dr mansur ahmed - icrc_knsg_infrastructure_strategy.ppt
TRANSCRIPT
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(ICRC)nfrastructure Concession Regulatory Commission
(ICR C)
Roundtable with the Kano State Governor-Elect
onINFRASTRUCTURE
Engr. Mansur AhmedDIRECTOR GERNERAL. INFRASTRUCTURE CONCESSION REGULATORY COMMISSION
Kano, May 2011
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1. Introduction: Infrastructure is the Key
2. Areas of Focus: Maximum Impact
3. Short Term: Quick Wins
7. Conclusion: It Can Be done
4. Medium Term: Opportunities to Make a Difference
5. Long Term: Building the Foundation for the New Economy
6. Financing Infrastructure: The PPP Option-Doing it Right
Presentation Outline
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Infrastructure: The Internal Architecture that Enables anyeconomy to Function Efficiently and AchieveSustainable Growth
Infrastructure is Key to;
Creating Employment, Income, and Wealth
Reducing Poverty and Social Conflict
Improving Health, Education, and Social attitudes Promoting Good Citizenship and Increasing Government
Revenues
1. Introduction: Infrastructure is the Key
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Given the Debilitating state of all types of Infrastructure
(Economic and Social) in Kano State, Careful Prioritization is
Imperative
There is need to Focus on;
Infrastructure Services that will have the Greatest Impact on
the largest number of Citizens
Services with Multi-Dimensional Impact Areas in which the New Administration can Build on what is
already in place, thus delivering early outcomes.
Areas within the full Jurisdiction of the State
KNSG can Focus on;
1. Water Supply and sanitation
2. Transportation (Rural and Urban)
3. Energy (Electricity)
2. Areas of Focus: Maximum impact
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ENERGY
TRANSPORT
WATER & SANITATION
ICT
GOVERNANCE&ECONOMIC
MANAGEMENT
AGRICULTURE
INDUSTRY &COMMERCE
TRADE &COMPETITIVENESS
RURALDEVELOPMENT
EMPLOYMENTGENERATIONINCOME
GENERATION
HEALTH
EDUCATION
SECURITY &ENVIRONMENT
SOCIALDEVELOPMENT
2.1 Areas of Focus: Multidimensional Impact
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Sanitation: Especially Solid Waste Management in Kano City willcreate an immense Positive Impact and Engender Good will.
A well thought out Short term Programme involving reasonable
public spending, can produce early results
The Programme must however be followed by a Longer term, more
sustainable approach involving Public-Private Partnership
Arrangements (may consider the Cross River State model 2003-2007)
Water is an Urgent and Vital need. The New administration must
Embark on this; Review Current state of on-going projects and
build on progress made
Community managed water Schemes
should encouraged in
Small Towns and Rural Areas
(e.g Wudil and Rogo models)
3. Short Term: Quick Wins (1st 2years)
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We Must address the current chaotic, unstable and indeed
Unhealthy Urban Transportation in Kano. The Motorcycles and
Tricycles system is not sustainable
Bus Rapid Transit (BRT) has proved doable in Lagos. It can be done
in Kano
A Phased Approach is Recommended, commencing with say 10 Key
Routes involving say 100 Mass Transit Busses Fully Funded by KNSGfor say the first 2 years
Then, invite Private Investors to take over the initial investment
and expand the service. KNSG can study the Lagos Model
3.1 Short Term: Transportation
