UNN PPP_Policy

University of Nigeria

Public Private Partnership (PPP) Draft Policy

1.0. Executive Summary                                                                                                               
1.1 Objectives                                                                                      
1.2. Guiding Principles                                                                           
1.3. Framework                                                                                   
1.4. Expected Outcomes                                                                         

2.0. introduction                                                                                                                         
2.1. Background                                                                                  
2.2 Context and Purpose of PPP Policy                                                     
2.3. The Four Key Objectives of PPP Initiatives in UNN are:                            
2.3.1. Other Specific Objectives Sequel to the Adoption of a Robust PPP Intervention Model are to:                                                                               

3.0. Guiding Principles of the PPP policy                                                                            
3.1. Guiding Characteristics of PPP Policy                                                
3.1.1.2 Independent PPP Company                                                                                              
3.1.1.3. Allocation of Risks                                                                                                                
3.1.1.4. Output Standards and Specifications                                                                                  
3.1.1.5.  Performance-Based Payment Mechanism                                                                             
3.2. Guiding Financial Characteristics                                                      
3.2.1. Private Financing                                                                                                                      
3.2.2. User Fees                                                                                                                       
3.2.3. Viability Funding Gap (VGF) or Availability Payments                                                             
3.2.4. Service Performance Standards                                                                                            

4.0. Legal and policy framework                                                                                         
4.1. University of Nigeria Procurement Policy                                           
4.2. Supporting Regulations                                                                  

5.0. criteria for selecting a ppp partner                                                                            
5.1. Technical Criteria                                                                         
5.2. Financial Criteria                                                                          

6.0. institutional and organisational framework for ppp                                      
6.1. Establishing a PPP UNIT                                                                 

6.2. PPP UNIT Directorate                                                                   
UNIT Head, Business Development                                                                                                    
UNIT Head, Legal                                                                                                                                
UNIT Head, Projects                                                                                                                           
Independent Auditor and Evaluators                                                                                           

6.3. PPP Directorate/UNIT Functions/Responsibilities                                  
Policy Implementation and Advisory                                                                                             
Project Identification & Development                                                                                           
Compliance & Regulatory Liaison                                                                                                   
Procurement & Partner Selection                                                                                                 
Risk Management & Contracting                                                                                                   
Monitoring, Reporting and Evaluation                                                                                        
Capacity Building and Knowledge Management                                                                           
Internal and External Stakeholder Engagement                                                                        
Continuous Review and Policy Feedback                                                                                       
Alumni  Impact  Investing Coordination                                                                                       
Stakeholder Engagement and Communication                                                                            
Accountability and Reporting                                                                                                        
Innovation, Sustainability and Inclusiveness                                                                               
Project Integration                                                                                                                         
Fund Structuring and Management Structure                                                                           

7.0. overview and types of ppp                                                                                              
7.1 Types of PPP UNN Shall Pursue                                                        
7.2. Operational Models of PPP in UNN                                                   

8.0. project selection and development                                                                           
8.1 Identification of the Project Needs in the University                               
8.2. Feasibility Study                                                                           
8.3. Transparent procurement and competitive bidding                               
8.3.1.  University’s Contracting procedure                                                
Procurement Notice                                                                                
Pre-qualification Notice 
Shortlisting                                                                                            
Invitation to Tender/Selection of Preferred Bidder 
Invitation to Tender/Selection of Preferred Bidder: 
Invitation to Tender/Selection of Preferred Bidder: 
Reach Financial Closure: 
Confirm Internal Approvals: 
Financial Close Checklist: 
Handover Projects Assets/Personnel etc… 

8.4. PPP Project Revenue Sources                                                          
8.5. Project Life Ceiling and those excluded from PPP Arrangement              
8.6. University Sectors Suitable for PPPs and Potential Partnership Models      

9.0. Risk management and value for money                                                                   
9.1. Risk division                                                                                 
9.2 Value for Money                                                                            
9.2.1 Applicability                                                                                                                                
9.2.2 General Principles                                                                       

10.0. contract management framework                                                                          
10.1. PPP Contract Renegotiation                                                          
10.2. PPP Project modifications                                                            
10.2. No Compete Clause                                                                     
10.4. Project Life Ceiling and those excluded from PPP Arrangement             
10.5.  Conflict Resolution                                                                     
10.6. Right of complaints                                                                     
10.7. Hand Back PPP Project                                                               
10.8. Exit/Clause Termination Payment                                                   
11.0. monitoring, evaluation and reporting                                                                  
11.1. Purpose and Scope                                                                      
11.2. Monitoring Framework                                                                
11.3. Evaluation Framework                                                                 
11.4. Data Collection and Management                                                   
11.4. Reviews and Communication                                                          

12.0. Summary and next steps                                                                                                
12.1 Summary of PPP Policy Guideline                                                   

ANNEXES                                                                                                                                          

ANNEXES A: PPP OPPORTUNITIES IN UNN                                                                                 
Student Hostels 
Table 2: Hostels in Enugu Campus                                                           
Staff Accommodation 
Table 3 – Staff Housing at Nsukka Campus                                               
Table 4: Staff Housing in Enugu Campus                                                  

HOSPITALITY SECTOR                                                                         
Table 6. Presidential Lodge Nsukka Campus                                              

AGRICULTURE SECTOR                                                                       
Table 7 – AGRICULTURE                                                                     

HEALTH SECTOR                                                                               
Table 9 – UNN Medical Centers                                                             

ANNEXES B: SOURCES OF PPP FINANCING                                                                                

Annexes III: MONITORING AND EVALUATION FRAMEWORK FOR PUBLIC-PRIVATE PARTNERSHIP INITIATIVES IN UNIVERSITY OF NIGERIA PROJECTS                                                                    

Key Benefits of the Framework                                                              

PART 2: MONITORING AND EVALUATION PLAN                                      

1.0. Executive Summary

The Public-Private Partnership Policy provides a structured framework through which the University of Nigeria will partner with the private sector organisations for financial mobilisation, technical assistance, concession of IGR entities, service delivery enhancement, and strengthening of institutional capacity.

1.1 Objectives

1. Leverage private sector expertise and financing to modernise and expand the University’s infrastructure capacity and bridge funding and infrastructure gaps.
2. Facilitate the concessioning of IGR entities, such as hospitality and lodging facilities, hostels, and businesses, in the University.
3. Promote efficiency and innovation in the management and development of university facilities, services, and projects and achieve long-term financial viability.
4. Enhance service quality and delivery excellence.
5. Enhance university access, reputation and institutional attractiveness.

1.2. Guiding Principles

The policy is anchored on the principles of:

• Transparency and Accountability: All the PPP processes will be open, competitive, and subject to due oversight.
• Value for Money: Long-term benefits and cost-effectiveness must be the optimal critical factors in selecting all projects.
• Sustainability: All PPP initiatives will be environmentally, socially, and financially sustainable.
• Inclusivity: Stakeholder engagement, participation and equitable access to benefits will be ensured.
• Risk Sharing: Inherent risks associated with PPP projects shall be identified and allowed to be managed by the most competent party(ies).

1.3. Framework

The policy establishes:

1. A legal and institutional framework in alignment with the Infrastructure Concession Regulatory Commission (ICRC), other national and international PPP laws, and university guidelines.
2. An organisational framework, including a dedicated PPP Unit, for project identification, procurement, implementation, and oversight.
3. Processes for project development, including selection of partners, assessment of risk, and contract management.
4. A monitoring and evaluation mechanism for tracking performance and compliance to ensure they meet agreed standards.

1.4. Expected Outcomes

1. Improved services and infrastructure through innovative financing and management models.
2. Rise in private sector participation in developing university projects and services.
3. Enhanced efficiency, sustainability, and quality of facilities available for students, staff, and the community.
4. Robust governance structures that reinforce the university’s reputation as an accountable, transparent, and forward-looking institution.

This PPP framework serves as a maiden transformative, future-facing model for UNN; it represents a replicable and scalable approach to governance and financing in higher education.

2.0. introduction

2.1. Background

The University of Nigeria Nsukka (UNN) is facing increasing pressure on their mission to provide high-quality, affordable education, and perform world-class research. Reductions in public funding support and concerns about overall affordability present substantial near-term and longer-term budget challenges for UNN. While an affordable, quality education that leads to a sustaining career is the core component of the mission of UNN, it is increasingly clear that students and their families are also interested in the enabling environment that contributes to the overall student experience in UNN. Often, these enabling environments and infrastructures that foster a productive academic climate are driven by investments made in the University facilities, as opposed to independent actions of students or the local community.

In all, the total financial investment required by the University administration to provide a world-class learning environment that is competitive is beyond what the current revenue stream of the University can cope with. While large-scale infrastructure projects in the University of Nigeria have traditionally been funded by government and internally generated revenue, analysis of the present university context demonstrates the increasingly vital role of private sector participation. To partner with private sector participants in a public institution like the University of Nigeria would require a comprehensive policy to ensure alignment of interests and goals of the participants within the extant legal framework provided by the Infrastructure Concession Regulatory Commission (ICRC). The latter is the raison d’être for this policy document.

