The Nigerian PPP Framework

PPPs are Fundamentally Different Formal contract between public and private partner (over the years duration the service will be provided) - usually multiple years duration • Entered through competitive procurement Using output specification - government specifies 'what', private sector can define 'how' • With suitable risk allocation between parties Putting private investment at risk • With regulation or contract management of performance of the private partner Example · Government defines output = connection to let 1,000 vehicles p.d. travel between islands - Government tenders for best solution over 30 years – e.g. ferry, tunnel, bridge?? · Government enters 30-year contract with private company - Private company designs, builds, finances bridge, then operates and maintains it for 30-years - Private company receives payment if the bridge works and is available for traffic - Government checks on safety and availability - If the bridge is closed, or unsafe, the private company looses money Infrastructure Concession Regulatory Commission INFRAS 12. N REGULATORY (ICRC) ISSION

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