The State Government has recognized the value, driven from partnering with the private sector for Public-Private-Partnership projects for the provision of infrastructure and social services, as well as for the development of State-owned companies and assets
In and around the capital city of Yenagoa, several road networks have been constructed, all of which are currently insufficient for the ever growing urban economy and population.
Linking rural areas to the state capital has been a priority to ensure direct access to all eight local government area Council Headquarters.
Another area of importance is the development of utility network, to ensure residential, commercial and industrial access to water and sewage systems. There is also a need to link the rural areas to the city, and sufficient power generation and distribution
The state Government is committed to stimulate investment in the sector through the following key policies:
- Infrastructure Investment PPP Model: Bayelsa is ready to partner with investors for project of high socio-economic value (for job employment creation and industry development). PPP streamlining Private-Public-Partnership agreements are currently being developed.
SUMMARY OF KEY OPPORTUNITIES
Opportunities for private sector participation as well as partnership with the State Government for the growth and development of the State infrastructural deficit include:
- Agge Deep Sea Port
- Inland Port.
- Affordable Housing & Urban Renewal
- Development of the Central Business District
- Markets and Commercial Buildings
- Power Generation and Distribution
- Mass Transit
- Ring Roads
- Water Transportation
ITEMIZED SECTORAL OPPORTUNITIES
- MASS TRANSIT:
Consultancy and development of strategic and multi-modal mass transit network (intra & inter-state) to support economic strategy.
- AFFORDABLE HOUSING AND URBAN RENEWAL:
Development of master planned Urban Communities where 20% of
- Housing units will be affordable by bottom 40% of medium income earners.
- Development of effective mortgage system.
- Phased development of Central Business District (CBD).
- Feasibility studies and development of Local Content Production.
- POWER GENERATION AND DISTRIBUTION:
The State has no injection substation implying that power generated in Bayelsa Stgate cannot be evacuated into the transmission line and distributed to other parts of the State or National grid. Indeed, the State boasts of only one transmission line which was built in 1988 before the State was created, and which currently requires upgrade.
Further, the existing power demand-supply gap at the conservative estimate of 1000MW of electricity per million people for Bayelsa State (with a population of just under 2million), is huge. This is even in addition to the some ongoing power projects, some of which their completions are outside the control of the State Government, such as the National Independent Power Plant (NIPP) at Gbaran/Ubie in Yenagoa Local Government area in Bayelsa State.
The various types of electricity transmission and distribution is about 10.1% supply by the Power Holding Company of Nigeria (PHCN), state based efforts through investment in the Bayelsa State Electricity Board, and finally, individual and community based efforts through the use of diesel and petrol generators.
Power Infrastructure: the Regulation for Independent Electricity Distribution Network 2002 issued by the Nigerian Electricity regulator, National Electricity Regulatory Commission (NERC), deregulates captive power generation, transmission and distribution in areas outside the national grid and/or areas that are undeserved and Bayelsa falls under this category, thus, providing opportunity for any independent investor in power and power infrastructure in Bayelsa State.
- DEVELOPMENT OF A CENTRAL BUSINESS DISTRICT:
The State Government is seeking to develop a new Central Business District in Yenagoa under a PPP arrangement. The CBD will encompass retail outlets, office blocks, and social amenities. A Special Purpose Vehicle will be set up by the State Government and will contribute 20% equity while the balance will be contributed by partners. As an incentive to the group of investors, the State Government has agreed to give tax concessions to the contributing partners to ensure adequate participation of the private sector.
A vast tract of land (270 hectares with 22 kilometres of road) has been set aside by the State in a highly strategic location. The land will require significant earthworks and building up because it is below the road level. Discussions will be held between the State Government and the private developer on the development of serviced land with road arteries and utilities. The total project development costs are estimated at about US$151 million.
The master plan document available from Capital City Development Authority has been prepared by CD international LLC and CITIC Architectural Design & Research Institute Ltd, Beijing. The commercial component of the CBD design consists of the following: CBD Tower (80,000 m2), CBD Office Centre (25,000 m2), CBD Renting Building (3,500 m2), CBD Separate Office Building (6,500 m2), Mini shopping Mall (15,000 m2), Shopping street (10,000 m2), and Shopping mall (17,000 m2). That is a total of 157,000 m2 of commercial space (retail shopping and offices). To this must be added the cultural centre, services (police, fire station, admin) and planned residences.
CURRENT INVESTOR-LED INFRASTRUCTURE PROJECTS ONGOING IN THE STATE:
DEEP SEA PORT: The State Government has signed an agreement with Chinese Technical partners- Tianjin Energy Resources Limited to build a $3 billion deep sea port in Agge Town along the shores of the Atlantic Ocean in Ekeremor Local Government Area. The technical partners will finance 85% of the project while the balance will be financed locally. The strategic location of the port gives it direct access to the Atlantic Ocean and will help attract foreign direct investment (FDI) into the state.
