The Nigerian PPP Framework

NIGERIA INSTITUTE OF INFRASTRUCTURE AND PUBLIC PRIVATE PARTNERSHIP NII3P An Institute of the frastructure Concession Relatory Commission FINANCIALLY FREE STANDING PROJECTS Examples -Toll Roads/ Bridges, Telecom services, Port projects Typology of PPPs PROJECTS WHERE GOVERNMENT PAYS FOR SERVICES Examples Roads - annuity/ shadow tolls, power - under PPAs. In UK - prisons, education, health services, defence related services 1. Role of public sector - planning, licensing & statutory approvals 2. No financial support/payment is made by government CONCESSION INFRASTR /CRC 3. Revenues are through levy of user charges by the private sector REGULAMISSION 1. Private sector paid a fee (tipping fee), tariff (shadow toll) or periodical charge (annuity) by Government for providing services 2. The payment is made against performance 3. There may be demand risk transfer - either in part or whole Note that: In both cases, the design, financing, construction and O&M risks are fully that of the private partner HYBRID STRUCTURES Example-toll road project with either viability gap payment by government or annuity payment based road contract with tolling rights 1. Combine the financially free standing nature - levy of a user charge - with payment by the public entity 2. Payment could be as a viability gap subsidy or an annuity payment

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