INFRASTRUCTURE CONCESSION REGULATORY COMMISSION Plot 1270 Ayangba Street Area 11 Garki Abuja, Nigeria; Tel: +234- 09-4604900.; Email: [email protected] A SOLICITED PPP Procurement over Federal Government Infrastructure would follow the following steps: 1. PPP Project Identification Phase • Relevant Ministry, Department or Agency (MDA) will prioritize its projects and identify those to be developed through PPP. MDA would then prepare and submit a Project Concept Note to the Commission for assessment. • If the Commission’s assessment finds the project eligible for delivery through PPP, the Commission will advise MDA to begin Project Development. The MDA will constitute a Ministerial Project Steering Committee and a Project Delivery Team for the Project. • The Commission will annually develop an eligible pipeline of PPP projects for Approval by the Federal Executive Council (FEC) 2. PPP Project Development and Preparation Phase • Where MDA has no internal capacity to prepare an Outline Business Case 1 (OBC) for the project, the MDA shall engage a Transaction Adviser (TA) through a competitive bidding process as required under the Public Procurement Act of 2007, to produce the OBC. The TA will also guide the MDA through the entire transaction until an agreement is signed between parties. • The MDA would thereafter forward the OBC to the Commission for review. The Commission would issue an OBC Certificate of Compliance to the MDA or decline issuance and advise the MDA with reasons. • The Commission would consult the Federal Ministry of Finance (FMoF) in order to identify and appropriately handle any risk and contingent liabilities issues that may arise from the project. 3. PPP Procurement Phase • If the project is approved by FEC, the MDA would commence a procurement process leading to the emergence of a preferred PPP Project Proponent. • Negotiations would thereafter ensue, leading to the conclusion of a Full Business Case (FBC) 2 to be submitted to the Commission for review. The Commission would thereafter issue an FBC Certificate of Compliance to the MDA or decline issuance and advise the MDA with reasons. • The MDA would submit the FBC along with the Commission’s Certificate of Compliance to FEC for Approval. If FEC approves the FBC, the PPP contract between the MDA and the preferred PPP Project Proponent will be signed after which the Commission will thereafter take custody of the contract as required under the Section 20 of the Infrastructure Concession Regulatory Commission (Establishment Etc) Act 2005 (The Act). 4. PPP Implementation Phase • Eventually, for the project to take off, the preferred PPP Project Proponent must achieve Financial Close. 3 • The MDA is required under Section 12 of the Act to supervise the project diligently. On the other hand the Commission and the MDA are required, under Section 10 of the Act, to conduct regular joint Inspections of the Project until the end of the contract.

1

Outline Business Case. A document that aims to establish the need for the project and to outline parameters and scope, including cost and bankability demonstration. 2 Full Business Case: A document prepared by the MDA’s TA prior to financial close and award of contract which provides all the information needed to support a decision to award a contract and commit actual funding, as well as provide a basis for the necessary project management, monitoring evaluation and benefits realization. 3 Financial Close: The time when the financial documentation and covenants have been executed with lenders to the project, and condition precedent have been satisfied or waived . it is now permissible to draw money for project execution.

ICRC/PPP/Process June 2017