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Hi there!

I'm Margaret, a female traveller from Nigeria, and welcome to my personal blog , TheAjalaBug.com.

Here, I document my adventures in travel and life experiences generally. Hope you get inspired!

The Practical way PPP works | Infrastructure Development and Financing

The Practical way PPP works | Infrastructure Development and Financing

Public Private Partnership process to financial close, especially with the Africa context, where little or no track record exists is cumbersome and takes a while. As earlier discussed, PPPs are contractual arrangements via which the public and private sectors collaborate together on a risk-sharing basis, to deliver infrastructure.

Recall: PPPs are contractual arrangements via which the public and private sectors collaborate together on a risk-sharing basis, to deliver infrastructure

The below is the typical process for procuring infrastructure financing in public assets. I will also write on the Nigeria Legal and Regulatory Framework as it applies to Public-Private Partnership for infrastructure development and financing soon.

PPP model.png

The Public and Private sector each have responsibilities and change the risk under the PPP arrangement. I have schematically highlighted some below.

PPP Model 2.png

Recall, we had mentioned that there are different method of government procurement contracts and PPP (through Infrastructure concessions) is just one of it. There is also the traditional method of public financing. For ease of understanding, I have highlighted difference in both structures below.

PPP model 3.png

The different parties involved in the PPP have continuing obligations for different aspects of the projects….

Typical State Government Responsibilities. The below were Lagos State Government responsibilities on Lekki Toll Road Project

  1. Provides the land for the Right of Way (RoW)

  2. Resettlement & compensation of affected persons

  3. Remove obstructions from the RoW

  4. Relocation of services (eg, PHCN pylons and other infrastructure) from RoW

  5. Construction of Access Roads, and Alternative Routes to bypass Toll Plazas

  6. Traffic management & security

Typical Project Company responsibilities. The below were Lekki Concession Company responsibilities in the Concession

  1. Raise the financing for the project

  2. Handle the construction, project management, and execution of the project

  3. Operation and maintenance of the Toll Road infrastructure

  4. Revenue collection

  5. Transfer assets to Lagos State at the end of the concession term

Final thoughts

I hope all my articles have been educative and insightful as to what it takes to successfully finance and develop an infrastructure assets. I noticed beyond industry experts like myself, the general public isn’t knowledgeable about the subject matter and that’s why I dived into these ‘free masterclasses’. Also, I hope to inspire someone to join the field.

Infrastructure development and financing is quite broad but I will do my best to share all my experiences in doses.

Thank you all for always reading and for sending me messages on how informative my articles have been. Please feel free to share your experiences and thoughts with me in the comment section.

Until my next article, be kind to one another.

Margaret.

Legal and Regulatory Framework for Infrastructure Concessions

Legal and Regulatory Framework for Infrastructure Concessions

Road Toll Projects through Public Private Partnerships | Realities from the field

Road Toll Projects through Public Private Partnerships | Realities from the field