Feb 15 2011
Research and Markets has announced the addition of the "Nigeria Infrastructure Report Q1 2011" report to their offering.
Business Monitor International's Nigeria Infrastructure Report provides industry professionals and strategists, corporate analysts, infrastructure associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Nigeria's infrastructure industry.
BMI View: Political risk is the main consideration in Nigeria and while proposed electricity sector reforms have the potential to drive strong growth in the country's infrastructure sector, we do not anticipate any major moves until after the 2011 presidential election. According to revised data, the infrastructure sector has performed better than anticipated, due to the effects of a lag in the residential and non-residential building sector and projects entering the construction phase over 2010.
Key themes this quarter:
- Following the approval in August 2010 of plans to construct a 700 kilovolt (kV) transmission grid by 2014, with a pledged US$3.5bn in loans from international finance institutions (IFIs), the government outlined a comprehensive Power Reforms Package. It seeks to revive the energy sector reforms, whereby the state utility Power Holding Company of Nigeria (PHCN) will be unbundled and the use of IPPs will proliferate. Unlocking capital by allowing a greater breadth of institutional investors to participate in the sector is a crucial part of this venture. The government estimates that is can mobilise close to NRN400bn (US$2.6bn) from the pension funds, roughly 20% of the cumulative capital pool.
- One of the landmark infrastructure projects in Nigeria, the Lagos Light Rail, is reportedly delayed by two years following months of delays in the commencement of construction. Though Lagos has the most conducive environment in Nigeria for the procurement of large-scale infrastructure projects, the delays yet again highlight the burden of bureaucracy and opaqueness in Nigeria's business environment.
- While Nigeria's overall project finance environment remains poor, recent developments provide cause for tentative optimism. The most notable of these has been the Cross River State governments signing of a Public Private Partnership (PPP) bill into law in August 2010. The law aims to create the necessary legal framework to facilitate and regulate PPPs in the state. The bill is the first of its kind in the country, according to the state governor, and paves the way for the establishment of a formal PPP legal framework.
Companies Mentioned:
- Julius Berger Nigeria Plc
- Setraco Nigeria Limited
Source: http://www.researchandmarkets.com/