Public-Private Partnership (PPP), has been described as a very crucial element for the economic development of any society.
Making the description was the President, Ibadan Chamber of Commerce, Industry, Mines and Agriculture, Mr Ismaila Alapa, while featuring as a guest speaker during a legislative retreat for members of the Oyo State House of Assembly which was held at Ilaji Hotels and Resort, Ibadan, recently.
He noted that the demand of the populace in terms of infrastructure like roads, airport, railways, electricity, water and other social amenities such as education, health, the sewage system is huge, while the resources of the government are limited.
“The amount of money that government can realise from taxation, levies and other sources of income is also limited. However, attempt to increase the aforementioned to meet the yearnings of the people may engender revolts from people.
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“The current attempt by the Federal Government to increase Value Added Tax (VAT) readily comes to mind to ensure that infrastructure is available, therefore government has to borrow or resort to Public-Private Partnership.”
Alapa, further stated that apart from using PPP to close the infrastructure gap, it is also used to grow the economy.
“From the World Bank report since 1984, 86 industrialised countries and developing countries privatised over 574 infrastructures. According to the Public-Private Infrastructure Advisory Facility (PPAIF), a World Bank Agency on PPP, over $100 billion is spent on PPP all over the World,” he said.
He posited that PPP is the vogue in most developed and developing countries, noting that it allows the government to add a lot of infrastructure which would not have been provided through normal budgetary procedures.
He, however, concluded that for PPP to succeed and benefit the society, a good legal framework has to be provided both broadly and specifically for each project.
Alapa, told members of the Oyo State House of Assembly that the Ibadan Chamber of Commerce which has over 200 member-companies has a unique ability and capability to reach both local and international investors.
He submitted that Ibadan Chamber of Commerce and Industry has the ability to facilitate Public Private Partnership to grow the Oyo state economy.