Lagos, Nigeria, November 14, 2011—IFC,
a member of the World Bank Group, today announced it will provide Advisory
Services for a new public-private partnership to build a hospital in Nigeria’s
Cross River State, and that it will explore the financing of a second Niger
River bridge project at the request of the government.
The announcements were made at the opening session of the Africa Regional
Public-Private Partnership Conference in Lagos today. The two day event,
sponsored by IFC, the World Bank’s Public-Private Infrastructure Advisory
Facility, and Nigeria’s Infrastructure Concession Regulatory Commission,
seeks to bridge the gap between PPP theory and best practices to help create
new opportunities for increased private infrastructure in Nigeria and other
The IFC Advisory Services mandate will help the Cross River State government
identify a private company to build and operate a new hospital. It builds
on a successful mandate IFC received to help the government of Lesotho
attract a private investor to build a world-class hospital in Maseru that
opened in October. IFC will also consider the feasibility of a public-private
partnership that would lead to investment for a second Niger River bridge
Jean Philippe Prosper, IFC Director for Eastern and Southern Africa said,
“Well-structured Public-Private Partnerships in physical and social infrastructure
are a priority for IFC because they can help African governments raise
the large sums of capital required to meet infrastructure needs in energy,
health, logistics, transportation, and water and sanitation.”
The conference includes presentations from a range of public and private
sector officials from across Africa including H.E. Liyel Imoke, Governor,
Cross River State, Nigeria; H.E. Dr. Mu’azu Babangida Aliyu, Governor,
Niger State, Nigeria; Esther Koimett, Investment Secretary, Kenyan Ministry
of Finance; Dr. Dayo Mobereola, Director General of the Lagos State Mass
Transit Rail System; Herbert Pohl, partner at McKinsey & Company; and
William Dachs of the Gautrain Management Company.
Yolande Duhem, IFC Director for West and Central Africa said, “There is
a large body of economic research that shows infrastructure investment
results in more growth and poverty reduction. We thank PPIAF and the government
of Nigeria for working together with IFC on this conference to promote
these important partnerships.”
The World Bank estimates that Africa requires more than $90 billion annually
in investment in maintenance and new projects, but is spending less than
half of that. The impact of the infrastructure deficit is enormous. The
World Bank, for example, estimates that the Nigerian manufacturing sector
must bear additional indirect costs amounting to 16 percent of sales because
of bottlenecks in the business environment, much of it related to infrastructure.
Losses due to power outages alone amount to 10 percent of sales.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal year 2011, amid economic
uncertainty across the globe, we helped our clients create jobs, strengthen
environmental performance, and contribute to their local communities—all
while driving our investments to an all-time high of nearly $19 billion.
For more information, visit www.ifc.org.
The Public-Private Infrastructure Advisory Facility was created in 1999
to act as a catalyst to increase private sector participation in emerging
markets. It provides technical assistance to governments to support the
creation of a sound enabling environment for the provision of basic infrastructure
services by the private sector.
The key strategic objective for the Infrastructure Concession Regulatory
Commission is to accelerate investment in national infrastructure through
private sector funding by assisting the Federal Government of Nigeria and
its Ministries, Departments, and Agencies to implement and establish effective
Public Private Partnership process.