dr mansur ahmed - icrc_knsg_infrastructure_strategy.ppt

8/2/2019 Dr Mansur Ahmed - ICRC_KNSG_Infrastructure_Strategy.ppt

1/22

(ICRC)nfrastructure Concession Regulatory Commission

(ICR C)

Roundtable with the Kano State Governor-Elect

onINFRASTRUCTURE

Engr. Mansur AhmedDIRECTOR GERNERAL. INFRASTRUCTURE CONCESSION REGULATORY COMMISSION

Kano, May 2011


2/22


1. Introduction: Infrastructure is the Key

2. Areas of Focus: Maximum Impact

3. Short Term: Quick Wins

7. Conclusion: It Can Be done

4. Medium Term: Opportunities to Make a Difference

5. Long Term: Building the Foundation for the New Economy

6. Financing Infrastructure: The PPP Option-Doing it Right

Presentation Outline


3/22


Infrastructure: The Internal Architecture that Enables anyeconomy to Function Efficiently and AchieveSustainable Growth

Infrastructure is Key to;

Creating Employment, Income, and Wealth

Reducing Poverty and Social Conflict

Improving Health, Education, and Social attitudes Promoting Good Citizenship and Increasing Government

Revenues

1. Introduction: Infrastructure is the Key


4/22


Given the Debilitating state of all types of Infrastructure

(Economic and Social) in Kano State, Careful Prioritization is

Imperative

There is need to Focus on;

Infrastructure Services that will have the Greatest Impact on

the largest number of Citizens

Services with Multi-Dimensional Impact Areas in which the New Administration can Build on what is

already in place, thus delivering early outcomes.

Areas within the full Jurisdiction of the State

KNSG can Focus on;

1. Water Supply and sanitation

2. Transportation (Rural and Urban)

3. Energy (Electricity)

2. Areas of Focus: Maximum impact


5/22


ENERGY

TRANSPORT

WATER & SANITATION

ICT

GOVERNANCE&ECONOMIC

MANAGEMENT

AGRICULTURE

INDUSTRY &COMMERCE

TRADE &COMPETITIVENESS

RURALDEVELOPMENT

EMPLOYMENTGENERATIONINCOME

GENERATION

HEALTH

EDUCATION

SECURITY &ENVIRONMENT

SOCIALDEVELOPMENT

2.1 Areas of Focus: Multidimensional Impact


6/22


Sanitation: Especially Solid Waste Management in Kano City willcreate an immense Positive Impact and Engender Good will.

A well thought out Short term Programme involving reasonable

public spending, can produce early results

The Programme must however be followed by a Longer term, more

sustainable approach involving Public-Private Partnership

Arrangements (may consider the Cross River State model 2003-2007)

Water is an Urgent and Vital need. The New administration must

Embark on this; Review Current state of on-going projects and

build on progress made

Community managed water Schemes

should encouraged in

Small Towns and Rural Areas

(e.g Wudil and Rogo models)

3. Short Term: Quick Wins (1st 2years)


7/22(ICRC)

nfrastructure Concession Regulatory Commission

We Must address the current chaotic, unstable and indeed

Unhealthy Urban Transportation in Kano. The Motorcycles and

Tricycles system is not sustainable

Bus Rapid Transit (BRT) has proved doable in Lagos. It can be done

in Kano

A Phased Approach is Recommended, commencing with say 10 Key

Routes involving say 100 Mass Transit Busses Fully Funded by KNSGfor say the first 2 years

Then, invite Private Investors to take over the initial investment

and expand the service. KNSG can study the Lagos Model

3.1 Short Term: Transportation


8/22(ICRC)


The New Administration is well placed to align its

Infrastructure Development Strategy with that of the FGN

The FGN Model is to;

Develop and Execute a Coherent 4-5 year plan (NIP of

NV20:2020)

Stick to the plan without Deviation

Implement Key Policies, Programmes, and Projects

(KPPPs) that will ensure achievement of the NV20:2020

Among the KPPPs, the FGN has identified about 60

Critical Infrastructure Projects across the Country for

Urgent Implementation

4. Medium Term: Opportunity to Make a Difference


9/22(ICRC)


