Public Private Partnership: A Case Study of the Lagos State Mega-City Project

[vc_row type=”vc_default” full_width=”stretch_row_content_no_spaces” css=”.vc_custom_1500547593342{padding-right: 100px !important;}” el_class=”noPaddinRow”][vc_column width=”1/6″ el_class=”noPaddingLeft” offset=”vc_hidden-md vc_hidden-sm vc_hidden-xs”][vc_raw_html]JTNDZGl2JTIwY2xhc3MlM0QlMjJtYWluLXN0cmlwJTIyJTNFJTBBJTNDZGl2JTIwY2xhc3MlM0QlMjJibHVlLXN0cmlwMCUyMiUzRSUzQyUyRmRpdiUzRSUwQSUzQ2RpdiUyMGNsYXNzJTNEJTIyYmx1ZS1zdHJpcDElMjIlM0UlM0MlMkZkaXYlM0UlMEElM0NkaXYlMjBjbGFzcyUzRCUyMmJsdWUtc3RyaXAyJTIyJTNFJTNDJTJGZGl2JTNFJTBBJTNDJTJGZGl2JTNF[/vc_raw_html][/vc_column][vc_column width=”5/6″ el_class=”justifyText” css=”.vc_custom_1530542660738{padding-right: 310px !important;}” offset=”vc_hidden-md vc_hidden-sm vc_hidden-xs”][vc_empty_space height=”50px”][vc_row_inner el_id=”newsletters”][vc_column_inner width=”1/6″][/vc_column_inner][vc_column_inner width=”2/3″][vc_custom_heading text=”Public Private Partnership: A Case Study of the Lagos State Mega-City Project” font_container=”tag:h1|font_size:22|text_align:justify|color:%236699cc|line_height:1.8″ use_theme_fonts=”yes”][/vc_column_inner][vc_column_inner width=”1/6″][/vc_column_inner][/vc_row_inner][vc_empty_space height=”25px”][vc_column_text]A Megacity, according to Wikipedia online encyclopedia is a city with a minimum population of 10 million and above. Lagos State, one of the smallest states in Nigeria in terms of land mass (3,577 square kilometers), has a teeming population of 17 million with an annual growth rate estimated at eight (8) percent. This statistics qualify Lagos not only as a Megacity but also the 6th largest in the world. The United Nations Habitat Group projects that at its present growth rate, Lagos State will be the 3rd largest Megacity in the world by the year 2015 after Tokyo and Bombay.

Overcoming The Mega-city Challenge
Globally, mega-cities due to their huge population have attendant issues and problems of inadequate socio-economic infrastructure necessary to sustain their population. Lagos State as a mega-city is not exempt from these problems. For decades, the City of Lagos has grappled with problems such as: gross shortage of housing, insufficient road networks and decay of existing facilities to mention a few. In an effort to finance their huge infrastructural needs, most countries have adopted the Public Private Partnership financing strategy.

Prime examples of successful PPP collaborations are the United Kingdom (who is estimated to have expended over N33 billion on the development of new public infrastructure through the private sector) and the United States of America.

The Public Private Partnership (PPP) Model
Public Private Partnership is basically a method of procuring public services and infrastructure by combining the best of the skills and assets of both the Public and Private Sectors.
The PPP Model has played an important role in improving the quality of inputs and the efficiency of delivering effective services to the public sector in mega-cities.

The Lagos Megacity Project: The PPP Strategy
At the onset of the new administration of Governor Babatunde Fashola in 2007, the Lagos State Government stated its determination to transform the state to meet its status as a model mega-city. This objective gave birth to the Lagos Mega-city Project.
In order to finance the $50 billion infrastructural development needs of the Lagos Mega-city Project, the Lagos State Government has engaged the private sector via the PPP Model. The following are the target sectors for the PPP Initiative in the Lagos Mega-city Project:

In line with this vision, Lagos State has taken some definite strides such as:

• The Bus Rapid Transit Scheme: This initiative is geared towards easing heavy traffic congestion in the state. The scheme is regulated by the Lagos Metropolitan Area Transport Authority (LAMATA). Two operators are currently servicing the Lagos BRT.

• Waste to Wealth Project: Lagos State generates about 3.3 million metric tons of waste per annum while only 1.25 is being collected annually. This deficit led to the involvement of the Public Sector Partnership (PSP) operators in the removal, disposal and conversion of domestic and Industrial Wastes in Lagos State.

