LAGOS - The Group Managing Director/Chief Executive of Union Bank of Nigeria PLC, Dr. Barth Ebong, has called on the various tiers of government to adopt the Public-Private-Partnership (PPP) on a massive scale as a way of alleviating the infrastructure deficit in the country.
In his presentation on Financing Infrastructure in an Emerging Economy: The PPP Option, delivered at the First Akwa Ibom State Infrastructure Summit held in Uyo recently, Ebong said the time was now ripe to undertake such infrastructure investments, considering the country’s buoyant financial sector.
He noted that progress had been made in the direction of establishing the enabling environment for PPPs in form of the requisite legal enactments, regulatory regimes and the coming to power of a government that “has sworn to uphold due process in transactions of government with the private sector”.
Ebong said it had become imperative to involve the private sector in the financing of infrastructure projects to achieve desired rate of economic growth in the country, adding that failure to undertake appropriate levels of infrastructure investments would constrain further growth of the economy.
“The problems associated with the traditional mode of infrastructure provision, even in the face of growing demand for infrastructure services, suggest that appropriate provision/financing mechanisms must be put in place to ensure an optimal level of infrastructure investments in an economy”, he stated.
The Union Bank boss, also noted that experience with public provision of infrastructure services had thrown up some issues such as inadequate cost recovery mechanisms, non-adherence to contract terms by governments, and widespread delays in project completion.
Ebong further observed that PPPs could be exploited to expand infrastructure investments in the country in a more efficient manner that guarantees “value for money”; expand the range of financing options for infrastructure investments; open more business opportunities for the private sector; while promoting user contributions to the cost of provision of infrastructure services.
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