2.2 Context and Purpose of PPP Policy

The inevitable consequences of direct investment in infrastructure by the university management are inadequate and poor-quality services, steady dilapidation of the existing infrastructure due to poor maintenance and inefficient services that do not justify value for money. Further, the university community is bereft of the resources, expertise and stake to curate and manage this supporting infrastructure optimally. A PPP therefore provides a vehicle for a contractual relationship between UNN and private sector entities, in which they can share skills, technology and responsibility when delivering a product or service that is mutually beneficial.

Consequently, PPPs will provide greater flexibility and efficiency in building, financing and managing infrastructure and facilities in UNN. The PPP will help offset risk, promote designs of new facilities that fit into the existing structures, and confirm that the new facilities are both of high quality and attractive to prospective users. But perhaps the greatest benefit of a PPP for UNN is the time and energy they no longer need to spend on non-academic activities, allowing UNN to instead focus on delivering an academically excellent experience for their students.

2.3. The Five Key Objectives of PPP Initiatives in UNN are:

• Leverage private sector expertise and financing to modernise and expand the University’s infrastructure capacity and bridge funding and infrastructure gaps.
• Facilitate the concessioning of IGR entities, such as hospitality and lodging facilities, hostels, and businesses, in the university.
• Promote efficiency and innovation in the management and development of university facilities, services, and projects and achieve long-term financial viability.
• Enhance service quality and delivery excellence.
• Enhance university access, reputation and institutional attractiveness.

2.3.1. Other Specific Objectives Sequel to the Adoption of a Robust PPP Intervention Model are to:

1. Ensure that infrastructure projects are planned, prioritised and managed to maximise economic returns and are delivered in a timely, efficient, and cost-effective manner.
2. Use PPP as a catalyst for the implementation of the C/SDP and any subsequent development plans, considering the University’s development plans;
3. Accelerate investment in new infrastructure and ensure that existing infrastructure is upgraded to a satisfactory standard that meets the needs and aspirations of the university.
4. Ensure that all investment projects provide value for money and that the costs to the university are affordable.
5. Develop more reliable services by deploying private sector skills in project financing, risk management, project planning and the use of new technologies and innovation, thereby ensuring greater value for money in the provision of public infrastructure.
6. Improve the availability, quality and efficiency of power, water, transport and other public services within the university.
7. Enhance the employment generational potential and diversity of the university income.
8. Ensure that user charges for new or improved public services are affordable and provide value for money.
9. Protect and enhance the natural environment within the university.

3.0. Guiding Principles of the PPP policy

The UNN PPP transactions and operations shall be guided by the following principles, which are in consonance with the university’s core values:

1. Transparency and Accountability: All the PPP processes will be open, competitive, and subject to due oversight.
2. Value for Money: Long-term benefits and cost-effectiveness must be the optimal critical factors in selecting all projects.
3. Sustainability: All PPP initiatives will be environmentally, socially, and financially sustainable.
4. Inclusivity: Stakeholder engagement, participation and equitable access to benefits will be ensured.
5. Risk Sharing: The party best suitable to manage any specific risk will manage the risk.

3.1. Guiding Characteristics of PPP Policy

3.1.1. Major Operational Characteristics

3.1.1.1 Long-Term Contract

PPP projects requiring investment are generally long-term in nature, and shall typically range from 10 to 30 years or more  (10 to 21 years in the first instance) (note: PPP projects not requiring investment, such as management contracts, shall be for shorter terms). The tenure of the contract shall be such that it typically covers the entire economic life of the asset to ensure that the private sector partner takes a whole life-cycle view for the development  of the asset. The asset shall be designed, constructed, operated, and maintained such that the whole life-cycle cost of the project is minimized, and the private sector operator ensures that the asset is well-maintained throughout its entire economic life.

3.1.1.2 Independent PPP Company

Given the capital-intensive nature of PPP infrastructure projects and the risks associated with them, private sponsors of the project in UNN will be allowed to form a separate independent PPP Company, under a Special Purpose Vehicle (SPV) structure. SPV’S are usually project specific with varying responsibilities of both parties to the PPP) This would enable  private sector consortium to raise funding and reduce risks of project failure

        3.1.1.3. Allocation of Risks

One key factor to achieving successful implementation of a PPP projects in UNN is the optimal sharing of risks and responsibilities between the UNN and private sector investors. The guiding principle that shall guide in identifying and allocating responsibilities is that the party best able to manage a particular activity shall be responsible for the risks associated with that activity and receive the associated rewards or losses.

          3.1.1.4. Output Standards and Specifications

Output specifications form a vital part in encouraging innovation in PPP projects. Output specifications for PPP Projects shall define the ends without being prescriptive about the means for meeting these outputs. UNN shall clearly states the public service requirements for the facilities and services, while leaving room for the private sector partners to produce innovative, cost-effective solutions.          

 3.1.1.5.  Performance-Based Payment Mechanism

The UNN PPP projects shall be structured in such a manner that the contract includes a performance-based payment mechanism, whereby UNN only pays when services are delivered by the private sector partners. The recurrent payment shall depend on whether the services provided meet the specified performance standards as well. For example, it is not just expected that a new water distribution PPP project in UNN will provide customers with adequate quantity of water, but also that the potable water is above specified quality standards.

3.2. Guiding Financial Characteristics

            3.2.1. Private Financing

In any PPP structure in UNN, the responsibility of financing the project assets shall rest with the private sector partner. There could be exceptions to this rule and this shall depend on the service delivery model adopted. In the models which involve funding the project assets by the private sector, the private sector partner shall raise project finance through equity and/or debt finance. The project can be owned (or leased) by one or more equity investors during the project term. Some of the shareholders may also be contractors to the project, who may carry out construction, design or management of the assets. Others may be pure financial investors. Debt finance, in the form of bank loans or bonds, shall be raised to at least partially finance the construction and operation of the project.

3.2.2. User Fees

In all PPP projects, investors will be required to recover most of their costs from users rather than from the University directly.

            3.2.3. Viability Funding Gap (VGF) or Availability Payments

To ensure that PPP  projects are viable, efforts shall be made to demonstrate that the private sector investors can achieve an acceptable rate of return for the risks it takes in financing the project’s assets. To cover any shortfall in income to offset total project costs, the University may provide a payment to part-finance the project costs, which in turn will raise the return to the private sector making the project more financially attractive. This payment called a VGF or availability payment shall be provided on the basis that the assets involved in the project which are used to provide the infrastructure services are available 24 hours of every day for the whole year, except for periods of pre-arranged maintenance and therefore shall continue to pass part of the risk to the private sector.  A PPP shall only be structured to include VGF/availability payments when total income does not cover total project costs to make the project financially viable and bankable and to attract private investors. Availability payments but not VG shall be used in PPP social infrastructure or soft infrastructure projects, where the user charges are payable to the SPV or private sector services provider solely by the university, as part of the agreed payment mechanism for the provision of those services. Assets used to provide the services shall be divided into areas on the basis of importance or priority. If any of these areas is not available, then through the payment mechanism formula the user charges that are payable by the university, are reduced by a percentage based on the importance or priority of the area concerned and the time that the area is unavailable, after deduction of an agreed time allowance for the SPV or services provider to bring the area back to full availability.

            3.2.4. Service Performance Standards 

To ensure that the private sector concessionaire or service operator fully understands the minimum service levels that the university requires for the PPP project in question, the university project sponsor must describe in general details in the RFP, a full set of minimum performance standards for the requested services, covering the availability of the assets provided by the private sector concessionaire and the required minimum service levels. Detailed service performance standards shall be negotiated with the selected preferred bidder, as part of the PPP concession contract negotiations. These performance standards shall be backed by an incentive or penalty system for rewarding or punishing the private sector operator for service levels delivered above or below the agreed performance standards. In cases of continuous poor performance below the agreed performance standards, the PPP contract shall be terminated, or the Lenders Direct Agreement (Step-in-Rights, Cure Periods, Assignment Rights, Termination Compensation) will come into operation. The incentive/penalty system is usually points based which translates into a monetary amount at agreed periods.

4.0. Legal and policy framework

The “PPP framework” or “PPP Policy Framework” is the policy, procedures, institutions, and rules that together define how PPPs in UNN will be implemented. It is anchored within supporting legislations, which outlines the rules and procedures for engaging private sector participation in public infrastructure and service delivery. Key legal instruments include:

4.1. University of Nigeria Procurement Procedure

1. The UNN procedure follows the Federal Government Procurement Procedure
2. This ensures competitive and transparent procurement processes.
3. Mandates compliance with procurement guidelines for all PPP Projects

4.2. Supporting Regulations

1. Issued by the University Management to provide operational clarity.
2. Issued by PPP UNIT to standardise general processes, risk-sharing, financial

management, and stakeholder engagement.

