A REPORT OF THE Activities of the
INFRASTRUCTURE CONCESSION REGULATORY COMMISSION And
THE AUDITED ACCOUNTS FOR THE YEAR ENDED 31ST DECEMBER 2013
1
His Excellency
Dr. Goodluck Ebele Jonathan, GCFR President Federal Republic of Nigeria
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His Excellency
Arc. Namadi Sambo, GCON Vice President Federal Republic of Nigeria
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His Excellency,
Senator Ken Nnamani, GCON Chairman Infrastructure Concession Regulatory Commission Governing Board
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Mr. Aminu Diko Director General/CEO Infrastructure Concession Regulatory Commission
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5 GOVERNING BOARD MEMBERS
Senator Ken Nnamani, GCON
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Senator Anyim Pius Anyim, GCON Secretary to the Government of the Federation
Mr. Mohammed Bello Adoke, CFR, SAN Attorney General of the Federation & Minister of Justice
Dr. Ngozi Okonjo Iweala, CFR Minister of Finance and Co-ordinating Minister of the Economy
Mallam Sanusi Lamido Sanusi Governor of the Central Bank of Nigeria
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6 GOVERNING BOARD MEMBERS
Barr. Comfort Sira Wiwa
Hon. (Engr.) Janet Febisola Adeyemi
Mrs. Yabawa L. Wabi, MNI
Col. Umar Farouk Ahmed (Rtd.)
Hon. Musa Elayo Abdullahi
Chief (Barr.) A.U. Kanu
Mr. Aminu Diko
ICRC BOARD COMMITTEES Human Resources & Establishment Committee Finance & General Purpose Committee Audit & Technical Committee Contract Compliance Committee Media & Publicity Committee 2013 ANNUAL REPORT
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Executive Management Committee
Dr. Ghaji Bello Executive Director, SSD
Engr. Chidi Izuwah Executive Director, P3RD
Mr. Aminu Diko Director General
Mr. Chiedu Ndubisi Technical Adviser to the DG & Head Planning & Research
Mr. J.A.M Ohiani Head Legal & Governance & Ag. Executive Director CCD
ICRC MANAGEMENT STAFF Mr. Aminu Diko Engr. Chidi Izuwah Dr. Ghaji Bello Mr. J. A. M. Ohiani Mr. Chiedu Ndubisi Mr. Mohammed A. Bamalli Mr. Togunde Dada Hammed Mr. Desmond Oshenye Mr. Olugbenga Odugbesan Mr. Kabiru Bamidele Yusuf Mr. Ewalefoh Oseodion Jobson Dr. Felix Ogbera
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Director General Executive Director, Public Private Partnership Resource Department Executive Director, Support Services Department Ag. Executive Director, Contract Compliance Department & Head, Legal and Governance Technical Adviser to DG/Head, Planning & Research Head, Human Resources and Administration Head, Internal Audit Head, Finance & Accounts Head, Communications Head, Procurement Head, Information & Communication Technology Ag. Head, Monitoring and Compliance
TABLE OF CONTENTS
8
GLOSSARY OF TERMS
10
CHAIRMAN'S STATEMENT
13
DIRECTOR GENERAL'S STATEMENT
16
EXECUTIVE SUMMARY
20
1. BACKGROUND
26
2. ROLE & MANDATE
28
3. INSTITUTIONAL STRUCTURE & GOVERNANCE
30
4. KEY ACTIVITIES IN 2013 4.1 Introduction 4.2 Governance and General Activities 4.2.1 Executive Management 4.2.2 Policy-Related and Strategic Initiatives 4.2.3 Building PPP Networks 4.2.4 Capacity Building for MDA 4.2.5 National Integrated Infrastructure Master Plan 4.2.6 World Bank Adaptable Program Lending
32 32 32 32 33 33 33 33 34
4.3 4.3.1. 4.3.2. 4.3.3 4.3.4 4.3.5
Pre -Contract Regulatory Activities Overview Key Activities PPP Implementation Phase PPP Development Phase PPP Procurement Phase
35 35 35 36 36 40
4.4 4.4.1. 4.4.2. 4.4.3. 4.4.4. 4.4.5.
Post -Contract Compliance Management Overview Key Activities Contract Monitoring Activities Sectorial Performance Assessment of PPP Projects Other Departmental Activities
41 41 43 45 46 47
4.5 4.5.1. 4.5.2.
