ISBN/EAN 9789789656295
PUBLISHER Pen and Pages Limited


The key indicator of the level of advancement of any society is the quality and adequacy of her Infrastructure i.e. her Economic and Social Infrastructure. There is therefore a linear relationship between the sophistication of a nation’s Infrastructure and her level of development, as measured by the Gross Domestic Product (GDP) and Human Development Index (HDI). Conversely, nations with poor Infrastructure are also bedevilled by poor development indices such as high unemployment, high inflation, high crime rate, frequent economic recession, poor standard of living, Poor GDP, poor HDI, etc. This book therefore explores contemporary ideas and strategies for attracting private capital to help finance public Infrastructures through Public-Private-Partnerships (PPP). The book thus demystifies the workings and dynamics of PPP, and promotes its benefits as the most sustainable, tried and tested Infrastructure Development model around the world. Chapter 1 - Origins of PPP in Infrastructure Development - This Chapter examines the broad meaning of the word “Infrastructure” in the context of societal development. The Chapter then takes a historical look at Infrastructure from ancient African history before the advent of colonialism and Slave trade, which affected the developmental trajectory of the continent. The Chapter also examines the concerted efforts by the Western democracies, led by the United States of America, to redevelop the Infrastructure of the Allied forces in Europe after the damages occasioned by the second World War; thus underscoring the importance of Infrastructure to economic development. The chapter also traces the origins of PPP as an Infrastructure Development model to the Government of Late Margaret Thatcher who met a highly dilapidated public Infrastructure when she became the Prime Minister of Britain in 1979. Chapter 2 – Key Participants in PPP Transactions - This Chapter critically examines the roles of the seven key participants in a typical PPP transaction, as: the Government, the Special Purpose Vehicle (SPV) the Private Investors or Sponsors, the Bankers/lender(s), the Off-taker(s), the Contractors / Suppliers, and the Operators. Chapter 3 – Selecting and Implementing PPP Projects - This chapter examines the processes involved in selecting and implementing PPP projects. It begins with a project appraisal, usually through a Feasibility Study; which entails screening a project idea to ascertain if it is worthwhile in terms of Value for money, projected profitability, return on investment, and environmental friendliness. A detailed feasibility study involves conducting a Market, Technical, Financial, Economic, and Ecological analysis. The project is accepted if these analyses are positive and worthwhile, but rejected if it fails one or more of these analyses. Chapter 4 – Common PPP Financing Models - This chapter examines the common PPP financing models that have been successfully deployed around the world. All PPP projects could be broken down into four phases: the Design phase; the Build or Rehabilitate phase; the Financing arrangement; and the Operate and/or Maintain phase. Chapter 5 – Attracting Local Investments and Foreign Direct Investment (FDI) to PPP Projects – This chapter defines the meaning of FDI and examines the factors that can attract FDIs to developing economies like Nigeria. The chapter critically examines the three main types of FDIs as Market-seeking FDI, Efficiency-seeking FDI, and Resource-seeking FDI. This Chapter then examines the Macro economic variables that are considered conducive to FDIs in an economy. The chapter also considers Pension funds as a veritable long term source for funding Infrastructure development, along with strategies for wooing local investors and citizens in diaspora who may be interested in Investing in PPP projects in their home countries. Chapter 6 – Benefits and Opportunities in PPP - This Chapter examines the benefits and opportunities in PPP projects to the community, the Government, and the Private Investors. Some of the main benefits of PPP are: PPP projects attract very competitive prices; have the ability to attract private funds; are very cost effective because of private sector involvement; there is the profit-making motive; projects have the capacity to satisfy the demands of the investing environment or the host community where the project is sited; are characteristically well structured in terms of contractual relationships, etc. Chapter 7 – Risk Factors and Mitigation Techniques in PPP - This Chapter examines the challenges of Risk Identification, Risk Allocation and Risk Management in PPP transactions. According to the World Bank’s Risk Allocation principles, risk is allocated to the party in the partnership best able to control the likelihood of the risk occurring; the party best able to control the impact of the risk on project outcomes, and the party best able to absorb the risk at lowest cost if the likelihood and impact of risks cannot be controlled. Chapter 8 – The PPP Legal and Regulatory Environment in Nigeria - This Chapter looks at both the legal and regulatory environment for PPP transactions in Nigeria. The legal framework provides the basis by which government regulates and ensures the provision of services to the public and offers protection of interests and rights of the service providers and the consumers of the services. This Chapter examines at least 15 different Laws, Acts, or Guidelines, that could have a significant effect on PPP projects in the Nigerian regulatory landscape. This multiplicity of laws could be a disincentive to attracting private sector participation in PPP projects. The chapter observes that some countries like Brazil, Mauritius, Chile, Mexico, Columbia, Peru, France, etc. have an all-in-one; specialized PPP law regulating all PPP transactions with the Government, and the chapter is therefore asking if Nigeria is not ripe for such a specialized PPP Law. Chapter 9 – PPP Projects and Environmental Impact Assessment (EIA) This Chapter defines EIA and outlines the history of EIA; and describes the processes required to conduct an effective EIA on all PPP Projects. The main purpose of EIA is to inform decision makers of the likely impacts of a proposed project before a decision is made. EIA provides an opportunity to identify key issues early in the life of a proposed project so that potentially adverse impacts can be addressed before final approval decisions are made. EIA allows the likely significant environmental effects of a project to be identified and to be avoided, remedied or minimised at an early stage. The chapter also examines and recommends the adoption of the Equator Principles in large Infrastructure Development Projects. Chapter 10 – Critical Success Factors in PPP – As the concluding chapter of the book, this chapter logically draws on the conceptual framework established in the earlier chapters, by analysing the critical factors that must be in place for PPP transactions to have a successful project conception, planning, financing, execution, and implementation. These six factors are: I. Project Viability Factors II. Human Capacity Factors III. Compliance Factors IV. Process Factors V. Macro-economic Factors VI. Security Factors




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