ICRC moves to resolve all stalled FEC-approved PPP projects

The Infrastructure Concession Regulatory Commission (ICRC) said it will pursue a logical conclusion for all Public Private Partnership (PPP) projects that have long been approved by the Federal Executive Council (FEC) but have yet to commence.

Director General of the Commission Dr. Jobson Oseodion Ewalefoh disclosed this when he paid a courtesy visit to the Minister of Marine and Blue Economy, Gboyega Oyetola.

He informed Oyetola that some of the pioneer PPP projects approved as far by as 2006, were Port projects under the aegis of the ministry.

Citing an example of a dry port project that was approved by FEC since 2006 but yet to commence, the DG said that the Commission was moving to re-evaluate such PPPs and reach a reasonable conclusion.

He, therefore, informed the Minister that the Commission had come to ascertain the challenges with any stalled project under the Ministry and proffer solutions to the challenges.

“We are here to discuss with your ministry; what are the potential that we have, and to know the issues with some of the concessions that have been done before. We need to brainstorm to move things faster for our country.

“We have streamlined our processes to ensure that PPP projects are now accelerated and PPP transactions are completed in record time.

He said that while the Commission was striving to commence new PPP projects, it was also working to effectively optimize the existing ones.

In a bid to ensure that projects are not stalled, the DG said that in line with his new policy direction, the Commission will henceforth evaluate financial capabilities of potential concessionaires along with their Business Cases to forestall a situation where project execution is delayed.

He urged the Minister to partner the Commission to re-evaluate all PPP projects that have been approved by FEC for more than one year, but yet to commence.

“We have come up with what is called “Condition President to the Effectiveness of any PPP Contract”. That means is that during negotiations, there will be a timeline to reach ‘financial close’ (When funds for project financing is accessible).

“So, whether it is three months or two years that had been agreed, with a stipulated extension period; once that time has lapsed, it is condition president that the agreement stands terminated,” he said.

The DG however clarified that the essence of the policy was not to discourage investors but to ensure that only investors with capacity will bid for PPP projects, so that the time and resources of government will be saved.

In his remark, the Minister of Marine and Blue Economy while congratulating the DG on his appointment, corroborated that most of the projects that had stalled were due to lack of access to funds.

The Minister said that the Ministry had written to the concessionaires and have reached the conclusion that the funds were not there.

“The solution to that is to have only very serious investors that have access to funds and not just a good business case,” he said.

He assured the DG of the full support of the Ministry in accelerating PPP in the blue economy, adding that there were already a couple of new projects which will be sent to the ICRC to begin the PPP process.

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