Transforming Nigeria Infrastructure & Growth
PPPs are Fundamentally Different
Formal contract between public and private partner (over the years duration the
service will be provided) – usually multiple years duration
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• 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
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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
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- If the bridge is closed, or unsafe, the private company looses money
Infrastructure Concession Regulatory CommissionView entire presentation