HDMI Phase II

PPPs bring in private capital, improve efficiency, ensure better project management, and enable the government to allocate resources to other critical areas. They also introduce innovation and technology in infrastructure development.

Common PPP models include Build-Operate-Transfer (BOT), Design-Build-Finance-Operate (DBFO), and Operate-Maintain (OM).

PPP model where the private sector partner builds the infrastructure, operates it for a specified period to recoup investments and profits, and then transfers it back to the government.

PPP model where the private sector is responsible for the design, construction, financing, and operation of a project. The government may provide some form of payment or revenue-sharing arrangement.

HDMI is a program initiated by the Federal Ministry of Works in Nigeria aimed at developing and managing the nation’s federal highways through public-private partnerships. This initiative seeks to enhance road infrastructure, improve maintenance, and provide better services to road users.

The primary objectives of HDMI are to attract private sector investment into the development and management of federal highways, improve road safety and quality, enhance road user experience, and create job opportunities.

HDMI program covers major federal highways across Nigeria. Specific highways included in the program are periodically updated and listed on the official website of the Federal Ministry of Works.

Companies can participate by responding to public tenders and Requests for Proposals (RfPs) issued by the Federal Ministry of Works. Detailed guidelines and criteria for participation are provided in the tender documents.

Projects under HDMI include road construction, rehabilitation, maintenance, and the provision of ancillary services such as tolling, rest areas, and service centers.

Concession is a public-private partnership arrangement where the Federal Ministry of Works grants a private company the rights to finance, build, operate, and maintain a highway or a segment of it for a specified period, after which the highway is handed back to the government.

The benefits include improved infrastructure quality, reduced government expenditure on road maintenance, enhanced road safety, and better service delivery for road users. Concessions also attract private investment and expertise in road management.

A private company or consortium that has been granted the rights to develop, operate, and maintain a public infrastructure project under a concession agreement.

Concessionaires are selected through a competitive bidding process. The process includes prequalification, submission of proposals, evaluation, and selection based on predefined criteria such as financial capacity, technical expertise, and proposed project plans.

Responsibilities include financing the project, constructing or rehabilitating the road, operating and maintaining the road infrastructure, and providing necessary services such as toll collection and emergency response.

The agreement to be entered between the Contracting Authority (grantor) and a private entity (Preferred Bidder) that outlines the terms and conditions, under which the private entity will finance, construct, operate, and maintain a highway or related infrastructure for a specified period.

The duration of a concession agreement varies depending on the project scope but typically ranges from xx - xx years. The specific duration is outlined in the concession contract.

Is an interested party, Firm, Company, or Consortium who submits an Application in accordance with the provisions of this RfQ.

The award by the Contracting Authority of the Concession Agreement to the Preferred Bidder.

Technical and financial offers to be submitted by bidders.

A qualified and shortlisted Applicant.

The two-stage process adopted by Contracting Authority with the approval of the ICRC, involving the Qualification Stage followed by the Bid Stage.

Party or Consortium interested in or contemplating submitting an Application in response to this RfQ. Proponents can be local or international companies with expertise in infrastructure development.

Two or more firms, individuals or companies who jointly respond to this RfQ.

Comprehensive document that evaluates the feasibility, strategic alignment, economic benefits, financial viability, and risk assessment of a proposed highway project under HDMI. It supports decision-making, helps secure approvals, and attracts investment by providing detailed analysis and justification for proceeding with the project.

It is a document issued by the government inviting qualified parties to submit detailed proposals for a project. The RfP outlines the project scope, requirements, evaluation criteria, and submission guidelines.

It is a document issued to invite interested parties to submit their qualifications to undertake a project. The RfQ helps the government prequalify proponents based on their technical, financial, and managerial capabilities.

It refers to financial mechanism used by the government to support projects that are economically justified but not financially viable on their own. VGF helps to bridge the gap between project costs and anticipated revenues.

Practice of charging users a fee for using a highway or road. Toll revenues are typically used to repay the investment and operational costs of the concessionaire.

Toll rates are determined based on construction and maintenance costs, expected traffic volume, and return on investment for the concessionaire. The FMW, along with relevant regulatory authorities, oversees and regulates these rates to ensure they are fair and affordable for road users.

This refers to the legal right to use a particular piece of land for transportation purposes, such as building and operating a highway. RoW issues are critical in project planning and execution.

This refers to the agreement on how revenues generated from the project (e.g., tolls, service fees) will be shared between the government and the concessionaire.

It refers to contracts that set out specific performance criteria and outcomes that the concessionaire must meet. Failure to meet these criteria can result in penalties or termination of the contract.

It is the method of funding projects through a combination of debt and equity, where the project's future cash flows are used as collateral for the loan.

It is a process to evaluate the environmental effects of a proposed project, ensuring that potential negative impacts are identified and mitigated.

This is an analysis conducted to understand the social consequences of a project on communities and stakeholders, aiming to enhance positive impacts and minimize adverse effects.

It is a legal entity created specifically for the purpose of executing the PPP project. The SPV isolates the project's risks and finances from the parent companies.

It is a provision in the concession agreement that outlines the conditions under which the contract can be terminated by either party, including default, force majeure, or mutual agreement.

It is a clause that frees both parties from liability or obligation when an extraordinary event or circumstance beyond their control, such as a natural disaster, prevents one or both parties from fulfilling their contractual obligations.

These are terms that specify the condition and requirements for the transfer of the project back to the government at the end of the concession period.

It is the total cost of owning, operating, and maintaining the infrastructure over its entire lifespan, including initial construction, ongoing maintenance, and eventual decommissioning.

It is the process of identifying and distributing risks associated with the project between the public and private partners, based on their ability to manage them effectively.