To help address the huge infrastructure deficit in Nigeria, the World Bank is poised to provide $200 million as a seed fund to set up a Financial Intermediary Loan (FIL) scheme under the Public Private Partnership (PPP) initiative.

Head, Legal and Governance, Infrastructure Concession Regulatory Commission (ICRC), Mr. Joe Ohiani, disclosed this at the inaugural ESQ Project Finance Summit, held in Lagos, and stated that some other development finance organisations have also agreed to contribute to the scheme.

He added that eligible participating financial intermediaries, particularly commercial banks with Africa Finance Corporation (AFC) as the lead, will lend to qualifying private sector partners in a Public Private Partnership (PPP) project at the financial intermediaries’ risk.

He however emphasised that the objective of the scheme is to provide long term funding for infrastructure development in the country.

He stressed that in selecting eligible projects, priority would be given to public investment programmes which are in accordance with the national policy on PPP and captured in the federal government Medium Term Sector Strategies and the National Infrastructure Plan of the Vision 20:2020.

Presenting a paper titled, ‘Governmental Promotion of Infrastructure Development,’ Ohiani bemoaned the deplorable state of infrastructure in the continent as revealed by a recent report of the World Economic Forum.

The report showed that though annual investment in infrastructure in Africa doubled from $17 billion to $35 billion between 2001 and 2009, the overall infrastructure spending needs for sub-Saharan Africa is estimated at $93 billion annually over the next decade.

He noted that the annual infrastructure investment gap of $31 billion offers huge opportunities for private sector finance in infrastructure developments in Africa. “Governments in Africa are taking active steps towards addressing the state of infrastructure in the region,” he added.

On the state of infrastructure in the country, Ohiani expressed regret that the federal government has been the sole financier of infrastructure projects and has often taken responsibility for construction, operations and maintenance, stating that the national fiscal budget was the principal source of financing infrastructure development.

He disclosed that between 1999 and 2007, government spent about N2 billion through direct budgetary allocations on basic infrastructure in agriculture and water resources, transportation, education, health, power generation and distribution. He also warned that declining financial resources was making this option less feasible, thereby accelerating infrastructural deterioration.

Ohiani further stated that despite challenges such as getting the Ministries, Departments and Agencies (MDAs) and private sector partners to abide by the PPP guidelines, ICRC would bring 20 projects to the market before the end of the year.

“We have developed a robust database of concessions already entered into by the Federal Government. Also we are promoting the development of funding sources and instruments with long tenor for financing infrastructural projects and we are also working with National Planning authorities to integrate infrastructure in its framework,” he added

Speaking earlier, CEO, ESQ Seminars, organisers of the summit, Mr. Lere Fashola, said the aim of summit was to take a critical review of different near-term or completed projects across Africa, recent legal and legislative developments in different countries as well as the challenges of the bidding process in the electrical and power sectors, and governmental promotion of infrastructure development projects.
Other speakers including Resident Representative, African Development Bank (ADB), Mr. Ousmane Dore, and Senior Vice President, Power, Africa Finance Corporation (AFC), Baldeh Baatchi, pledged support of their organisations to the development of infrastructure on the continent.

ebere1712: Say no to more borrowing

carover: As usual, the West is providing our leaders with an opportunity for misappropriation of funds. What has past loans achieved? How much of our oil and other revenues have been channeled to infrastructure development? Is there a clear idea of what infrastructure is to be developed?
This are questions we know even a 'community bank' will ask before doling out cash as loan. Why is the World Bank not asking these questions? Are they setting us up to cry 'foul' 3 - 12 months down the road when the inevitable happens?

I weep for motherland!!!

Joey82: Surprisingly, we are collecting these loans under the watch of NOI who struggled so hard to get us out of the other debt regime.
Why lead us down that path again?

bashr8: [b]To help address the huge infrastructure deficit in Nigeria, the World Bank is poised to provide $200 million as a seed fund to set up a Financial Intermediary Loan (FIL) scheme under the Public Private Partnership (PPP) initiative.[/b]people dont read before they start shouting GEJ. mumu nigerians, you should be bothered about how much the interest rate will be because banks in nigeria offer rates over 20 percent depending , if their interest rate to these private or public firms can be below 10 percent then its a welcome development.
also we should be more worried about already rich people and politician accessing it before we the people even get a chance, pls this has nothing to do with GEJ or govt borrowing.

bashr8: [b]To help address the huge infrastructure deficit in Nigeria, the World Bank is poised to provide $200 million as a seed fund to set up a Financial Intermediary Loan (FIL) scheme under the Public Private Partnership (PPP) initiative.[/b]people dont read before they start shouting GEJ. mumu nigerians, you should be bothered about how much the interest rate will be because banks in nigeria offer rates over 20 percent depending , if their interest rate to these private or public firms can be below 10 percent then its a welcome development.
also we should be more worried about already rich people and politician accessing it before we the people even get a chance, pls this has nothing to do with GEJ or govt borrowing.

chucky234: Who is the mumu here because from what you wrote there your case is beyond mumu.
You are talking of 10 percent interest being a welcome development and that makes sense to your senseless brain.
Nigeria's debt currently stands at N5.4tn with N1.2tn of that borrowed by GEJ between 2011 and March 2012,can you possibly point to a single project that has been completed between the period 2011 and March 2012? Don't just comment to impress yourself because you will end up selling your stu:pidity in public,its better you read and pass quitely as that will do a lot of good.

bashr8: READ AGAIN. you have become so obsessed with GEJ that you dont think straight anymore.
To help address the huge infrastructure deficit in Nigeria, the World Bank is poised to provide $200 million as a seed fund to set up a Financial Intermediary Loan (FIL) scheme under the Public Private Partnership (PPP) initiative.

Head, Legal and Governance, Infrastructure Concession Regulatory Commission (ICRC), Mr. Joe Ohiani, disclosed this at the inaugural ESQ Project Finance Summit, held in Lagos, and stated that some other development finance organisations have also agreed to contribute to the scheme.

He added that eligible participating financial intermediaries, particularly commercial banks with Africa Finance Corporation (AFC) as the lead, will lend to qualifying private sector partners in a Public Private Partnership (PPP) project at the financial intermediaries’ risk.

chucky234: can you possibly point to a single project that has been completed between the period 2011 and March 2012?.

mkmyers45: PPP they say eh? who will bear the risk? gorvernment acting as intermediaries? are they any notable PPP's on ground? Im sure this is not our first 'chopped' loan

dublinkmy6:
You (and most posters above) should be asking yourselves that question first, and i don't know why you are limiting it to just 2011-2012,.what of past governments? How did they fare with their budgeted projects? Why the special and unusual focus on Gej's administeration? It's getting quite obvious to me that there is more to this than mere criticism. You guys are the same people complaining that NOI did not release all the budgeted monies for "projects", even though we were explaining that NOI is trying to make sure projects are actually being carried out by releasing more funds for projects that have made use of funds earlier released for it. You guys insist more funds should be released even though previously disbursed funds are yet to be accounted for. Now, i don't understand your grouse when more funds are now being sourced seeing that you guys are/were in support of making more funds available.
Is this a deliberate attempt at rubbishing any kind of positive news under this administeration or are you guys just senseless?

bashr8: that a good question, let believe these PPPs will be better than when government handled these projects, another big problem might be politicians rushing to register or use their companies to access these funds and these days it seems people are getting away with fraud ,our judiciary is not just performing.