Wednesday, July 1, 2009

Nigeria has set up a PPP focused association

I did suspect Nigeria is to become leader in African PPPs for some time already. Several projects have been announced, serious government interest demonstrated by discussion on policy, legislation and deal flow. Global Legal Group provided excellent insight to this in their 2007 Guide to PPP/PFI projects. Surprisingly quickly have Nigeria been able to sign a 25-year concession agreement with Bi-Courtney Consortium, concessionaires of the Lagos-Ibadan Motorway (reportedly 27 months). The other areas besides roads in which Nigeria is involving PPP are ports, tourism, healthcare and housing.

Therefore, I was very happy, to hear earlier this year from Saidu Njidda, that he succeeded in forming Foundation for Public Private Partnerships of Nigeria ( FPPPN), to support and advocate PPP development of Nigeria. Personally, I see PPP associations, as an important and integral part of any PPP market. Public sector should be able to consult private sector prior approval of a policy or legislation and also to hear somewhat united voice of private sector in the country. FPPPN as proponents of the concept of PPP's in Nigeria conducts research, publishes findings, facilitates forums for discussion and sponsors seminars/ on topics related to PPP's in Nigeria.

This practice of private sector organizing platform for private and often public entities as well, to promote, discuss and work together is quite well recognized in number of well developed PPP markets.

One of the oldest examples is certainly NCPPP of US (National PPP Council), mission is to advocate and facilitate the formation of public-private partnerships at the federal, state and local levels, where appropriate, and to raise the awareness of governments and businesses of the means by which their cooperation can cost effectively provide the public with quality goods, services and facilities. Canada has developed very large and well functioning Canadian Council for Public-Private Partnerships (CCPPP): the objective of CCPPP is to foster innovative forms of cooperation between the public sector - at the municipal, regional, provincial and federal levels - and the private sector, for the benefit of all Canadians.

UK, the leader in PPP, has IFSL (International Financial Services of London): established to promote the UK-based financial services industry throughout the world. In Czech republic, private sector set up APPP (Asociace PPP): for support and development of public investment and services using the PPP form in the Czech Republic. Australia has IPA (Infrastructure Partnerships Australia): established to brink together the public and private sectors to promote partnerships in infrastructure and provide cross-industry leadership in Australia.

And this is only small example of the world of PPP Associations, PPP market has grown indeed in couple of years and still is growing, let’s hope that the good practice in PPP will also take deep roots in Nigeria and the rest of Africa.

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