Over $3.9bn expected from private sector investment

... as FEC approves infrastructure projects for concession

Some key Federal Government investments across the country are billed to generate over $3.9 billion additional funds following approval for them to be sold to private investors.

These moribund infrastructure projects have for years become drain pipes to government funds necessitating the need to give them out to private sector operators with requisite experience to manage them. The concession is in line with Federal Government’s policy on public-private partnership ( PPP) agreements, aimed at allowing private sector operators manage some non-performing government projects for efficiency and better service delivery.

The action, which follows accepted public bidding procedure, is being midwifed by the Infrastructure Concession Regulatory Commission (ICRC) in collaboration with relevant government ministries, departments and agencies (MDA).

Section 1 (1) of the ICRC Act, 2005, states that any Federal Government MDA involved in the financing, construction, operation or maintenance of infrastructure by whatever name called may enter into a contract with or grant concession to any duly pre-qualified project proponent in the private sector for the financing, construction, operation or maintenance of any infrastructure that is financially viable or any development facility of the Federal Government in accordance with the provisions of the Act.

In line with this, the Federal Executive Council (FEC) Wednesday, approved the Full Business Case in respect of the Bonny Deep Water Port Project, Port Harcourt Industrial Park, the Nigerian Correctional Service Shoe and Garment Factory Aba and the Port Harcourt – Maiduguri Narrow Gauge project, respectively, for concession.

This development allows the respective ministries to proceed to commercial close and eventual signing of concession agreement with successful investors expected to generate over $3.9 billion to the national treasury. The approval formed part of the outcome of FEC meeting in Abuja, yesterday.