Business
Water Management: Expert Harps On Private Sector Participation
Private sector participation in water management is inevitable for the attainment of the aims and objectives of Vision 20: 2020, a project manager has said.
Project Manager, Public-Private Partnership Resource Centre, Infrastructure Concension Regulatory Commissioner, Mr. Amanze Okere said this in a presentation titled, “Public Procurement via PPP’’ he made to the Minister of Water Resources, Chief Obadiah Ando.
He said that the National Planning Commission (NPC) estimates that 12 billion dollars to 15 billion dollars will be required annually for the next five to six years to develop the infrastructure deficit.
“The annual capital budget can only cover a fraction and agriculture accounts for over 40 per cent of real GDP while manufacturing contributes 4 per cent, ’’he said.
Okere advised the Ministry of Water Resources to utilise the PPP opportunities in the construction of earth dams, water projects and regional irrigation schemes, to develop the water sector.
According to him, the ministry needs to involve the PPP in developing its infrastructure, noting that public provision was often wasteful and inefficient.
He also noted that there were limitations in institutional and human capacity for project development, management, operations and maintenance in the public sector and called for a change.
The Project Manager listed the advantage of PPP approach in the water sector to include reduction of development risk, reduction of public capital investment and mobilization of excess or under-utilised assets.
Others, he said, were improvement of efficiency, quicker completion of project, contract terms drive performance as well as shared/allocated risks and mutual rewards.
In his remark, Ando promised that an officer would be appointed in the ministry to liaise with the commission on the modalities for infrastructure concession.
“We are ready to involve the private sector in the development of our water projects in such a manner that the common man can afford them, ’’Ando said.
Also speaking, Dr Godknows Igali, the Permanent Secretary in the ministry, noted that PPP had helped to develop infrastructure in countries such as Singapore and Dubai.
Igali said the ministry had no choice than to involve PPP in the development of irrigation, water supply and dams projects.
“Because water is different from other infrastructure, it is a basic necessity of life, so we will like to start the PPP with our pilot projects.
“A team of staff drawn from all the departments will also be set up to look into other areas we can partner with the commission, ’’ he said.
Reports said that ICRC was inaugurated by the late President Umar Yar’Adua in 2008, to help bridge the country’s enormous infrastructure gap.
ICRC is also aimed at providing requisite regulatory and institutional framework for ministries and agencies to partner with the private sector in financing, construction, operation and maintenance of infrastructure projects in the country.
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