Public Private Dialogues on Infrastructure Draft Implementation FrameworkMinistry of Budget & National Planning, Abuja| 14 September 2017

Bola Ajibola & Co.

With history dating back to the mid 1940’s, Adams & Moore isa top UK professional advisory firm with specialist audit, taxand advisory teams, and a client base that extends beyondGreat Britain into mainland Europe, the middle-East, AsiaPacific and Africa from its regionally based offices in LondonBridge and Dartford.

A&M Transaction & Financial Advisory teams have deepsector experience in Infrastructure, ICT and Human CapitalDevelopment.

Established over 40 years ago, Bola Ajibola & Co is still led byits founder His Excellency, Judge Bola Ajibola (SAN, KBE, CFR,D.Litt) former Minister of Justice and Federal Attorney-Generaland former Judge at the international Court of Justice at TheHague, whose experience spans decades of local andinternational legal practice.

Bola Ajibola & Co PPP Policy and Legal Advisors have a broadrange of experience including deep sector specific expertise inTransport, Power and Education.

Dikko & Mahmoud is a full service law firm with cross-sectorexperience founded in 1993 by A.B. Mahmoud SAN and Mr.A.B. Dikko, former Attorneys General of Kano and Kebbi Statesrespectively.

Dikko & Mahmoud are Specialist Legal Advisers with experiencein a broad range of sectors including Public sector, FinancialServices, Education, Health and Oil & Gas.

The NESG is a convener of public-private dialogue, and one ofNigeria’s most influential think tanks.

Composed of 7 Policy Commissions, the NESG works to engagegovernment, private sector, and civil society on keydevelopment issues and economic policies in Nigeria.

About the NIPPP Summit Group

Adams & Moore, Bola Ajibola & Co, Dikko &

Mahmoud and the Infrastructure & Human

Capital Development Policy Commissions of

the Nigeria Economic Summit Group are

working with the Federal Government to

develop, publish and facilitate commitment

from key ecosystem players for the delivery

of sector specific roadmaps in four critical

areas – Power, Transport, Health &

Agriculture that will be launched for public

consultation at the Nigeria Infrastructure PPP

Summit.

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CONTENTS

#1

#2

#3

PPDs – An Introduction

13 Governing Principles in Using PPDS

Situating PPDs on Infrastructure in the National PPP Delivery Framework

3

#4 The PPP Community of Practice

#5 About the NIPPP Summit

#1 PPDs – An Introduction

Enderby Wharf, London

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NATIONAL PPP DELIVERY PROCESS

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1. Project Identification

2. Project Development & Preparation

3. Project Procurement

4. Project Implementation

ICRC / Presidency

MBNP

MDAs

FMF

Private Sector

CSO / Citizens

Other Govt Dept

Current Stakeholder Engagement and Participation

KEY Key role Somewhat involved Minimal or no involvement

Dev Partners

Definition

Public Private Dialogues bring together government, privatesector and other relevant stakeholders in a formal or informalprocess to achieve shared objectives and play atransformational role for a particular set of issues.

PPDs – AN INTRODUCTION

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Source: International bank for Reconstruction & Development / World Bank (2016)

PPDs – AN INTRODUCTION Public Private Dialogues bring together a wide variety of actors – government,

private sector, civil society, academia and others, who share common interests orconcerns surrounding specific development and economic issues.

The also involved different forms and sizes of companies and organisations – multi-national corporations (MNCs), small and medium sized enterprises and relevantpublic agencies to work on different types and sets of issues.

▪ Increasingly, multi-stakeholder PPD is considered crucial for building a policy environment forsustainable development

▪ The 2014 Global Partnerships Plenary session referred to PPD as a “starting point for broaderdevelopment cooperation between public and private actors and a vital connecting mechanism,creating enabling environments for private sector development and for pooling resources for sharedprosperity.”

The Nigerian Integrated Infrastructure Masterplan (NIIMP) envisages significantprivate sector participation (48%); and the development of a private sectorengagement mechanism to facilitate this. This is being carried into the ERGP whichis the framework upon which the annual budgeting process will be built on.

