Roundtable with the Kano State Governor-Elect

Theme: Infrastructure, Urban Management, Water Supply, Sanitation and Environmental issues

May 2011

Kano State Roundtable 2011 - Outline

Kano State Overview Roundtable Thematic Overview Challenges Introduction Areas of Focus Water Supply Sanitation Transportation Alignment with FGN Financing Infrastructure Public-Private Partnerships (PPP) The Lagos Example It Can Be Done!

Kano State Roundtable 2011 Kano State Overview

44 Local Government Areas Most important commercial and industrial city of northern Nigeria Located between latitude 1225 to 1240N and longitude 835 to 845E Estimated population 9.38 million (2006 Census) Estimated population of Kano Metropolis approximately 4 million with approximately 1,000 inhabitants per sq km. Estimated population growth rate of 3% Migrant worker population increasing at the rate of 30 - 40% per annum (UNDP, 2004)

Kano State Roundtable 2011

Thematic Overview
Infrastructure

Sanitation & Environmental Issues

Urban Management

Water Supply

Kano State - Challenges

Disorganised and congested traffic Poor sanitation Deteriorating roads Dearth of industries Uncontrolled urban sprawl Inadequate and overburdened infrastructure Rising poverty Unemployed/Unemployable labour force Inadequate security

Introduction

Infrastructure: The internal architecture that enables any economy to function efficiently and Achieve sustainable 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

Areas of Focus: Maximum impact

Given the Debilitating state of all types of Infrastructure (Economic and Social) in Kano State, Careful Prioritization is Imperative

There is need to evaluate existing projects and prioritise activity along the following criteria:
Areas in which the new Administration can build on what is already in place, thus delivering early outcomes Economic impact on poverty reduction and global competitiveness Feasibility: technical and human resources that can impact on success Multiplier effect/catalytic impact: is the project capable of stimulating additional developments in other sectors Urgency Areas within the full Jurisdiction of the State

Areas of Focus: Multidimensional Impact

GOVERNANCE &ECONOMIC MANAGEMENT SOCIAL DEVELOPMENT AGRICULTURE

SECURITY & ENVIRONMENT

INDUSTRY & COMMERCE

EDUCATION

ENERGY TRANSPORT WATER & SANITATION ICT

TRADE & COMPETITIVENESS

HEALTH

RURAL DEVELOPMENT

INCOME GENERATION

EMPLOYMENT GENERATION

Water Supply - Indicators

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 . Private financing <5% of total investment in water supply over the last 20 years. Vicious cycle: weak performance incentives - low willingness to pay cost recovery tariffs - insufficient funding for maintenance-deterioration of assets political interference and downward trend of utilities. Poor execution of projects little knowledge of customer demand. Illegal connections Improper billing/ inaccurate customer database

Water Supply - Direction Government has to recognise ownership interest as distinct from policy interest and the financial risk it takes. Delivery of proposed Tiga and Challawa Dams (12 MW). Alternate power supply low cost local oil generators for pumping of water at regulated periods. Provision of adequate reservoir facilities in line with water demand versus pumping capacity. Address distribution network. Appropriate tariffs linked to efficient supply Concession of services
Community managed water Schemes should encouraged in Small Towns and Rural Areas (e.g Wudil and Rogo models)

Sanitation

Efficient solid waste management in Kano City will create an immense positive impact and engender goodwill.
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) Estimated that Kano Metropolis generates over 3,000 tonnes of solid waste a day. Household waste generally organic and disease carrying accounts for 62.5% Institutions accounts for 5.8% Industries accounts for 2.9%

Sanitation - Indicators
Of the 62% household generated waste, 43% is said to be bio-degradable matter. High moisture content and organic composition leads to increased decomposition Old city alleys too narrow for traditional collection access (refuse trucks) Waste is left uncollected or carelessly deposited blocking drains Creates feeding ground for bacteria (e.g E-coli) resulting in diseases such as typhoid, diarrhoea and gastroenteritis 80% of Kano residents have little or no access to waste collection Recycling is limited Emission of dangerous gasses into the atmosphere Over 25,000 scavengers (informal recycling) in Kano Metropolis

Source: Nabegu A.B An Analysis of Municipal Solid Waste in Kano Metropolis 2010

Sanitation - Direction
Bio-degradable waste should be properly monitored and diverted into dumpsites and landfills. Adopt appropriate technology for processing waste into bio-fertilizers or a source of green energy. Formal involvement of government in informal waste collection will reduce youth unemployment and volumes of waste Promotion of waste recycling through consumer campaigns Guaranteed waste management services for a realistic fee Provision of designated waste collection sites. Innovation of waste evacuation methods from narrow old city alleys normally inaccessible to waste collection centres (e.g use of donkeys or hand pushed carts) Awareness programs for waste reduction and handling and the negative impact with regard to public health campaigns Campaign on responsibility of people as waste generators, based on social and cultural characteristics of the community Differences in living conditions necessitate local government level management instead of the current centralised agency (REMASAB)

