Nigeria needs to review PPP, concession regulations to meet current realities—ICRC
…NASS holds public hearing on Bill today, Tuesday
Just the National Assembly will today, Tuesday May 30, hold Public Hearing on the emerging new Act on Infrastructure Concession Regulatory Commission (ICRC), industry players have said that the best thing to happen to the Act is the ongoing review to enable it fit into the current realities.
In an interview on Monday in Abuja, an expert in the sector and managing director of Goodwill Resources Limited, Dr. Ben Murakiyo said “What has been frustrating offtakers in the industry include some levels of confusing provisions in the existing regulations as contained in the Establishment Act 2005”.
“The regulation as it is now cannot guarantee a letter of credit to be accessed easily form the bank is you are working on a project. According to the Communications Officer of the ICRC Mr. Patrick Ederaro, “The Commission believes that the review of the Act in line with best global practices will spur the activities of the Public Private Partnership ( PPP) which currently is at its lowest ebb due to some factors militating against the smooth operation of the Act”.
“House of Representatives will on Tuesday (today) be looking forward to inputs from key stakeholders in the sector to guide the lawmakers in the consideration of the Bill before them seeking among other things, an enhanced transparency in the PPP process to boost investors’ confidence, setting up of a special PPP account for accountability, and strengthening the Commission with penalty powers to speed up PPP transactions.
According to him, “The review is also seeking to transfer all PPP powers to the ICRC to enable it function optimally. Established by an Act in 2005, the ICRC which came into full operation in 2009 has the mandate to carry out the following key concession regulatory functions: Develop and issue PPP policies and guidelines: Pre-contract regulations; Post-contract regulations; Champion PPP advocacy; Develop PPP market by promoting harmonised framework for development of infrastructure.
He said apart from the expected good provisions of the law, “The Commission also has the additional task of creating environment for the private sector to enter into partnership with Government in financing, operations and management of infrastructure and allied services”.
“The Commission is equally expected to monitor the implementation of PPP projects and midwife the complex arrangement that the PPP process entails, as well as, build capacity within MDAs to handle such arrangements themselves subsequently. The Commission mandate does not include project initiation, project development, approval, determination of output requirements and the duties of contracting authority.
Ederaro recalled that ICRC recently ended its Full Disclosure Framework aimed at de- risking PPP investments in the country to make them attractive to investors, particularly foreign ones with big portfolios. The deal was in collaboration with the World Bank.
