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Engr. Chidi IzuwahAg. DIRECTOR GENERAL

INFRASTRUCTURE CONCESSION REGULATORY COMMISSIONSeptember 2017

BUILD BUILD BUILD Nigeria’s Infrastructure Space – Opportunities & Challenges

PRESENTATION BY THE INFRASTRUCTURE CONCESSION REGULATORY COMMISSION AT THE 1ST ISTANBUL PPP

WEEK, 2015. ISTANBUL, TURKEY

EXCERPTS OF SPEECH OF PRESIDENT

MUHAMMADU BUHARI

AT THE

THE 55TH GENERAL CONFERENCE OF THE NIGERIAN

BAR ASSOCIATION

AUGUST 23, 2015

“We also have a huge infrastructure deficit for

which we require foreign capital and expertise to

supplement whatever resources we can marshal at

home. In essence, we seek public private

partnerships in our quest for enhanced capital and

expertise.”

Political Will

Outline

• Numbers &Opportunities

• The PPP Framework

• Active PPP Projects

• Projects at Development Phase

• Projects at Procurement

• Pipeline Projects

• Supporting Initiatives

• Take-away3

The key strategic objective of theInfrastructure Concession RegulatoryCommission (ICRC) is to accelerateinvestment in national infrastructurethrough private sector funding by assistingthe Federal Government of Nigeria and itsMinistries, Departments, and Agencies(MDA) to implement and establisheffective Public Private Partnership’s (PPP)procurement.

Based on our 30-year National Integrated Infrastructure Masterplan (NIIMP) :

• Nigeria requires an expenditure of US$ 3.10 trillion over 30 years.

• The sectors covered are energy, transport, agriculture & water resources, social infrastructure and security.

• 48% of planned investment of US$ 3.10 trillion is expected from the private sector by way of PPP and other arrangements

Numbers & Opportunities

• The Infrastructure Concession Regulatory

Commission (Establishment, etc.) Act 2005.

• National Policy on PPP (N4P)

• WWW.ICRC.GOV.NG – TO DOWNLOAD

LEGAL AND REGULATORY FRAMEWORK


http://www.icrc.gov.ng/

7

Wide Infrastructure

Gap

Growing demand for

private sector participation in infrastructure

Small and depleting

Government resources

Urgent need for alternative funding of

Infrastructure

The goal is to combine the best capabilities of the public and private sectors for mutual benefit

A Public-Private Partnership is a contractual agreement between a public agency (federal, state or local) and a private sector entity. Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the sharing of resources, each

party shares in the risks and rewards potential in the delivery of the service and/or facility (NCPPP USA)

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PPP Framework

▪ Establishes the Infrastructure Concession Regulatory Commission(ICRC) Section 14.1

▪ Ministries, Department & Agencies (MDAs) may enter into acontract with or grant concession to any duly pre-qualified privatesector project proponent for the financing, construction, operation,and maintenance of any infrastructure of the Federal Government.(Section 1.1)

▪ Empowers the ICRC to:

▪ Provide general policy guidelines, rules and regulations.

▪ Take custody of every concession agreement entered by theFederal Government

▪ Ensure efficient execution of any concession agreement orcontract entered by the Federal Government.

MANDATE OF THE ICRC – ICRC Est. Act 2005

PPP Framework

What ICRC Does…

• Pre Contract Regulation by:

• Ensure Bankability of PPP Projects

• Policy, Guidelines, Regulations, and Capacity

Building

• Post Contract Regulation by:

• Monitoring projects and ensuring compliance

with contracts

What ICRC Does Not Do…

• Project Initiation – Govt Agency responsibility

• Determine Output Requirements – Govt Agency

responsibility

• Serve as Contracting Authority – Govt Agency

responsibility

• Approve Projects – Cabinet responsibility

PPP Framework

The Key PPP Principles Being Driven By ICRC

Value for Money

Ensure project appraisals take into account not only cost but also risks and service quality

Public interest

Adequate and prior consultation with stakeholders.

Output requirements

The Concept of “verifiable service standards” to be used as basis for output or performance

based specifications.

Transparency

Transparency in all procurements is key requirement of the law.

Risk allocation

Risks allocated to the party best able to manage them.

Competition

The law requires that no project is procured without subjecting it to competition.