Also approved are contracts for an access road to Boro Town in Kolokuma/Opokuma Local Government Area
STRATEGIES FOR INFRASTRUCTURAL DEVELOPMENT
- Adoption of a PPP Model – The Government recognises that large-scale investments in the infrastructure sector will have significant catalytic effects in generating economic growth, new revenue streams through tourism, hospitality, increased business activity, taxation and employment. The Government is willing to invest public money in these projects if it is necessary to attract additional investments to the state. To support these investments the government has established a clear legal framework for PPPs that will guide creation of such agreements.
Bayelsa is ready to adopt any of the following PPP models:
- Design-Build (DB)
- Design-Build-Maintain (DBM)
- Design-Build-Operate (DBO) or Build-Transfer-Operate (BTO)
- Design-Build-Operate-Maintain (DBOM) or Build-Operate-Transfer.
- Build-Own-Operate-Transfer (BOOT)
- Build-Own-Operate (BOO)
- Design-Build-Finance-Operate-Maintain (DBFO, DBFM, or DBFOM).
- Harness Local Resources – the new pipelines of the Gbaran-Ubie Integrated Oil and Gas project, when complete, will deliver gas to generate power in the Niger Delta- supporting development in the region
INFRASTRUCTURE DEVELOPNMENT DRIVE
- The construction of Government House Gate security building, the Police Post at the Commissioners’ quarters, renovation of commissioners’ office as well as rehabilitation of bridges have all been completed and handed over to government while full payments have also been made to the contractors.
- There are plans by the government to construct a cancer centre at Toru-Orua in Sagbama local government area of the state.
- There are also plans by the State government to immortalize the late Major Isaac Boro, with the construction of a Boro centre, which will have a museum, library and quarters, to be built along with the construction of a road from Kaiama to Boro town in Kolokuma/Opokuma local government.
- Key projects such as the NYSC Orientation Camp in Kaiama, the Toru Ebeni Bridge and the Federal Prisons at Okaka in Yenagoa being undertaken by the state government are nearing completion.
- The on-going construction work on a number of road projects to open up the state capital have started with clearing and sand filling done on most of them. The roads include the dualization of the Opolo-Elebele, Azikoro, Isaac and Road Safety – Diete Spiff – Hospital road, among others, all in the state capital.
- Construction work on the new secretariat annexes is already in progress, while renovation of the old and new Secretariat complexes will commence soon.
- Construction of a State of the Art Governors office
- Governor’s lodge projects at Nembe and Sagbama as well as Deputy Governor’s lodge in Yenagoa, Government House car park and the Ekoli Bridge.
The Bayelsa State Government is willing to work with interested investors to implement a well-developed Energy/Power master plan for the State under a PPP arrangement. This could involve scrapping the State Electricity Board and replacing it with independent state power generation, distribution and trading companies.
Favourable and cost reflective tariff regime– The implementation of the MYTO which commenced in year 2009 will ensure that electricity tariff in the country rises to about N22/kWh by 2015, from the current N8.50/kWh. This pace can be fast-tracked in Bayelsa State to ensure that power providers rapidly recover all costs and also make substantive returns on their investments.
Guaranteed Access to adequate and efficient gas supply to power independent power project – The Gbaran-Ubie Integrated Oil and Gas project, one of the many important gas projects in the Niger Delta, attained the gas design capacity of one billion standard cubic of gas per day (bscf/day) on February 5, 2011. When complete, new pipelines will deliver gas to generate power in the Niger Delta- supporting development in the region. It will supply the Bayelsa State power plant at Imiringi and a new 225 megawatt (MW) power plant being built in Gbaran by the Federal Government.
Pioneer Entry Opportunity in Distribution – The Government is willing to offer investors first comer advantages to build a competitive distribution network that can raise entry barriers for subsequent investors. The State is also open to consider any other form of incentives regarding pioneer status for interested investors.
HOUSING AND URBAN RENEWAL INFRASTRUCTURE
Formalisation of the Registration of Land– Land ownership in Bayelsa is mainly traditional, but the Government is undertaking a detailed Global Information Systems mapping of landholdings in 2010 and this will facilitate a comprehensive program of land titling to register all land. Where necessary the Government will facilitate communications between private sector investors and local communities to compensate the occupants with customary right of occupation, and where necessary for critical development, provide free land to investors.
OTHER STATE-WIDE INCENTIVES
Improve rural infrastructure – The average indigene in Bayelsa has to travel 40 kilometres to Yenagoa, by road, boats or otherwise. However, the Government has committed to building 3 new senatorial roads connecting Yenagoa with the districts, and an airport and port.
Electrical Infrastructure – where feasible.
Investor One Stop Shop– Providing support services including business registration, assistance with permits required for the establishment and operations of the business, immigration, property acquisition.
Waiver of Government fees for investment agreements.
Ease in obtaining Certificate of Occupancy
Infrastructure support, where needed.
Data support for feasibility studies
Other incentives on a case by case basis