By Modupe Gbadeyanka
The need for the amendment of the Lagos State Public Private Partnerships Law 2011 to address certain gaps in the legislation has been emphasised by some stakeholders in the industry.
At an interactive session between the Office of Public-Private Partnerships (OPPP) and members of the Lagos State House of Assembly House Committee on PPP over the weekend, participants noted that “The PPP law should be amended to expand the circumstances where a project may be excluded from the OCB requirement and provide for the ability of private participants to submit unsolicited proposals.”
“The PPP law should clearly define what PPP is, clearly the scope of its law, and provide an exhaustive list of permitted and prohibited sectors where PPP is applicable to give clarity to investors.
“It is recommended the law is amended to provide for the nature of support that may be provided by procuring entities and to remove the restriction on the ability to provide guarantees for PPP projects.
“The law [should] be amended such that the PPP Office may have oversight functions in respect of the implementation of PPP projects within the state,” they posited.
Also, at the gathering, suggestions on ways to further strengthen the PPP structure in the state with a view to delivering greater value, impacting more people, and improving the service delivery efficiency of the PPP Office were given.
They submitted that ensuring value for money expended on PPP projects was the responsibility of the OPPP, House Committee, and the private equity investors, calling on all stakeholders in a PPP arrangement to understand the requirements of PPP, including project financing from the beginning to the end.
“The major role of the OPPP is to provide a global view of making decisions and quantifying guarantees; ensuring value for money expended on projects is the major responsibility of the OPPP, House Committee, and the private partner.
“The public sector should avoid over-influencing projects (subsidising) and focus more on the value that the project will offer.
“Quantifying the cost of a PPP project cannot be easily estimated from inception; hence it is important for all stakeholders to be fully informed of the demands and dynamics of the project before delving into PPP,” they stated.
They also noted that dealing with macroeconomic issues will create a long-term effect on PPP projects and recommended that risks registered on projects should be strictly considered, including the advance determination of which party can best influence or take liability for the consequences of unforeseen risks.
“Once the risks have been identified, there has to be risks mapping; hence risk identification, allocation, and mitigation become necessary,” they said.
