Post on 08-May-2018
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
Numbers & Opportunities
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)
7
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
15
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
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
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 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
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
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 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
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
Estimated Capital Cost ⎕ < $10m ⎕ $11-50m ⎕ $51-100m ⎕ $101-200m⎕ $201-300m ⎕ $301-400m ⎕ $401-500m ⎕ > $500m
Revenue Sources ⎕ Users ⎕ Purchase Agreement ⎕ Government Payments
Background ▪ Grantor: BPE
▪ Project Name: PHCN 3 Large Hydro Power Plants
▪ Description: Power generation hydropower plants
▪ PPP Model: ROT
Objective Restore power plants to name plate capacity and manage power generation and injection into national grid
Project Scope 30 Years
Note Successfully handover. PPA with NBET in place
Project Contact Permanent Secretary Federal Ministry of Power/DG BPE
Active PPP Projects
Sector Project
Energy 7
Agriculture/Irrigation/Dam 9
Urban Infrastructure 8
Roads/Bridges 12
Seaports & Inland Container Depot 2
Railway (Green Fields) 1
Social Infrastructure (Stadia) 2
Health 1
Media 6
TOTAL 4826
Projects at Development Phase
27
S/No Sectors/Projects Number of Projects % Composition of PPPs by
Sector
1 Agric.Energy 11 11.34
2 Aviation 2 2.06
3 Culture 2 2.06
4 Education 7 7.22
5 Environment 1 1.03
5 Health 8 8.25
6 Ict 1 1.03
7 Martime 1 1.03
8 Ports 24 24.74
9 Rail 6 6.19
10 Roads.Bridges 9 9.28
11 Security 10 10.31
12 Sports 1 1.03
13 Trade.Investm 6 6.19
14 Uran Develop 8 8.25
97 100.00
Active PPP Projects
Other Road PPP Pipeline Projects
• Odukpani to Ikot Ekpene to Aba Federal Highway
• Kishi Kaima New Alignment
• Abuja to Ibadan to Lagos New Alignment
Projects at Development Phase
#PROJECT NAME AND
DESCRIPTIONPROJECT COST
(US$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.
DevelopmentWork in Progress
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
DevelopmentWork in Progress
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
Projects at Development Phase
32
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
Nigerian Shippers Council/Federal Ministry of Transportation
Unsolicited Proposal DevelopmentWork in Progress
Outstanding Same Outstanding
7
Nnewi Inland Container Depot, Anambra State
Under Development
Nigerian Shippers Council/Federal Ministry of Transportation
Unsolicited Proposal DevelopmentWork in Progress
Outstanding Same Outstanding
8
Gombe CFS, Gombe State Under Development
Nigerian Shippers Council/Federal Mini of Transportation
Outline Business Case (OBC) preparationongoing
DevelopmentWork in Progress
Outstanding Same Outstanding
9
Dagbolu Inland Container Depot, Osun State
Under Development
Nigerian Shippers Council/Federal Ministry of Transportation
Unsolicited Proposal DevelopmentWork in Progress
Outstanding Same Outstanding
10
Lolo Inland Container Depot, Kebbi State
Under Development
Nigerian Shippers Council/Federal Ministry of Transportation
Unsolicited Proposal DevelopmentWork in Progress
Same Outstanding
PIPELINE PROJECTS – PORTS AND INLAND CONTAINER DEPORTS
Projects at Development Phase
Location of Proposed PPP Ports
Lekki Deep Seaport
Akwa Ibom Deep seaport
Projects at Development Phase
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
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 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
Projects at Development Phase
• 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
Projects at Development Phase
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)
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 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
Projects at Development Phase
38
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
Projects at Development Phase
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
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 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
Projects at Development Phase
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
Revenue Sources ⎕ Users ⎕ Purchase Agreement ⎕ Government Payments
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
Projects at Development Phase
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.
Projects at Development Phase
Development of New Prisons through PPP
• 6 Integrated Prisons Facilities spread across Nigeria.
• Some will be structured under a Land Swap Arrangement.
Projects at Development Phase
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
Projects at Development Phase
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
Projects at Development Phase
• 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