Support Services Overview Key Activities
48 48 48
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5. CHALLENGES AND CONSTRAINTS
50
6. FINANCIAL SUMMARY
52
7. CONCLUSION AND RECOMMENDATIONS
53
APPENDICES Appendix 1: The Nigerian PPP Process
55
Appendix 2 : A published list of Federal Government PPP Projects Pipeline for 2013 56
2013 ANNUAL REPORT
AfDB ATC BASL
African Development Bank Audit & Technical Committee Bi-Courtney Aviation Services Limited
AGF
Attorney General of the Federation
APPPN /A3PN
African PPP Network
BCC BCCC BOF
Bi-Courtney Consortium Board Contract Compliance Committee
BPE
Bureau of Public Enterprises
CCD
Contract Compliance Department
CBN
Central Bank of Nigeria
DFID
UK Department for International Development
DFBOT
Design, Finance, Build, Operate & Transfer
DFIs
Development Finance Institutions
DG
Director General
DMO
Debt Management Office
ED
Executive Director
EIA
Environmental Impact Assessment
EMIT
Economic Management Implementation Team
EoI
Expression of Interest
EPC
Engineering, Procurement and Construction
FAAN
Federal Airports Authority of Nigeria
FBC
Full Business Case
FCT
Federal Capital Territory
FCTA
Federal Capital Territory Administration
FEC
Federal Executive Council
FGN
Federal Government of Nigeria
FIRS
Federal Inland Revenue Service
FMoA
Federal Ministry of Aviation
FMoF
Federal Ministry of Finance
FMoJ
Federal Ministry of Justice
FMoI
Federal Ministry of Interior
FMoW
Federal Ministry of Works
FMoP
Federal Ministry of Power
Budget Office of the Federation
GLOSSARY OF TERMS
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GLOSSARY OF TERMS
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FM ITI
Federal Ministry of Industry, Trade and Investment
FERMA
Federal Road Maintenance Agency
FMoT
Federal Ministry of Transport
FMoH
Federal Ministry of Health
FMLH&UD
Federal Ministry of Lands, Housing & Urban Development
GAT
General Aviation Terminal
GDP
Gross Domestic Product
HSGOC
Heads of State Government Orientation Committee
ICD
Inland Container Depot
ICRC /Commission
Infrastructure Concession Regulatory Commission
ICRC Act ICT
Infrastructure Concession Regulatory Commission (Establishment, Etc) Act 2005 Information and Communications Technology
ICPC
Independent Corrupt Practices Commission
IPP
Independent Power Plant
ITWG
Infrastructure Technical Working Group
LCC
Lekki Concession Company
LITFC
Lagos International Trade Fair Complex
MDA
Ministries, Departments and Agencies
MMA
Murtala Mohammed Airport
MMA2
Murtala Mohammed Domestic Terminal
MoC
Memorandum of Cooperation
MoU
Memorandum of Understanding
MNDA
Ministry of the Niger Delta Affairs
NIAF
Nigerian Infrastructure Advisory Facility
NIMASA
Nigerian Maritime Administration and Safety Agency
NIWA
National Inland Waterway Authority
NEPAD
New Partnership for Africa's Development
NEMT N4P NIMC
National Economic Management Team National Policy on Public Private Partnership National Identity Management Commission
NIIMP
National Integrated Infrastructure Master Plan
NNPC
Nigerian National Petroleum Corporation
NPA
Nigerian Ports Authority
NPPPN
Nigerian PPP Network
NPC
National Planning Commission
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NRC
Nigerian Railway Corporation
NSC
Nigerian Shippers Council
NS IA
Nigerian Sovereign Investment Authority
NTWG
National Technical Working Group
NTIBC
National Trade and International Business Centre
OBC
Outline Business Case
OHCSOF
Office of the Head of the Civil Service of the Federation
O&M
Operations and Maintenance
PDT
Project Delivery Team
PENCOM
National Pension Commission
PSC
Project Steering Committee
PICI
Presidential Infrastructure Champion Initiative
PPP
Public Private Partnership
PTFP
Presidential Task Force on Power
RBDA
River Basin Development Authority
RFP
Request for Proposal
ROT
Rehabilitate, Operate and Transfer
RMAFC
Revenue Mobilization, Allocation and Fiscal Commission
SERVICOM
Service Compact With All Nigerians
SGF
Secretary to the Government of the Federation
SOO
Supply, Operate and Own
TBS
Tafawa Balewa Square
TSGP
Trans-Saharan Gas Pipeline
UNCTAD
United Nations Conference on Trade and Development
VGF
Viability Gap Fund
WBI
World Bank Institute
GLOSSARY OF TERMS
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CHAIRMAN'S STATEMENT
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DIRECTOR GENERAL'S STATEMENT
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EXECUTIVE SUMMARY
