Infrastructure Policy Commission Breakout

Session

-Nnanna Anyim UdeConsultant, IPC-

NESG

Outline

• Background on IPC• Structure of IPC• Activities• Output• Sectoral Updates• Outlook• Key NES #17 Recommendations• Issues in Focus for NES #18

Background of IPC

• The dialogue process at NES took place at the Work Group level – 14 work groups• Need arose for sustained activities, follow-up and monitoring of NES

recommendations in between Summits• 14 Work Groups transformed into 8 Policy Commissions• Inaugurated on May 11, 2006• Overarching objective of the PCs is to facilitate adoption of NES recommendations

to fast-track growth and development of the economy• IPC Focus Areas – Power, Water & Sanitation, Transportation (Aviation, Rail, Inland

Waterway, Ports & Roads)• Meets on the last Thursday of every month at the Federal Ministry of Works

Headquarters, Mabushi, Abuja

Structure of the IPC• Leadership comprises 2 Co-Chairs (Permanent Secretary of the Federal Ministry of

Works – Public Sector Co-Chair; President of Nigeria Society of Engineers – Private Sector Co-Chair); Facilitator; Consultant and NESG Anchor Staff

• Membership comprises stakeholders from the public & private sectors, civil society groups and development partners

• Work Groups with Group Leaders- Power- Rail- Roads- Ports & Inland Waterways- Aviation- Water & Sanitation

Output of the IPC

• Strong advocacy for the ICRC Act and establishment of the ICRC• Robust advocacy for a National PPP Policy• 1st International Conference on Infrastructure Development (2004)• 2nd International Conference on Infrastructure Development (2007)• 1st Stakeholders Forum on the Revitalization of the Railway System (2008)• Policy Dialogue on Eliminating Corruption in Business Processes of Government (2011)• Interactive Sessions with DG, ICRC (2010); MD, NRC (2010); representative of MD, NPA

(2010); representative of the MD, FERMA (2011); representative of the Corps Marshall, FRSC (2011)

• From 2006 till date, IPC Sessions at the Annual Summit have produced robust and rigorous discussions on Nigeria’s infrastructure sector with far-reaching recommendations.

Sectoral Updates

Aviation- 25 airports, only 4 are very viable- Upgrade of 11 airports in progress- Lagos not yet air transport hub like Johannesburg, Nairobi & Addis Ababa- Reform of FAAN for proper private sector concessioning of key airport terminals in

dire need of investment, such as Lagos International Terminal II.

Roads- National road network is about 200,000km with an estimated value of N4.6 trillion- 90% of passenger and freight transportation by road- Only 35% of our roads in good or very good state- Roads rehabilitation currently in progress by FMoW but impact yet to be felt- Federal Roads Authority, National Roads Fund Board and National Roads Fund

urgently needed

Power- FG wants 40,000MW by 2020 but slightly above 4,000MW- Roadmap for Power Sector Reform launched on August 26, 2010 but behind schedule on

implementation- Sale of PHCN’s 6 Gencos and 11 Discos FINALLY completed in October- Management Contract of TCN still intact- NELMCO & NBET established- MYTO in place- NIPP projects at advanced stages of completion but still plagued by challenges- Gas supply, especially to NIPP still a very major challenge

Ports & Inland Waterways- Privatization of port facilities improved productivity, performance and efficiency- 24 port facilities (cargo and container terminals, inland container depots) were

concessioned to private operators- ICDs yet to commence- Reforms have not circumvented problems such as poor customs performance & corruption- Dredging of River Nigeria not yet completed

Rail- 3505km main line, 1067m narrow gauge (3’6”) and 255km standard gauge 1435mm- Rehabilitation of Lagos-Jebba (488km) about100% completed- Rehabilitation of Jebba to Kano (636km) about 98% completed- Rehabilitation of Eastern Line is about 20%- Abuja to Kaduna Standard Gauge (187km) about 40% complete- Lagos to Ibadan (180km) Standard Gauge recently awarded- Ajaokuta/Itakpe – Warri Standard Gauge Line about 78%- Feasibility studies of a no. of standard gauge lines including the East – West Line

approved- A lot is still expected in the reform of NRC and the amendment of the NRC Act to

open the sector to private sector investment

Water & Sanitation- Nigeria is off-track in meeting the Water & Sanitation MDG targets- An investment of about $2.6billion at $371 million every year till 2015 required- Weak governance structure in the provision of water

IPC Outlook for 2013

• Policy Dialogue on Integrated Land Transport Infrastructure (Q1)• Roundtable on Steady Gas Supply to NIPP Projects (Q1)• 2nd Stakeholders Forum on Railway (Q2)• Policy Dialogue with Honourable Minister of Works (Q2)• 3rd International Conference on Infrastructure Development (Q3)• Sustained and rigourous advocacy on passage of infrastructure-related bills• Interactive sessions with relevant committees in NASS• Engagement with SURE-P• Interactive Sessions with Heads of MDAs in infrastructure• Visits to selected project sites

NES #17 Recommendations on Infrastructure

• Open up infrastructure investment opportunities through power sector privatization and rail privatization

• Business case for a massive road infrastructure and investment programme for the following reasons:

- Significant job creation- Opens up the economy for the development of new towns- Access to markets for farmers- More efficient logistics for distribution of goods and services- Safer movement of people

Issues in focus for NES #18 • NES #17 Recommendations on infrastructure not yet fully implemented

• Nigerians want new and well-maintained roads, ports, bridges, airports, railways and other forms of infrastructure

• Nigeria still suffers a wide and growing infrastructure gap

• The binding constraints are in governance, finance and capacity

• Unlocking these constraints requires deep reforms in the sector

• To unleash these reforms, critical legislations – Bills and Acts – MUST BE ENACTED OR AMENDED

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Infrastructure Policy Commission Breakout Session

Theme: Providing the appropriate legislative framework to transform Nigeria’s infrastructure