Capacity to deliver

Ensure Project Proponents wishing to partner with government to deliver and

operate infrastructure have the capacity to handle the responsibility.

PPP Framework

Other PPP Principles Being Driven By ICRC

PPP LIFECYCLE in line with National PPP Policy

Development Phase

• Transaction Adviser• Needs Analysis• Ppp Options Appraisal• Value For Money• Affordability• Sustainability• Prelim Risk Matrix• Viability/Bankability• Vgf• Obc• Obc Approval By FEC

PPP LIFECYCLE in line with National

Policy

Procurement Phase

• Transaction Adviser• Eoi/RFQ Phase AND RFP• Bidding• Bidders Conference• Bid Evaluation• Value For Money Test• Preferred Bidder• Full Business Case• By FEC

Implementation Phase

• Independent Engineer• Monitor Design And • Construction• Commissioning Test• Verify Output • Requirements• Contract Management

▪Project Identification

▪Project Prioritization

▪Project Selection

Preliminaries

PPP Framework

PPP PROCUREMENT ROUTES

• Well prepared bankable projects to Market

• Transparent and Competitive Bidding

• VGF and Government Funding Support Available

• Timely Financial Closure Required

Unsolicited Route

• Bankable OBC by Project Proponent

• Must be part of strategic plan of government or MDA

• Indicative Funding Available

• Subject to Competition via Swiss Challenge etc

• No Government Funding Support

Solicited Route

PPP Framework

Power Sector

Sea Ports and

Marine Services

Over 56% of the Nigerian populace (have no access to grid electricity and those who are

connected to the grid face substantial power interruptions. Systemic issues affect all phases

of the power value chain from generation to distribution thereby forcing Nigerians to rely on

self-generation.

Aviation

Concessions

Civil aviation is a critical element in Nigeria's transportation system and indeed its economy.

Nigeria has twenty (20) airports and many regulated airstrips and heliports; 23 active

domestic airlines; Nigeria is an important destination for over 22 foreign carriers. Nigeria

currently has Bilateral Air Services Agreements with over 78 countries.

Urban and

District

Engineering

Infrastructure

Population growth and urbanization makes rapid urban infrastructure expansion such as

additional roads, electricity, potable water, drainages, and sewer lines an imperative

The maritime industry is a key sector of the Nigerian economy. As an oil producing and

exporting country, as well as a consumer nation, the country is a large market for foreign

goods, owing to its population

Sector Review & Opportunities

• Bring shipping services to the door step of shippers across the nation.

• Assist in decongesting the seaports and make them more user friendly

• Provides the impetus to revive and modernise the railway as a primary mode for

long distance haulage.

• Facilitate cargo movement to hinterland locations as well as transit cargoes to

landlocked countries.

To improve access to education, affordable housing and health care

outcomes via public-private partnerships

Inland Container

Depot (ICDs)

Social Infrastructure

(Housing, Health and

Education)

Information

Technology To improve broad band IT access to low income and deprived areas

Sector Review & Opportunities

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Active PPP ProjectsSector Project

Energy 7

Agriculture/Irrigation/Dam 9

Urban Infrastructure 8

Roads/Bridges 12

Seaports & Inland Container Depot 2

Railway (Green Fields) 1

Social Infrastructure (Stadia) 2

Health 1

Media 6

TOTAL 48

MMA2 AIRPORT CONCESSION

MMA2 Airport ConcessionProject Name MMA2 Airport Concession

Sector Aviation

Department/ Ministry FAAN/FMOT

Implementing Agency Federal Airports Authority of Nigeria (FAAN

Location Lagos

Estimated Capital Cost ⎕ < $10m ⎕ $11-50m ⎕ $51-100m ⎕ $101-200m⎕ $201-300m ⎕ $301-400m ⎕ $401-500m ⎕ > $500m

Revenue Sources ⎕ Users ⎕ Purchase Agreement ⎕ Government Payments

Background The 1st PPP airport (BOT contract) between the Federal Airports Authority of Nigeria(FAAN) and Bi-Courtney Limited (BCL)The project has been delivered and is being implemented

Note Successfully delivered PPP project

Project Contact Federal Airports Authority of Nigeria

Active PPP Projects

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Active PPP Projects

Garki Hospital AbujaProject Name Garki Hospital Abuja

Sector Health Care

Department/ Ministry Federal Capital Development Authority

Implementing Agency FCT Health and Human Services

Location Abuja



Background This was concession to NISA Premier Hospital Ltd in 2007 for a period of fifteen years (15yrs).

