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)

Roundtable with the Kano State Governor-Elect
INFRASTRUCTURE
on

Engr. Mansur Ahmed
DIRECTOR GERNERAL. INFRASTRUCTURE CONCESSION REGULATORY COMMISSION
Kano, May 2011

Infrastructure Concession Regulatory Commission

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Presentation Outline
1. Introduction: Infrastructure is the Key
2. Areas of Focus: Maximum Impact 3. Short Term: Quick Wins 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 7. Conclusion: It Can Be done
Infrastructure Concession Regulatory Commission
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1. Introduction: Infrastructure is the Key
• 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

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2. 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 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)
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2.1 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

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3. Short Term: Quick Wins (1st 2years)
• Sanitation: Especially Solid Waste Management in Kano City will
create 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)
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3.1 Short Term: Transportation
• 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 KNSG for 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

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4. Medium Term: Opportunity to Make a Difference
• 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

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4.1 Infrastructure Projects of the FGN
Power Projects
ID 1 Comments Mambilla (2600 MW)

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)

2
3 4 5 6

Zungeru (700MW)
Gurara (350 MW) Kaduna (900 MW) Power Plant Abuja (1350 MW) Rehabilitation of Kainji Dam

7 8
9 10 11

Rehabilitation of Jebba Rehabilitation of Shiroro Rehabilitation and Expansion of Transmission lines
Super Grid Project Small hydro power plants

Highlighted Projects should be of Interest to KNSG
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4.2 Infrastructure Projects of the FGN
Road Projects
ID 1 2 3 4 5 6 7 8 9 10 11 Project Title Shagamu-Benin-Asaba Expressway Abuja-Kaduna-Kano 2nd Niger bridge Loko-Oweto Abuja-Lokoja Niger Delta Coastal Road Ibadan-Ilorin-Jebba Kano-Maiduguri Lagos-Ibadan Apapa-Oshodi Ajaokuta Access Roads 1 2 3 4 5 6 7 8 9

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

Highlighted Projects should be of Interest to KNSG
Infrastructure Concession Regulatory Commission
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4.3 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 2 3 Project Title

HEALTH SECTOR PROJECTS
ID 1 Project Title Specialist Hospitals in 6 Geopolitical Zones

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

Highlighted Projects should be of Interest to KNSG
Infrastructure Concession Regulatory Commission
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4.4 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)

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-Jama’are 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

3

4 5 6 7

8

Highlighted Projects should be of Interest to KNSG
Infrastructure Concession Regulatory Commission
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4.5 Medium Term: Over the Four Years Term
• The KNSG Should;  Review the FGN’s 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 State’s benefit

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5. Long Term: Building the Foundation for the New Economy
• 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 Global Economy, and Kano cannot afford to be left out!

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6. Financing Infrastructure: The PPP Option
• 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 State’s demand for Infrastructure. Other Sources of 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 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.

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6.1 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
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6.2 The PPP Option-Doing it Right
• 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 Partners 3. 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
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7. Conclusion: It Can Be Done
• Doing Business in Nigeria 2010—the second sub-national report in the series following Doing Business in Nigeria 2008—The 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, 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

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Lagos State 2007 to 2010

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A street in Dubai in1990

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Same street in Dubai in 2003

It can Happen in Kano
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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

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