Minister
of Finance, Dr. Ngozi Okonjo-Iweala, who disclosed this yesterday at
the opening session of the Africa Regional Public-Private Partnership
(PPP) Conference in Lagos, said the funds would be used to upgrade
roads, fix bridges, channeled to the energy sector, the ports, hospitals
and schools. The Information Technology sector also needs more
investment among others, to create jobs and attract foreign direct
investment.
Okonjo-Iweala, who was represented by Minister of State for Finance,
Dr. Yerimas Lawan Ngama, said the budget alone cannot finance these
projects and, therefore, called for Public- Private Partnership (PPP).
“We need cheaper capital to support our growth. We expect such funds to
come through PPP,” she said. The Finance Minister said the construction
of the Second Niger bridge, Lagos-Ibadan Expressway, the Abuja
International Airport and the Benin-Shagamu Expressway top government’s
priority list in infrastructure financing.
She said the private sector is willing to enter into partnership with
governments on PPP investments, but doing that will be dependent on
returns on investments on those projects. Okonjo-Iweala said Nigeria
needs clear institutional framework for the implementation, management
and assessment of PPP projects within the government, which would set
clear roles and responsibilities for regulation, preparation,
assessment, supervision, and final monitoring and evaluation. She said
the projects also need to be bankable. “The private sector is looking
for bankable projects. The reason Indonesia is not working as well as it
should is because of the failure to get good bankable projects to
market as such would promote more PPP in the economy,” she said.
Okonjo-Iweala noted that PPP takes a long time to mature even in the
best of times and that the more a project is spread out, the complex it
becomes. She regretted that in Nigeria, PPP projects take twice the time
needed to complete them in other countries, noting that this has to be
addressed to attract investors. Besides, she said that Nigeria needs a
transparent private sector and the understanding development partners to
get the PPP working. www.findnigerianjob.com
Meanwhile, the International Finance Corporation (IFC), a member of
the World Bank Group, also announced it will provide Advisory Services
for a new public-private partnership to build a hospital in Cross River
State, and that it will explore the financing of a second Niger River
bridge project at the request of the government. IFC will also consider
the feasibility of a public-private partnership that would lead to
investment for a second Niger River bridge crossing.
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