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Private financing of infrastructure projects in Sub Sahara Africa : a case study of Nigerian water infrastructure project

Water infrastructure projects are vital for life, as they provide the basic needs for human survival (food and clean water), and are crucial for socio-economic development and improvement of the general standard of living in any country. In most Sub-Saharan African countries, there exists a complex problem of poorly managed and inefficient water services, inadequate in terms of both quantity and quality. The problem is compounded by exponential population growth, especially in the urban areas, and lack of sufficient funding of water-related infrastructure. These problems, when combined with the prevailing poverty, are stifling economic growth and reducing an already low standard of living in most countries in the region. There is an urgent need and great demand for water infrastructure development projects to meet the requirements of the rising population throughout the region. This demand can only be fulfilled by well-conceived and managed water utility projects with the active participation of both public and private sectors. Public financing of water infrastructure projects in SSA has not only failed to meet the rising demand for water services but has also contributed to the existing debt burden in most countries in the region. There is a need for active 'private sector participation in financing and managing water infrastructure projects in SSA; however, this is only possible for projects with potential for revenue generation. A mechanism is proposed combining Integrated Water Catchment Management (IWCM) with private sector involvement in the financing, construction, operation and management of water infrastructure projects. Combining these strategies will form the basis of a Public-Private Partnership (PPP). The promotion of combining strategies is supported by a case study on the River Niger Catchment Area (RNCA) using a BOOT contract. A survey was conducted to evaluate consumers' willingness to pay and acceptance of privatised water supply services. The fact that an informal but extensive network of private water vendors already exists in virtually all Nigerian cities is also acknowledged. A further case study is based on management contract for some of the existing water utilities in RNCA.

Identiferoai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:488238
Date January 2003
CreatorsMaiwada, Yusuf Bashir
PublisherUniversity of Manchester
Source SetsEthos UK
Detected LanguageEnglish
TypeElectronic Thesis or Dissertation

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