3. Nigeria’s National PPP laws.
4. ICRC 2014 Act.
5. Public Procurement Act.
6. Procurement Procedure Manual
7. Other key international PPP

5.0. criteria for selecting a ppp partner

The experience and capacity of private partner are critical to the effective delivery of the outputs and outcomes of PPP projects. Consequently, contracting and engaging a private partner shall be guided by the broad criteria captured hereunder:

5.1. Technical Criteria

Two key broad metrics shall be used to assess the technical capabilities of the prospective private partner by PPP Unit.  These metrics are:

• Right Stock of Personnel: The searchlight here shall focus on whether or not the prospective private partner has in its personnel profile the right number, caliber and mix of personnel to deliver the services they are being engaged to perform. A key consideration in this evaluation shall be the experience of the personnel garnered in similar job in the past.
• Technology and Equipment Fit: This criterion assesses the technological know-how and the ability of the private partner prospect possessing the right stock of equipment/facilities for the work being considered for. Part of the consideration in this regards shall be how modern the technology and equipment are in delivering effective and efficient services. There shall be also a consideration for the prospects’ capacity for equipment servicing, maintenance and repairs.

5.2. Financial Criteria

There are basically two criteria that shall be used to assess the prospective private partner:

• The firm’s operational financial capacity: This criterion assesses the prospective private partner’s financial capacity to execute the business being considered for. The key searchlight shall be on the organisational turnover, cash flow, profit and loss, and balance sheet.
• Ability to raise fund from financial institution: This criterion evaluates the ability of the private organisation to raise funds from financial institutions. Attention shall be on the prospects past credit history and present level of loan exposure and indebtedness. Aside evidence based credit history from well-known financial institutions, the prospective private partner shall be required to obtain necessary performance and insurance bonds commensurate to the level of projects being considered for.

6.0. institutional and organisational framework for ppp

The institutional framework for PPPs in UNN assigns clear roles and responsibilities to various stakeholders to ensure effective governance and implementations. The key stakeholders involved are:

6.1. Establishing a PPP UNIT

The university management shall set up a dedicated PPP unit. Its core task is to be the policy custodian, project developer, compliance officer, contract manager, and innovation promoter for PPP projects within the university.

Organogram of PPP Directorate/UNIT

6.2. PPP UNIT Directorate

The PPP UNIT/Directorate shall be headed by a Director, appointed by the Vice Chancellor who is expected to be a PPP Expert. The director’s major responsibilities shall be leadership and coordination authority on behalf of the Vice Chancellor, ensuring that all other units’ function in a harmonised way. Specific responsibilities include oversight & coordination, policy and governance, resource mobilisation, monitoring and accountability, and innovation and growth. Below are the teams and their responsibilties:

UNIT Head, Business Development

1. Strategic Partnership and Networking
2. Revenue Generation & Enterprise
3. Project Development & Management
4. Investment Facilitation
5. Deal Originator
6. Reports to PPP UNIT Director

UNIT Head, Legal

1. Oversee the Legal related issues in the Unit.
2. Reports directly to the PPP

UNIT Head, Projects

1. Project Planning & Design
2. Deal Execution & Coordination
3. Monitoring & Evaluation
4. Financial & Risk Management
5. Sustainability & Handover
6. Reports to PPP UNIT Director

Independent Auditor and Evaluators

1. Financial Auditing
2. Performance Evaluation
3. Compliance & Governance Oversight
4. Transparency & Accountability Reporting
5. Reports directly to the university management.

6.3. PPP Directorate/UNIT Functions/Responsibilities

Policy Implementation and Advisory

1. The unit shall serve as the institutional anchor for all PPP initiatives in the University.
2. Translate the university’s PPP policy, regulations, standards, and guidelines into practical steps.
3. Provide technical advice to Senate, Council, and University management PPP

Project Identification & Development

1. Identify infrastructure, service delivery, and research areas  that are suitable for PPP arrangements
2. Conduct or commission pre-feasibility and feasibility studies to assess viability.
3. Prepare business cases for PPP projects in line with ICRC standards

Compliance & Regulatory Liaison

1. ICRC Act and Guidelines. Public Procurement Act.
2. NUC regulations and relevant federal policies (if any).
3. Act as the University’s liaison office with ICRC, NUC, and relevant government agencies.

Procurement & Partner Selection

1. Manage the procurement process for PPP projects (EOIs,RFPs,evaluations)
2. Develop and apply criteria for selecting private partners (technical, financial, and ethical
3. Maintain a database of potential private sector partners for various sectors (construction, ICT, research among others)

Risk Management & Contracting

1. Develop risk-sharing frameworks tailored to different PPP models.
2. Negotiate and draft PPP agreements ensuring inclusion of:
3. Value-for-money provisions.
4. Performance obligations.
5. Conflict resolution mechanisms.

Monitoring, Reporting and Evaluation

1. Establish Key Performance Indicators (KPIs) for PPP projects.
2. Monitor project implementation and ensure compliance with contract terms.
3. Generate quarterly and annual reports to university management, and the Council. Commission independent audits/evaluations where necessary.

Capacity Building and Knowledge Management

1. Train university staff and stakeholders on PPP processes.
2. Maintain a PPP knowledge hub (guidelines, templates, case studies)
3. Organise workshops, seminars, and stakeholder engagements to promote innovation and inclusiveness
4. Turn the unit to PPP institution with the approval of the university council and senate and   train external candidates in MDAs and the private sector on PPP processes and transactions for a fee.

Internal and External Stakeholder Engagement

1. Act as the liaison between alumni investors and PPP project developers.
2. Organise forums, town halls, and investment roadshows to present PPP  opportunities to alumni investors.
3. Build partnerships with international alumni networks, foundations, and diaspora investors.

Continuous Review and Policy Feedback

1. Regularly review University PPP experiences and feed lessons back into policy updates.
2. Benchmark UNN’s PPP practice against national and international best practices.

Alumni Impact Investing Coordination

1. Serves as the institutional hub/transaction advisory team for converting (if called upon) alumni donations into impact investments for greater returns.
2. Work in collaboration with the Office of the VC, Alumni Association, and Bursary to structure investments within the PPP Projects.

Stakeholder Engagement and Communication

1. Serve the one-stop office for private investors seeking to engage with the University.
2. Build and sustain partnerships with industry, donors, development partners, and alumni networks.
3. Manage communication and ensure transparency in all PPP engagements.
4.  

Accountability and Reporting

1. Develop social impacts KPIs linked to alumni-funded projects (e.g., number of students housed, scholarships supported, CO2 reduced via solar power)
2. Publish annual Alumni Impact investment Reports showing both financial steward ships and measurable outcomes.
3. Provide recognition to contributing alumni (naming rights, impact dashboards, governance participation).

Innovation, Sustainability and Inclusiveness

1. Ensure PPP Projects incorporate:
2. Environmental sustainability (renewable energy, green buildings)
3. Social safeguards (community engagement, labour standards)
4. Inclusiveness (gender, disability, vulnerable groups)
5. Promote innovation in service delivery and research collaboration.

Project Integration

Integrate alumni impact investment funds into PPP financing structures as:

1. Equity co-financing (with private developers).
2. Blended finance/first-loss capital (to de-risk private investments).
3. Social impact bonds (pay-for-success projects).

Fund Structuring and Management Structure

1. The UNN PPP UNIT shall perform technical and advisory responsibilities to UNN Investment and Infrastructure Development Trust Fund (UNNIIDTF), which shall warehouse the transformed University Endowment Impact Investment Vehicle (SPV/Fund) and other  resources  from  the maiden and subsequent annual Civic Crowd funding. The UNNIIDTF shall ensure alumni impact investment funds or other external generated funds for PPP projects are transparently pooled and deployed into eligible PPP projects (Hotels, ICT, renewable energy, research hubs). The UNNIIDTF shall serve as  the fiscal guardian of the PPP UNIT, while the UNN PPP UNIT shall serve as the technical driver of PPP projects. The UNNIIDTF shall serve as the gatekeeper of the PPP UNIT and in conjunction with the PPP UNIT serve as the external finance soliciting team of the University. They shall jointly manage financial flows, ensuring minimal financial returns plus maximum social impact.
2. The Vice Chancellor shall appoint a development Expert/consultant from the University or industry with proven private sector experience to manage the UNNIIDTF portfolio for a 5year term, renewable for Only another five year term.

7.0. overview and types of ppp

There are several types and models of PPP depending on the stakeholders involved, their ownership arrangements, and allocations of risk between the private and public partners. The choice of a PPP model in UNN shall depend on the target  of the University (e.g. improving service efficiency, transferring investment risk, maintaining service control) with respect to a particular project.

