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INFRASTRUCTURE INVESTMENT OPPORTUNITIES

INFRASTRUCTURE INVESTMENT OPPORTUNITIES for THE NIGERIA CENTENARY CITY AND ROAD INFRASTRUCTURE BUSINESS IN NIGERIA. Presented By: AMBASSADOR BASHIR YUGUDA Honourable Minister of State for Works At PARTNER III G20 AFRICA INFRASTRUCTURE INVESTMENT CONFERENCE,

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INFRASTRUCTURE INVESTMENT OPPORTUNITIES

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  1. INFRASTRUCTURE INVESTMENT OPPORTUNITIES forTHENIGERIACENTENARY CITY ANDROAD INFRASTRUCTURE BUSINESS IN NIGERIA Presented By: AMBASSADOR BASHIR YUGUDA Honourable Minister of State for Works At PARTNER III G20 AFRICA INFRASTRUCTURE INVESTMENT CONFERENCE, Millennium Hotel, Mayfair, London / House of Lords, LONDON July 18th 2013 17th – 19th July, 2013 FMW

  2. Nigeria’s Economic Blueprint: The Vision 20:2020 • Making the Nigerian economy one of the top 20 by the year 2020 with a GDP of USD900bn • Attracting US$130billion private capital over the next 10 years • Optimising key sources of economic growth by enhancing production for real sector’s competitiveness and for exports • Guaranteeing productivity by strengthening linkages between key sectors of the economy • Fostering sustainable social and economic development by ensuring national security and enhancing infrastructure. FMW

  3. Nigeria’s Economic Performance Indicators • The External Reserve as at June 2013 stood at US$48.76 billion. • The IMF projects a 7% growth in Nigeria’s growth for 2013 in its country report . • External Debt Profile with ample fiscal space • US$5.91 billion – 2013 • Industrial Capacity Utilisation – Over 50% (1st Half 2013) FMW Sources: CBN, DMO,NBS

  4. Global Real GDP Growth – 2011 & 2012 Nigeria has maintained an average growth of about 7% in the last three years BRICs High Income While World GDP continues to shrink, Nigeria is expected to sustain its growth at about 7% FMW Source: World Economic Outlook 2012

  5. World’s Fastest Growing Economies - 1 Source: National Bureau for Statistics (NBS) FMW

  6. World’s Fastest Growing Economies - 2 Nigeria’s economy is rated as the world’s topmost ‘global growth generator’ (3G) of the next 40 years ........ CIRA FMW Citi Investment Research and Analysis

  7. Nigeria’s Economy: ‘too large to ignore’ • 8th largest population in the world – over 167 million people • 4th largest population under the age of 20 • 10th world largest reserves of oil and gas • 36.2 billion barrels of oil • 184 trillion Cubic Feet of natural gas • 4th largest equity market in the MSCI Frontier Market index • Largest outside of the Gulf Cooperation Council (GCC) • 5th fastest growing economy in 2010 covered by Citi Investment Research and Analysis (CIRA) economists – China, Taiwan, Singapore & Qatar • 1st among the N-11 leading ‘global growth generators’ (3G) over the next 40 years • Prospects of growing its global GDP share to 2.5% in 2050, overtaking Italy, France, and UK • Home to emerging world’s largest cement companies - The DANGOTE GROUP FMW

  8. THE NIGERIA CENTENARY CITY PROJECT • One of the endearing legacies of the Nigeria Centenary celebration shall be the development of a Centenary City in Abuja the Federal Capital from 2014. • The City is conceived to be developed over 1000 hectares of land to focus the attention of the investing world to Nigeria in a way that has never been done before. • The successes of such cities as Dubai, Monaco, Shenzhen, Singapore and lately Songdo have shown that development of certain class of cities is the strongest social, political and economic tool to securing Foreign investment, promoting positive international attention and indeed signalling a new economic awakening. • The City promises to be one of the most outstanding legacies of the Centenary. FMW

