icrc ppp days country presentation: ppp in nigeria(icrc) infrastructure concession regulatory...

( ICR C )Infrastructure Concession Regulatory Commission

( ICRC )

PPP Days Country Presentation:

PPP In Nigeria

Engr. Mansure AhmedDIRECTOR GENERAL

INFRASTRUCTURE CONCESSION REGULATORY COMMISSION

Geneva, February 2012


1. Country Overview

2. Pre – ICRC Concessions and Lessons Learned

3. Need for PPP Policy

5. Outlook for PPPs in Nigeria

4. The Nigerian PPP Framework

6. Nigerian PPP Pipeline

7. New Network Initiatives

Content Outline

2


� Size: 923,764 Sq.KM

� Population: Over 150 Million

� 13th Largest Producer of Oil & Gas

� 12 Years Democratic Government

� Reforms in Critical Sectors

� Over 6% growth in the last 10 years

� Long Term Planning Framework

� Over 100 Million Registered Mobile

Lines – 2011 (NCC)

Macro Economic Environment

Security

Governance

Investment Climate

Infrastructure

Key Challenges

Nigeria: Country Overview

3


� Private Sector Development Policy Thrust:

• TCPC from 1987

• Privatization Act 2000

• ICRC Act 2005

� Lessons Learned:

• Legal and Regulatory Environment

• Project Development

• Procurement

• Contract Management

• Long Term Financing

• Sector Reforms

4

Pre – ICRC Concessions and Lessons Learned


� NV 20:2020 – Nigeria will be one of the20 Largest Economies by 2020

� Key Goals to achieve NV20:2020;

� GDP of not less than $900bn

� GDP per capita of not less than $4,000

� Power generation of 40,000MW

� Improve GCI and HDI

� Sustainable 10% GDP growth

� NV20:2020 Indicative Parameter isAdequate Infrastructure

� 1st NIP (2010-2013) InvestmentRequirement: N32 trillion ($212 billion)– clearly beyond Government capacity

� Private sector finance is inevitable

Federal Government

, 31%

States and LGA, 28%

Private Sector, 41%

V20:2020 1st NIP Sources of Finance

5

The Need for A PP Policy

� Service Expansion to meet IncreasingDemand

� Service Improvement

� Increase in Investment in Infrastructure


The Nigerian PPP Framework

Policy

; Objectives; Roadmap

Coherent Planning Framework

Pipeline of Well Structured Projects

Human Capacity Development

Lega

l and Regu

latory Framework

Institutional Framework &

Capacity


PPP Resource Centre

(Pre-Contract Regulation)

Contract Compliance

Centre(Post-Contract Regulation)

The ICRC Act 2005:

� Establishes the Infrastructure Concession Regulatory Commission (ICRC).

� Empowers MDAs to enter into a contract with or grant concession to duly pre-qualified private sector.

� Empowers the ICRC to;

� Provide general policy guidelines, rules and regulations.

� Take custody of every concession agreement entered by the Federal Government and ensure efficient execution.

The Role of the ICRC


PPP Process in Line with National Policy on PPP

8

�Technical Adviser

�Project Monitoring

�Commissioning Test

�Verify Output

Requirements

�Contract management

Development Phase Procurement Phase Implementation Phase

�Needs Analysis

�Economic Assessment

�PPP Options appraisal

�Value for Money

�Affordability

�Sustainability

�Prelim Risk Matrix

�Viability/Bankability

�VGF assessment

�OBC approval

�Transaction adviser

�EoI and RFP

�Bidding

�Bidders Conference

�Bid Evaluation

�Value for Money Test

�Preferred Bidder

�Full Business Case

�FEC Approval

ICRC

MDA

�Take custody and Ensure

Compliance with Terms

and Conditions of

Agreement

�Contract management

�Policy, Regulation,

Capacity Building

�Ensure Bankability

�Recommend OBC Approval

�Ensure VFM and

Appropriate Risk Sharing

�Create a Robust PPP

Market Interface

� Recommend FEC Approval

Preliminaries

�Identification

�Prioritization

�Selection

MDA; NPC;

BOF; MoF;

MoTI

Pre-Contract Post-Contract


• Leadership– Support for PPP; Reform in Critical Sectors; Transformation Agenda

• Policy Objectives; Roadmap– N4P; NV20:2020

• Legal and Regulatory Framework– ICRC Act 2005 and Regulations

• Institutional Framework– ICRC Board (2008); PPP Units in MDAs

• Coherent Planning Framework– MDAs – NPC – MoF – Budget office - ICRC; PPP Project Lifecycle

• Capacity Development– PPP Toolkits; Support from World Bank, AfDB, NIAF

• Pipeline of Well Structured Projects for Investment

9

Outlook for PPP in Nigeria


� Federal Capital Territory

� FCT Light Rail Project LOT 2 (OBC).

� Kuje Water Works upgrade and reticulation (OBC)

� Federal Ministry of Works

� Shagamu to Benin and Benin to Asaba highway rehabilitation and upgrade

� Abuja to Kaduna and Kaduna to Kano highway rehabilitation and upgrade

� Federal Ministry of Transport

� National Inland Waterways (NIWA)

� Kiri kiri Lighter Terminals 1 and 2 concession

� The Nigerian Railway Corporation (NRC)

� Concession I: Western Railway: Lagos to Kaduna to Kaura-Namoda and Nguru,

� Concession II: Eastern Railway: Port Harcourt to Kafanchan and the Northern

line to Maiduguri;

� The Ministry of Power

� A Range of IPPs

� Brown field Hydro Power Plants

� Green field Plants, including small and medium hydros

Some Projects in the Nigerian PPP Pipeline

10


Key Facts

� 1st of 5 Districts in FCT approved for development through PPP

� PPP Contract Signed on October 2010

� Type: Design, Finance, Construct, and Transfer

� Scope: Roads, Sewage Network, Water Supply Network, Storm Water Network, Electrical Distribution Network, Telecom Ducts

� Parties: The FCDA of Nigeria and DeanshangerProject Ltd

� Value: N61 billion ($400 million)

� Construction period: 3 Years

� Contract Period: 5 Years

� Construction Risk: Private Sector

� Revenue Risk: Public sector

� FGN Sovereign Guarantee Approved

Most Recent Project: Katampe District Infrastructure


� Long Term Financing

� Infrastructure Fund; Pension Fund;

NSWF; VGF; FIL, Bond Market

� NP3N (National PPP Network)

� Network of Federal and State Level

PPP Agencies

� AP3N (Africa PPP Network)

� Network of PPP Agencies in Africa

New Initiatives

� Trans-Border Projects

� Learning Network

� Peer Review


THANK YOU

CONTACT DETAILS:

Engr. Mansur Ahmed

Director General/CEO

Infrastructure Concession Regulatory Commission

13 Suleiman Barau Crescent Abuja, Nigeria

Phone: +234 (9) 4604900/+234 (9) 8750286

Email: [email protected]

Website: www.icrc.gov.ng

icrc ppp days country presentation: ppp in nigeria(icrc) infrastructure concession regulatory...

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