance of this honourable House, we have been able to meet some of the needs of the good people of our dear State. My debt of thanks also go to all our good people and the various religious organizations for their resilience, unflinching and immeasurable belief, support and trust of this administration, in addition to their continuing prayers for peace in the State.

66. Mr. Speaker, distinguished Members of this Honourable House, I thank you for your kind attention. I wish you God’s profound peace, abiding presence, protection and guidance in your endeavours. Compliments of the season!

Office of the Governor,
Government House,
Asaba.

December 9, 2009.
Gov Emmanuel Uduaghan

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