  9. THE ABUJA CENTENARY CITY • A GREEN CITY – with a natural buffer that envelopes the entire City and encircles the central neighbourhood that protects and nurtures the whole world-class public facilities; • ZERO WASTE MANAGEMENT – The city will aim at reducing waste to zero. Domestic waste will be used to create nutrient-rich soil, fertilizer and incinerated as an additional power source. Other wastes such as plastics and metals will be recycled or re-proposed for the other uses; • A CENTRAL PARK – that provides the green-spirit which gives orientation, clarity and iconic power to the City as a whole but most powerfully to the City Centre. • FLEXIBLE TOPOGRAPHIES – that are all conceptually related to one another so that they can be placed together to create a rich, elegant, textured and vibrant City. • AN URBAN GRID – super-block system that is modular and organic yielding a resulting grid of arteries, streets and pathways with and efficient traffic system where pedestrians, bicycles, motorcars, trams and monorail can co-exist in a friendly human way; FMW

  10. THE ABUJA CENTENARY CITY • INDEPENDENT POWER SOURCE – With a gas-fired 500MW power plant connected directly to a gas terminal, constant power supply to the City can be taken for granted. • WATER MANAGEMENT – Planned in an environmentally sound manner where approximately 60 percent of the water used will be recycled and waste water reused as many times as possible. • PUBLIC AREAS – A prominent cultural core with various symbols of Nigeria’s Unity and Strength, Parks, Galleries etc. • COMMERCIAL – Exquisite Office Tower, Exotic Hotel, Magnificent Shopping Malls, Imposing Expo/Convention Centre, Cosy Theatres and Cinemas; • RESIDENTIAL – Elegant High-rise Apartment & Apartment Towers, Single Family Houses, Semi Detached Houses, Row Houses, Apartment Blocks; • CIVIC – Primary & Secondary Schools, University Campus, Health Centres, Health Farms and Theme Parks; FMW

  11. THE ABUJA CENTENARY CITY • INSTITUTE OF SPORTS – Sports shall be given prominence in the City with the top-of-the range sporting facilities, which shall include a signature golf course. • SPORTS HOSPITAL – A modern sports hospital that will be on the cutting edge of sports medicine and providing 5-star level services The Sports Hospital will offer state-of-the-art diagnostic tools and services. • BUSINESS CENTRE – A preferred destination for multi-national and domestic businesses. It is expected that the top most corporate bodies in Nigeria will have their show rooms in the City. • PRESIDENTIAL ARCHIVES – To house the history of our political development and the contributions of our Presidents and the Nigerian Institute of Federalism. • A NEW CEREMONIAL ARCADE (UNITY SQUARE) – To compliment the Eagle Square to add colour to the Government ceremonies and activities. FMW

  12. THE ABUJA CENTENARY CITY • NEW ABUJA CITY GATE – A magnificent and awe-inspiring architectural masterpiece that will eloquently introduce the Centenary City and welcome visitors to Abuja. • With a five year development period,theCity is planned for a residential population of about 100,000 people but to host about 500,000 visitors daily. It shall promote world- class multinational and domestic businesses in a world-class and master planned environment that gives meaning to Life, energy for Work and pleasure and greatness into the next centenary. FMW

  13. THE ABUJA CENTENARY CITY • Features that have been contributed to the success of other cities of this nature include: • Trade Free Zone • Duty Free Regime • Tax Holiday • Chartered Status • Offshore Status • Outstanding Infrastructure and secured business environment • Expanded and efficient transport services especially Air Services • Secured Environment etc. FMW

  14. SECTION 2 • A PRESENTATION ON THE INVESTMENT OPPORTUNITIES IN THE NIGERIA ROAD SECTOR FMW

  15. INTRODUCTION • The total road network in Nigeria is estimated at about 200,000km and owned & managed as follows: Federal Government - 17% (Over 34,000Km) States - 16% and Local Governments - 67% of the road network respectively. • In Nigeria, the road sector accounts more than 80% of of all freight and passenger movements, thus underscoring their crucial importance to the economy of the country. • The Federal roads have been subjected to severe pressure as a result of increased vehicular traffic as well as freight especially given the near absence of rail, marine and other forms of transport to convey heavy goods. FMW