• Infrastructure: Lagos is already exploring various PPP options through BOT (Build, Operate and Transfer) arrangements. An example of this is the construction of the US$300m Lekki-Epe Expressway which is a partnership between the Lekki Concession Company (LCC) which is a special purpose vehicle and a subsidiary of Toll Systems Company Ltd (TSC) and the Lagos State Government.

• The Lagos State Government is also taking advantage of Infrastructure Funds/Bonds. Currently, the State Government is set to raise a N275 Billion bond from the CBN to enable it pursue its infrastructural development programme.

• Lagos State Roads, Bridges and Highway Infrastructure (Private Sector Participation) Development Board Law – The Lagos State Government enacted this law to provide a legal framework for private sector financing of infrastructure such as Roads, Bridges, and Highways etc. It may be said that this was the first time in Nigeria that any government has enacted a law specifically to regulate private sector financing for infrastructure development and maintenance.

• A Public-Private Partnership Unit has been established under the Lagos State Ministry of Finance, with the mandate of implementing PPP projects in Lagos State. It is a one: stop PPP business office for prospective investors on PPP project initiatives. It would also facilitate the coordination between Project Initiative Ministries, Agencies of Government and the Private Sector.

• Presently the Federal Executive Council (FEC) has forwarded the draft bill for the establishment of the Lagos Mega-City Development Authority to the National Assembly for passage into law.

• Reforms are also being carried out in various sectors (particularly in the Magistrate Courts Law, Tax System, Land Registration Procedure etc) in order to build an adequate support structure which will encourage participation from the private sector.

Conclusion
Beyond the adoption and implementation of the PPP models; sustained government willpower is vital to the realization of this dream. We believe, however that the PPP strategy is a good place to start!

[/vc_column_text][/vc_column][/vc_row][vc_row type=”vc_default” full_width=”stretch_row_content_no_spaces” css=”.vc_custom_1500547593342{padding-right: 100px !important;}” el_class=”noPaddinRow”][vc_column el_class=”noPaddingLeft” offset=”vc_hidden-lg vc_hidden-xs”][vc_raw_html]JTNDZGl2JTIwY2xhc3MlM0QlMjJ0YWItbWFpbi1zdHJpcCUyMiUzRSUwQSUzQ2RpdiUyMGNsYXNzJTNEJTIydGFiLWJsdWUtc3RyaXAwJTIyJTNFJTNDJTJGZGl2JTNFJTBBJTNDZGl2JTIwY2xhc3MlM0QlMjJ0YWItYmx1ZS1zdHJpcDElMjIlM0UlM0MlMkZkaXYlM0UlMEElM0NkaXYlMjBjbGFzcyUzRCUyMnRhYi1ibHVlLXN0cmlwMiUyMiUzRSUzQyUyRmRpdiUzRSUwQSUzQyUyRmRpdiUzRQ==[/vc_raw_html][vc_empty_space height=”25px”][vc_row_inner][vc_column_inner width=”1/6″][/vc_column_inner][vc_column_inner width=”2/3″][vc_custom_heading text=”Public Private Partnership: A Case Study of the Lagos State Mega-City Project” font_container=”tag:h1|font_size:22|text_align:justify|color:%236699cc|line_height:1.8″ use_theme_fonts=”yes”][vc_column_text]A Megacity, according to Wikipedia online encyclopedia is a city with a minimum population of 10 million and above. Lagos State, one of the smallest states in Nigeria in terms of land mass (3,577 square kilometers), has a teeming population of 17 million with an annual growth rate estimated at eight (8) percent. This statistics qualify Lagos not only as a Megacity but also the 6th largest in the world. The United Nations Habitat Group projects that at its present growth rate, Lagos State will be the 3rd largest Megacity in the world by the year 2015 after Tokyo and Bombay.

Overcoming The Mega-city Challenge
Globally, mega-cities due to their huge population have attendant issues and problems of inadequate socio-economic infrastructure necessary to sustain their population. Lagos State as a mega-city is not exempt from these problems. For decades, the City of Lagos has grappled with problems such as: gross shortage of housing, insufficient road networks and decay of existing facilities to mention a few. In an effort to finance their huge infrastructural needs, most countries have adopted the Public Private Partnership financing strategy.

Prime examples of successful PPP collaborations are the United Kingdom (who is estimated to have expended over N33 billion on the development of new public infrastructure through the private sector) and the United States of America.

The Public Private Partnership (PPP) Model
Public Private Partnership is basically a method of procuring public services and infrastructure by combining the best of the skills and assets of both the Public and Private Sectors.
The PPP Model has played an important role in improving the quality of inputs and the efficiency of delivering effective services to the public sector in mega-cities.

