NAN-HE-16
PPP
Lucy Nwachukwu
Abuja, Nov. 3, 2016(NAN) Mr Mahmoud Isa-Dutse, Permanent Secretary, Ministry of Finance says Public Private Partnership (PPP) is a viable and complementary alternative that will ensure provision of infrastructure in the country.
Isa-Dutse made this known at the Knowledge Sharing Forum on PPPs as Stable Financing Vehicle for Infrastructure Development in Nigeria held in Abuja on Thursday.
“We have massive infrastructure deficit in the economy, there are so many things that ought to be in place that are not in place, such as roads and power system.
“And the amount of money required to carry out these projects are beyond the source of government, especially at this moment.
“But there is a lot of money with the private sector, so it is a complementary and viably alternative to tap into the private sector.’’
He said that these projects could be jointly executed much earlier than it would happen if the government and the private sector joined hands together.
The permanent secretary said that the essence of the forum was to derive ways of stepping up the PPP.
According to him, all the stakeholders have been assembled so that we can understand the process and best practice of practicing the PPP and do it properly.
Isa-Dutse acknowledged that a lot of assistance had been received from development partners such as the African Development Bank which he said was a co-sponsor of the forum.
“They have a lot of experiences in this area and they are assisting the country in this regard as well as other partners such as the World Bank,’’he said.
Similarly, The Permanent Secretary, Ministry of Transport, Mr Sabiu Zakari, said the ministry concession some of its infrastructure projects such as the Narrow Gate Lines which spanned through the country.
“ We are looking into the concession of the various terminals and the various airport projects under the PPP arrangement.
He said the ministry was partnering with the private sector and recently entered into an agreement with the China EXIM bank on the “Lagos- Kaduna total rail project’’.
“Already we have signed an agreement as part of that total package of Lagos-Ibadan and Kano-Kaduna which is all part of Lagos-Kano total rail project.
“In the next few weeks, once the China EXIM finishes perfecting the agreement we are entering with them, I think the loan will be perfected and the project will kick off.
“Even the Warri Ajaokuta line, a company from China, the China Railway Cooperation has indicated interest to partner with us and take over that line,’’ he said.
Mr Andoh Mensah, Chief country Portfolio and Operations, African Development Bank said the bank would ensure to provide financial instrument to support Nigeria, especially at this time of infrastructure gap.
According to him, no government could finance all its projects on its own.
He said there was need to promote other alternative source of funding to bridge the infrastructure gap and PPP was one of those means.
“PPP is a proven way to facilitate infrastructure development.
“We believe there is still a gap because in the past, infrastructure was financed by government and as you know today no country has the budget to do everything by itself.
“I do believe that this is the time now for Nigeria to look at these alternative financing models.
“In the past perhaps, it has not been given much attention but now is the time and we are prepared and committed to work with the government to get this done.’’(NAN)
LCN/MO/
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Edited by Morayo Omolade