Objective Rehabilitate Operate Run Down Hospital

Project Scope 15 years

Note PPP arrangement has been very effective in the delivery of the required services. The hospital performed its first successful heart surgery in July 2013 and also performed three (3) successful kidney transplants in November 2013. Only hospital that offers subsidised fertility services to indigent women in the nations capital. Social fund provides free medical care to disadvantaged persons

Project Contact NISA Premier Hospital Ltd

Active PPP Projects

19GARKI HOSPITAL AT HANDOVER TO PPP PARTNER

Active PPP Projects

GARKI HOSPITAL TODAY

Active PPP Projects

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Active PPP Projects

GARKI HOSPITAL TODAY

PORT TERMINALS

Port Terminals

Project Name Port Terminals

Sector Maritime

Department/ Ministry Ministry of Transportation

Implementing Agency Nigerian Ports Authority

Location Along the Nigerian Coastline



Background Experienced private operators engaged through Concessions to rehabilitate and manage24 port terminals

Objective Major Ports reform in 2004, to improve clogged, inefficient, and very expensive ports.

Project Scope Landlord Model – Rehabilitate Operate Transfer

Note Concession of Port Terminals – acclaimed success nationwide

Project Contact Nigerian Ports Authority GM Business Development

Active PPP Projects

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Active PPP Projects

PORTS CONCESSION

HYDROPOWER PLANTS AND DAMS

Project Name Kainji, Jebba and Shiroro Hydropower Dams Concession

Sector Power

Department/ Ministry Federal Ministy of Power, Works & Housing

Implementing Agency Federal Ministy of Power, Works & Housing

Location Kwara and Niger states



Background ▪ Grantor: BPE

▪ Project Name: PHCN 3 Large Hydro Power Plants

▪ Description: Power generation hydropower plants

▪ PPP Model: ROT

Objective Restore power plants to name plate capacity and manage power generation and injection into national grid

Project Scope 30 Years

Note Successfully handover. PPA with NBET in place

Project Contact Permanent Secretary Federal Ministry of Power/DG BPE

Active PPP Projects

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Active PPP Projects

ENERGY- HYDROELECTRICITY

Sector Project

Energy 7

Agriculture/Irrigation/Dam 9

Urban Infrastructure 8

Roads/Bridges 12

Seaports & Inland Container Depot 2

Railway (Green Fields) 1

Social Infrastructure (Stadia) 2

Health 1

Media 6

TOTAL 4826

Projects at Development Phase

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S/No Sectors/Projects Number of Projects % Composition of PPPs by

Sector

1 Agric.Energy 11 11.34

2 Aviation 2 2.06

3 Culture 2 2.06

4 Education 7 7.22

5 Environment 1 1.03

5 Health 8 8.25

6 Ict 1 1.03

7 Martime 1 1.03

8 Ports 24 24.74

9 Rail 6 6.19

10 Roads.Bridges 9 9.28

11 Security 10 10.31

12 Sports 1 1.03

13 Trade.Investm 6 6.19

14 Uran Develop 8 8.25

97 100.00

Active PPP Projects

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THE 2ND NIGER BRIDGE – ARTIST IMPRESSION


Other Road PPP Pipeline Projects

• Odukpani to Ikot Ekpene to Aba Federal Highway

• Kishi Kaima New Alignment

• Abuja to Ibadan to Lagos New Alignment


NATIONAL ROAD NETWORK

Roads Projects through PPP


#PROJECT NAME AND

DESCRIPTIONPROJECT COST

(US$m)AGENCY

PREPARATION OF BUSINESS CASE/

FEASIBILITY STUDIES

UNDER EVALUATION (by

concerned agencies)

APPROVAL SECURED

BIDDING STAGE CONTRACT

AWARD

1

Kirikiri Port Lighter Terminal I & II, Lagos.