The Lagos Megacity Project: The PPP Strategy
At the onset of the new administration of Governor Babatunde Fashola in 2007, the Lagos State Government stated its determination to transform the state to meet its status as a model mega-city. This objective gave birth to the Lagos Mega-city Project.
In order to finance the $50 billion infrastructural development needs of the Lagos Mega-city Project, the Lagos State Government has engaged the private sector via the PPP Model. The following are the target sectors for the PPP Initiative in the Lagos Mega-city Project:

In line with this vision, Lagos State has taken some definite strides such as:

• The Bus Rapid Transit Scheme: This initiative is geared towards easing heavy traffic congestion in the state. The scheme is regulated by the Lagos Metropolitan Area Transport Authority (LAMATA). Two operators are currently servicing the Lagos BRT.

• Waste to Wealth Project: Lagos State generates about 3.3 million metric tons of waste per annum while only 1.25 is being collected annually. This deficit led to the involvement of the Public Sector Partnership (PSP) operators in the removal, disposal and conversion of domestic and Industrial Wastes in Lagos State.

• Infrastructure: Lagos is already exploring various PPP options through BOT (Build, Operate and Transfer) arrangements. An example of this is the construction of the US$300m Lekki-Epe Expressway which is a partnership between the Lekki Concession Company (LCC) which is a special purpose vehicle and a subsidiary of Toll Systems Company Ltd (TSC) and the Lagos State Government.

• The Lagos State Government is also taking advantage of Infrastructure Funds/Bonds. Currently, the State Government is set to raise a N275 Billion bond from the CBN to enable it pursue its infrastructural development programme.

• Lagos State Roads, Bridges and Highway Infrastructure (Private Sector Participation) Development Board Law – The Lagos State Government enacted this law to provide a legal framework for private sector financing of infrastructure such as Roads, Bridges, and Highways etc. It may be said that this was the first time in Nigeria that any government has enacted a law specifically to regulate private sector financing for infrastructure development and maintenance.

• A Public-Private Partnership Unit has been established under the Lagos State Ministry of Finance, with the mandate of implementing PPP projects in Lagos State. It is a one: stop PPP business office for prospective investors on PPP project initiatives. It would also facilitate the coordination between Project Initiative Ministries, Agencies of Government and the Private Sector.

• Presently the Federal Executive Council (FEC) has forwarded the draft bill for the establishment of the Lagos Mega-City Development Authority to the National Assembly for passage into law.

• Reforms are also being carried out in various sectors (particularly in the Magistrate Courts Law, Tax System, Land Registration Procedure etc) in order to build an adequate support structure which will encourage participation from the private sector.

Conclusion
Beyond the adoption and implementation of the PPP models; sustained government willpower is vital to the realization of this dream. We believe, however that the PPP strategy is a good place to start!

[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/6″][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row type=”vc_default” full_width=”stretch_row_content_no_spaces” css=”.vc_custom_1500547593342{padding-right: 100px !important;}” el_class=”noPaddinRow”][vc_column el_class=”noPaddingLeft” offset=”vc_hidden-lg vc_hidden-md vc_hidden-sm” css=”.vc_custom_1530542413496{padding-right: 75px !important;padding-left: 60px !important;}”][vc_raw_html]JTNDZGl2JTIwY2xhc3MlM0QlMjJtb2ItbWFpbi1zdHJpcCUyMiUzRSUwQSUzQ2RpdiUyMGNsYXNzJTNEJTIybW9iLWJsdWUtc3RyaXAwJTIyJTNFJTNDJTJGZGl2JTNFJTBBJTNDZGl2JTIwY2xhc3MlM0QlMjJtb2ItYmx1ZS1zdHJpcDElMjIlM0UlM0MlMkZkaXYlM0UlMEElM0NkaXYlMjBjbGFzcyUzRCUyMm1vYi1ibHVlLXN0cmlwMiUyMiUzRSUzQyUyRmRpdiUzRSUwQSUzQyUyRmRpdiUzRQ==[/vc_raw_html][vc_empty_space height=”25px”][vc_row_inner][vc_column_inner width=”1/6″][/vc_column_inner][vc_column_inner width=”2/3″][vc_custom_heading text=”Public Private Partnership: A Case Study of the Lagos State Mega-City Project” font_container=”tag:h1|font_size:22|text_align:justify|color:%236699cc|line_height:1.8″ use_theme_fonts=”yes”][vc_column_text]A Megacity, according to Wikipedia online encyclopedia is a city with a minimum population of 10 million and above. Lagos State, one of the smallest states in Nigeria in terms of land mass (3,577 square kilometers), has a teeming population of 17 million with an annual growth rate estimated at eight (8) percent. This statistics qualify Lagos not only as a Megacity but also the 6th largest in the world. The United Nations Habitat Group projects that at its present growth rate, Lagos State will be the 3rd largest Megacity in the world by the year 2015 after Tokyo and Bombay.