4.1 Infrastructure Projects of the FGN

ID

Comments

1 Mambilla (2600 MW)

2 Zungeru (700MW)

3 Gurara (350 MW)

4 Kaduna (900 MW) Power Plant

5 Abuja (1350 MW)

6 Rehabilitation of Kainji Dam

7 Rehabilitation of Jebba

8 Rehabilitation of Shiroro

9

Rehabilitation and Expansion

of Transmission lines

10 Super Grid Project

11 Small hydro power plants

Power Projects

Unique ID Project Title

1 Waya Small Hydro Power Plant (0.15 MW)

2 Mbowo Small Hydro Power Plant (0.125 MW)

3 Ikere Gorge Small Hydro Power Dam (9 MW)

4 Oyan Small Hydro Power Dam (9 MW)

5 Bokolori Small Hydro Power Dam (3 MW)

6 Itisi Small Hydro Power Dam

7 Tiga Dam (6 MW Potential)

8 Challawa Dam (6 MW Potential)

9 Jibiya Dam (3 MW Potential)

10 Doma Dam

11 Owena Dam (3 MW Potential)

12 Goronyo Dam

13 Kampe Dam (2 MW Potential)14 Zobe Dam (3 MW Potential)

15 Kashimbilla Dam (22 MW Potential)

16 Dadin Kowa Small power Plant (34 MW Potential)

17 Ogwashikwu Dam (1 MW Potential)

Small Hydro Dam Projects

Highlighted Projects should be of Interest to KNSG


10/22(ICRC)



Road Projects Railway ProjectsID Project Title

1 Shagamu-Benin-Asaba Expressway

2 Abuja-Kaduna-Kano

3 2nd Niger bridge

4 Loko-Oweto

5

Abuja-Lokoja

6 Niger Delta Coastal Road

7 Ibadan-Ilorin-Jebba

8 Kano-Maiduguri

9

Lagos-Ibadan

10 Apapa-Oshodi

11 Ajaokuta Access Roads

ID Project Title

1 Lagos-Kano Narrow Gauge

Rehabilitation

2 PH - Maiduguri Narrow Gauge

Rehabilitation (Ongoing)

3 Lagos-Ibadan Standard Gauge Line

4 Abuja Kaduna standard gauge line

5 Lagos - Ife-Ilesha-Owo-Benin-Onitsha-

Enugu (650km) Standard Gauge

6 Ajaokuta-Jakura-Baro-Abuja Standard

Gauge

7 Abuja Rail Mass Transit LOT 1 And 3

8 Abuja light Railway Project LOT 2

9 Benin-Calabar through 6 Niger Delta

States



11/22(ICRC)


SEAPORTS & INLAND RIVER PORTSID Project Title

1 Lekki Deep Sea Port

2 Akwa Ibom Deep Sea Port

3 Onitsha Inland River Port

4 Baro Inland River Port

5 Oguta River Ports

6 Degema River Port

HOUSING PROJECTS

ID Project Title

1 600,000 Housing Units under PPP

arrangement

2 240,000 affordable housing units by FHA

3 Recapitalization of FMBN


OIL & GAS PROJECTS

ID Project Title

1 Calabar - Ajaokuta-Kano Gas

Pipeline

2Obiafu - Obrikom Gas Pipeline

3 Expansion of Escravos - Lagos

Pipeline (ELP) Phase 1& 2

ID Project Title

1 Specialist Hospitals in 6 Geopolitical

Zones

HEALTH SECTOR PROJECTS



12/22(ICRC)nfrastructure Concession Regulatory Commission

AVIATION PROJECTS

ID Project Title

1 MMIA International airport

Terminal Remodelling

2 Abuja International airport

Terminal Remodelling. (Airside

contract work awarded)

3 Kano International Airport

Terminal Remodelling.

4 Enugu International

Airport(Terminal Remodelling)

5 Port Harcourt International

Airport(Terminal Remodelling)

6 Bayelsa airport7 Maiduguri, Benin, Calabar, Akure,

and taxiway at Kano and MMIA

8 Calabar International

Airport(Terminal Remodeling)


AGRICULTURE INFRASTRUCTURE: RIVER BASINSID Project Title

1 Rehabilitation of Sokoto Rima RBDA

2 Rehabilitation of Hadejia-Jamaare RBDA

3 Rehabilitation of Chad RBDA

4 Rehabilitation of Upper Benue RBDA

5 Rehabilitation of Lower Benue RBDA

6 Rehabilitation of Upper Niger RBDA

7 Rehabilitation of Lower Niger RBDA

8 Rehabilitation of Ogun-Osun RBDA

9 Rehabilitation of Benin-Owena RBDA

10 Rehabilitation of Anambra-Imo RBDA

11 Rehabilitation of Cross-River RBDA

12 Rehabilitation of Niger-Delta RBDA




The KNSG Should;