7.1 Types of PPP that UNN Shall Pursue

1. A project to develop infrastructure on previously undeveloped land or build new infrastructure such as a hostel, hotel, sports complex and leisure park (BOT).
2. A project to rehabilitate existing infrastructure or to add new infrastructure. This shall include upgrading or renovating of an existing hostel, laboratory building, or staff building or adding new buildings or facilities to an existing site.
3. Short- to medium-term contract with a private firm for operating services.
4. Long-term lease with private developer who commits to construct, operate and maintain the project.
5. Long-term concession with private developer to construct, operate, maintain and finance the project in exchange for annual payments subject to abatement for nonperformance
6. Long-term concession with a private developer to construct, operate, maintain and finance the project in exchange for rights to collect revenues related to the project.
7. Concessioning of existing IGR entities in the University, such as hostels, hospitality and lodging facilities, businesses, etc.

7.2. Operational Models of PPP in UNN

8.0. project selection and development

The University of Nigeria PPP on-boarding process shall follow the steps described below. The steps are the globally typical project life cycle for the development and execution of approved PPP projects that involve the provision of infrastructure and related services:

8.1 Identification of the Project Needs in the University

1. Once a project is identified as a prospective PPP project, the PPP Unit shall in collaboration with the key project stakeholders including but not limited to the likely primary beneficiaries, workers if it is an existing enterprise, and those that the project will impact in any way, make a case to the Vice Chancellor presenting the need for private sector intervention.
2. Once a project has been selected and approval obtained to be explored as a PPP, especially with reference to the projects that will entail the acquisition of already existing  assets of the university ,the Vice Chancellor may set up a committee made up of the relevant expertise drawn from the university community for the specific project to  work with  the  PPP  The Committee shall do the asset value estimation (for a brown field project/existing assets). It is on this basis of the ad hoc committee report that other processes of advertising, shortlisting, screening, and  engaging the private sector partner shall commence.     For green field projects, the PPP Unit shall handle the detailed financial, technical, and legal work required to implement the PPP.
3. Due to the uniqueness of each project, the UNN PPP UNIT shall develop rules, regulations and guidelines wherever maybe required for each step of the procurement life cycle of the PPP project.

8.2. Feasibility Study

If the preferred option can be procured through a PPP, the institution must then establish affordability, value for money and risk transfer.

8.3. Transparent procurement and competitive bidding for PPP Projects

1. During the bidding process, sufficient attention shall be placed on the key good procurement principles of “transparency” and “equal treatment”, which will help bolster the legitimacy of the PPP and its acceptance by stakeholders. The procurement proceedings shall follow the procurement proceedings in accordance to ICRCAct2014, Part IV (and Procurement act 2007).
2. The PPP procurement process shall be conducted via a competitive bidding process to ensure transparency in the process and to provide a mechanism for the selection of the best-value proposal
3. This will ensure compliance with global best practice to secure support from local and international lending institutions and grant funding organis
4. The maximum benefits of competition will be realised if there is sufficient interest to generate multiple bidders, which normally arises with a public and transparent two-stage procurement process.
5. The first stage, the pre-qualification process shall be to select bidders that are best qualified to submit fully priced bids. A shortlist of bidders shall then be selected based on a consistent selection criterion with the objective of excluding bidders.
6. The second and final stage progressively shall reduce the number of bidders based on the evaluation of technical and financial bids until the Preferred Bidder is identified.

8.3.1.  University’s Contracting procedure for PPP Projects

2014. Procurement Notice: Publication of the public procurement notice shall mark the start of the formal procurement process. The UNN PPP UNIT must comply with all requirements related to the publication of notices in the ICRC Act2014. It is also recommended that UNN PPP UNIT should publish the procurement notice in one or more national newspapers. The UNN PPP UNIT notice shall be followed by a questionnaire to enable interested companies to demonstrate their qualifications (also known as the submission of an “expression of interest”).
2015. Pre-qualification Notice: Interested parties that respond to an initial procurement notice shall be sent a short statement of information about the project and instructions or a questionnaire. These shall form the basis of a qualification submission that such parties must make to demonstrate their ability to implement the project. The UNNPPP UNIT legal advisers shall draft both the PPP procurement notice and the pre-qualification questionnaire.
2016. Shortlisting: In evaluating the qualification submission, the UNN PPP UNIT shall focus on the technical capability, business capability, and financial position of the potential bidders. In line with the ICRC 2014Act, these capacities must be, in principle, demonstrated jointly, rather than individually, by the members of a consortium. At the end of the process, a well-substantiated pre-qualification report shall be prepared to provide a good audit trail.
2017. Invitation to Tender/Selection of Preferred Bidder:
      1. The invitation to tender documentation shall contain all the information that bidders will need to bid. UNN PPP UNIT advisers shall devote sufficient time and effort to develop the documentation in enough detail to ensure comparability of the bids and reduce the need for debate and clarification before the PPP contract is signed.
      2. Once the tenders are submitted, they shall be evaluated to arrive at the selection of the preferred bidder. Bids shall be generally assessed first on a number of pass/fail criteria before the single preferred bidder is decided on. For example: even if the evaluation score is not based on a technical evaluation, a determination must be  made that the technical solution proposed by a bidder is feasible, deliverable and robust, that it is based on reliable technologies, that It meets all minimum technical requirements set and  that the costs and financial structure are consistent with the technical solution; and it is important to look at the proposed project management: the bidding consortium must come across as a cohesive entity rather than just a collection of companies put together for bidding purposes.
      3. Occasionally, only one bidder may submit a tender despite the UNN PPP UNIT having issued the invitation to tender to several shortlisted candidates. Should that happen, the question of how to proceed shall be considered case by case. If it appears that bidder interest was low because of deficiencies in the tender documents (including the project specifications or the draft PPP contract) and these can realistically be remedied, then the tender procedure shall be repeated with more detailed information.
      4. If it appears that the bid was made in the bidder’s belief that there would be a good level of competition (and this should be supported by the UNN PPP UNITs advisers carrying out benchmarking of costs and in some cases by insisting on actual market testing of the costs of the major subcontracts), the  procurement shall be continued and the  sole bidder shall be  considered the winner, provided  that the tender was fully compliant and met all pass/fail evaluation criteria under  ICRC Act 2014.

E.     Invitation to Tender/Selection of Preferred Bidder:

At the start of this phase, the UNN PPP UNIT negotiating team and the preferred bidder shall need to agree on a framework for final discussions/negotiations. This framework shall include:

1. The discussion timetable;
2. The definition of their main issues or point of contention; and
3. The recording of agreed matters.

F.     Invitation to Tender/Selection of Preferred Bidder:

The UNN PPP UNIT shall require bidders to secure fully committed financing packages along with their bids. This will ensure that the finalisation of the financing agreements can take place simultaneously with or shortly after the signing of the PPP contract.  The  financing agreements to be prepared and concluded shall comprise:

The underlisted agreement could be summed up in the following four agreements:

1. Concession Agreement.
2. Shareholders Agreement
3. Escrow Account Agreement
4. Dead of Lease

G.    Reach Financial Closure:

Financial close shall be known to occur when all the project and financing agreements have been signed and all the required conditions contained in them have been met.  This enables funds (e.g., loans, equity, grants) to start flowing so that project implementation can actually start. Any remaining “conditions precedent” contained in the financing agreements need to be fulfilled before funds can be disbursed. Typically:

1. The main permitting and planning approval shave been secured;
2. The key land acquisition steps have been achieved;
3. The outstanding technical design issues have been clarified.
4. Any remaining key project and financing document has been finalised and signed.
5. All funding approvals are in place; and
6. Proper registration of the security for the loans has been confirmed.

H.    Confirm Internal Approvals:

The UNN PPP UNIT shall confirm that the requirements of all internal approvals have been met. These shall include:

1. Confirmation of the legality of the procurement;
2. Approval of derogations from any standard contracting terms;
3. The value-for-money check; and
4. The affordability checks.

I.      Financial Close Checklist:

The UNN PPP UNIT shall carry out a considerable amount of detailed work to reach financial close.  The effort needed shall not be under estimated. The UNN PPP UNIT shall manage its tasks effectively and shall seek the support of its advisers.

J.      Handover Projects Assets/Personnel etc…

1. After the PPP procurement proceedings have been followed and concluded, and the PPP agreement signed and come into force, including financial closure of the PPP project. The UNN PPP UNIT shall hand over to the procurement entity necessary documents and authorisation required for the implementation of the project, within the time frame and in accordance with the conditions stipulated in the PPP agreement, free from any encumbrances.
2. There shall be provisions providing for the transfer to a PPP contract or the existing facilities at schools or other facilities, such as any existing physical  assets,  rights  of     workers and possibly also certain liabilities. Usage, condition and liability issues shall be negotiated, agreed and appropriately documented.
3. In education PPP projects where existing employed personnel are transferred to a PPP contractor, provisions shall be addressed by UNN PPP UNIT dealing with the transfer process and risk.

