BUILD BUILD BUILD Nigerias Infrastructure Space Opportunities & - - PowerPoint PPT Presentation
BUILD BUILD BUILD Nigerias Infrastructure Space Opportunities & Challenges PRESENTATION BY THE INFRASTRUCTURE CONCESSION REGULATORY COMMISSION AT THE 1ST ISTANBUL PPP WEEK, 2015. ISTANBUL, TURKEY Engr. Chidi Izuwah Ag. DIRECTOR
INFRASTRUCTURE CONCESSION REGULATORY COMMISSION September 2017
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
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The key strategic
the Infrastructure Concession Regulatory Commission (ICRC) is to accelerate investment in national infrastructure through private sector funding by assisting the Federal Government of Nigeria and its Ministries, Departments, and Agencies (MDA) to implement and establish effective Public Private Partnership’s (PPP) procurement.
rastr struc uctur ture e Co Conces essi sion
gulator tory y Co Commission mission (Est Estab abli lishme hment nt, etc tc.) .) Act t 2005. 5.
iona nal l Polic icy on PPP P (N4P) 4P)
CRC.GO .GOV.NG .NG – TO DOWNLOAD AD
LEGAL AND REGULATORY FRAMEWORK
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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
party shares in the risks and rewards potential in the delivery of the service and/or facility (NCPPP USA)
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▪ Establishes the Infrastructure Concession Regulatory Commission (ICRC) Sectio ion 14 14.1 ▪ Ministries, Department & Agencies (MDAs) may enter into a contract with or grant concession to any duly pre-qualified private sector project proponent for the financing, construction, operation, and maintenance of any infrastructure of the Federal Government. (Section ction 1.1) ▪ Empowers the ICRC to: ▪ Provide general policy guidelines, rules and regulations. ▪ Take custody of every concession agreement entered by the Federal Government ▪ Ensure efficient execution of any concession agreement or contract entered by the Federal Government.
MANDATE OF THE ICRC – ICRC Est. Act 2005
What ICRC Does…
Building
with contracts
What ICRC Does Not Do…
responsibility
responsibility
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
Other PPP Principles Being Driven By ICRC
PPP LIFECYCLE in line with National PPP Policy Development Phase
Procurement Phase
Implem emen entatio tation n Phase se
▪Projec ect t Identific tificatio ation ▪Projec ect t Prioriti ritization tion ▪Proj
ect t Selectio ection
PPP PROCUREME EMENT T ROUTES ES
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
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
as a primary mode for long distance haulage.
landlocked countries.
To improve access to education, affordable housing and health care
Inland Container Depot (ICDs) Social Infrastructure (Housing, Health and Education) Information Technology
To improve broad band IT access to low income and deprived areas
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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 48
MMA2 AIRPORT CONCESSION
MMA2 Airport Concession
Project 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
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Garki Hospital Abuja
Project 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
fund provides free medical care to disadvantaged persons Project Contact NISA Premier Hospital Ltd
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GARKI HOSPITAL AT HANDOVER TO PPP PARTNER
GARKI HOSPITAL TODAY
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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 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 manage 24 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
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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 Estimated Capital Cost ⎕ < $10m ⎕ $11-50m ⎕ $51-100m ⎕ $101-200m ⎕ $201-300m ⎕ $301-400m ⎕ $401-500m ⎕ > $500m Revenue Sources ⎕ Users ⎕ Purchase Agreement ⎕ Government Payments Background ▪ Grantor: BPE ▪ Project Name: PHCN 3 Large Hydro Power Plants ▪ Description: Power generation hydropower plants ▪ PPP Model: ROT Objective Restore power plants to name plate capacity and manage power generation and injection into national grid Project Scope 30 Years Note Successfully handover. PPA with NBET in place Project Contact Permanent Secretary Federal Ministry of Power/DG BPE
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ENERGY- HYDROELECTRICITY
Sector Project Energy 7 Agriculture/Irrigation/Dam 9 Urban Infrastructure 8 Roads/Bridges 12 Seaports & Inland Container Depot 2 Railway (Green Fields) 1 Social Infrastructure (Stadia) 2 Health 1 Media 6 TOTAL 48
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S/No Sectors/Projects Number of Projects % Composition of PPPs by Sector 1 Agric.Energy 11 11.34 2 Aviation 2 2.06 3 Culture 2 2.06 4 Education 7 7.22 5 Environment 1 1.03 5 Health 8 8.25 6 Ict 1 1.03 7 Martime 1 1.03 8 Ports 24 24.74 9 Rail 6 6.19 10 Roads.Bridges 9 9.28 11 Security 10 10.31 12 Sports 1 1.03 13 Trade.Investm 6 6.19 14 Uran Develop 8 8.25 97 100.00
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THE 2ND
ND NIGER
R BRIDGE GE – ARTIST T IMPRES ESSION
Other Road PPP Pipeline Projects
NATIONAL ROAD NETWORK Roads Projects through PPP
# PROJECT NAME AND DESCRIPTION PROJECT COST (US$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
Development Work 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. Development Work 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 Development Work 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 Development Work 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 AND DESCRIPTION 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 Development Work in Progress Outstanding Same Outstanding 7 Nnewi Inland Container Depot, Anambra State Under Development Nigerian Shippers Council/Federal Ministry of Transportation Unsolicited Proposal Development Work in Progress Outstanding Same Outstanding 8 Gombe CFS, Gombe State Under Development Nigerian Shippers Council/Federal Mini
Outline Business Case (OBC) preparation
Development Work in Progress Outstanding Same Outstanding 9 Dagbolu Inland Container Depot, Osun State Under Development Nigerian Shippers Council/Federal Ministry of Transportation Unsolicited Proposal Development Work in Progress Outstanding Same Outstanding 10 Lolo Inland Container Depot, Kebbi State Under Development Nigerian Shippers Council/Federal Ministry of Transportation Unsolicited Proposal Development Work in Progress 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 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
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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 - 615KM Standard Guage:- Lagos – Shagamu- Ijebu Ode- Ore- Benin City (300km) Benin- Agbor-Ogwashi Uku- Asaba- Onitsha –Nnewi- Owerri- Aba with additional line from Onitsha-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 services Status – Transaction Adviser Appointed Project Scope Various railway lines criss crossing the country in excess of 4000 km
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Appapa Idogo Lagos Port Minna Baro 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 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
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 Capital Cost ⎕ < $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 State 450KW Owena dam, Ondo State. Lot 2:- 3MW Bakolori dam, Zamfara State 500KW Kampe dam, Kogi State 1MW Doma dam, Nasarawa State. Lot 3:- 4MW Jibia dam, Katsina State 300KW Zobe dam, Katina state 10MW Tiga dam, Kano state 10MW Challawa Dam, Kano State Objective To provide additional power using existing dams Project Scope Rehabilitate Build Operate Transfer
Other Water Resources PPP Pipeline Projects
nearing completion. O & M partner needed
Preparation of OBC in progress.
Development of New Prisons through PPP
Records Automation and Computerization at Federal Teaching Hospital Abakiliki
National Orthopedic Hospital, Dala, Kano
Officers Quarters – University of Port Harcourt Teaching Hospital
Sovereign Investment Authority (NSIA) and Third Party Infrastructure Guarantee Fund