Public-private partnerships (PPPs) allow private parties to design, build, finance, operate and maintain public infrastructure in return for user charges, government payments or both. At federal level, PPPs are regulated by the Infrastructure Concession Regulatory Commission (ICRC) under the ICRC Act 2005, while Lagos State and other states have their own PPP laws and offices.
PPP projects in Nigeria cover roads, ports, airports, rail, power, water, housing, hospitals, markets and public buildings.
How we assist
- Advising sponsors and investors on project structures and bidding strategies
- Advising public bodies on procurement and project preparation
- Compliance with the ICRC Act and state PPP frameworks, including approvals at the outline and full business case stages
- Drafting and negotiating concession and project agreements
- Land acquisition and title for project sites
- Construction contracts and operation and maintenance agreements
- Project finance documentation, direct agreements and security
- Government support arrangements and guarantees
- Disputes and renegotiations
Key issues in PPP agreements
- Allocation of construction, demand, operating and political risk
- Tariff setting and adjustment
- Government payment obligations and support
- Performance standards and penalties
- Step-in rights for lenders and the public authority
- Termination and compensation on termination
- Change in law and force majeure
- Dispute resolution, often through international arbitration
Real estate PPPs
Many states use PPPs for housing, markets, transport terminals and commercial developments on government land. These combine real estate and PPP issues, and we coordinate them with our real estate development work.