  16. INTRODUCTIONcontd. • Funding road infrastructure projects remains a major constraint in the delivery of efficient and improved road networks across the country. • On an average, the annual funding requirement is estimated at N500b (US$3.125b) against an average budgetary allocation of N120bn (US$0.75b) with a deficit of N380bn. (US$3.375b) • The deficit is evident to have negative consequences on the development of road infrastructure undermining national economic growth. • Huge capital resources are needed for sustainability of this huge network which cannot be met by Government hence need for Private Sector involvement via PPP and concessionary loans. FMW

  17. ROAD OWNERSHIP STRUCTURE IN NIGERIA FMW

  18. NIGERIA INTEGRATED TRANSPORT NETWORK FMW

  19. ROAD INFRASTRUCTURE BUSINESS OPPORTUNITIES IN NIGERIA • The Federal Ministry of Works has developed Outline Business Cases (OBC) for viable and bankable major highways (brown fields) in the nation to attract private sector participation and direct foreign investments into the sector. • For other Greenfield road projects, opportunity also exists like proposed “Strategic Highway Investment for Transformation (SHIFT)” • The appropriate framework for Public Private Partnerships (PPP) in Nigeria is already in place - Establishment of the Infrastructure Concession Regulatory Commission (ICRC) and development of National Policy on PPP. FMW

  20. INVESTMENT OPPORTUNITIES BY PUBLIC PRIVATE PARTNERSHIP(PPP) INITIATIVES FMW

  21. NIGERIA ROAD NETWORK FMW

  22. INVESTMENT OPPORTUNITIES BY PUBLIC PRIVATE PARTNERSHIP(PPP) INITIATIVES FMW

  23. INVESTMENT OPPORTUNITIES BY PUBLIC PRIVATE PARTNERSHIP(PPP) INITIATIVES FMW

  24. HIGHLIGHTS ON THE INVESTMENT OPPORTUNITIES BY PUBLIC PRIVATE PARTNERSHIP(PPP) INITIATIVES: ENUGU – PORTHARCOURT DUAL CARRIAGEWAY • The Enugu-Port Harcourt Road is located within the South East and South South Zone of Nigeria. • The road lies between Longitude 07° 00’E and 08° 00’E and Latitude 04° 30’N and 06° 30’N • The Road alignment is part of Route A3 which traverses the South South through the North Central to the North Eastern part of Nigeria. • The section of the road under consideration is 210km long and links the oil rich Niger Delta and sea port in Port Harcourt to the Northern part of the country via the South Eastern States of Nigeria. FMW

  25. HIGHLIGHTS ON THE INVESTMENT OPPORTUNITIES BY PUBLIC PRIVATE PARTNERSHIP(PPP) INITIATIVES: ENUGU – PORTHARCOURT DUAL CARRIAGEWAY • The existing asphalt dual carriageway is 7.3m wide with 2.75m surface dressed outer shoulders and 1.5m inner shoulder on either side. • The pavement structure is made up of laterite sub-base, crushed stone base and asphaltic concrete wearing course. • There are about 2 bridges along the road alignment with several culverts and other hydraulic structures. • The road has a recorded Average Daily Traffic (ADT) of 9,000 vehicles per day in 2011. • The ADT is projected to reach 9,540 vehicles per day in the year 2012. The condition of the road can be described as poor. • Studies/Reports to embark on the PPP project has been commissioned. • Feasibility and Viability studies have been completed and Outline Business Case (OBC) substantially completed. FMW

  26. MAP OF NIGERIA SHOWING LOCATIONS OF PIPELINE PPP PROJECTS KADU NA-KANO DUAL CARRIAGEWAY ABUJA-KADUNA DUAL CARRIAGEWAY BRIDGE OVER RIVER BENUE AT IBI RIVER NIGER BRIDGE AT NUPEKO RIVER KATSINA ALA BRIDGE AT BURUKU MURTALA MOHAMMED INT‘L AIRPORT ROAD 2ND NIGER BRIDGE AT ONITSHA/ASABA LAGOS-BADAGRY- SEME BORDER ROAD ENUGU-PORTHARCOURT ROAD FMW 41