Review the FGNs Critical Infrastructure Programme and

Identify those that will have the most impact on Kano State

Work closely with the FGN at all levels (Presidency, Ministries,

and other Agencies) to influence and expedite the

implementation of these projects. KNSG may need to appoint a

Special Liaison officer (special Adviser to the Governor) onInfrastructure to manage this responsibility

Encourage the Kano Investor community to participate in those

projects to be implemented through PPPs

Consider Extension of the FGN projects where appropriate, tomaximize the States benefit

4.5 Medium Term: Over the Four Years Term



To leave an enduring Legacy, the New administration should begin

now to Build the Foundation for the New Kano State Economy

Develop a Long Term Strategic Plan for a New Agro-Based

Economy. Focus on Sustainable Commercially viable Agriculture

and Agro-Based Industrialization

The Strategic Plan must be based on serious in-depth study backed

by long range projections (May take 2 years)

The KNSG can approach any of our development partners (USAID,

EU, DFID, AfDB, WB, etc) for support

Review the Kano ICT Project with a view to Re-invirgorating and

Developing it further. ICT is the driver for the new GlobalEconomy, and Kano cannot afford to be left out!

5. Long Term: Building the Foundation for the New Economy



Revenue Generation is Imperative (Lagos State has increased its IGR to

60% of the States Revenue)

However, No matter how much revenue government raises, it is

unlikely to meet the States demand for Infrastructure. Other Sourcesof Financing must be explored.

Public-Private Partnership (PPP) has been recognized and adopted for

Infrastructure financing by nearly all countries across the World

Public-Private Partnership is a contractual agreement between a publicagency (federal, state or local) and a private sector entity. Through thisagreement, the skills and resources of each sector (public and private) are

sharedin delivering a service or facility for the use of the general public. Inaddition to the sharing of resources, both parties share in the risks andrewards in the delivery of the service and/or facility.

6. Financing Infrastructure: The PPP Option



Maximizes use of private sector finance and skills

Private sector takes life cycle cost risk

Risks allocated to party best able to manage or absorb each

risk

Forces public sector to focus on outputs and benefits fromthe start

Quality of service has to be maintained for life of PPP

Public sector only pays when services delivered

Encourages development of specialist skills and innovation

Alleviates chronic underinvestment in capital intensive

projects and allows off balance sheet borrowing

6.1 Financing Infrastructure: Benefits of the PPP Option



In Nigeria, Lagos, Rivers, Cross River, are States that are succeeding in

using PPPs for Infrastructure Development

However, PPPs must be done in the right way. It Requires;

1. The Right Policy, Legal, and Institutional Framework

2. Technically/Professionally competent personnel within the Civil

Service, with the requisite capacity to Develop projects and

Procure the requisite Private Partners3. A well developed operational framework, with clear procedures

and processes, that will give confidence to prospective Private

Investors

4. And above All, a Bold and Committed Leadership that is willing to

do things Differently

The Infrastructure Concession Regulatory Commission, an agency of

the FGN will be happy to assist the KNSG in meeting the first three

requirements. Only the Governor-Elect can ensure the Fourth

Requirement can be met

6.2 The PPP Option-Doing it Right



Doing Business in Nigeria 2010the second sub-national report in

the series following Doing Business in Nigeria 2008The report

focuses on state and national regulations that affect 4 stages inthe life of a small to medium-size domestic firm: starting a

business, dealing with construction permits, registering property,

and enforcing contracts.

Kano State made the most progress since 2008, with reforms

in 3 out of 4 areas measured

Kano State is among the top 10 easiest cities to do business

in Nigeria

The New administration must build on this

Doing Business in Nigeria is an IFC-Worlbank Survey

7. Conclusion: It Can Be Done

L S 2007 2010


19/22(ICRC)


Lagos State 2007 to 2010


20/22(ICRC)


A street in Dubai in1990


21/22(ICRC)


Same street in Dubai in 2003

It can Happen in Kano


22/22

THANK YOU

Engr. Mansur Ahmed

Director General/CEOInfrastructure Concession Regulatory Commission

13 Suleiman Barau Crescent Abuja, Nigeria

Phone: +234 (9) 4604900/+234 (9) 8750286

Email: [email protected]

Website: www.icrc.gov.ng

dr mansur ahmed - icrc_knsg_infrastructure_strategy.ppt

Documents