PPP: Skye Bank tasks government on incentives, cash flow, others

By Michael Eboh
Skye Bank Plc has tasked government at all levels on the need to put in place the necessary machineries that will ensure the success of the much touted Public Private Partnership (PPP) initiative.

Speaking at the second transport summit organised by the Rivers State Ministry of Transport and sponsored by Sky Bank, the Managing Director of the bank, Mr. Akinsola Akinfemiwa, in his paper titled ‘Conceptualisation of the PPP Strategy During the Transport Sector Reform’, noted that it is imperative that certain key factors be put in place so as to achieve the desired results of the initiative.

According to Akinfemiwa, who was represented Mrs. Ibiye Ekong, Executive Director, Risk Management/South South of the bank, the factors include the provision of incentives for the private partners by the government, selection of the right and committed partners, simplification of project execution devoid of bottle necks, and showing exemplary political leadership by the government.

He further identified as necessary factors for the success of the PPP initiative, the existence of dedicated income streams and good cash flow for the projects, communication with the stakeholders, public sector involvement and shared responsibilities between the private and public partners.

He said, “Private partners want a transparent business environment where laws are not changed arbitrarily as well as a stable climate devoid of policy inconsistency, uncertainty and confusion.”

Also speaking at the occasion, Mr. Rotimi Amaechi, Governor of Rivers state, commended the bank for its role as the bedrock and financier of the transformation of urban transportation in the state.

He noted that the bank was responsible for more than 70 per cent of the ideas which have reduced congestion in Port Harcourt, and called on private individuals to invest in the transportation sector in the state.

He reiterated the position of his administration on the provision of infrastructure to stimulate development, however noting that his government would not put money in any business since government is not a good business manager.

He, therefore, urged the bank to make more vehicles available to further ease congestion in the city, appealing to the bank to make loans available to those willing to invest in the transport sector in the state.

The bank has financed over 100 buses and another 100 taxi cabs for intra city transportation, in addition to funding the development of infrastructure such as roads in the state.