  27. INVESTMENT OPPORTUNITIES OF PIPELINE PPP PROJECTS FMW

  28. INVESTMENT OPPORTUNITIES OF PIPELINE PPP PROJECTS KANO FUNTUA ZARIA BIRNIN GWARI KAD SAMINAKA JOS MINNA MOKWA BIDA ABUJA ILORIN LAFIA OGBOMOSHO LOKOJA OSHOGBO MAKURDI IBADAN OTUKPA LEGEND ORE PROPOSED GOLDEN (ECONOMIC) TRIANGLE SUPER-HIGHWAY (4 ABOVE) LAGOS-KISHI-KAIMA ROAD BODO/BONNY ROAD ENUGU BENIN LAGOS ONITSHA OKIGWE WARRI OTHEF HIGHWAYS: 1,2 & 3 ABOVE UMUAHIA 2ND LAGOS OUTER RING ROAD WARRI OWERRI ABA YENAGOA PORTHARCOURT FMW

  29. HIGHLIGHTS ON THE MAJOR HIGHWAYS INVESTMENT OPPORTUNITIES:LAGOS-ISEYIN-KISHI-KAIAMA-BAHANA-BODE-KAOJE-GWANBE-FOKKU-SOKOTO ROAD ● The Lagos – Iseyin– Kishi– Kaiama– Bahana– Bode – Kaoje – Gwanbe – Fokku – SokotoRoad is located within the South West, North Central and North West Zone of Nigeria. ● The road lies between Longitude 02° 00’E and 05° 30’E and Latitude 06° 00’N and 13° 30’N. ● The Road is divided into Two Sections: • Section I: Badagry-Iseyin-Kishi-Kaiama (414.4km); • Section II: Kaiama-Babana-Kaoje-Gwambu-Fokku-Jega-Sokoto (631km) ● The road under consideration links Lagos the economic nerve centre of Nigeria to North Central and North West parts of the country. FMW

  30. HIGHLIGHTS ON THE MAJOR HIGHWAYS INVESTMENT OPPORTUNITIES:SECTION I: Badagry-Iseyin-Kishi-Kaiama - 414.4km • The existing carriageway varies from 6m to 7.3m wide with shoulders of an average width of 1.5m. • The pavement structure is made up of laterite sub-base, laterite base and asphaltic concrete wearing course on some sections while other sections are earth roads. • The alignment has many sub-standard bridges and hydraulic structures. • The road has a recorded Average Daily Traffic (ADT) of 9,000.00 vehicles per day in 2011. • The ADT is projected to reach 9,540.00 vehicles per day in the year 2012. The condition of the road can be described as poor. • Feasibility and Viability studies have been completed including the Outline Business Case (OBC) FMW

  31. HIGHLIGHTS ON THE MAJOR HIGHWAYS INVESTMENT OPPORTUNITIES:SECTION II: Kaiama-Babana-Kaoje-Gwambu-Fokku- Jega-SokotoBadagry-Iseyin-Kishi-Kaiama - 631km • The existing carriageway comprises of sections with asphaltic concrete pavement and surface dressed pavements. The width varies from 6m to 7.3m with shoulders of an average width of 1.5m. • The pavement structure is made up of lateritic sub-base & base and asphaltic concrete wearing course on some sections while other sections are surface dressed. • The alignment consists of 16No. Bridges with many culverts and other hydraulic structures. • The road has recorded Average Daily Traffic (ADT) of 5,000.00 vehicles per day in 2011. • The ADT is projected to reach 5,300.00 vehicles per day in the year 2012. This is attributed to the poor condition of the road . • Feasibility and Viability studies have been completed including the Outline Business Case (OBC). FMW

  32. HIGHLIGHTS ON THE MAJOR HIGHWAYS INVESTMENT OPPORTUNITIES:BODO-BONNY ROAD IN RIVERS STATE DESCRIPTION OF THE ROAD: • Bodo – Bonny Road has a length of 39km. • The road lies between Longitude 07° 30’E and 07° 00’E and Latitude 05° 00’N and 04° 30’N • The road links Bodo on the mainland to the industrial Island of Bonny that houses the Liquefied Natural Gas (LNG) factory in Rivers State. • It traverses a typical Niger Delta terrain of mangrove swamps and creeks. FMW

