Leadership (Abuja)
Aminu Imam
28 June 2008
Lagos — The World Bank has said an estimate of N585 billion ($50 billion) is required to achieve the level of investment in infrastructure to drive Public-Private Partnership (PPP) in Lagos State.
Dr. Cezley Sampson, principal consultant on infrastructure development to the World Bank, said at a consultative workshop on PPP in Lagos yesterday, that the money is needed to enhance the pace of economic growth to prepare ground for effective PPP agenda in the state over the next 10 years.
Sampson, who noted that public sector funds are grossly inadequate to cater for development needs of the state, said private sector finance and expertise are required for effective PPP, stressing that partnership between government and the private sector was no longer an option but a critical success factor for economic development.
He said the World Bank recognises the importance of PPP as a development intervention strategy in contemporary economies, adding that efforts are being put in place to evolve modalities toward creating enabling environment to enhance PPP framework in the state.
While acknowledging the commitment of Lagos State government in pursuit of the PPP agenda, he called for a review of institutional, legal and regulatory framework for effective implementation of PPP in the state.
"Lagos needs to create an enabling environment that will enable the PPP to meet public interest and understand risk-sharing, based on institutional and procedural clarity and support for public and private partners. There is also need to take care of legal and regulatory concerns so that the legal framework at state and federal levels will enable PPP contracting and regulatory mechanism that is independent, either through contracts regulatory agency other than government regulatory instruments", Sampson said.
He emphasised the need for high- skilled technical expertise and effective regulatory platform for the PPP, which he said will engender investor's confidence and reduce cost in the process.
He further called for increased understanding of the dynamics of the PPP framework, and capacity building for government officials across ministries and agencies as requisite for attracting private sector participation.
The World Bank consultant who said the workshop was to provide a medium for feedback among stakeholders on the workability of the PPP, observed that there is need to formalise PPP institutional structure in the state.
Mr.Steven Demitriyev, World Bank's senior private sector development specialist for Africa region said in a remark that the Bank will assist in building adequate capacity for investment under the PPP framework as part of the investment climate programme of the Bank.
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