Economic Confidential, January 15, 2009

NEWS UPDATE

Infrastructure Concession will be transparent - Shonekan

... As FG Signs MOU Agreement with UAE

Infrastructure concession in Nigeria will be based on a competitive process which delivers real value and would address the poor condition of the country's infrastructure.

This was disclosed by the Chairman of the Infrastructure Concession Regulatory Commission (ICRC), Chief Earnest Shonekan during a stakeholders workshop organized by the Commission to review the draft public private partnership policy that would guide the concession process in Nigeria.

Explaining the rationale behind the workshop, Chief Shonekan said that consultation will be a part of the ICRC's mandate and that the Commission will communicate with other arms of government; the private sector; civil society and all stakeholder groups. He also added that Nigerian banks, investors, contractors and specialist advisers will play a vital role in the successful implementation of government policy on public private partnership (PPP).

Chief Shonekan also restated government assurance that all partnerships will be awarded and managed within the rule of law and that any disputes between concerned parties will be resolved by processes that are quick, independent and cost effective.

Also speaking at the workshop, the Director General of the ICRC, Engr. Mansur Ahmed said that the draft policy was developed in consultation with local and international development partners and that the inputs of all stakeholders would be considered in order to finalize an all inclusive government policy on public private partnerships, after which the draft policy would be sent to the President for approval and subsequent implementation.

Among stakeholders present at the workshop were the Governor of Cross Rivers State, Chief Liyel Imoke and the representatives of other states governors; international development agencies as well as those of public and private sector organizations in Nigeria. Participants also received inputs from the perspectives of project promoters, perspective financiers and a contracting authority in order to compare notes and develop relevant PPP strategies the country. 

Meanwhile the Federal Government of Nigeria on Thursday, January 15, 2009 signed a Memorandum of Understanding (MOU) agreement with Dubai World, a company owned 100 percent by the Government of United Arab Emirate (UAE).

In the co-operation agreement, the Dubai World� would invest about $16 billion in the development of infrastructure in Nigeria including Oil and Gas, Power Plant, Ports, Mining and Mineral Resources, large scale land lease for commercial agriculture and irrigation farming around the water bodies owned by various River Basin Development Authorities.

The Attorney-General and the Minister of Justice, Chief Michael Aondoakaa signed the agreement on behalf of the Federal Government while Sultan Ahmed Bin Sulayem signed on behalf of the Dubai Word of the United Arab Emirate (UAE).

In his remarks, the Attorney-General and the Minister of Justice, Mr. Aondoakaa stated that the co-operation agreement covered areas considered to be critical in the development of Nigeria adding that President Yar`Adua has reiterated his government’s commitment to the development of critical infrastructure particularly in the Niger Delta region in order to uplift the standard of living of the inhabitants of our great country.

Also in his remarks, Sultan Sulayem emphasised that Nigeria was a land of opportunities pointing out that the signing of the co-operation agreement reflected the friendship between Nigeria and United Arab Emirate.

He stated that Dubai World has invested almost in 100 cities around the world and including Africa.