  33. HIGHLIGHTS ON THE MAJOR HIGHWAYS INVESTMENT OPPORTUNITIES:BODO-BONNY ROAD IN RIVERS STATE: ROUTE CHARACTERISTICS • The route traverses through thick forests, swamps and creeks. • It is a virgin route with no history of any development. • The Project area traverses numerous creeks and rivers, which empty into the Atlantic Ocean. • Over 60% of the roadway traverses swampy terrain which is inundated by the daily tidal flow around the area. • Contract for construction of the Road had earlier been awarded, but due to paucity of funds, only 20% achievement. FMW

  34. HIGHLIGHTS ON THE MAJOR HIGHWAYS INVESTMENT OPPORTUNITIES:RIVER NIGER BRIDGE AT NUPEKO The Bridge is located in the North Central Zone of Nigeria in Niger State. The Bridge lies between longitude 05° 30’E and 06° 00’E and latitude 08° 30’N and 09° 00’N. The Bridge under consideration is 950m long and links Niger and Kwara States in Nigeria. FMW

  35. HIGHLIGHTS ON THE MAJOR HIGHWAYS INVESTMENT OPPORTUNITIES:RIVER NIGER BRIDGE AT NUPEKO • There is no existing bridge at the current location. Movement of goods and services within the project area are by ferry services. • The new bridge is to be constructed as a single carriageway with two lanes and pedestrian walkways. • The road has a low Average Daily Traffic (ADT) due to the absence of a bridge at Nupeko to link Niger and Kwara States. • Studies/Reports to embark on the PPP project has been commissioned. • Feasibility and Viability studies have been completed including the Outline Business Case (OBC). • The project has been advertised for concessioning. FMW

  36. HIGHLIGHTS ON THE MAJOR HIGHWAYS INVESTMENT OPPORTUNITIES:RIVER KATSINA ALA BRIDGE AT BURUKU The Bridge is located in the North Central Zone of Nigeria in Benue State The Bridge lies between Longitude 09° 00’E and 09° 30’E and Latitude 07° 00’N and 07° 30’N The Bridge under consideration is 880m long and would link Gboko and Zaki -Biam communities in Benue State. FMW

  37. HIGHLIGHTS ON THE MAJOR HIGHWAYS INVESTMENT OPPORTUNITIES:RIVER KATSINA ALA BRIDGE AT BURUKU • There is no existing bridge at the current location. Movement of goods and services within the project area are by ferry services. • The new bridge is to be constructed as a single carriageway with two lanes and pedestrian walkways. • The road has a low Average Daily Traffic (ADT) due to the absence of a bridge at Buruku. • Studies/Reports to embark on the PPP project has been commissioned. • Feasibility and Viability studies completed with the OBC substantially completed. FMW

  38. HIGHLIGHTS ON THE MAJOR HIGHWAYS INVESTMENT OPPORTUNITIES:RIVER BENUE BRIDGE AT IBI The Bridge is located in the North Central Zone of Nigeria in Benue State The Bridge lies between longitude 09° 30’E and 10° 00’E and latitude 08° 00’N and 08° 30’N The Bridge under consideration is 880m long and links Gboko and ZakiBiamcomunities in Benue State. FMW

  39. HIGHLIGHTS ON THE MAJOR HIGHWAYS INVESTMENT OPPORTUNITIES:RIVER BENUE BRIDGE AT IBI • There is no existing bridge at the current location. Movement of goods and services within the project area are by ferry services. • The new bridge is to be constructed as a single carriageway with two lanes and pedestrian walkways. • The road has a low Average Daily Traffic (ADT) due to the absence of a bridge at Ibi town. • Studies/Reports to embark on the PPP project has been commissioned. • Feasibility and Viability studies completed and OBC substantially completed. FMW

  40. HIGHLIGHTS ON THE MAJOR HIGHWAYS INVESTMENT OPPORTUNITIES: 2ND NIGER BRIDGE AT ONITSHA/ASABA IN ANAMBRA & DELTA STATES The Bridge is located in the North Central and South Eastern Zone of Nigeria ●The Bridge lies between longitude 06° 30’E and 07° 00’E and latitude 06° 00’N and 06° 30’N The Bridge under consideration is 2km long and links Onitsha in Anambra State to Asaba in Delta State. FMW

