Over the years, infrastructure projects in Nigeria have been financed majorly by the Federal Government, with attendant responsibilities for operation and maintenance. In recent times however, competing priorities coupled with steady population growth has strained the amount of capital allocation by the Government available for infrastructure development. In order to meet its infrastructure needs and to catch up with developing countries in other parts of the world, this presentation identifies and proposes Public-Private Partnership (PPP) as an appropriate platform for funding infrastructure projects which would ordinarily have been funded through federal allocation using the proposed Second River Niger as a case study.

1. PREPARED BY: TOJU EYETSEMITAN JUNE 2015
S E C O N D R I V E R N I G E R B R I D G E AT
O N I T S H A - A S A B A I N A N A M B R A / D E LTA
S TAT E S N I G E R I A U N D E R P U B L I C
P R I VAT E PA R T N E R S H I P S C H E M E

2. SECOND NIGER BRIDGE AT ONITSHA -ASABA NIGERIA UNDER PUBLIC PRIVAT E PARTNERSHIP SCHEME
Infrastructure Development/Financing in Nigeria
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Tanzania
Nigeria
Brazil
Egypt
India
Ghana
Kenya
China
South Africa
Malaysia
Singapore
Quality of Overall Infrastructure:
Nigeria Vs. Selected Emerging/Frontier Economies
2nd
117th
144th
29th
58th
69th
80th
86th
87th
88th
107th
 Over the years, infrastructure projects in Nigeria have been financed
majorly by the Federal Government, with attendant responsibilities for
operation and maintenance. In recent times however, competing
priorities coupled with steady population growth has strained the
amount of capital allocation by the Government available for
infrastructure development.
 Although Nigeria has made evident progress in improving its
infrastructure from increased budgetary allocation, recent reforms in
various sectors and gradual reliance on the private sector for funding,
adequately addressing the infrastructure challenges will require a
substantially larger level of investment in infrastructure.
 Nigeria currently invests around 7% of GDP on infrastructure, which is
above the average for sub-Saharan Africa. Its core infrastructure stock
currently stands at 35-40% of GDP which is significantly below the
international benchmark of 70% of GDP. It is estimated that the country
requires an annual investment of US$14.2 billion over the next ten years
in order to bridge the current infrastructure gap.
 In order to meet its infrastructure needs and to catch up with developing
countries in other parts of the world, this study identifies and
proposes Public-Private Partnership (PPP) as an appropriate
platform for funding infrastructure projects which would
ordinarily have been funded through federal allocation.
 Given the large infrastructural deficit and scarcity of funds to sponsor
capital projects, a redirection of Nigeria’s infrastructure development
model in the medium to long term to capture PPP opportunities is highly
imperative for sustainable growth.
Nigeria’s Infrastructure Sector Update
Source – Global Competitiveness Report - 2013

3. SECOND NIGER BRIDGE AT ONITSHA -ASABA NIGERIA UNDER PUBLIC PRIVAT E PARTNERSHIP SCHEME
Second River Niger Bridge, Nigeria
 The Federal Government of Nigeria, through the Federal Ministry
of Works has proposed the construction of a second bridge across
the River Niger between Onitsha in Anambra State and Asaba in
Delta State (refer to Figures 1 - 6).
 The bridge will be built south of the existing bridge and will
provide an additional link between Asaba and Onitsha, having six
lanes in total (three lanes in each direction). The total length of
the bridge and access roads is approximately 12.5 km. The road
and bridge will be a toll road on completion and will be used for
commercial traffic while the old bridge will not be tolled and will be
for the use of non-commercial traffic. Construction of the access
road on the Asaba side of the river will require resettlement of
households and a Resettlement Action Plan will be developed. It is
estimated that the complete construction period will be four (4)
years.
 The FMW has entered into a Public Private Partnership with a
Consortium made up of the NSIA Motorways Investment Company
and Julius Berger. This contract is in the form of a concession so
that the Consortium can manage the project for 25 years until it
may be handed back to the Federal Ministry of Works.
 The contract agreement for the construction of the bridge is in the
form of a Design Build Operate and Transfer (DBOT) / Public
Private Partnership (PPP) . The Consortium has been appointed as
a private entity to ‘Design, Build and Operate’ the project during
the concession period, allowing it to be transferred back to the
FMW thereafter to operate.
Project Overview
Figure: 1
Figure: 2

4. SECOND NIGER BRIDGE AT ONITSHA -ASABA NIGERIA UNDER PUBLIC PRIVAT E PARTNERSHIP SCHEME
Second River Niger Bridge, Nigeria
The proposed Second River Niger Bridge has sufficient motivation and
the following advantages:
1. Reduces the strain on current bridge infrastructure;
2. Improves safety and security;
3. Eases traffic flow of transporters across this axis;
4. Improves health and security due to lower vehicle emissions which
was exacerbated by the poor traffic management;
5. Creates opportunities for local residents within the commercial hub;
6. Improves the commercial viability of the immediate catchment
area; and
7. Regenerates the social and economic life of the region.
Potential Problems the Project Aims to Solve
Figure: 3
Figure: 4
Potential Revenue Sources
 Tolling of road users is the principal source of revenue.
 A toll plaza section of approx. 500 m in length that would be wider
than the typical road cross-section and would accommodate 20
lanes of traffic.
 The station will be equipped with one toll cabin per lane.
 This lane will is also equipped with a weighing station for trucks.

5. SECOND NIGER BRIDGE AT ONITSHA -ASABA NIGERIA UNDER PUBLIC PRIVAT E PARTNERSHIP SCHEME
Second River Niger Bridge, Nigeria
Risk Allocation
Figure: 5
Figure: 6
Type of Risk FGN Concessionaire Shared
Design
Site
Construction
Completion
Force Majeure
Revenue
O&M
Performance
Political
Strategic
Key:
FGN – Federal Government of Nigeria