The federal government has put in place institutional measures to ensure that not only are local and international investors brought into the infrastructure concession business, but also that their investments are safe and profitable.

What are these measures? One of these is the Public Procurement Act 2007 which should set the tone for transparency in federal government bids. One problem that the Public Procurement Act addresses is the general impression of international contractors and investors that federal government bids have predetermined winners and the processes are far from transparent. A second issue is the need to instill discipline in civil servants and an understanding of competitive bidding as a means of achieving value for money.

The success of the telecommunications sectors has been told severally. Most telecommunication companies in Nigeria started out with a mix of equity and debt. In 2007/2008 some of the companies operating in the telecoms sector completed a very successful private placement, which will convert most of its loans to equity. Another area where potential investors in infrastructure concession need to look at closely is the aviation sector. The major international airports and domestic airports in Nigeria are likely to be thrown open to concessionaires within the life of the current administration. Concessionaires will be seeking all forms of structured finance. Similarly, major railway lines and extensions need to be rehabilitated and several new lines need to be constructed. As observed earlier, the Minister of Finance, Dr. Usman explained that investments in railways in the next six years would be about $10 billion.

It has been estimated that Nigeria requires several million housing units. The real-estate sector and construction is at an all-time high despite the increasing cost of steel and cement. Several states (notably Rivers state) have resorted to PPPs to meet their housing needs, and real-estate investors and private investors are demonstrating creativity in their schemes. Real-estate joint venture schemes are catching on very fast and the Securities and Exchange Commission (SEC) is preparing for the take off of real estate investment trusts. The mortgage industry is barely existent and is stifled by high interest rates ranging between 17% and 21% a year. The opportunities for potential investors in this sector are also vast. The same is true of the Hotels and tourism sectors. Hotel projects have been on the increase. The next few years will invariably see more project finance directed at hotels in particular and tourism generally.

Perhaps in no sector are there as many opportunities for infrastructure concession as in roads. The Federal Road Maintenance Agency (FERMA) has recently advertised ten Federal Trunk A roads for maintenance concession and tolling. This transaction - which is the first of its kind in Nigeria - has attracted over 100 expressions of interest (EOI) and should be a major source of domestic and offshore financing when the process is completed. The second

Niger Bridge project is being negotiated. States like Lagos and Rivers are also exploring road concessions for roads in their states. Investors must bear in mind that out of an estimated 193,200 kilometres of roads in the country, only a mere 15 per cent are tarred and that over 70 per cent of roads considered tarred are in dilapidated conditions and require urgent rehabilitation. In the area of power generation/ distribution, Nigeria's inefficient power supply is due mainly to insufficient investment in generation capacity over the last decade or so, as well as the disparity between energy generation and demand.

The federal government recently released N900 billion (about $7.6 billion) as the first installment of funding geared to fix Nigeria's power. The federal government plans that at the end of three years, when generation has improved considerably, the generation and distribution aspects will be handed over to the private sector while the transmission will be handled by a state utility company.

Several major independent power projects (IPPs) are taking place and others have been licensed by NERC. IPPs are the next big thing in power, and these projects will be financed over the next 12 to 36 months. As explained by Dr. Usman, for power, the nation would need between $18 and $20 billion for necessary investments in six years Before concluding this piece, it is important to examine sources and opportunities of future spending.

The project finance market is already showing signs of who the key actors will be. Private equity funds will definitely play a major role with more joint ventures and co-financing schemes occurring, both domestic and international. Domestic banks are poised to partner with their international counterparts on all fronts. Some Nigerian banks have set up subsidiary companies that allow them participate in the special purpose vehicles for some of these projects; many banks now have infrastructure desks mandated to fish out these opportunities. Also, Pension Funds in Nigeria are about N1 trillion.

Pension Fund Managers will therefore be seeking to plug into projects that the Pensions Act permits them to invest in. The market for project finance in Nigeria will grow, with PPPs and private equity being the buzzwords. Infrastructure bonds will become more popular and the federal government will put one in place in the next 12 to 24 months. The market for concessionaires in public utility (transportation and power in particular) will be unprecedented.

It has also been argued that the lack of infrastructure in the Niger Delta is a key determinant factor in the ongoing crises in that region. If the situation in the Niger Delta improves then we are bound to see more of the traditional oil and gas exploration and development activity. A way out of the crises is the provision of badly needed services - mainly in infrastructure. It has been stated that the synergy between project finance and Nigeria's infrastructure needs will play a major role over the next few years in increasing Nigeria's gross domestic product (GDP) and its macroeconomic ratios, particularly for local investors and foreign direct investments. Ultimately, the fact remains that in times of uncertainly as we have seen in recent times; investors tend to go for tangible assets. This remains the allure of infrastructure concession in Nigeria, especially as investors are sure to make profits in their investments.

-Suleiman is of the Federal Ministry of Information and Communications, Abuja.