Under Development

Nigerian Ports Authority / Federal Ministry of Transportation

Outline Business Case (OBC) preparation is ongoing

DevelopmentWork in Progress

Outstanding Outstanding Outstanding

2

Lekki Deep Sea Port in Lagos 1200 Nigerian Ports Authority / Federal Ministry of Transportation

Full Business Case Approved

Financing Rounds Full Business Case Approved

Concessionaire In Place

Concession has been granted

3

Ibom Deep Sea Port 1800 Nigerian Ports Authority / Federal Ministry of Transportation

Outline Business Case (OBC) completed.


Outline Business Case (OBC) approved

Procurement is yet to commence

Outstanding

4

Badagry Deep Sea Port 1600 Nigerian Ports Authority / Federal Ministry of Transportation

Outline Business Case (OBC) completed –Unsolicited Proposal


Outline Business Case (OBC) approved

Procurement is yet to commence

Outstanding

5

Ontisha Inland Container Depot (ICD), Anambra State

Under Development

Nigerian Shippers Council/Federal Ministry of Transportation

Unsolicited Proposal DevelopmentWork in Progress

Outstanding Procurement will commence on conclusion of Development Phase

Outstanding

PIPELINE PROJECTS – PORTS AND INLAND CONTAINER DEPORTS


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PROJECT NAME ANDDESCRIPTION

PROJECT COST

(US$m)AGENCY

PREPARATION OF BUSINESS CASE/

FEASIBILITY STUDIES

UNDER EVALUATION (by concerned

agencies)

APPROVAL SECURED

BIDDING STAGE CONTRACT

AWARD

6

Asaba Container Freight Station (CFS), Delta State

Under Development



Outstanding Same Outstanding

7

Nnewi Inland Container Depot, Anambra State

Under Development




8

Gombe CFS, Gombe State Under Development

Nigerian Shippers Council/Federal Mini of Transportation

Outline Business Case (OBC) preparationongoing



9

Dagbolu Inland Container Depot, Osun State

Under Development




10

Lolo Inland Container Depot, Kebbi State

Under Development



Same Outstanding

PIPELINE PROJECTS – PORTS AND INLAND CONTAINER DEPORTS


Location of Proposed PPP Ports

Lekki Deep Seaport

Akwa Ibom Deep seaport


PIPELINE PROJECTS – NATIONAL THEATRE

Flagship PPP Project - National Theatre - Lagos

Project Name National Theatre

Sector Culture

Department/ Ministry Ministry of Information and Culture

Implementing Agency National Theatre Management Authority

Location Lagos



Background Development of 65 hectares fallow land around the 134 hectares theatre complex. Completed in 1976 for FESTAC in 1977.

Note

Project Contact General Manager, National Theatre Management Authority


• Development of 65 hectares fallow land around the 134 hectares

theatre complex. Completed in 1976 for FESTAC in 1977.

35

Re-development of National Arts Theatre, Lagos


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Re-development of National Arts Theatre, Lagos


Railway concessions

Project Name PPP in Railways

Sector Railways

Department/ Ministry Federal Ministy of Transportation

Implementing Agency Nigerian Railway Corporation

Location Narrow Gauge Railway:- Concessions (Brown Field) Lagos-Kano - 1,126km and Port Harcourt - Maiduguri -1,622 km

High-Speed:- Lagos – Ibadan – Oshogbo – Baro - Abuja - 615KMStandard Guage:- Lagos – Shagamu- Ijebu Ode- Ore- Benin City (300km)

Benin- Agbor-Ogwashi Uku- Asaba- Onitsha –Nnewi- Owerri- Aba with additional line fromOnitsha-Enugu- Abakaliki (500km)

Ajaokuta(Eganyi)-Obajana-Jakura-Baro-Abuja with additional line from Ajaokuta- Otukpo(533km)Zaria- Funtua- Tsafe- Gusau- Kaura- Namoda-Sokoto-Illela-Birnin Kebbi (520Km)



Background Rail Industry in Nigeria suffered from under investment and abandonment by successive government

Objective To revive the rail industry as backbone for moving people, goods and servicesStatus – Transaction Adviser Appointed

Project Scope Various railway lines criss crossing the country in excess of 4000 km


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Proposed NRC Narrow Gauge Concession

Western & Eastern Concessions

Appapa

Idogo

Lagos Port

MinnaBaro

Kaduna

Kaura Namoda

Kano

Nguru Maiduguri

Gombe

Jos

Kafanchan

Enugu

Port Harcourt


PIPELINE PROJECTS – DAMS & HYDROPOWER

DAMS AND HYDROPOWER PPP Projects

Project Name Dams and Hydropower Projects

Sector Water Resources & Power

Department/ Ministry Federal Ministy of Water Resources and Federal Ministry of PW & H