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The New Administration is well placed to align its
Infrastructure Development Strategy with that of the FGN
The FGN Model is to;
Develop and Execute a Coherent 4-5 year plan (NIP of
NV20:2020)
Stick to the plan without Deviation
Implement Key Policies, Programmes, and Projects
(KPPPs) that will ensure achievement of the NV20:2020
Among the KPPPs, the FGN has identified about 60
Critical Infrastructure Projects across the Country for
Urgent Implementation
4. Medium Term: Opportunity to Make a Difference
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4.1 Infrastructure Projects of the FGN
ID
Comments
1 Mambilla (2600 MW)
2 Zungeru (700MW)
3 Gurara (350 MW)
4 Kaduna (900 MW) Power Plant
5 Abuja (1350 MW)
6 Rehabilitation of Kainji Dam
7 Rehabilitation of Jebba
8 Rehabilitation of Shiroro
9
Rehabilitation and Expansion
of Transmission lines
10 Super Grid Project
11 Small hydro power plants
Power Projects
Unique ID Project Title
1 Waya Small Hydro Power Plant (0.15 MW)
2 Mbowo Small Hydro Power Plant (0.125 MW)
3 Ikere Gorge Small Hydro Power Dam (9 MW)
4 Oyan Small Hydro Power Dam (9 MW)
5 Bokolori Small Hydro Power Dam (3 MW)
6 Itisi Small Hydro Power Dam
7 Tiga Dam (6 MW Potential)
8 Challawa Dam (6 MW Potential)
9 Jibiya Dam (3 MW Potential)
10 Doma Dam
11 Owena Dam (3 MW Potential)
12 Goronyo Dam
13 Kampe Dam (2 MW Potential)14 Zobe Dam (3 MW Potential)
15 Kashimbilla Dam (22 MW Potential)
16 Dadin Kowa Small power Plant (34 MW Potential)
17 Ogwashikwu Dam (1 MW Potential)
Small Hydro Dam Projects
Highlighted Projects should be of Interest to KNSG
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4.2 Infrastructure Projects of the FGN
Road Projects Railway ProjectsID Project Title
1 Shagamu-Benin-Asaba Expressway
2 Abuja-Kaduna-Kano
3 2nd Niger bridge
4 Loko-Oweto
5
Abuja-Lokoja
6 Niger Delta Coastal Road
7 Ibadan-Ilorin-Jebba
8 Kano-Maiduguri
9
Lagos-Ibadan
10 Apapa-Oshodi
11 Ajaokuta Access Roads
ID Project Title
1 Lagos-Kano Narrow Gauge
Rehabilitation
2 PH - Maiduguri Narrow Gauge
Rehabilitation (Ongoing)
3 Lagos-Ibadan Standard Gauge Line
4 Abuja Kaduna standard gauge line
5 Lagos - Ife-Ilesha-Owo-Benin-Onitsha-
Enugu (650km) Standard Gauge
6 Ajaokuta-Jakura-Baro-Abuja Standard
Gauge
7 Abuja Rail Mass Transit LOT 1 And 3
8 Abuja light Railway Project LOT 2
9 Benin-Calabar through 6 Niger Delta
States
Highlighted Projects should be of Interest to KNSG
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SEAPORTS & INLAND RIVER PORTSID Project Title
1 Lekki Deep Sea Port
2 Akwa Ibom Deep Sea Port
3 Onitsha Inland River Port
4 Baro Inland River Port
5 Oguta River Ports
6 Degema River Port
HOUSING PROJECTS
ID Project Title
1 600,000 Housing Units under PPP
arrangement
2 240,000 affordable housing units by FHA
3 Recapitalization of FMBN
4.3 Infrastructure Projects of the FGN
OIL & GAS PROJECTS
ID Project Title
1 Calabar - Ajaokuta-Kano Gas
Pipeline
2Obiafu - Obrikom Gas Pipeline
3 Expansion of Escravos - Lagos
Pipeline (ELP) Phase 1& 2
ID Project Title
1 Specialist Hospitals in 6 Geopolitical
Zones
HEALTH SECTOR PROJECTS
Highlighted Projects should be of Interest to KNSG
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AVIATION PROJECTS
ID Project Title
1 MMIA International airport
Terminal Remodelling
2 Abuja International airport
Terminal Remodelling. (Airside
contract work awarded)
3 Kano International Airport
Terminal Remodelling.
