Report: State of PPP in Nigeria

By Larry Happiday

I have been inundated with request for a report on the Public Private Partnerships in Nigeria. A comprehensive report is being compiled complete such as has never been published in the country before. with bio-data, statistics and prospects of the programme in different states of Nigeria, you get you handle on the need-to-know information that will not only make you an early bird but also leading investor with the advantage of discovering the gold before the boom. Those who are interested in the detailed report will be given a free access to the three reports: Happiday Reports to be published in January, 2013. That will sure be a good Birthday gift to those who have been reading our reports in Nigeria Infrastructure News nigeriainfrastructurenews.blogspot.com for the last three (3) years.

I will take you through the twists and turns in the PPP pathway of Nigeria with a view to helping you weather through the challenges of investing in this peculiar sector. You will be guided to avoid losing money in areas that are landmines and giving you an idea of key issues to clarify before making that commitment.

The three reports on PPP in Nigeria will be the investor’s bible to investing in the booming Nigerian infrastructure market. Behind China alone, Nigeria’s ambitious rail system is the most ambitious in that sector in the world. She is also pursuing a very ambitious building and house construction with her capital city, Abuja one of the most thriving in Africa. Indeed, Estate developments in Abuja have seen investment from many foreign and local investors (see a list of Estates in Abuja with the names and nationalities of investors). You will see how much has been spent by the many successful financiers. If you have not considered investing in the booming building in Abuja, some states are also having inducements that have equally attractive. Do you want to see details of these states and what they are offering? Check here Building Boom in Nigeria Report

Institutional investors have also found Nigeria’s infrastructure market to be a goldmine. Railways, roads, airports are being built or upgraded through PPP and both states and the federal government have shown that they intend to drive development through PPP. The success stories in Lekki Expressway and the Terminal 1 of the Murtala Mohammed Airport are the best signpost. But this has not been with out problems. Do want to see the peculiar problems that bedeviled their ventures? You will find our free report on the Problems and Challenges of PPP Projects in Nigeria interesting.

Other projects happening through PPP or proposed to be are the seaports, new airports, new rail roads and modern city infrastructure in a couple of states like The Women Development

Centre in Abuja. You need to see the list of other development projects that have been farmed out to the private sector using the PPP model. They include: the Port Concessions by the Nigerian Ports Authority for several of the ports in Onne, Apapa and Warri. At least nineteen such port facilities are in the hands of the private sector today. The Federal Government has also indicated its interest in using the PPP model for development of silos and preservation facilities.

OTHER PLAYERS IN THE PPP GAME

Apart from the Federal Government, three State Governments: Lagos, Rivers and Cross River are known to have embraced PPP with varying degrees of success. Lagos is building her Lekki-Epe Expressway and the New City development facilities through PPP. She is also considering building new sea port and airport facilities using the same funding model. Rivers has invested her energies in social facilities like ClinoRiv Hospital, Transportation (Skye Bank), Housing, Entertainment (Silverbird). Cross River, the unofficial entertainment headquarters of Nigeria is building an entertainment park in conjunction with an American company.

RELATIONSHIP BETWEEN FEDERAL AND STATE GOVERNMENT PPP’s

Every investor needs to know that Nigeria is a federation. That means that some projects are on the concurrent list of the country. Items on the concurrent list include roads, education, power generation, social services, hospitality, housing, entertainment. The Federal Government is however exclusively in charge of seaports, airports (although she can give approval to states that want to build airports). According to the Infrastructure Concession Regulatory Commission (ICRC)’..a number of State Governments are considering using PPP to develop infrastructure. Although each State is responsible for its own investment projects, many PPP projects within a State will be financed with the support of a guarantee by the Federal Government. In providing any such guarantees, the Government will have regard to best practices as exemplified by its own PPP Policy and guidelines.’ Investors are advised to ascertain the reliability and integrity of promoters of PPP in the states though because it all comes down to the fact that ICRC has no power to regulate State PPP’s.

The Lagos State Government under the administration of Governor Raji Fashola has promulgated Lagos State Roads, Bridges and Highway Infrastructure Law 2005 as the law guiding the LCCI concession on Lekki Expressway but it is also useful in directing future concessions in road construction. Lagos has also shown its willingness to get the PPP to work. The State Government has done all trouble shooting that has ensured that the showcase Lekki-Epe Expressway got back on track after a very spirited battle to scuttle it by residents (see….by Larry Happiday on nigeriainfrastructure.blogspot.com).

FEDERAL PPP PROJECTS IN THE OFFING

There are a few Road and Bridge projects that have either been opened for expression of interest EOI bids or are about to be advertised. Some of these include:

a. The six lane dual expressway second Niger Bridge with 14 kilometer of approach roads.

b. The upgrade and expansion of the International Airport Road from a four lane expressway to an eight (8) lane road. The road is expected to have flyovers and pedestrian bridges.

c. The Nupeko Bridge across Kwara and Niger States.

The Electricity sub sector is another sector that is experiencing a lot of activities currently. Investments running into billions of dollars (US) are already flowing into this sector and some projects are almost completed and awaiting connection to the national gas grid. Some electricity projects in the works include:

a. Hydro power generation facilities that can produce up to 43 mega watts from existing Ten (10) Small and Medium dams.

b. Concessioning of the existing large Hyrdro Power Plants located at Kainji, Jebba and Shiroro. Preferred bidders have already emerged in the sale process for the existing power generation and distribution companies.

Other projects include the Ports concession of Rehabilitation and Upgrade of Kiri Kiri Lighter Terminals I & II which when completed will be concessioned away under the PPP Model: Landlord Port Model for the Nigerian ports in line with the ongoing ports reform programme; National Centre for Women Development with a facility of 100 bed guest house with underground parking facility, 1200 seat auditorium and 300 seat auditorium.

For further information on Nigeria’s infrastructure development contact Larry Happiday on larryhappiday1@gmail.com

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