Implementing Agency Federal Ministy of Water Resources and Federal Ministry of PW & H

Location Gurara I Hydro Power Plant (30 MW), Kaduna State

Gurara II Hydro Power Plant (300 MW), Niger State

Dasin Hausa Dam (150 MW), Adamawa State

6 Key Lots of Transmission Company of Nigeria (TCN) Major Transmission Projects across the entire country



Background Need to address Nigeria's Electricity Problems

Objective To provide Power

Project Scope Multi purposes dams for water basin management, power generation and transmission lines to wheel power


PIPELINE PROJECTS – SMALL & MEDIUM DAMS

Energy PPP Projects

Project Name Ten Small and Medium Dams in 3 Lots

Sector Power

Department/ Ministry Federal Ministy of Power, Works & Housing

Implementing Agency Federal Ministy of Power, Works & Housing

Location Various States across the federation

Estimated CapitalCost

⎕ < $10m ⎕ $11-50m ⎕ $51-100m ⎕ $101-200m⎕ $201-300m ⎕ $301-400m ⎕ $401-500m ⎕ > $500m


Background Lot 1:- 10MW Oyan dam, Ogun State,6MW Ikere Gorge dam, Oyo State450KW Owena dam, Ondo State.

Lot 2:- 3MW Bakolori dam, Zamfara State500KW Kampe dam, Kogi State1MW Doma dam, Nasarawa State.

Lot 3:- 4MW Jibia dam, Katsina State300KW Zobe dam, Katina state10MW Tiga dam, Kano state10MW Challawa Dam, Kano State

Objective To provide additional power using existing dams

Project Scope Rehabilitate Build Operate Transfer


Other Water Resources PPP Pipeline Projects

• Kashimbilla Dam – 40MW & 8000 Ha Irrigated Land – Construction

nearing completion. O & M partner needed

• MADA River Project – 450MW. Feasibility report completed.

Preparation of OBC in progress.


Development of New Prisons through PPP

• 6 Integrated Prisons Facilities spread across Nigeria.

• Some will be structured under a Land Swap Arrangement.


Other PPP Pipeline Projects – Health Sector

• Development of Cancer Centers in Selected Federal Tertiary Hospitals

• Development of Imaging Center (CT) at Federal Medical Center, Katsina

• Imaging Centre, ICU Center, Gas Generation and Reticulation including

Records Automation and Computerization at Federal Teaching Hospital

Abakiliki

• Diagnostic/Imaging Centre, Staff Quarters and Students Hostels at

National Orthopedic Hospital, Dala, Kano

• Abuja Medical City

• Warehouse in Box PPP Project

• Accommodation – Staff Housing Estate, Shopping Complex, House

Officers Quarters – University of Port Harcourt Teaching Hospital


Other PPP Pipeline Projects

• National Stadium Lagos

• National Stadium Abuja Athletes Hostel

• Marina Water Front Development Lagos

• Abuja Light Rail Lots 1A and 3 Further Development

• Abuja Light Rail Lot 2

• Abuja Urban Districts – Mabushi and Kado


• Nigeria Integrated Infrastructure Master plan

• Nigeria Infrastructure Development Fund

• Viability Gap Funding for high social rate of return projects

• Annuity PPPs

• Nigerian Sovereign Investment Authority (NSIA) and Third PartyInfrastructure Guarantee Fund

• Standardization Efforts (Business Case, Contracts etc)

• World Bank Adaptable Programme Lending to PPP Project Development

• Amendment of ICRC Act and PPP Units in MDAs

• Federal Roads and Bridges Tolling Policy

Supporting Initiatives

• Nigeria’s infrastructure deficit is a huge businessopportunity for win-win PPP in virtually all economic andsocial infrastructure spaces.

• PPPs offer the Nigeria a dependable and sustainablefunding option, increased accountability, acceleratedinfrastructure provision and faster implementation ofprojects.

• Progress has been made in developing a sustainable PPPframework

• Come take advantage of Nigeria’s PPP space

Take Away

build build build€¦ · · 2017-12-18additional roads, electricity, potable water, drainages,...

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