8.4. PPP Project Revenue Sources

1. Decisions on appropriate revenue sources shall be based on the findings of the Feasibility Study and recommendation of the PPP UNIT (the approval of the Feasibility Study would include an approval of an appropriate revenue source). Revenue sources for the private party could include tariffs and/or annuity payments as discussed below.
2. Tariff: For many infrastructure projects, a user tariff based agreement is appropriate. Initial tariffs and subsequent tariff escalation shall be initially determined within feasibility studies to ensure a proper or market acceptable rate of return based on an efficient operation. Competitive bidding process aims to minimise the initially University estimated tariffs and the subsequent escalation rate. The proposed tariffs and basis for tariff escalation during the PPP term shall be project-based (as opposed to being sector- based) and both shall be written into the PPP Agreement. PPP Agreement shall allow for tariff resetting and clearly define the mechanism and methodology for resetting.
3. Annuity Payments: Periodic unitary or fixed or annuity or off-take payment structure is suitable for certain types of projects such as those:

i). without a direct revenue stream, or

ii). with a weak revenue base, or

iii). with a weaker than acceptable demand, or

iv). with higher than acceptable risks.

4. University pays PPP: The University is the sole source of revenue for the private partner. Government payments can depend on the asset or service meeting contractually defined performance
5. Hybrid payments PPP: In certain cases, particularly when the revenues collected from end users are insufficient to cover the private partner costs and desired profits, a combination of the previously mentioned payment methods is utilised.

8.5. Project Life Ceiling and those excluded from PPP Arrangement

The lifespan of all projects covered within this PPP policy framework shall conform to the extant federal laws. In this respect, the project shall not exceed 35 years (21 years in the first instance subject to renegotiation of not more than 10 years) before it reverts to the University. Any considerations of renewal or extensions can only proceed after a clear disengagement has been completed and must be done with the guidelines and conditions permitted by this policy or any other laws in this regard. While the  below table presents the list of internal projects better managed through PPP,    the  PPP   option shall exclude   core academic  and pedagogical functions, weak  commercial viability projects(lecture halls),and projects Central to student welfare (admission and enrolment).

8.6. University Sectors Suitable for PPPs and Potential Partnership Models

9.0. Risk management and value for money

Achieving the value for money  that   justifies the PPP option also depends on the ability to identify, analyse and allocate project risks adequately. Failure to do so will have financial implications. Thus, at the project identification stage, in addition to assessing the sources of revenue linked with the affordability of the project, the UNN PPP UNIT and its advisers shall undertake abroad assessment of the risks that arise from the project requirements in order to manage them. This shall be an ongoing process which shall continue throughout the life of a PPP project. It shall take place in five stages:

Risk Identification

The process of identifying all the risks relevant to the project, whether during its construction phase or its operational phase;

Risk Assessment

Determining the likelihood of identified risks materialising and the magnitude of their consequences if they do occur;

Risk Allocation

Allocating responsibility for dealing with the consequences of each risk to one of the parties to the PPP contract, or agreeing to deal with the risk through a specified mechanism which may involve sharing the risk;

Risk Mitigation

Attempting to reduce the likelihood of the risk occurring and the degree of its consequences for the risk-taker, and;

Risk Monitoring and Review

Monitoring and reviewing identified risks and new risks as the PPP project develops and its environment changes. This process shall continue during the life of the PPP contract.

9.1. Risk division

PPP project risks shall be divided broadly into commercial risks and legal and political risks:

Commercial Risk

The is divided into supply and demand risks. Supply risk concerns mainly the ability of the PPP Company to deliver. Supply risk is subdivided into construction risk and supply-side operation risk (where construction and operation constitute the two phases of the project). Construction and supply-side operation risks include financial market risk due to, for example, changes in the cost of capital or changes in exchange rates and inflation. Demand risk relates to insufficient user volumes compared to base case assumptions.

Legal and Political Risks

This relate to, among other factors, the legal framework, conflict resolution, the regulatory framework, government policy, taxation, expropriation and nationalisation.

9.2 Value for Money

            9.2.1    Applicability

The UNN PPP UNIT shall conduct VfM analysis on their PPP projects as an integral part of their feasibility assessment. VfM analysis shall be applied to PPP projects at the project development stage to determine the appropriateness of undertaking them as PPPs and for assessing whether they provide better VfM in comparison to the traditional university/public procurement option.

9.2.2    General Principles

1. VfM analysis of PPP projects shall determine the procurement approach that provides the maximum benefit for the University, which includes benefits from private sector innovation, financing, efficiencies in construction and operations, and project risk
2. VFM analyses future cash flows shall determine whether an infrastructure projects is best suited to a traditional public-procurement option or a PPP option by measuring the relative benefits of the two options in Net Present Cost/Value terms.
3. In assessing VfM, consideration shall be placed on both the quantitative and qualitative assessments. The quantitative assessment shall focus on the costs of procuring a project under different procurement options. The qualitative assessment shall focuses on the benefits one procurement option may provide over and above the alternative. It consists of identifying and assessing unquantifiable factors which may also be considered in the procurement option decision (e.g., earlier availability of the service, improved service quality, higher environmental performance, and innovation).
4. The PPP UNIT shall have the primary responsibility of determining theVfM for PPP projects, in accordance with the ICRC Act 2014 and other national and international PPP appraisal guidelines, as maybe amended and updated.
5. The quantitative process of determining VfM in PPP projects shall be based on project-specific considerations to be determined by the PPP UNIT. For determining the whole- of-life costs for a traditional university/public procurement option, the following aspects shall be considered, among others:
   1. Estimated whole-of-life cost of traditional university/public procurement (Raw Public Sector Comparator-(PSC) by the PPP UNIT on a best-effort basis (e.g.,scope, timeliness, maintenance requirements and costs shall be the same with the PPP project)
   2. Estimated value of cost of benefits that is available only to the University (e.g., exemption from taxes);
   3. Estimated value of project risks transferred by the government to the private sector incase of a PPP option(e.g. construction risks);and
   4. Estimated value of project risks retained by the government, irrespective of the procurement option chosen (e.g., regulatory risks)

         **A summation of (i-iv) above will provide the PSC.

10.0. contract management framework

10.1. PPP Contract Renegotiation

1. The UNN PPP UNIT will not embark on renegotiation post bidding. This is to forestall opportunistic private sector bidders that make more aggressive (and potentially unrealistic) bids to secure a project, hoping to then renegotiate the PPP contract shortly after financial close in the absence of competition. As a result, the UNN PPP UNIT will not accept any intention or attempt of the private partner to transfer risks back to the UNN PPP UNIT, which is believed to have been contractually allocated to the private partner. This is to ensure that private sector partners who may not be efficient but who are opportunistic negotiators are not rewarded. Also, UNN PPP UNIT Shall not entertain the following:
   1. Any event that was foreseeable at financial close
   2. Any event that would affect the Project Company in its ordinary course of business (e.g. a general change of law)
   3. Materialisation of a risk allocated to the Project Company or invalid assumptions made in its pricing or the scope of work required in relation to those risks
   4. Any distress arising directly or indirectly from the performance, action or inaction of the Project Company
   5. Any failure by the Project Company to secure financing for the project
2. The UNN PPP UNIT understands that renegotiation in PPPs can have the effect of retrospectively distorting the competitive tender process. Where a contract is renegotiated and the agreed risk allocation changes after the preferred bidder has been selected, it is no longer obvious that the project company that was awarded the project offers the most cost-effective solution. This is because the originally tendered project and the renegotiated project are in essence two different projects. Most significantly, a project’s value for money becomes less clear in the absence of competition.
3. However, if there is a “reasonable” renegotiation, not done to benefit opportunistic private partners, UNN PPP UNIT shall consider.

10.2. PPP Project modifications

In many cases there are specific circumstances that could not be anticipated or quantified when the PPP contract was signed and could represent changes to works, services or form of delivery. Four categories of modifications can be considered:

• Modifications without Additional Costs: The university and the PPP Company shall discuss the best way of implementing the proposed change. If the modification will result in a reduction in costs to the PPP Company, then the parties shall reach agreement about how to distribute such savings, including any potential cost reductions to the users. The two parties shall agree modifications to the project financial model and to contracts without recourse to dispute resolution procedures.
• Small Works Variations: These types of modifications usually cover minor, unforeseen circumstances that require additional small works outside of the original contracts. Any dispute between the parties relating to small works variations must be determined in accordance with the dispute resolution procedures and shall be decided on a case-by-case basis with adjustment as necessary to the project financial model without major modifications to existing agreements.
• University-request Modifications: If the university wishes to make a change to the PPP project deliverables, it must first submit this request to the PPP Company. The proposal must describe the nature of the variation and require the PPP Company to provide an assessment of the technical, financial, contractual and timetable implications of the proposed change. After reviewing, the university must decide who will fund the modification (i.e., PPP Company, university, or users). If the PPP Company is adversely affected by this modification, they should be compensated in some manner and the project financial model adjusted accordingly.
• PPP Company-request Modifications: If the PPP Company wishes to introduce a variation it must submit a proposal to government setting out the details of the modification and the likely impact on service delivery and the PPP contract via the use of the project financial model. The university must decide whether to accept it or not and, if accepted, how to modify the funding regime that has been agreed and adjust the project financial model accordingly.