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Table 1 : LIST OF SOME PROJECTS ON THE NATIONAL PPP PIPELINE S/N
PROJECT
MDA
STAGE OF DEVELOPMENT
1
Rehabilitation and Upgrade of
Lagos-Iseyin-Kishi-Kaiama
FMoW
Development
FMoW
Development
Road (from Lagos, through Oyo to Kwara States). Rehabilitation and Upgrade of Kaiama-Bahana Bobe-Kaoje-
2
Gwabe-Fokku Sokoto road 3
Construction of River Katsina Ala Bridge at Buruku
FMoW
Development
4
Construction of River Benue Bridge at Ibi
FMoW
Development
5
Rehabilitation and Upgrade of the Murtala Mohammed
FMoW
Development
FMoW
Development
International Airport (MMIA) Road to Apakun Junction, Lagos. Dualization of Enugu (9th Mile Obollo Afor Otukpo-Makurdi
6
Road)
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Rehabilitation & Dualization of Ilorin Jebba-Mokwa-Tegina
FMoW
Development
8
Construction of River Niger Bridge at Nupeko, Niger State
FMoW
9
Rehabilitation and Upgrade of Kirikiri Lighter Terminals I & II
FMoT
Development Development
10
Operation and Maintenance of Onitsha River Port Complex
FMoT
Development
11
Construction of Ibaka Deep Sea Port
FMoT
Development
12
Concession of Onne Port IPP Lagos Independent Power Plant (Apapa IPP)
FMoT
Development
FMoT
Development
Concession for the Operation and Maintenance of Narrow
FMoT
Development
13 14
Gauge Eastern and Western Railway lines. 15
National Trade and International Business Centre
FMTI
Development
16
Abuja Medical City Mall
FMoH
Development
17
Development of Mechanic Village
SMEDAN
Development
18
Abuja Mass Transit Railway Lot 2
FCT
Development
19
Kuje Water Supply In Abuja
FCT
Development
20
FCT Roads Network Development & Modernization
FCT
Development
21
Concession of
Kainji, Jebba and Shiroro Hydro Electric
FMoP
Development
Development of Hydroelectric Power from existing 10 Small
FMoP
Development
Power Plants 22
& Medium Dams across the Country-45.25MW 23 24
Development of Coal to Power (1000MW approx)
FMoP
Development
Concession of the Multi-Purpose Components of the Gurara 1
FMoP
Development
dam 25
Concession of Agricultural Value Chain Projects
FMARD
Development
26
Concession and Leasing of Grain Storage Facilities (33 silos
FMARD
Development
FMoW
Procurement
FMoI
Implementation
across the country) 27 28
Construction of the Second Niger Bridge The Automation of Activities of the Citizenship and Business Department
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23 Also, the disputes in the two notable aviation concessions (FAAN and BCC on MMA2 and FAAN and MAEVIS Ltd) continued during the year even though operations went on unhindered. Disputes were equally recorded with regard to the operations of the GAT, Lagos and the tenure of the MMA2 concession.
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Section 1 BACKGROUND
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Section 2 ROLE & MANDATE
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House Committee on Special Duties visits ICRC as part of its oversight functions.
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Section 3 INSTITUTIONAL STRUCTURE & GOVERNANCE
Table 2: LIST OF ICRC GOVERNING BOARD MEMBERS 1.
Senator Ken Nnamani, GCON
2.
Senator Anyim Pius Anyim, GCON, (SGF)
3.
Mr. Mohammed Bello Adoke, CFR, SAN, (AGF)
4.
Dr. Ngozi Okonjo Iweala, CFR, (CME/HMF)
5.
Mal. Sanusi Lamido Sanusi, CON, (Gov, CBN)
6.
Barr. Comfort Sira Wiwa (South-South)
7.
Hon (Engr.) Janet Fabisola Adeyemi (South-West)
8.
Hajiya Yabawa Wabi (North-East)
9.
Hon. Musa Elayo (North-Central)
10.
Chief (Barr.) A.U. Kanu (South-East)
11.
Col. Umar Farok Ahmed rtd (North-West)
12.
Mr. Aminu Diko (DG, ICRC)
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Chairman Member Member Member Member Member Member Member Member Member Member Member/Secretary
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(b) (c)
The draft ICRC Regulations The ICRC Organizational
(d)
structure The ICRC Scheme of Service
In order to ensure a seamless discharge of its functions, the Board established five Committees with different areas of
Sen. Ken Nnamani, GCON, Chairman, ICRC Governing Board (1st left) and Mr. Aminu Diko, DG ICRC (1st right), during an inspection tour of the ICRC office by the ICRC Governing Board.
responsibility to provide advice to the Board on their respective areas of oversight. The
Legal and Governance and the Technical
Committees are: · C o n t ra c t C o m p l i a n c e C o m m i t te e
Adviser to the DG constitute the Executive Management Team of the ICRC.