4 Enugu International
Airport(Terminal Remodelling)
5 Port Harcourt International
Airport(Terminal Remodelling)
6 Bayelsa airport7 Maiduguri, Benin, Calabar, Akure,
and taxiway at Kano and MMIA
8 Calabar International
Airport(Terminal Remodeling)
4.4 Infrastructure Projects of the FGN
AGRICULTURE INFRASTRUCTURE: RIVER BASINSID Project Title
1 Rehabilitation of Sokoto Rima RBDA
2 Rehabilitation of Hadejia-Jamaare RBDA
3 Rehabilitation of Chad RBDA
4 Rehabilitation of Upper Benue RBDA
5 Rehabilitation of Lower Benue RBDA
6 Rehabilitation of Upper Niger RBDA
7 Rehabilitation of Lower Niger RBDA
8 Rehabilitation of Ogun-Osun RBDA
9 Rehabilitation of Benin-Owena RBDA
10 Rehabilitation of Anambra-Imo RBDA
11 Rehabilitation of Cross-River RBDA
12 Rehabilitation of Niger-Delta RBDA
Highlighted Projects should be of Interest to KNSG
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The KNSG Should;
Review the FGNs Critical Infrastructure Programme and
Identify those that will have the most impact on Kano State
Work closely with the FGN at all levels (Presidency, Ministries,
and other Agencies) to influence and expedite the
implementation of these projects. KNSG may need to appoint a
Special Liaison officer (special Adviser to the Governor) onInfrastructure to manage this responsibility
Encourage the Kano Investor community to participate in those
projects to be implemented through PPPs
Consider Extension of the FGN projects where appropriate, tomaximize the States benefit
4.5 Medium Term: Over the Four Years Term
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To leave an enduring Legacy, the New administration should begin
now to Build the Foundation for the New Kano State Economy
Develop a Long Term Strategic Plan for a New Agro-Based
Economy. Focus on Sustainable Commercially viable Agriculture
and Agro-Based Industrialization
The Strategic Plan must be based on serious in-depth study backed
by long range projections (May take 2 years)
The KNSG can approach any of our development partners (USAID,
EU, DFID, AfDB, WB, etc) for support
Review the Kano ICT Project with a view to Re-invirgorating and
Developing it further. ICT is the driver for the new GlobalEconomy, and Kano cannot afford to be left out!
5. Long Term: Building the Foundation for the New Economy
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Revenue Generation is Imperative (Lagos State has increased its IGR to
60% of the States Revenue)
However, No matter how much revenue government raises, it is
unlikely to meet the States demand for Infrastructure. Other Sourcesof Financing must be explored.
Public-Private Partnership (PPP) has been recognized and adopted for
Infrastructure financing by nearly all countries across the World
Public-Private Partnership is a contractual agreement between a publicagency (federal, state or local) and a private sector entity. Through thisagreement, the skills and resources of each sector (public and private) are
sharedin delivering a service or facility for the use of the general public. Inaddition to the sharing of resources, both parties share in the risks andrewards in the delivery of the service and/or facility.
6. Financing Infrastructure: The PPP Option
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Maximizes use of private sector finance and skills
Private sector takes life cycle cost risk
Risks allocated to party best able to manage or absorb each
risk
Forces public sector to focus on outputs and benefits fromthe start
Quality of service has to be maintained for life of PPP
Public sector only pays when services delivered
Encourages development of specialist skills and innovation
Alleviates chronic underinvestment in capital intensive
projects and allows off balance sheet borrowing
6.1 Financing Infrastructure: Benefits of the PPP Option
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In Nigeria, Lagos, Rivers, Cross River, are States that are succeeding in
using PPPs for Infrastructure Development
However, PPPs must be done in the right way. It Requires;
1. The Right Policy, Legal, and Institutional Framework
2. Technically/Professionally competent personnel within the Civil
Service, with the requisite capacity to Develop projects and
Procure the requisite Private Partners3. A well developed operational framework, with clear procedures
and processes, that will give confidence to prospective Private
Investors
4. And above All, a Bold and Committed Leadership that is willing to
do things Differently
The Infrastructure Concession Regulatory Commission, an agency of
the FGN will be happy to assist the KNSG in meeting the first three
requirements. Only the Governor-Elect can ensure the Fourth
Requirement can be met
6.2 The PPP Option-Doing it Right
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Doing Business in Nigeria 2010the second sub-national report in
the series following Doing Business in Nigeria 2008The report
focuses on state and national regulations that affect 4 stages inthe life of a small to medium-size domestic firm: starting a
business, dealing with construction permits, registering property,
and enforcing contracts.
Kano State made the most progress since 2008, with reforms
in 3 out of 4 areas measured
Kano State is among the top 10 easiest cities to do business
in Nigeria
The New administration must build on this
Doing Business in Nigeria is an IFC-Worlbank Survey
7. Conclusion: It Can Be Done
L S 2007 2010
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Lagos State 2007 to 2010
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A street in Dubai in1990
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Same street in Dubai in 2003
It can Happen in Kano
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THANK YOU
Engr. Mansur Ahmed
Director General/CEOInfrastructure Concession Regulatory Commission
13 Suleiman Barau Crescent Abuja, Nigeria
Phone: +234 (9) 4604900/+234 (9) 8750286
Email: [email protected]
Website: www.icrc.gov.ng