PPD initiatives are beneficial in helping to identify key issues, design workablesolutions, better implement such solutions and monitor their implementation. Theyare also beneficial in improving business environments, stimulatingcompetitiveness, increasing trust and fostering governance through coordination,transparency and accountability. 7

PPDs – AN INTRODUCTION Organised partnerships where the private sector has input into policy design and

where private actors and public officials can discuss the regulatory and competitiveenvironment in a systematic fashion, have in many cases succeeded in simplifyingoverly complex legal and regulatory frameworks.▪ Reduce the cost and time to do business▪ Increase the delivery of services to the private sector▪ Encourage competitiveness of specific sectors▪ Increased private sector ownership of reform process, making policy more likely to succeed and

helping to reduce the communication gap

Three independent evaluations have measured the development effectiveness ofWorld Bank Group (WBG) sponsored PPDs. 2009 independent global review found:▪ WBG supported PPD projects resulted in the implementation of 400 specific reforms▪ Coverage - 50 distinct areas within the financial and private sector development space▪ Total net benefits of over US$ 400 million in private sector savings▪ Since then; over US$ 260 million private sector time and cost savings in PPD forums in Ethiopia,

Vietnam and Liberia

PPDs are not new in Nigeria.▪ In 1993 a group of private sector leaders conceived the Nigerian Economic Summit as a platform for

bringing together private sector leaders and senior public sector officials to discuss the future of theNigerian economy

▪ The NESG was established in 1996 and with committed support of the Ministry of Budget and NationalPlanning has emerged as the most important platform for public private dialogue in Nigeria.

▪ 3PCUs – now established to provide regular interaction and opportunities for sharing best practice 8

CASE STUDY

Ethiopian Public-Private Consultative Forum (EPPCF)

The Ethiopian Public Private Consultative Forum (EPPCF) was establishedthrough a 2010 Memorandum of Understanding that created a formal mechanismfor Public-Private Dialogue. Tangible outcomes of the PPD include tax, customs,and licensing reforms that improved the business environment and can increaseeconomic growth as well as increased levels of trust between the government andthe private sector. A follow up committee currently tracks reform implementationand high quality engagement while the remaining challenge of the PPD is toensure its long-term sustainability, as it is still managed today by IFC staff andconsultants.

9Source: International bank for Reconstruction & Development / World Bank (2016)

With Dialogue

▪ Buy-in and increased private sectorownership for reforms

▪ Evidence-based policy

▪ Inclusive, participatory policymaking

▪ Feedback

▪ Legitimacy

BENEFITS OF DIALOGUE

Without Dialogue

▪ Unsustained reforms

▪ Misaligned policy

▪ Side deals (elite capture)

▪ Unresponsive regulation

▪ Lack of trust

10Source: International bank for Reconstruction & Development / World Bank (2016)

EVIDENCE FROM LITERATURE

PPDs can help countries catch up with more advanced countries by gaining accessto knowledge and capital, thus increasing productivity and economic growth(Devlin, 2014)

PPDs can help develop medium to long term policies with cross-party support,avoiding policy flip flops associated with policy cycles (Devlin 2014, 5).

PPDs can support problem-solving dialogue and gather knowledge andunderstanding among market players; reaching better outcomes than ifgovernment alone selected policies (Devlin 2014, 5).

PPDs can help create a new form of social partnership among multiple stakeholders,improving the benefits reaped by each and reducing the risks for all.

By converging government and private sector processes, PPDs can influenceemerging paradigms in development toward a model led by sustainable privatesector finance, supported by governments and development partners

PPDs can transform the entire path of a country’s economic development, as in thecases of South Korea and Ireland (Cornick 2013, 8).

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#2 PPD Governing Principles

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13 GOVERNING PRINCIPLESI. Contextual Design

• Forms, levels and timeframes

II. Open Governance Process• Open, transparent and fair governance

rules

III. Mandate and Institutional Alignment• Clear Objectives

IV. Structure and Participation• Solid structure and representative

participation

V. Facilitation• Professional facilitation with dedicated staff

and resources

VI. Champions• Leadership from a credible set of

individuals or organisations

VII. Outputs• Structure and process, analytical and soft

outputs and recommendations 13

VIII.Outreach & Communications• Enabling communication of a shared vision

IX. Monitoring and Evaluation• Establish and review Purpose, performance

and impact

X. Appropriate Area and Scope• Tailored focus on a clear set of issues

XI. Crisis and conflict response• Mitigating entrenched interests, rebuilding

trust

XII. Development Partners• Benefit from their input and support,

partnership, coordination and additionality

XIII. Sustainability• Transfer operations, management or

financing from development partner tolocal institutions

Source: WBG Charter of Good Practice in Using Public-Private Dialogue forPrivate sector development and inclusive growth, 2015

