WED, APRIL. 26 2023-theGBJournal |Oando Clean Energy Limited’s (OCEL) announced Tuesday that it has taken delivery of the electric mass transit buses from China’s Yutong Bus Co Limited that will kick off the Proof of Concept phase of its Sustainable Transport Initiative.
In addition to the arrival of these electric buses, OCEL has also taken delivery of the charging stations and spare parts necessary to ensure their effective operation.
The move is in furtherance of a Memorandum of Understanding (MoU) signed on Thursday, April 28, 2022, between OCEL and Lagos Metropolitan Area Transport Authority (LAMATA), and its commitment to the LAMATA to enable the successful deployment of an Electric Vehicle (EV) Infrastructure Ecosystem (electric buses, charging stations, and other supporting infrastructure) towards the attainment of a sustainable road transport system in Lagos State .
Both entities hope the MoU will also bridge the gap in the current mass transit bus system for the increasing number of Lagos commuters and make up a significant part of the State Government’s larger drive to improve mass transit infrastructure.
”The receipt of both the buses and charging stations marks the commencement of our Sustainable Transport Initiative, which is one of the Company’s pipeline projects to support Nigeria in meeting her goal of net zero by 2060,” OCEL said in a statement seen by theGBJournal.
The Company’s strategic vision is to decarbonize the transport system in Nigeria and in the process, strengthen the socio-economic impact of transportation within the country.
Over the next seven years, and through the rollout of over 12,000 buses, this initiative will transition the current combustion mass transit buses to electric, starting in Lagos State and eventually across the country.
OCEL said in the medium to long term, and in line with its ambitions, its efforts within sustainable transport will lead to improved air quality, enhanced public health, enable the employment of at least 3,000 new drivers and an additional 2,000 workers to support bus maintenance, depot management as well as estimated economic cost savings of US$2.6bn (3.6% of Lagos’s GDP).
Notably, the company’s EV roll-out plan is strategically aligned with the Nigeria Energy Transition Plan (NETP); specifically supporting the Government’s roadmap for EV implementation across Nigeria and its ambition to boost local capacity in the medium term through the construction of EV assembly plants.
The Oando -Yutong Joint Venture Partnership shall realize the manufacture and deployment of additional electric buses during the Pilot and Rollout phases of the partnership with Lagos State through LAMATA, design and facilitate training programs targeted at the following critical stakeholders – bus drivers, bus operators, and regulators including but not limited to LAMATA and the Ministry of Transport, provide technical support and after-sales service, manage a supply chain network to support the availability of spare parts as and when required and the construction of a local EV assembly plant to boost indigenous capacity.
Commenting, Mr. Frank Lee, Managing Director, Yutong West Africa stated: “This is a watershed moment for Yutong. It’s our first delivery of electric mass transit buses in Sub-Saharan Africa and the first step in the large-scale deployment of an electric powered public road transport system in Nigeria.”
He added that Yutong is excited to be embarking on this journey in partnership with Oando, an organization with a history of stellar performance in the energy sector and are hopeful to see a quick turnaround in our joint plans to advance all facets of the country’s transition to eco-friendly vehicles, including the development of local capacity through the delivery of, and exposure to extensive training programs for all stakeholders, from drivers to operators and the regulators.
”Our foray into Sub-Saharan Africa has transformed us into a global supplier of EVs with customers across the Middle East, Europe, South America and Asia. Our electric vehicles offer outstanding performance due to their advanced technology capabilities and testing for different terrains; all of which make our buses particularly well suited for use as a public transportation option in Nigeria”.
Also commenting on the deal, the Chairman, OCEL, Adewale Tinubu, said: “Audacity and innovation have always been key tenets in our journey to transform Nigeria’s energy future. It’s this spirit that has brought us to this juncture today – at the forefront of propelling Nigeria towards realizing her netzero targets. The arrival of our electric mass transit buses and development of an EV infrastructure ecosystem is a reminder that the only way to remain ahead of the curve is by being unafraid to break new ground and consistently looking for opportunities to leapfrog.
Furthermore, this project underscores the African saying, ‘If you want to go fast, go alone; if you want to go far, go together.’ Public-Private Partnerships have been critical to getting the project to this point and will continue to fuel our expansion across the entire country. I must commend the collaborative efforts of the Lagos State Government through LAMATA in seeing this project through. The commencement of this project gives us a platform to showcase to other States
what is possible and open the door for engagements on bespoke solutions to suit their local needs as well as act as a model to be adopted by other organizations looking to venture into sustainable transportation.”
In his remarks, the President & CEO, OCEL, Dr. Ainojie Irune said, “This is a pivotal moment for Lagos State and the country at large. The development of a sustainable transport ecosystem is much more than the deployment of electric vehicles; it’s about reducing the carbon footprint ofthe seven million public transport commuters and positively impacting the socio-economic indices surrounding transportation.”
According to Irune, the EV infrastructure, built to facilitate optimal efficiency of the buses, will form the artery of tomorrow’s EV utilization in Nigeria by providing charging stations, servicing, spare parts, skills development, and knowledge transfer.
”The transition from an idea proposition to an operational initiative is validation of our collective commitment to realizing the country’s ambition of becoming a net-zero carbon emitter by 2060. For us at OCEL, Lagos State is only the beginning, we look forward to replicating this model nationwide through strategic partnerships across the public and private sectors.”
Twitter-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.ng| govandbusinessj@gmail.com