Source: Nabegu A.B An Analysis of Municipal Solid Waste in Kano Metropolis 2010

Transportation - Indicators
We must address the current chaotic, unstable and indeed unhealthy urban transportation in Kano. The nuisance of the motorcycle and tricycle system constitutes a driving hazard and is not sustainable. Inadequate mass transit system Public dependent on use of privately owned low capacity vehicles. Traffic congestion and inadequate parking provision. Deteriorating roads Ad-hoc planning pf road networks

Transportation - Direction
A phased approach is recommended, commencing with key routes involving mass transit buses fully funded by KNSG for say the first 2 years
Provide a safe, efficient and cost effective mass transport service. Rehabilitation, improvement and expansion of road furniture to enhance sanity and safety on our roads. Update database for all vehicles registered in Kano State to assist in tracking of traffic violators. Intensive enforcement of road worthiness test. Engage vagrant youth in enforcement of traffic control (Yan daba/Area boys in Lagos). Evolve a private sector led multi modal and integrated transport system. Create an enabling environment for PPP through enactment of appropriate legislation and policies. Invite private investors to take over the initial investment and expand the service. KNSG can study the Lagos Model

Transportation - Lagos BRT Impact

Daily ridership well exceeds 220,000 Average waiting time of 10mins Over 113 million ridership since inception

Reduction of travel time by 30%

Building private sector capacity Generation of over 2,000 employment Fare reduced by about 40% Reduction in air pollution along the corridor by 13%

Opportunity to Make a Difference Alignment with FGN 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

Medium Term: Over the Four Years Term

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) on infrastructure 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, to maximize the States benefit

Infrastructure Projects of the FGN

Power Projects
ID 1 2 3 4 5 6 7 8 9 10 11 Comments Mambilla (2600 MW) Zungeru (700MW) Gurara (350 MW) Kaduna (900 MW) Power Plant Abuja (1350 MW) Rehabilitation of Kainji Dam Rehabilitation of Jebba Rehabilitation of Shiroro Rehabilitation and Expansion of Transmission lines Super Grid Project Small hydro power plants

Small Hydro Dam Projects

Unique ID 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Project Title Waya Small Hydro Power Plant (0.15 MW) Mbowo Small Hydro Power Plant (0.125 MW) Ikere Gorge Small Hydro Power Dam (9 MW) Oyan Small Hydro Power Dam (9 MW) Bokolori Small Hydro Power Dam (3 MW) Itisi Small Hydro Power Dam Tiga Dam (6 MW Potential) Challawa Dam (6 MW Potential) Jibiya Dam (3 MW Potential) Doma Dam Owena Dam (3 MW Potential) Goronyo Dam Kampe Dam (2 MW Potential) Zobe Dam (3 MW Potential) Kashimbilla Dam (22 MW Potential) Dadin Kowa Small power Plant (34 MW Potential) Ogwashikwu Dam (1 MW Potential)

Highlighted Projects should be of Interest to KNSG

Infrastructure Projects of the FGN

Road Projects
ID 1 2 3 4 5 6 Project Title Shagamu-Benin-Asaba Expressway Abuja-Kaduna-Kano 2nd Niger bridge Loko-Oweto Abuja-Lokoja Niger Delta Coastal Road 1 2 3

Railway Projects
ID Project Title Lagos-Kano Narrow Gauge Rehabilitation PH - Maiduguri Narrow Gauge Rehabilitation (Ongoing) Lagos-Ibadan Standard Gauge Line

4
5 6 7 8 9

Abuja Kaduna standard gauge line

Lagos - Ife-Ilesha-Owo-Benin-OnitshaEnugu (650km) Standard Gauge Ajaokuta-Jakura-Baro-Abuja Standard Gauge Abuja Rail Mass Transit LOT 1 And 3 Abuja light Railway Project LOT 2 Benin-Calabar through 6 Niger Delta States

7
8 9 10 11

Ibadan-Ilorin-Jebba
Kano-Maiduguri Lagos-Ibadan Apapa-Oshodi Ajaokuta Access Roads

Highlighted Projects should be of Interest to KNSG

Infrastructure Projects of the FGN

SEAPORTS & INLAND RIVER PORTS
ID 1 2 Project Title ID Lekki Deep Sea Port Akwa Ibom Deep Sea Port 1 2 3 Project Title 600,000 Housing Units under PPP arrangement 240,000 affordable housing units by FHA Recapitalization of FMBN