(oversees activities of the Contract Compliance Department); · Audit and Technical Committee (oversees
3.2. Key Departments The PPP Resource Department is charged
the activities of the PPP Resource
with the responsibility of providing pre-
Department); · Human Resources and Establishment Committee (responsible for HR matters, ·
·
contract regulatory guidance to MDAs. It also maintains the national PPP project database and assists States in setting up appropriate
governance, institutional relations, etc); Finance and General Purpose Committee
Compliance Department takes custody of and
(responsible for all finance-related
ensures compliance with the PPP contracts
matters); and M e d i a a n d P u b l i c i t y C o m m i t te e
validly entered into by the MDAs on behalf of the FGN. The Support Services Department
(responsible for all communication-
provides an appropriate level of human,
related matters)
administrative, financial and facility support
3.1. Executive Management Reporting directly to the Director General (DG) are three Executive Directors (EDs) re s p o n s i b l e fo r t h e P P P Re s o u rc e Department, Support Services Department, and Contract Compliance Department. There is no mixed representation on the Board Committees to ensure the intended independence and autonomy of thought/policy direction. The DG, EDs, Head ICRC
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PPP regulatory framework. The Contract
services to ensure efficient and seamless operations of the Commission.
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Section 4 KEY ACTIVITIES IN 2013
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SERVICOM launch in ICRC
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Cross section of participants at the event
Alhaji Isa Bello, Head of the Civil Service of the Federation speaking during the inauguration of PPP units in Federal MDAs.
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Sen. Ken Nnamani GCON, Chairman ICRC, signing the visitor's book during the Commission's courtesy visit to Sen. Bala Mohammed, Minister of Federal Capital Territory
Group picture of ICRC's Governing board's courtesy visit to Sen. Bala Mohammed (4th on the front row), Minister of Federal Capital Territory.
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Group picture of ICRC's Governing board's courtesy visit to Mr. Sanusi Lamido Sanusi (6th), Governor of the Central Bank Nigeria .
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DG ICRC, Mr. Aminu Diko (first right) at the MOC signing on silo complexes with Dr. Akinwumi Adesina (first left), Honourable Minister of Agriculture.
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Concession of the multi-purpose components of the Gurara 1 dam
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Katampe site
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4.4.4 Sectoral Performance Assessment of PPP Projects. Figure 1: NUMBER OF PPPS AWARDED BY SECTOR Table 3: NUMBER OF AWARDED PPPS BY SECTOR Sectors/Projects S/No
Number of
% Composition of PPPs by Sector
PPP
(PPP in sector/total Projects*100)
Contracts 1
Aviation Concessions
3
8.11
2
Social Infrastructure (Complexes)
2
5.55
3
Information Technology
2
5.55
4
Inland Container Depot
6
15.8
5
Sea Ports and Marine Services
24
61.96
6
Urban and District Engineering
1
2.98
39
100%
Infrastructure Total
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47 Figure 2: AVERAGE PERFORMANCE OF PPP PROJECTS BY SECTOR - 1
Figure 3: AVERAGE PERFORMANCE OF PPP PROJECTS BY SECTOR - 2
DG ICRC, Mr. Aminu Diko, chatting with a resource person, Ms. Shyamala Shukla of the World Bank Institute, at the Stakeholders' consultative forum on the disclosure of contract information on PPP projects.
Discussants at the Stakeholders' Consultative Forum on the Disclosure of Contract Information on PPP Projects.
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Cross section of participants at the Stakeholders' consultative forum on the disclosure of contract information on PPP projects.
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Commission's end of year party
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Section 5 CHALLENGES AND CONSTRAINTS
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Section 6 FINANCIAL SUMMARY
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Section 7 CONCLUSION & RECOMMENDATIONS
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Appendix 1 THE NATIONAL PPP PROCESS
of
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Appendix 2 A PUBLISHED LIST OF FEDERAL GOVERNMENT PPP PROJECTS PIPELINE FOR 2013
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Appendix 2 A PUBLISHED LIST OF FEDERAL GOVERNMENT PPP PROJECTS PIPELINE FOR 2013
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INFRASTRUCTURE CONCESSION REGULATORY COMMISSION ABUJA
FINANCIAL STATEMENTS FOR THE YEAR ENDED ENDED DECEMBER 31, 2013
PKF PROFESSIONAL SERVICES [CHARTERED ACCOUNTANTS] ABUJA, NIGERIA
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C O N T E N T S Page(s)
LIST OF THE GOVERNING BOARD MEMBERS
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FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2013
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ICRC MANDATE
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64
70 64
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A C C O U N T I N G P O L I C I E S
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BALANCE SHEET AS AT DECEMBER 31, 2013
The Accounting Policies on page 65 and notes on pages 68 to 69 form part of these Financial Statements. Auditors' report on page 63.
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INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2013
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CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2013
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2013
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2013
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