Experts seek role for private sector in infrastructure projects

Mrs. Isabel Njihia

Urban experts have advocated improved private sector participation in the provision of basic infrastructure.
The Programme Manager, United Nations Office for Disaster Risk Reduction (UNDRR), Regional office for Africa, Mrs. Isabel Njihia, led the call at a virtual forum entitled: ”African Cities in the face of Climate Change: what challenges, What Resilience’’, organised international think-tank, Africa 21. Africa 21 is an organisation poised to achieve the UN 2030 Agenda for Sustainable Development and its implementation in Africa.

Njihia said the role of the private sector is crucial to making the cities to function better, as there are implications on their businesses if the private sector fails to assist in the city’s growth.

According to her, Nigeria’s biggest cities like Lagos and Abuja are exposed to urban shocks with rising sea levels threatening infrastructure, traffic congestion, waste menace and chaotic metropolis as well as pollution.

She said: “Private sector is the solution to problems that we didn’t know existed. For example, in the context of cities, we talk about informal settlements and more often than not we forget that in informal settlements itself, the rate of unemployment is the same or higher than what is experienced in the entire country.

“We have seen micro-finance institutions come up with financing mechanisms that include the financially excluded population; people who do not have consistent pay are able to get some loans and start businesses. When it comes to disaster loss, the private sector takes the greater heat because they lose the supply chain and market they sell to.”

To her, there was a need to also strengthen institutional capacity, ensuring coordination mechanisms, roles and responsibilities among critical agencies, departments and ministries.

“Resilience cuts across many issues and leaders must consciously pursue issues across ministries, departments and agencies. There is an appearance of a more democratic approach in cities, where citizens have a stronger voice culminating in having people strongly engaged in driving the affairs of their cities. More localisation should take place when it comes to project implementation. Through engagement with the private sector, there will be innovative ideas on improved infrastructure development,” Njihia added.

On financial challenges facing cities’ development, she observed that all financial mechanisms that exist for local councils and regional governments in Nigeria and other African cities require finance systems that are accountable.

“Cities must be able to prove accountability in financial management systems. Unfortunately, due to limited financial systems that are accountable, it brings ripple effects in terms of what the nations are able to access. Governance is indeed a key issue,’’ she said.

Another speaker, Mrs. Gertrude Gamwera, said local councils are evolving from rural to urban settings, which means there are a lot of huge investment opportunities to modernise, provide services and infrastructure necessary to cater for urban needs.

This, she said, includes housing and industrialisation, adding that the implication for climate is a sizable amount of environmental degradation. She stated that it is important to put in place strategies and frameworks to make the city resilient to handle challenges.

“Infrastructure is what we must look at if we are going to build a resilient city. We must be able to help the local council, plan ahead and achieve a scenario whereby cities will be more responsive in terms of providing services. It is better to have better urban policies, which will involve issues of climate mitigation, as well as adequate warning systems and have other emergency responses when it comes to the effects of rapid urbanisation,” Gamwera said.

According to her, as part of decentralisation policy, cities and local councils are encouraged to build public-private partnerships towards investing more and promoting local development, where all actors and stakeholders in the community are involved.

“Policies that encourage frameworks for private participation in the areas of health, water service provision, technology and climate mitigation issues are advanced through private participation. Private sector participation is essential because it provides alternative funding schemes for project development and service delivery,’’ she said.
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