Overcoming The Mega-city Challenge
Globally, mega-cities due to their huge population have attendant issues and problems of inadequate socio-economic infrastructure necessary to sustain their population. Lagos State as a mega-city is not exempt from these problems. For decades, the City of Lagos has grappled with problems such as: gross shortage of housing, insufficient road networks and decay of existing facilities to mention a few. In an effort to finance their huge infrastructural needs, most countries have adopted the Public Private Partnership financing strategy.

Prime examples of successful PPP collaborations are the United Kingdom (who is estimated to have expended over N33 billion on the development of new public infrastructure through the private sector) and the United States of America.

The Public Private Partnership (PPP) Model
Public Private Partnership is basically a method of procuring public services and infrastructure by combining the best of the skills and assets of both the Public and Private Sectors.
The PPP Model has played an important role in improving the quality of inputs and the efficiency of delivering effective services to the public sector in mega-cities.

The Lagos Megacity Project: The PPP Strategy
At the onset of the new administration of Governor Babatunde Fashola in 2007, the Lagos State Government stated its determination to transform the state to meet its status as a model mega-city. This objective gave birth to the Lagos Mega-city Project.
In order to finance the $50 billion infrastructural development needs of the Lagos Mega-city Project, the Lagos State Government has engaged the private sector via the PPP Model. The following are the target sectors for the PPP Initiative in the Lagos Mega-city Project:

In line with this vision, Lagos State has taken some definite strides such as:

• The Bus Rapid Transit Scheme: This initiative is geared towards easing heavy traffic congestion in the state. The scheme is regulated by the Lagos Metropolitan Area Transport Authority (LAMATA). Two operators are currently servicing the Lagos BRT.

• Waste to Wealth Project: Lagos State generates about 3.3 million metric tons of waste per annum while only 1.25 is being collected annually. This deficit led to the involvement of the Public Sector Partnership (PSP) operators in the removal, disposal and conversion of domestic and Industrial Wastes in Lagos State.

• Infrastructure: Lagos is already exploring various PPP options through BOT (Build, Operate and Transfer) arrangements. An example of this is the construction of the US$300m Lekki-Epe Expressway which is a partnership between the Lekki Concession Company (LCC) which is a special purpose vehicle and a subsidiary of Toll Systems Company Ltd (TSC) and the Lagos State Government.

• The Lagos State Government is also taking advantage of Infrastructure Funds/Bonds. Currently, the State Government is set to raise a N275 Billion bond from the CBN to enable it pursue its infrastructural development programme.

• Lagos State Roads, Bridges and Highway Infrastructure (Private Sector Participation) Development Board Law – The Lagos State Government enacted this law to provide a legal framework for private sector financing of infrastructure such as Roads, Bridges, and Highways etc. It may be said that this was the first time in Nigeria that any government has enacted a law specifically to regulate private sector financing for infrastructure development and maintenance.

• A Public-Private Partnership Unit has been established under the Lagos State Ministry of Finance, with the mandate of implementing PPP projects in Lagos State. It is a one: stop PPP business office for prospective investors on PPP project initiatives. It would also facilitate the coordination between Project Initiative Ministries, Agencies of Government and the Private Sector.

• Presently the Federal Executive Council (FEC) has forwarded the draft bill for the establishment of the Lagos Mega-City Development Authority to the National Assembly for passage into law.

• Reforms are also being carried out in various sectors (particularly in the Magistrate Courts Law, Tax System, Land Registration Procedure etc) in order to build an adequate support structure which will encourage participation from the private sector.

Conclusion
Beyond the adoption and implementation of the PPP models; sustained government willpower is vital to the realization of this dream. We believe, however that the PPP strategy is a good place to start!

[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/6″][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row type=”vc_default” full_width=”stretch_row” el_class=”footerWidget”][vc_column width=”1/4″][/vc_column][vc_column width=”2/4″][vc_row_inner][vc_column_inner width=”3/4″][/vc_column_inner][vc_column_inner width=”1/4″][/vc_column_inner][/vc_row_inner][/vc_column][vc_column width=”1/4″][/vc_column][/vc_row]