ADVERTISEMENT TO PROSPECTIVE BENEFICIARIES/OPERATORS ON ACCESSING THE PUBLIC MASS TRANSIT REVOLVING FUND SCHEME OF THE FEDERAL GOVERNMENT OF NIGERIA BEING MANAGED BY THE URBAN DEVELOPMENT BANK OF NIGERIA PLC.

The Federal Government of Nigeria (FGN) in its bid to address the transportation challenges being experienced nationwide, has established a Public Mass Transit Revolving Fund with the objective of increasing the availability of vehicles to the public through eligible transport operators across the country.  The following are the guidelines relating to accessing the Fund.

Objective of the Fund

The primary objective of the Fund is to increase the availability of vehicles for Public transportation through the provision of buses to identified transport operators/groups at a concessionary  interest rate, which shall be used for the Public Mass Transit Scheme.

Fund Manager

The Urban Development Bank of Nigeria Plc (UDBN) has been appointed as the Fund Manager with the responsibility of rolling out the Fund by on-lending to eligible operators, with a mid-term plan to grow the Fund and make it self-sustaining.

Utilization

The proceeds of the Fund shall be lent to identified target groups/partners consisting of the Labour Unions’ Mass Transit arms and affiliates, States and Local Governments Mass Transit arms, and Private Sector operators.

Eligibility Criteria for Beneficiaries of the Fund

1. The eligibility criteria for prospective beneficiaries of the Fund shall be one of the following: Membership of the Nigerian Labour Congress (NLC) or Trade Union Congress (TUC) and affiliated agencies; OR


2. Membership of Association of Local Governments of Nigeria (ALGON); OR


3. State Governments and affiliated Road Mass Transit Agencies; OR


4. Private Sector road mass transit operators and members of the National Union of Road Transport Workers (NURTW).

1. Interest Rate

   	The Fund shall be administered at an interest rate of 5 percent per annum calculated on outstanding principal payable on a monthly basis in arrears.

2. Other Fees/charges:

   	Standard fees covering preparation, legal, administrative, documentation, supervision and incidental expenses associated with the loan would not exceed 0.75% per annum over the life of the loan.

3. Tenor:

   	Loans under the Fund shall have a maximum tenor of five (5) years.

4.  Repayment :

   I	Repayment of loans under the Fund shall be on monthly basis for both principal, and interest payments
   II	Prepayment at the instance of the beneficiary of the loan shall be acceptable without penalities.

5. Security:Security for the loan under the Fund shall be one and/or a combination of the following:

   I	Corporate Guarantee from  acceptable trade unions, agencies and institutions; OR
   II	Bank Guarantee from a reputable commercial bank acceptable to UDBN covering the facility amount; OR
   III	Credit Insurance Bond from a reputable insurance company acceptable to UDBN covering the facility amount; OR
   IV	Irrevocable Standing Payment Order (ISPO) from respective Government (for Government beneficiaries and affiliated agencies) covering the facility amount.

6. Insurance:

   I	Vehicles acquired through the Fund must have full comprehensive insurance cover from a reputable insurance company acceptable to UDBN.
   II	UDBN shall be the first loss payee to the insurance companies on the insured vehicles till liquidation of the facility amount.

7. Other guidelines:

   I	The vehicles provided to beneficiaries of the Fund shall be through UDBN accredited /approved vehicle providers only. The vehicles provided would have standard safety features including but not limited to Automatic Brake System (ABS); 2 airbags (front seats), driver and passenger seat belts; and so on.
   II	Vehicles would be provided to eligible operators/beneficiaries on a first come, first served basis.

1. Following this public notice, interested eligible applicants are expected to purchase a scratch card at any Unity Bank Branch nationwide at the cost of N10,000.


2. Applicants shall then visit the following websites: www.udbng.com or www.unitybankng.com to complete an application form on-line. Other instructions for the completion and submission of the application form shall be outlined at the back of the electronic card, as well as on a flyer that would accompany the scratch card. Application forms shall be available at the aforementioned websites from 06/07/2010.


3. Each application  must be accompanied by the following supporting documents:

   I	Feasibility Study/Business Plan;
   II	Certificate of Incorporation evidencing the incorporation of the company with the Corporate Affairs Commission Nigeria and Memorandum and Articles of Association;
   III	Valid operating permit or license (where applicable) and/or evidence of association with a National Union of Road Transport Workers (NURTW);
   IV	Corporate Profile of the Customer including experience and track record in mass transit operations;
   V	Audited Accounts for the last 3 years (where applicable);
   VI	Management Account for the year under review;
   VII	Any other form of documentation that would assist the appraisal process as  may be required by UDBN.

1. In line with FGN’s objective, directives and mandate of the Fund, immediate presence of branded vehicles will herald the success of the scheme;
2. All further enquiries should be directed to:

PUBLIC MASS TRANSIT REVOLVING FUND SCHEME
Urban Development Bank of Nigeria Plc
Plot 977 Central Business District
Adjacent National Mosque Abuja
Federal Capital Territory
P.M.B. 272 Garki, Abuja
E-mail: pmtf@udbng.com
Phone: 09-6725228; 08065400961

Print This Page