For private companies seeking to do business with the Federal Government (FG) in the form of Public Private Partnerships, there is good news as the cost of PPPs just got lower. This is as a result of the removal of 2 compliance certification fees by the Infrastructure Concession Regulatory Commission (ICRC). The fees are the Outline Business Case (OBC) and Full Business Case (FBC) compliance certification fees. The directive became effective since October 19th, 2017.
The acting Director General (DG) of the ICRC, Mr. Chidi Izuwah, said the decision was a result of the feedback received from stakeholders and potential investors who complained that the cost of PPPs project preparation was too high while its procedure was too cumbersome.
“Following feedback from stakeholders and potential investors with respect to the cost and procedure of Public Private Partnership (PPP) project preparation and in a bid to give additional push to the Ease of Doing Business in Nigeria, policy of the current administration, the ICRC initiated steps aimed at mitigating the bottlenecks that impede the successful conclusion of PPP projects. Consequently, the Commission is pleased to inform all PPP stakeholders especially Ministries, Departments and Agencies (MDAs) of the federal government that full approval has been received from the office of the acting Secretary to the Government of the Federation to discontinue the OBC and FBC compliance certification fees with effect from 19th October 2017.” Izuwah said.
With the removal of these fees, it is expected that private companies engaging in PPPs with the government can complete the project preparation phase in less time and with less costs, which should in turn serve as a stimulant to attracting more investment, the DG said.
“It is hoped that this will provide the needed impetus to MDAs and other key stakeholders in the development and deployment of an avalanche of PPP projects.”
