The Federal Ministry Transport/Nigerian Ports Authority (NPA)
In Collaboration with Infrastructure Concession Regulatory Commission (ICRC)
The Public Private Partnership (PPP) Project
OBC Transaction Adviser for Kirikiri Lighter Terminals 1 & 2
Request for Expressions of Interest
The Federal Government of Nigeria (FGN) has applied for a credit from the International Development Association (IDA) and intends to apply part of the proceeds of this credit to payment for the services of highly qualified consultants for the Outline Business Case (OBC) Transaction Adviser through Public Private Partnership (PPP). The transaction is also under consideration for support by the World Bank Group as part of a broader initiative to support the FGN’s Public Private Partnerships Program.
Federal Ministry of Transport (FMoT)/Nigerian Port Authority (NPA) in collaboration with the Infrastructure Concession Regulatory Commission (ICRC); and in continuation with the Nigerian Ports Reform through Public Private Partnership (PPP) for reliable, efficient and safe port operations, would like to assess the feasibility of Public Private Partnership for the Kirikiri Lighter Terminals (KIT) 1 and 2, Tin Can Island Port, in Lagos. Consequent upon this. Government is taking steps to assess the strategic fit, achievability, value for money and affordability for the procurement of concessionaires to finance, construct, maintain, and the KIT 1 and 2. The PPPs in the Nigerian Ports are based on the Landlord Port Port Model
Subject to the conclusions of the OBC exercise, the procurement of the Transaction Adviser will follow the National Policy on Public Private Partnership (PPP)published by Nigeria’s infrastructure Concession Regulatory Commission (CIRC) and the World Bank Guidelines. This policy requires, as part of the project preparation phase, that an Outline Business Case (OBC) be prepared and submitted to the Government’s Economic Management Team. Consultants recruited for the OBC stage work will be eligible to bid for any prospective c Advisory work, in accordance with IDA procurement guideline
The Kiriklri Lighter Terminals 1 and 2 were initially scheduled among other PORTS terminals for concession to private investors in 2006 but was later stepped down due to governments decision to deploy the facility for fishing purposes However, government is presently disposed to concessioning to private operators for a variety of possible uses including fishing and container operations.
Ports Reform Process
Prior to the concession of a large number of Nigerian sea ports to private operators beginning in 2006, the ports were characterised by high degree of centralization, high port charges, poor infrastructure, bureaucracy and multiple governmental agencies which made the ports uncompetitive and unattractive in the West African sub-region.
Scope of Work
The main objective of this consultancy is to establish the technical, economics, and financial viability of the identified project(s) as PPP projects, through the generation of an OBC – Outline Business Case The OBC will represent a key input of the PPP project preparation phase.
Among the tasks involved in the generation of the Outline Business Case are:
- Carry out primary review of the jetties at KLT 1 & 2 including
- Status quo assessment: Assessment of the commercial, technical and legal status of existing facilities, their uses, and contractual arrangements with respect to Kirikiri, and more general market assessment of the Lagos port environment with respect to Kirikiri, and more general market assessment of the Lagos port environment;
- Assessment of maritime and land transport connectivity of Kirikiri;
- Identification and evaluation of potential commercial activities/business options to be carried out at the Kirikiri Lighter Terminals. Consultations with relevant stakeholders should be part of this process;
- Definition of project concept: a clear description of the project concept, including description of policy context;
- Technical scope: description of the key technical parameters envisioned for the project;
- Needs analysis: high-level review of the project’s commercial rationale, and analysis of the demand for and desirability of the project;
- Options analysis: If the project is found to be suitable for PPP, presentation of the range of technical legal and financial options for structuring PPP transaction(s), including key contract terms for the recommended option (for example, proposed payment mechanism to reflect recommend risk allocation.
For each PPP business option, the following tasks are required
- Cost estimation: preliminary project costing, including expected capital outlays (including rehabilitation and dredging), environmental and Social safeguards (including relocation), and ongoing maintenance costs as well as a discussion of non-quantifiable costs:
- Preliminary assessment of social and environmental impacts of the project, highlighting likely major impacts that have been addressed in option development/assessment;
- Thorough market analysis, project demand and revenue forecasting; Development of a preliminary financial mode! to carry out the initial PPP screening to determine which projects can support a tariff and which cannot, and ultimately, suitability for PPP execution. The adviser should prescribe a methodology to differentiate fully self-supporting tariff projects from those likely to require subsidy (capita! grant and/or availability payment/revenue guarantees) and those likely to be fully publicly financed. The financial model will evaluate full project life costs, affordability limits, risks and their costs and optimal value-for-money methods of delivery.
- The economic and financial conclusions drawn from the financial mode! should be clearly articulated, and should include sensitivity analysis and reporting of standard financial and economic evaluation parameters including post-tax Financial Internal Rate of Return (FIRR),
- Affordability analysis: Where a PPP concession scheme is found to be viable, the adviser will provide indications of minimum Viability Gap Funding and/or operating subsidies, if appropriate, required to attract private sector participation, along with justifications for such indications.
- Risk analysts: preparation of risk register identifying ail the reasonably foreseeable risks and possible mitigation measures, and preliminary risk allocation among the public and private sectors;
- Implementation recommendations: if applicable, preliminary recommendations on proposed approach to PPP tendering process timetable, etc.
Submission of Expressions of Interest (EOls)
Prospective OBC Transaction Advisers should submit an Expression of Interest detailing the following information as basis for pre-qualification:
- Profile of firm/consortium including ownership structure including key permanent staff and role of each corporate entity with full contact details of lead firm.
- Details of direct experience advising governments on outline business case (OBC)/ structuring of PPP transactions;
- Track record of successful closing of PPP concessions, particularly in the
- ports/transport sector;
- Description of roles played in at least five (5) PPP transport/ports specific transactions closed in emerging markets during the past seven (7) years (at least one of which should be in the past three (3) years:
- Relevant experience in the ports sector (including technical competence);
- Copies of unabridged financial reports for the last three (3) yrs
- Experience working in Nigeria and/or sub-Saharan Africa;
The Consultant will be selected in accordance with the procedures set out in the World Bank Guidelines: Selection and Employment of Consultants by World Bank Borrowers. January 1997 (Revised September 1997, January 1999. May 2002, May 2004, October 2006 and May 2010)
Expressions of Interest must be submitted in six (6) copies in a sealed envelope dearly marked “EXPRESSIONS OF INTEREST FOR OBC TRANSACTION ADVISER FOR NPA.” ACD-ROM version should also be included.
The expressions of interest should be addressed and delivered not later than 4.00pm on Monday, 22nd December, 2010 at the addressed below:
The Managing Director
Nigerian Ports Authority
26/28 Marina, Lagos
Email: mdwestng@yahoo.com
Interested applicants may obtain further information at the address above from 8:00am to 4.00pm. Monday through Friday (except public holidays)
Only short-listed Consultants will be contacted.
Expression of interest through email or fax will not be entertained.