  41. HIGHLIGHTS ON THE MAJOR GREENFIELD HIGHWAYS INVESTMENT OPPORTUNITIES: 2ND LAGOS OUTER RING ROAD FMW

  42. HIGHLIGHTS ON THE MAJOR GREENFIELD HIGHWAYS INVESTMENT OPPORTUNITIES: 2ND LAGOS OUTER RING ROAD • CURRENT SITUATION: • The Lekki Free Zone (LFZ) has main access with the Lekki - Epe Expressway which joins the coastal road towards the South and has only one entrance facing the Atlantic. • Traffic bottleneck exists along Lekki Peninsula/Victoria/Lagos Mainland link road. • Most part of LFZ is not directly accessible from the Lekki-Epe Expressway going towards the North. • The planned Deep Sea Port & Airport will attract huge traffic/transportation volume that will worsen the already congested Lekki-Epe Expressway. FMW

  43. HIGHLIGHTS ON THE MAJOR GREENFIELD HIGHWAYS INVESTMENT OPPORTUNITIES: 2ND LAGOS OUTER RING ROAD • PROPOSED SOLUTION: • Construct a 25Km 4-lane link road from the Lekki-Epe Expressway to the LFZ. • Construct a 5th Mainland Bridge consisting of 5.4Km Bridge over Lagoon, 200m Bridge over the Creek and 20.3Km rad length (adoption of 2-lane dual carriageway. • Completion of the eastern loop with a 2-lane dual carriageway to link Shagamu – Benin Expressway. FMW

  44. FUTURE PLANS OF THE MINISTRY • BRIDGING THE ROAD INFRASTRUCTURE GAP:- • The Federal Ministry of Works has developed a new plan for Green field projects – The Strategic Highway Investment for Transformation (SHIFT) Programme: • The Golden Triangle Super – Highway – Conceived to improve the nations economy and to be driven by the private sector. • Federal Government to provide the Right of Way (ROW) and offer guarantees in form of Viability Gap Funding (VGF). • Paradigm Shift • Shift in Institutional Structures • Shift in Mechanism for financing roads • Shift from Public to Private Sector Management FMW

  45. GOLDEN (ECONOMIC) TRIANGLE SUPER-HIGHWAY KANO FUNTUA ZARIA BIRNIN GWARI KAD SAMINAKA JOS MINNA MOKWA BIDA ABUJA ILORIN LAFIA OGBOMOSHO LOKOJA OSHOGBO MAKURDI IBADAN OTUKPA ORE ENUGU BENIN LAGOS LEGEND ONITSHA OKIGWE WARRI PROPOSED GOLDEN (ECONOMIC) TRIANGLE SUPER-HIGHWAY UMUAHIA WARRI OWERRI ABA YENAGOA SUPER-HIGHWAY LINKS TO MAJOR CITIES PORTHARCOURT FMW

  46. SHIFT PROGRAMME(WHAT WE ARE CURRENTLY DOING) FMW

  47. KEY FEATURES OF THE GOLDEN (ECONOMIC) TRIANGLE SUPER-HIGHWAY • 4 to 6 lanes entirely new super-highway • Connects key hubs of economic activity in the country • Within 1hr of 30 cities and state capitals • Crosses or within reach of 20 states of the Federation • It will add approximately 5,000km to the national network of roads in Nigeria • It will ensure the provision of world-class services on public highway facilities as well as attract Real Estate development along the ROW • Attraction of Direct Foreign Investment and Private Sector finances with return on investment through tolling (PPP’s) • New economies will be created along corridor (e.g. tourism in the coastal alignment) • Precedence: High growth economies: China, India, Brazil, Malaysia etc. FMW

  48. SECTION 3 • REGULATORY FRAMEWORK FOR PPPs in Nigeria FMW

  49. Nigerian Legal and Regulatory Framework for PPPs FMW

  50. A World Class Integrated Road Network is Our National Aspiration FMW

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