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FG seeks increased PPP agreements to deepen infrastructure development

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The Federal Government on Tuesday called for more Public-Private Partnership (PPP) arrangements as a way of ensuring sustainable infrastructural development in Nigeria.
Gabriel Aduda, permanent secretary, Office of the Secretary General of the Federation, stressed on the need for increased PPP agreement to promote rapid development of infrastructure within the country.
Aduda said, “The only way we can make progress in infrastructure developments is to increase our partnership with the private sector, as we all know expansion of infrastructure will directly lead to job creation and overall economic growth,” while speaking at the PPP Financing, Policy and Law Master Class organised by NEOEDGE in partnership with the Infrastructure Concession Regulatory Commission, in Abuja.
He said with the backlog of $3 trillion infrastructure deficit, there was an urgent need for full participation of the private sector as government lacked the financial capacity to meet this need.
The need for the PPP policy master class cannot be over emphasised, as it seems to enhance the knowledge of the participants on how they can be better players and improve on their negotiation skills, he said.
“Oftentimes, we discover that the government is lightly equipped but we are saying not anymore, we want situations where government is able to equip itself to enhance its negotiations skills and methodology to ensure that the country gets value for money whenever government engages in PPP,” he said.
Chidi Izuwah, director-general/CEO, ICRC, said with the Commission playing the lead role, PPPs in Nigeria were gradually maturing, adding that the government had ensured the establishment of the PPP Consultative Forum of all PPP Unit Heads of ministries, departments and agencies at the federal and state government levels so as to ensure sustained success of PPPs in Nigeria.
“These fora have enabled and entrenched the harmonisation of activities, communication and knowledge sharing. Also, one of the key structures we have put in place for the sustained success of PPPs in our country is the establishment of the PPP Consultative Forum (3PUCF) of all PPP Unit Heads of ministries, departments and agencies at the Federal level; and the Nigeria PPP Network (NPPPN) of all PPP Heads of the state governments at the sub-national levels,” he said.
Speaking on the journey so far, Izuwah explained that in 2017 and 2018, five PPP projects in different sectors received approvals of the Federal Executive Council, to enable them achieve Commercial Close and a subsequent Financial Close.
He listed some of the projects to include; the Abuja Kaduna Kano pipeline project of the Federal Ministry of Petroleum Resources; the Grain Storage Silos projects of Federal Ministry of Agriculture and Rural Development; the Solar roof top project of the Federal Ministry of Power, Works and Housing; the Warehouse in a Box project of the Federal Ministry of Health, and the ECOWAS Biometric project of the Federal Ministry of Interior.
He said, “We have taken custody of PPP agreements in the country and are diligently monitoring the compliance of the several contract requirements. Our disclosure portal established with the World Bank as the first in the world is available for more information on projects currently being implemented in the country.”
He announced that in 2018, the Commission issued a total of 20 Outline Business Case and 10 Full Business Case Compliance Certificates, adding, “We believe that more bankable and viable projects will be certified for compliance in 2019.”
Speaking further, Izuwah said the master class aimed at up scaling the much needed skill and competence of PPP practitioners in both the public and private sectors, adding that PPPs had become the way to go in order to deliver on the infrastructure requirement of Nigeria.
Umar Gambo Jubrin, executive secretary, Federal Capital Development Authority, said adopting PPP had become necessary due to the wide gap between demand and supply of infrastructure in Nigeria as well as direct funding and Investment, adding that PPPs offer great opportunities for the Private Sector to become active players in driving the economy and thereby creating much needed jobs for a nation.
“The FCDA is ready to partner with the private sector to deliver some of our critical infrastructure which would enable us improve the delivery of the much needed public service.

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