GROUP ACTIVITY

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#3 Situating PPDs

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NATIONAL PPP DELIVERY PROCESS

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1. Project Identification

2. Project Development & Preparation

3. Project Procurement

4. Project Implementation

PPD Enhanced Stakeholder Engagement and Participation

PPD

Institutionalmechanisms

• ICRC Guidelines• MDA Internal Process• MTEF• NIIMP• Annual Budget Process

• ICRC Guidelines• Ministerial Steering

Committee• FEC• MBNP M&E Report

• 2007 Procurement Act • Ministerial Steering

Committee• FEC• MBNP M&E Report

• Ministerial Steering Committee

• FEC• MBNP M&E Report

ICRC / Presidency

MBNP

MDAs

FMF

Private Sector

CSO / Citizens

Other Govt Dept

Dev Partners

#4 Communities of Practice

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PPP COMMUNITIES OF PRACTICE

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PPP Communities of Practice as proposed, aregroupings of multi-sectoral practitioners andsubject matter experts actively collaboratingto establish, review and implement key policyreforms that will continuously enhanceNigeria’s PPP Delivery Framework.

▪ Enabling legislation▪ Regulatory framework▪ Project Governance▪ Financing options and innovative solutions▪ Strategic stakeholder communications▪ Investment facilitation and promotion▪ Local private sector development▪ International Joint Ventures, Partnerships and

Alliances▪ Inter-government coordination, cooperation

& Political Economy Analysis

“Communities of practiceare groups of people whoshare a concern or apassion for somethingthey do and learn how todo it better as theyinteract regularly.”

- Etienne Wenger

#5 About the NIPPP Summit

• The VP inaugurates the Summit Planning Team with mandate to produce sector based roadmaps.

• Permanent Secretaries and senior government officers represented on the Summit advisory committee.

01 Project Kick Off

• Expert multi-disciplinary teams work with government MDAs in the specific sectors to capture information on existing and potential PPP projects.

02 Data Gathering

• Expert multi-disciplinary teams translate project pipeline into a roadmap, considering the legal, technical and financial requirements associated with successfully executing these projects as PPP projects.

03 Roadmapping

• Expert teams validate sector roadmaps with relevant sponsor MDAs.

• Private sector organisations and IDPs are invited to make resource commitments to the successful delivery of the roadmaps.

• Final briefing of the VP is arranged ahead of the summit

04 Validation

• Launch sector based roadmaps for consultation at the Public Private Dialogue (PPD) and subsequently at the Infrastructure PPP Summit, as well as a Community of Practice to support the identification, appraisal and execution of PPP projects.

05 PPD & Infrastructure PPP Summit

Adams & Moore, Bola Ajibola & Co, Dikko & Mahmoud and the Infrastructure &

Human Capital Development Policy Commissions of the Nigeria Economic Summit

Group are working with the Federal Government to develop, publish and facilitate

commitment from key ecosystem players for the delivery of sector specific

roadmaps in four critical areas – Power, Transport, Health & Agriculture that will be

launched for discussion at the Nigeria Infrastructure PPP Summit.

• Publish sector roadmaps and facilitate access to sector based Communities of Practice.

• Promote the sharing of best practice in PPP delivery in Nigeria

• Monitor progress on the delivery of sector based roadmaps

06 Post Summit

Summit Overview

Summit Advisory Council

Joint Working Committee

Technical Committee

Summit ConvenorsMBNP, ICRC, OSGF

9. Project Governance & Administration

Strategy & Resource Mobilisation

Planning & Coordination

Thought Leadership, Development and Review of Delivery Roadmap

Summit SecretariatProject Administration

NOTES

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NOTES

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ENQUIRIESFor Further enquiries, please contact the SummitSecretariat on the following numbers:

Seye +234 (0) 816 362 9396Ibrahim +234 (0) 803 399 4447Akin +234 (0) 803 471 6061

CONTACT DETAILS

Website

www.infrastructureppp.org

Email

secretariat@infrastructureppp.org

Address

c/o Dikko and Mahmoud, 4th Floor Abia

House Central Business District, Abuja,

Nigeria

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