Why MDAs Can’t Deliver PPP Projects -Osinbajo
Vice President Yemi Osinbajo has disclosed that MDAs cannot carry out Public, Private partnership (PPP) projects. This is because lacked the required capacity to deliver.
Osinbajo disclosed this at the Knowledge sharing Forum on PPP. The event is jointly organised by the African Development Bank Group and the Ministry of Finance.
The VP said the MDAs need to develop its capacity for the PPP programme to be effective. This includes an in-house staff with requisite skills in financial, legal, technical, procurement and project management areas.
He further stressed that capacity building efforts including training and availability of resource materials would be inevitable.
However, Osinbajo added that in the short run contracting consultants can help out with the problem. But, in a manner that ensures eventual transfer of knowledge to the public sector. In particular, public servants have to be involved in actual transactions and negotiations.
Private Sector Finance, Key To Development
He noted that that key factor for attracting private sector finance was a predictable and enabling policy, legal and institutional environment.
According to him, the Forum was another opportunity for a thorough analysis of policy, legal and institutional framework for PPPs, including assessing whether the current framework provides enough incentive for local and foreign investors alike.
He said Nigeria clearly requires a PPP regime that matches its ambitions. A closely related issue is whether we have the appropriate framework to enable the use of our very large and growing public pension assets estimated at about N5.3trn for the provision of infrastructure without putting these assets at risk.
Osinbajo was represented by Special Adviser on to the President on Economic Matters, Dr. Adeyemi Dipeolu.