The Infrastructure Concession Regulatory Commission (ICRC), has published 51 eligible and bankable Public Private Partnership (PPP) projects, worth over $17bn from different economic sectors which have been granted the Outline Business Case Compliance Certificates, but do not have identified bidders.
The Commission also revealed its readiness to gazette 53 eligible and bankable PPP projects worth about $22bn for investors.
The Director-General of ICRC, Mr Michael Ohiani said these in Abuja at the Africa Public Private Partnership Network Investment summit, with the theme: “Financing Africa’s infrastructure through Public Private Partnership.”
He said that as of May 2022, there are 77 post-contract PPP projects under implementation at the ICRC Projects Disclosure Portal.
The portal is the first disclosure portal in the world, established by the ICRC in collaboration with the World Bank.
The ICRC boss noted that the Commission has about 197 pre-contract projects at different phases of project development and procurement.
Similarly, he said the agency since it was created has achieved a lot, noting for instance that between 2010 following the inauguration of its Governing Board and 2021, under the regulatory guidance of the ICRC, the federal government has approved PPP projects worth more than $9bn.
He also disclosed that the agency has issued 128 Outline Business Case Compliance Certificates, stating that these projects have been certified bankable projects, to enable them proceed to procurement phase.
He said, “The innovative structuring of PPP transactions through globally accepted competitive and transparent processes cannot be over-emphasized; especially as the initiative is in support of our 2021 to 2025 Mid-Term National Development Plan, which projects the use of private sector financing to achieve about 85 per cent of our N348.1trn Plan.”
He said as countries look towards infrastructure financing, the key in the 21st century is for governments to enhance the investment environment for national level investment, for local and foreign investors and look to innovative financing mechanisms that promote local capital markets, private sector risk, and rely on regulatory systems to balance investor and consumer requirements.
With fiscal and budgetary funding constraints plaguing governments across the continent, the ICRC DG told participants that private participation in infrastructure has become an economic necessity, rather than an optional financing solution, as hitherto considered.
“Partnership between the public and private sectors for the financing, design, building and maintenance of infrastructure and delivery of associated services is absolutely necessary for Africa governments to meet the need for modern and efficient infrastructure, and for reliable cost-effective delivery of public services.
“Governments all over the world, including the Africa continent, have come to recognize that the collaboration between public and private sectors is crucial to securing dependable and sustainable funding for infrastructure and reducing the pressure on fiscal budgets.”
“PPP arrangements have engendered acceleration of infrastructure provision, faster implementation of projects, and reduced whole life costs of projects,” he added.
He expressed optimism that the Summit on financing Africa’s infrastructure through PPP would provide the unique opportunity to have the details, directions, options and focus on infrastructure financing to boost the African economy.
In his keynote address delivered at the event, Secretary to the Government of the Federation, Mr Boss Mustapha, stated that Africa faces huge infrastructure gaps.
However, he told the gathering that these infrastructure gaps also present huge opportunities for private investment through public-private partnerships, especially in sectors such as energy, housing, transportation, agriculture, technology, waste management, and social services and amenities.
According to him, the continent requires energy, transportation, and new satellite cities to accommodate millions of people moving from rural to urban areas.
“Indeed, to release the potential of Africa, there is the need to develop and imbibe a resilient and vibrant PPP framework as a means of facilitating rapid infrastructure transformation of the continent.”
Mustapha said there is also the need for financial sector development by strengthening regulatory and institutional frameworks to improve governance and increase competition, improving access to finance and financial literacy, developing payment systems, and enhancing creditor rights.
