UDO UDEME UDO
FINAL PROJECT
Public Private Partnership IN Nigeria
Can be describe as partially successful as most of such project have succeeded while
others has failed. Since the coming democracy,
there has been needs in closing infrastructural gap in Nigeria after years of
almost no improvement in virtually any sector in the country .
While most of the project have been
Federal projects another set of such partnership is with the state government. Although
it seems that the state government have little in terms of funds and capacity
in the area of assurance on paying back in cases where the finance methodology
is on structured payment method. This raises the question on the economy of the
project and the risk factor involve.
The second challenge with both
state and federal government had to content with was the issue of large debt
profile to both foreign and local financiers. As at then Nigeria debt profile
stood at about $34 billion external and about $40billion internal debt. That poses
a big challenge for the government.
Water challenges in Calabar Cross
River state prior to world bank intervention
To tackle these challenges the
government took some quick but effective action on debt forgiveness from the
Parish club followed by the establishment of Infrastructure Concession Regulatory commission (Icrc), apart from
that, the issue of corruption in the area of procurement processes the
government established the Bureau of Public Procurement (BPP) to assure bidders
and project financier that the procurement of contract would be transparent.
Today several project such as the
·
Rehabilitation and Upgrade of Murtala Muhammed Airport Road
·
Construction of 2nd Niger Bridge Proposed
·
Construction of River Niger Bridge at Nupeko Proposed
And many other project by external
sponsors such as the Calabar water project sponsored by world bank, and the Abuja
speed rail project funded by the Chinese bank under Build Operate and Transfer
arrangement at the cost of 500 Million dollar.
On this project I will focus on the Development of Katampe District under
PPP arrangement
FEDERAL
CAPITAL TERRITORY ADMINISTRATION
(FCTA),
PROJECT NAME: Development of
Katampe District
DESCRIPTION: Accelerated development of urban
districts
across the Federal Capital Territory (FCT),
with
Katampe district as a Pilot Case.
PROJECT COST ESTIMATE: N61 billion
PPP MODEL: Build
Operate and Transfer (BOT)
REVENUE REVENUE MODEL: User
Charges
Federal
Capital Ministry
PROJECT STATUS: The Concession Contract was signed on 19th Oct, 2010. Ground
breaking ceremony wa held on the 2nd of February 2012
This project
stands a very good chance for success as one the infrastructural challenges of
the Nation’s capital city is housing. The housing deficit in Nigeria is put at
about 17 million (daily independent newspaper , 14th April, 2015.
And Abuja being
the fastest growing city in the country with a large number of middle class
need a substantive housing project. To tackle this, there need for opening of
new layout to discourage building more slums.
The economics
of the project is high as most project of this kind have a consistent record of
success due to the numbers of available off-takers for housing. With fair payback option, and a very good
location such as Katamkpe an annex of the luxury Maitama area a very expensive
part of Abuja. And a 30 years concession plans it indeed a give away project,
as usual with any of such project in the FCT, the project is fully guaranteed
with and Irrevocable Standing Payment Order/Bank Guarantee. This make the risk
well in favour of the private sector. On the government angle, there is no financial
commitment except the allocation of land and administrative cost for effective
supervision of the project. This project will provide a good housing for over
40,000 peoples.
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