Government targets $39bn from private-public partnerships in two years

The Federal Government is hoping to generate about $39 billion from privatisation of public institutions between 2021 and 2022, the Acting Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Michael Ohiani has said.

The ICRC boss, who disclosed this yesterday in Abuja, at the opening of a two-day summit of the Africa Public Private-Partnership Network (AP3N), hinted that in 2021, the ICRC published a pipeline of 51 eligible and bankable PPP projects, worth over $17 billion.

According to him, the list contained the projects from different economic sectors which have been granted the Outline Business Case Compliance Certificates, but which did not have identified bidders.

He added that for 2022, ICRC intends to gazette a pipeline of 53 eligible and bankable PPP projects, worth about USD 22 Billion, very soon.

These bring the total sum of the proposed bankable projects to $39 billion.

He further stressed that as of May 2022, there are 77 post-contract PPP projects under implementation at the ICRC Projects Disclosure Portal, which is the first disclosure portal in the world, established in collaboration with the World Bank.

Ohiani maintained that as of May 2022, there are 197 pre-contract projects at different phases of project Development and Procurement on the ICRC website.

According to the ICRC helmsman, between 2010 and 2021, under the regulatory guidance of the ICRC, the government has approved PPP projects worth more than nine billion dollars while the Commission has issued 128 Outline Business Case Compliance Certificates to date.

Ohiani stated that the theme of the summit, ‘Financing Africa’s Infrastructure through PPP’, is not only apt but very timely given the critical role played by PPPs in the transformation of global economies, and the need to galvanize available resources in the private sector to grow and develop the African economy.

He stated that the vision of APPPN is to have a network of PPP experts across the African continent to find concrete solutions to bridge the infrastructure gap in the continent by bringing together PPP Units, professionals and experts across the continent to design, develop, and implement infrastructure projects in tune with global best practices for infrastructure and service delivery.

On his part, the Secretary to the Government of the Federation (SFF), Boss Mustapha, said though Africa faces huge infrastructure gaps, to be able to stimulate and create a vibrant private sector on the continent and accelerate infrastructure development, some issues must be addressed.

These issues, he added: “There is the need to create welcoming investment climates. This can be achieved by reducing risks and costs of doing business and by searing private property rights, improving governance, fighting corruption, simplifying regulations, and promoting competition. African governments must also resist pressure to erect trade barriers for intra-African trade to flourish.

“Currently, intra-African trade amongst African states is about 10% of total exports. This is the lowest amongst other regions in the world. But we strongly believe that with the initiative of the African Continental Free Trade Agreement the situation will drastically improve.”

Boss insisted that the present situation presents huge opportunities for private investment through public-private partnerships, especially in energy, housing, transportation, agriculture, technology, waste management, and social services and amenities, saying, “the continent requires energy, transportation, and new satellite cities to accommodate millions of people moving from rural to urban areas. Indeed, all sectors of the African economy are yearning for massive investment to fast-track infrastructure development and structural transformation that will impact the citizenry.”