10.2. No Compete Clause

The PPP UNIT may in some cases provide the project with some protections from competition in order to reduce volume and revenue risk. For example, a hostel project may have a guarantee from the university that an alternative hostel won’t be allowed nearby within a set number of years or until demand has reached a specified level. In other words, the University may consent to a no-compete clause to protect the investors’ revenue or guarantee full occupation of such facility depending on other circumstance of the contract.

10.4. Project Life Ceiling and those excluded from PPP Arrangement

The lifespan of all the projects covered within this PPP policy framework shall conform to the extant federal laws. In this respect, the project shall not exceed (21 years; negotiable) before it reverts to the University. Any considerations of renewal or extensions can only proceed after a clear disengagement has been completed and must be done within the guidelines and conditions permitted by this policy or any other laws in this regard.

10.5.  Conflict Resolution

The Vice Chancellor may, in appropriate circumstances, upon request by either the PPP UNIT or the project proponent, in accordance with the provisions of the ICRC Act or of these regulations, mediate in a conflict between UNN PPP UNIT and the project proponent. Mediation’s proceedings handled by the VC shall be coordinated by the Ad-Hoc Committee on PPP Contract Compliance set up by the VC and headed by chairperson or director of UNNIDTF.

A party to any conflict in which the Vice Chancellor and the Ad-hoc Committee on PPP Contract Compliance are mediators reserves the right to accept or reject the commission’s determination on the issues in dispute, provided that once all the parties to the conflict have indicated their acceptance of the terms of settlement by appending their signatures to the terms of the settlement reached, no party shall have the right to subsequently challenge or reject the decision, and the terms of settlement shall be incorporated into the PPP Agreements, which shall become binding on all the parties.

In the event that any party to a mediation by the VC and Committee on PPP Contract Compliance rejects the decision reached by the VC and the PPP Contract Compliance Committee, such a party may declare a conflict resolution provision in the PPP Agreement, provided that no party shall activate the dispute resolution mechanisms provided in the PPP Agreement without first serving the University and the UNN PPP UNIT, and any other parties to the PPP Agreement, a three-month notice in writing of its intention to declare a conflict

The conflict resolution provision for PPP in UNN shall be mediation under the mediative-conciliatory (Med-Con) option. This is a private and party-driven process, empowering a neutral organ of power to give a binding and enforceable decision where the parties fail to reach a resolution. In that case, the office of the court is to enforce the decision as an “award” once an application for such is made with the supporting documents, such as the empowering clause and the award of the mediative-conciliator. Only the university may consider litigation after exploring the last option.

10.6. Right of complaints

A project proponent aggrieved with the UNN PPP UNIT over the way or manner in which any PPP project or services is being or has been procured, or regarding any aspect of the procurement process, or any decision or action of UNN PPP UNIT, shall be entitled to bring a complaint to the University through their PPP UNIT in respect of the grievance.

A complaint by the bidder or project proponent against the UNN PPP UNIT shall first be submitted in writing to the Vice Chancellor, and a copy to the PPP UNIT, who shall:

1. within 30 working days from when the bidder first became aware of the circumstances giving rise to the complaint or should have become aware of the circumstances, whichever is earlier; and
2. On reviewing a complaint, the Vice Chancellor shall make a decision in writing within 20 working days indicating the corrective measure to be taken, if any, including the suspension of the proceedings where he deems it necessary, and giving reasons for his decision.
3. Where the proponent did not accept the decision of the VC, the proponent can escalate the complaint to the conflict resolution panel.

10.7. Hand Back PPP Project

This phase marks the completion of the contract period and leads to the natural termination of the agreement. It shall involve the exit from the project by the PPP company, the transfer of land and assets back to the university, and the decision by the PPP UNIT on appropriate next steps, including re-tendering the project to the private sector. However, in some cases the university through the PPP UNIT may have an option to extend the project term. All PPP projects shall have a specified duration of the concession (usually 10-21 years; negotiable); and at the expiry of the concession contract, the private sector is required to hand over the project assets to the university in good operating condition.

In PPP agreement that requires the transfer or hand-back of infrastructure facilities to the UNN PPP UNIT upon the expiration or earlier determination of the PPP agreement, the procurer shall transfer/hand-back all the infrastructure facilities and other assets identified in the PPP agreement upon the expiry or sooner determination of the PPP agreement.

The UNN PPP UNIT shall, not later than thirty-six months prior to the hand-back date establish an internal hand-backing steering committee charged with the following responsibilities:

1. Engage with procurer in the process of winding down its operation and its preparations for the hand-back;
2. determine the state of the assets and any remedial work that may be required by the procurer in accordance with the PPP agreement or expected expenditure from the University Management in this regard;
3. The hand-back steering committee shall prepare a report within six months of its establishment and a copy of the report shall be furnished to the PPP UNIT;
4. make recommendations at least Twenty-four months before the expiry of the PPP agreement, as regards the process for the re-bid of the PPP project, provided any such re-bid seal follow UNN PPP UNIT regulations in force at the time; and
5. to ensure that the procurer carries out all remedial works as required under the PPP agreement; and.
6. In circumstances where the PPP agreement is terminated or determined sooner than the duration specified in the PPP agreement, the UNN PPP UNIT shall secure the assets involved in such a manner as to avoid value attrition and ensure that the procurer does not engage in asset-stripping.

10.8. Exit/Clause Termination Payment

11.0. monitoring, evaluation and reporting

11.1. Purpose and Scope

Purpose: The Monitoring and Evaluation framework for PPP projects in the University of Nigeria establishes a comprehensive guide for monitoring and evaluating public-private partnership projects within the University of Nigeria. It shall ensure systematic tracking of project performance while promoting strategic focus by establishing logical connections between resource inputs, implementation activities, delivered outputs, achieved outcomes, and ultimate impacts.

Scope: This monitoring and evaluation policy applies to all PPP projects undertaken by the University of Nigeria and covers the entire project lifecycle from planning and procurements through implementation, operation and closure.

11.2. Monitoring Framework

University-level results framework: The University shall maintain an overarching results chain aligned with its strategic goals for PPP (See logical framework in Annexe B).

Project-level results chain development: Each PPP project shall develop its specific results chain that clearly shows project inputs, activities, outputs, outcomes and impacts. Project level results chain should align with university results framework. Therefore, each PPP project shall develop its specific results chain by Identifying which university-level outcomes and impacts the project primarily contributes to and selecting relevant indicators from the institutional menu to develop project-specific outcomes and impacts that clearly contribute to the achievement of the university’s goals. Further, the team shall articulate how project activities and outputs logically lead to university strategic outcomes and quantifying the project’s expected contribution to overall institutional performance. This adaptation process ensures that irrespective of the `nature of the project, individual project successes aggregate into achievement or university’s strategic goals and institutional transformation. Each project becomes a building block in the larger vision.

Every PPP Project shall establish smart (Specific, measurable, achievable, relevant, and time-bound) indicators at each level of the results chain. This shall be done at the planning phase when the project is being designed.

Collection of baseline data: For effective progress tracking, the PPP Unit of the University of Nigeria shall gather baseline data for core indicators before any PPP is implemented. This is important for project tracking.

Monitoring of inputs: For all PPP projects, M&E Officers shall monitor inputs made to ensure that the necessary resources are available and used as planned. They shall maintain a detailed record of resource allocation, including financial, human, and material resources; regularly compare actual spending against the planned budget to identify discrepancies and conduct periodic audits to ensure that inputs are being efficiently utilized and are not being diverted or wasted.

Monitoring of activities: M&E officers shall monitor tasks and actions in all PPP projects to ensure that they are progressing as planned and are completed within the required timelines. They shall set clear milestones for all activities; document activity’s performance against benchmarks and ensure regular meetings between public and private sector stakeholders to discuss progress, challenges, and adjustments as well as.

Monitoring of Outputs: All outputs from PPP projects in the University shall be monitored to ensure that projects are on track to achieve their goals. M&E officers shall establish and follow a reporting system for tracking output indicators and compare actual outputs to the planned targets to assess the efficiency and timeliness of delivery. In addition, they shall collect feedback from stakeholders involved in output delivery to ensure quality and relevance.

Monitoring outcomes:  M& E officers shall monitor short-term outcomes by tracking the outcome indicators agreed for the project to determine whether the project is on the path of achieving set objectives. They shall also plan and conduct an outcome evaluation at mid-point and end-point of the initiative to assess achievement of key outcomes.

Monitoring Impact indicators: M&E officers shall monitor proxy indicators or leading indicators that suggest impacts are likely to occur and compare actual findings with planned impacts.