HOUSING PROJECTS

3
4

Onitsha Inland River Port

Baro Inland River Port

5
6

Oguta River Ports

Degema River Port

OIL & GAS PROJECTS

ID 1 Project Title Calabar - Ajaokuta-Kano Gas Pipeline Obiafu - Obrikom Gas Pipeline Expansion of Escravos - Lagos Pipeline (ELP) Phase 1& 2

HEALTH SECTOR PROJECTS

ID 1 Project Title Specialist Hospitals in 6 Geopolitical Zones

2
3

Highlighted Projects should be of Interest to KNSG

Infrastructure Projects of the FGN

AVIATION PROJECTS
ID 1 2 Project Title MMIA International airport Terminal Remodelling Abuja International airport Terminal Remodelling. (Airside contract work awarded) Kano International Airport Terminal Remodelling. Enugu International Airport(Terminal Remodelling) Port Harcourt International Airport(Terminal Remodelling) Bayelsa airport Maiduguri, Benin, Calabar, Akure, and taxiway at Kano and MMIA Calabar International Airport(Terminal Remodeling) Highlighted Projects should be of Interest to KNSG

AGRICULTURE INFRASTRUCTURE: RIVER BASINS

ID 1 2 3 4 5 6 7 8 9 10 11 12 Project Title Rehabilitation of Sokoto Rima RBDA Rehabilitation of Hadejia-Jamaare RBDA Rehabilitation of Chad RBDA Rehabilitation of Upper Benue RBDA Rehabilitation of Lower Benue RBDA Rehabilitation of Upper Niger RBDA Rehabilitation of Lower Niger RBDA Rehabilitation of Ogun-Osun RBDA Rehabilitation of Benin-Owena RBDA Rehabilitation of Anambra-Imo RBDA Rehabilitation of Cross-River RBDA Rehabilitation of Niger-Delta RBDA

4 5 6 7

Financing Infrastructure
Explore areas of increased revenue generation (Lagos State has increased its IGR to 60% of the States Revenue)

Fundng Options: On budget public funding: should have minimal input in infrastructure funding and rather provide for social services. Off budget public funding: enhance statutory allocation to provide speedy and timely completion for priority projects. E.g excess crude account, intervention funds, FGN bonds. Viability gap funding: provided to fill funding gaps required to make infrastructure projects commercially viable and bankable to attract private sector investment. Private sector resources However, no matter how much revenue government raises, it is unlikely to meet the States demand for Infrastructure. Public- Private Partnerships (PPP) must be explored. PPPs have been recognized and adopted for Infrastructure financing by nearly all countries across the World Public-Private Partnership is a contractual agreement between a public agency (federal, state or local) and a private sector entity. Through this agreement, the skills and resources of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the sharing of resources, both parties share in the risks and rewards in the delivery of the service and/or facility.
Source: Report of the Technical Working Group on Critical Infrastructure in Nigeria. Dec 2010

Financing Infrastructure: Benefits of 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 from the 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

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. 2. The Right Policy, Legal, and Institutional Framework Technically/Professionally competent personnel within the Civil Service, with the requisite capacity to Develop projects and Procure the requisite Private Partners A well developed operational framework, with clear procedures and processes, that will give confidence to prospective Private Investors And above All, a Bold and Committed Leadership that is willing to do things Differently

3. 4.

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

The Way Forward: Sustainable Public-Private Sector Program Implementation

Partnership Level

Empowerment Level

The Lagos Example

The Lagos Example Adeniji Adele Loop

The Lagos Example Olaniyi, Oko Oba

The Lagos Example Outer Marina

The Lagos Example Oshodi Bus Stop

The Lagos Example Falomo Roundabout

The Lagos Example

Lagos State 10-point Agenda: Evolved from a number of economic Summits in the state Forms the basis for the state Governments intervention initiatives Key Objectives: Generate solutions that will accelerate positive transition for the state. Radically modernise infrastructure and explore opportunities towards the delivery of social goods and services to the people.
Roads & Transportation Environment & Physical Planning Power & Water Supply Security Education Shelter Employment Food Security Revenue Enhancement Health

It Can Be Done A Street in Dubai in 1990

It Can Be Done Same Street in Dubai in 2003

Optimistic Outlook
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 in the life of a small to medium-size domestic firm: starting a business dealing with construction permits registering property 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-Worldbank Survey

THANK YOU
Engr. Mansur Ahmed Director General/CEO Infrastructure Concession Regulatory Commission 13 Suleiman Barau Crescent Abuja, Nigeria Phone: +234 (9) 4604900/+234 (9) 8750286 Email: info@icrc.gov.ng Website: www.icrc.gov.ng Hajia Fatima Wali-Abdurrahman Chief Executive Officer The Filmo Group 18b Idown Taylor Street Victoria Island, Lagos Phone: +234 (1) 2710231-6/+234 802 778 2001 Email: wali.f@filmorealty.com