Conducting monitoring activities: Monitoring shall be done throughout the project duration on agreed indicators and at agreed times. Monitoring shall be done collaboratively with other development partners and key stakeholders using processes that are robust enough to manage potential biases and conflicts of interest.  . A range of monitoring tools including project dashboards, risk registers, issue logs, stakeholder feedback systems and financial monitoring systems shall be selected and maintained for every PPP project going on in the university

Coordination of monitoring activities: Monitoring shall be coordinated at university level to avoid duplication of efforts and reports. At intervals, the PPP Unit shall call for submission of data and information on the various indicators for all PPP projects.

Early warning system: an early warning system should be established for every PPP project to detect potential risks or problems at an early stage, enabling timely interventions to mitigate negative outcomes. All PPP project managers must manage uncertainties, prevent crises, and ensure the success of their projects by allowing stakeholders to respond proactively to emerging challenges. Any identified gaps should be rapidly investigated through field visits.

11.3. Evaluation Framework

Evaluation design and preparation: early in the project cycle, M&E Officers shall design effective evaluation plan/terms of reference that explains the what, why, when, how, and who to evaluate as well as how external stakeholders shall be involved. All evaluation plans must include formative, summative and ex-post evaluations and shall be reviewed and approved by key stakeholders before use.

Formative evaluation: This shall be conducted during implementation, focussing on adaptive management and course correction while emphasising leaning and improvement, conducted every 6 months.

Summative evaluation: This shall be conducted at project completion to assess overall achievement of objectives and document lessons learned and best practices.

Ex-post evaluation: This shall be conducted 2-3 years after project completion to assess long term impacts and sustainability, evaluate lasting institutional changes

Evaluation criteria: all evaluations shall assess projects against internationally recognized criteria including relevance, effectiveness, efficiency, impact, sustainability and coherence.

Evaluation methodology: evaluations shall employ mixed methods approaches combining qualitative analysis, quantitative assessments, comparative analysis, cost-benefit analysis, and theory based evaluation. Every PPP projects shall select the mix of methods that are best suited for assessing its specific outcomes and impact indicators.

11.4. Data Collection and Management

Data Collection: High-quality data collection requires ensuring that information sources are credible and reliable. The tables in Appendix B identify credible sources for M&E data collection.

Data quality: M&E officers must conduct data collection thorough data validation procedures. The M&E Officer holds responsibility for ensuring the collection and processing of clean, accurate data throughout the system. All M&E data shall maintain University’s data quality standards, which include accuracy, completeness, timeliness, accessibility, usability, confidentiality and security. Data quality reviews shall be undertaken to verify the quality and consistency of data over time, across PPP projects in the university

Uniformity in data collection: all essential data shall be collected in uniform template, agreed upon by stakeholders. The templates must ensure relevance, accuracy, timeliness and interpretability.

Data Analysis: M&E Data analysis shall be undertaken by the M&E Officer who forwards regular and on-demand reports. The Officer shall analyse data using the most appropriate tools and methods for quantitative and qualitative data.

Quality Assurance: An independent (external) M&E expert shall be engaged periodically to verify evaluation findings, assess M&E systems effectiveness, and benchmark against international best practices. A peer review process shall be established for monitoring and evaluation reports to ensure they are credible, ensuring that both process and product of evaluation are credible

Developing monitoring and evaluation capacity: Sufficient monitoring and evaluation skills shall be built to provide technical support, coaching and on-site training to selected staff to ensure ethical and consistent data collection, analysis and reporting across PPP projects in the University.

11.4. Reviews and Communication

Common Information System and Data Sharing Platform: For effective institutional knowledge management, there shall be a common information system to ensure a coordinated and unified way of information gathering, management, sharing, and presentation. The information system shall provide, in real time, clear data visualisation and dashboards of the progress of PPP initiatives as well as their performance in terms of achievement of the set goals.

Progress review: Progress reviews for PPP projects in the University of Nigeria shall consist of both quarterly and biannual reporting by all stakeholders who have reporting responsibilities. However, some projects may have different timelines for the various indicators as may be contained in the contract and reports shall be provided accordingly.

Period reports: The PPP Unit shall produce an Annual Strategic Plan Performance Review Report, which shall highlight the performance of the University of Nigeria in line with the set strategic objectives and will compare the performance to the set targets and the achievements from previous years for all projects. Summarily, the main outputs of the information generated from the M&E system will be the Strategic Plan Performance Review Reports that will be shared quarterly and annually. The reports shall highlight lessons learnt as well as recommendations.

In reporting, M&E officers shall transform from data to information with explanations, lessons and recommendations. All PPP project managers shall prepare reports in prescribed format which shall be consistent. These individual reports will make up the university annual PPP monitoring performance report. The PPP Unit shall be responsible for preparing the University’s annual PPP performance monitoring reports.

Follow-up on Evaluation findings and recommendations: Following the production of final evaluation reports, project managers shall take all actions recommended, prepare improvement plans based on recommendations, monitor the implementation of the plans and submit quarterly reports on progress on the implementing the plan

Data storage: This will be essential for ensuring institutional learning and preserving organisational memory. The M&E data warehouse shall serve the repository function for effective data management. Additionally, system backups will be maintained both at a physical location and through cloud storage.

Dissemination plan: Dissemination of information generated from the M&E system is a key component of monitoring and evaluation. The information generated is useful in promoting a culture of learning and the use of evidence in decision-making. The information shall be useful for both internal and external stakeholders. Effective dissemination of M&E information can facilitate:

• Organisational learning and sharing of best practices,
• Strategic planning and evidence-based decision-making,
• Accountability and compliance with legal and regulatory requirements,
• Build stakeholder understanding and support and therefore strengthen partnerships and collaborations.

Communication tools, including university newsletters and report briefs, will be distributed to both internal and external stakeholders. Staff will be kept informed of project developments and progress through the university email systems and other communication outlets. Additionally, M&E dashboards will provide real-time, at-a-glance views of key performance indicators for university projects. These M&E platforms will be accessible to the university management team and other members of the university community. Dissemination channels will include, but are not limited to: publication of evaluation reports and annual reports on the university website and portal; distribution to staff via email communications; partner briefing meetings; academic conferences; and relevant professional forums and summits.

12.0. Summary and next steps

12.1 Summary of PPP Policy Guideline

The successful implementation of this PPP policy guideline will be driven by the cooperation of all stakeholders. Ultimately, the PPP’s legitimacy and success will be primarily determined by the guarantees and assurances the university extends to investors who find its assets and PPP project pipeline attractive for private funding in terms of a stable and assured policy environment.

13.2 Next Steps

1. Set Up a PPP UNIT, appoint a Director and other Team Members following the Organogram
2. Empower and provide adequate resource to coordinate and oversee PPP project across the University
3. Identify, prioritise, and publish a true pipeline of potential PPP Projects aligned with university development plans
4. Promote public awareness of PPP opportunities and benefits to secure all stakeholders’ buy-in.
5. Strengthen partnerships with development partners, Alumni, (for impact investment) and international financial institutions to mobilise financing and technical assistance.

SIGNED

ANNEXES

ANNEXES A: PPP OPPORTUNITIES IN UNN

Profile existing enterprises and sectors that would be most profitably managed through PPP and recommend same to the university management

HOUSING SECTOR

            1. Student Hostels

The following student hostels (four at Nsukka campus and two at Enugu Campus) are being recommended for PPP as pilot projects. The hostels are: (i) Zik’s Flats (ii) Alvan Ikoku (iii) Bello (iv) Okpara (v) Lady Ibiam (vi) Mbonu Ojike

Table 1 – Hostels at Nsukka Campus

Table 2: Hostels in Enugu Campus

1. Staff Accommodation

Staff accommodation is grossly inadequate, and there is an urgent need for more housing facilities for university staff.

Table 3 – Staff Housing at Nsukka Campus

Table 4: Staff Housing in Enugu Campus

HOSPITALITY SECTOR

The following facilities are recommended for PPP arrangement:

University of Nigeria General Enterprises Limited (UNGEL) at Nsukka and Enugu Campuses

Presidential Lodge at Nsukka Campus

UNN Liaison Office at Ikeja Lagos

The existing facilities are currently operating at sub-optimal level, and it is envisaged that a PPP arrangement should improve service delivery and profitability (return on investment). UNGEL currently has a management team comprising a Coordinator and eight board members.

Table 5 – UNGEL Nsukka and Enugu Campuses

Table 6. Presidential Lodge Nsukka Campus

AGRICULTURE SECTOR

UNN has abundant arable land that can be profitably deployed for large scale agricultural production. A PPP arrangement will

Attract private expertise and capital investment for enhanced productivity

Increase efficiency and ensure higher returns to the University

Improve accountability

Table 7 – AGRICULTURE

HEALTH SECTOR

UNN has two Medical Centers (one at Nsukka Campus and one at Enugu Campus).

The Medical Centers are presently operating at sub-optimal level.

A PPP arrangement will:

• Attract private expertise and capital investment for enhanced service delivery
• Increase efficiency and ensure higher returns to the University
• Improve accountability

Table 9 – UNN Medical Centers

ANNEXES B: SOURCES OF PPP FINANCING

When a project is proposed as a PPP, the responsibility for arranging the funds for financing the project typically rests with the private bidders. In general, Project Finance is often deployed.

A common approach to financing PPP projects is to structure the PPP Company as a Special Purpose Vehicle (SPV). The investors/lenders have rights to the cash flows of only the PPP Company itself and no or limited recourse to the cash flows of the project sponsor. In other words, project loans and investments are only secured by the project assets with no claim on the assets of the project sponsor. A sponsor structures projects this way to safeguard their company from the complex and ever-changing project risks.

To get a project finance arrangement started, the PPP Company, structured as a SPV, receives seed money financed with debt and/or equity from one or more sponsoring firms, recoverable as development costs from the first drawdown of the loans arranged to finance the PPP project. However, the specific assets and liabilities of the PPP Company do not appear on the sponsors’ balance sheet and, as a result, the PPP Company does not have access to internally generated cash flows of the sponsoring firm.

After the PPP Company receives some seed capital from its sponsors, the PPP Company will approach the market for additional financing. Investors and lenders are asked to only consider the bankability / financial opportunity of the project for which the PPP Company was created. As a result, all the interest, loan repayments, and equity returns come only from the cash flows generated from the project. The term of the investment is also limited, as the PPP Company is dissolved once the project is completed and the concession reaches maturity, although this may not be for up to 30 years.

Since the PPP Company is a standalone, legally independent company, the debt and/or equity is structured without recourse to the sponsor. This can make the cost of debt and equity higher, although it may also provide a higher risk/reward return to equity investors. The PPP Company various financial options include but not limited to:

Private Equity

Equity is provided by ‘project sponsors’ (those who have an operational interest in the contract) or ‘financial investors’ (those who have only an investment interest). Often the private project sponsor is required by University or lending institutions to invest a certain percentage of equity capital in the PPP project. This can be done either by the private project sponsor alone or be contributed by a consortium of operational investors. The advantage of funding PPP projects through a consortium of equity investors is that the consortium can be constituted to minimize project risks by assigning each consortium member to manage the risks that correspond to their area of functional expertise.

Equity Can be raised through:

Equity Issuances: Equity may be raised by the project sponsors separately or by a fund set up to invest in the project or by PPP Investment Funds. It can be classified as public issuance, rights issuance, or private placement.

Alumni Funding: UNN have significant profound alumni members donating to the University through registered or non-registered alumni associations. These investments shall be structured into an endowment fund to serve as equity for better and sustainable outcomes. This shall be made attractive through in the form of impact investment to enable the alumni earn minimal financial return while major focus is on achieving social impact in the University

Government or University Funded: In specific cases, especially in high risk and/or high developmental impact projects, Federal or State governments or even the University through its TERTFUND allocations might contribute funds to enhance the viability of the project. A key reason for this may be to make the project “bankable” or more viable to the private sector. Some reasons for government support may include:

Supporting economically and socially weaker sections of society who cannot pay commercial prices for basic services;

Encouraging the use of public amenities or environmental beneficial options like public transport systems by charging concessional prices;

Executing their social mandate to provide certain services without charging students.

Civic Crowdfunding: UNIVERSITY OF NIGERIA is dear to the hearts of many Nigerians from old eastern Nigeria and can easily key into civic crowdfunding to improve the structures and services offered by UNN. This is often done in collaboration with the University, propose and fund projects aimed at improving public spaces or services. It provides a new mode of civic engagement, allowing alumni, parents or current students, individuals, communities to directly contribute to projects they care about within the University.

Debt

Debt is defined as an amount owed to a person or organization for funds borrowed. Debt can be represented by a loan agreement, loan note, bond, mortgage, or other form stating repayment terms and interest requirements. These different forms all imply intent to pay back an amount owed by a specific date, which is set forth in the repayment terms.

Debt can be raised through:

Bank Loans: These represent the most common form of debt funding and can be availed in various forms with respect to the repayment facilities, tenure of the loan, interest payment options (floating or fixed), and currency denomination. Bank loans are structured on the basis of the expected project cash flows, with a moratorium or grace period (during construction phase), interest payment, and principal repayment schedule. Bank loans are generally fully secured and have recourse to project assets in the event of any default. Given that PPP projects are highly capital intensive in nature, they are often funded using a high proportion of debt (to reduce overall funding costs). To reduce individual exposure, banks often prefer to be part of a consortium or ‘syndicate’ of banks. One bank often acts as the “lead or arranging bank”.

Bonds: Bonds represent the debt funding raised for a project from the capital markets.The benefit of a bond issuance is that many different investors can be brought together, many of which only take a small piece of the project loan. Investors in a bond issue can be broadly categorised as (1) banks and financial institutions; (2) insurance companies, provident funds, and pension funds; (3) mutual funds; and (4) retail investors.

Multilateral Agencies: International institutions, such as the World Bank private sector lending organisation, the International Finance Corporation, European Investment Bank, and the various regional development banks are major financiers of PPP projects globally in developing countries. While multilateral agencies follow the same debt structures as purely private lenders, they do have some unique characteristics that make them good partners for infrastructure projects. For example, multilateral agencies typically lend for long-duration projects, are focused on projects with high economic development impacts, and provide technical guidance throughout the project lifecycle. They can also take the back-end loan maturities where national and international banks will only provide short to medium term loan maturities. In addition, with the requirement of banks for higher debt: equity ratios with resultant higher equity amounts being required, they can participate in the equity of the SPV.

Hybrid Fund

Mezzanine Funding or Quasi Equity

Mezzanine financing or quasi- equity represents a form of equity midway between senior debt and real equity and has features of equity and debt financing. It can assume the forms of subordinated loans, convertible subordinate loans, redeemable preference shares, or debt issued with stock warrants, and takes greater risks than senior debt since it is generally subordinate in terms of collateral rights over security and rights to cash flow. Such debt, at times, is usually also unsecured other than by the project cash flow in which case the rate of interest charged would be significantly higher than that charged for senior debt.

It can have one other major advantage. The interest on quasi equity can be offset against SPV corporate tax, whereas dividends are paid from post corporate tax revenue. The use of quasi equity can therefore lower the cost of equity and reduce the cost of any necessary government.

Government Support

In specific cases, especially in high risk and/or high developmental impact projects, Federal or State governments (Enugu State) might contribute funds to enhance the viability of the project. A key reason for this may be to make the project “bankable” or more viable to the private sector. Somereasons for government support may include:
Supporting economically and socially weaker sections of society who cannot pay commercial prices for basic services;Encouraging the use of public amenities or environmental beneficial options like public transport Executing their social mandate to provide certain services without charging citizens, such as senior citizens.

Annexes III: MONITORING AND EVALUATION FRAMEWORK FOR PUBLIC-PRIVATE PARTNERSHIP INITIATIVES IN UNIVERSITY OF NIGERIA PROJECTS

Institutional Level the results chain, in alignment with four strategic objectives of PPP initiatives in the University of Nigeria:

1. Modernize and expand University infrastructure capacity
2. Achieve long-term financial viability
3. Enhance service quality and delivery excellence
4. Enhance University access and institutional attractiveness

The University of Nigeria’s M& E framework is grounded in the University’s core values – integrity, excellence, transparency, accountability and fairness. The framework is made simple enough for people with M&E responsibility to adapt in the most efficient possible manner. Moreover, this document ensures that the indicators are not generic and have all the attributes of a SMART indicator i.e. Specific, Measurable, Achievable, Relevant, and Time-bound.support.

1.2. Goal and Objectives of the Monitoring and Evaluation Framework

The goal of the Public-Private Partnership Monitoring and Evaluation Framework (PPP-MEF) of the University of Nigeria is to track, assess and improve the performance of PPP projects and processes, ensuring that they meet their set goals.  The specific objectives of the framework are to:

1. To establish standardized monitoring and evaluation processes that effectively track the progress and performance of PPP initiatives in the University of Nigeria
2. To enhance accountability and transparency in all PPP projects and operations
3. To generate timely, reliable data that supports University Management in making informed institutional decisions
4. To promote continuous organisational learning through the documentation and sharing of challenges, lessons learned, and best practices in PPP.

The results Framework and its implications to Monitoring and Evaluation of PPP projects

Figure 1: Results Framework

Therefore, every PPP project is expected to adapt this results chain to its specific context while maintaining alignment with the university’s strategic objectives. Projects should select relevant indicators from the institutional menu (See logical framework in part 2), customise data collection methods to their operational environment, and develop project-specific outcomes that clearly contribute to the achievement of the university’s goals. This adaptation process ensures that irrespective of the `nature of the project – infrastructure development, technology modernisation, service delivery, etc, individual project successes aggregate into institutional transformation. Each project becomes a building block in the larger vision.

Monitoring and evaluation are essential for making this results chain operational and effective. M&E provides the systematic tracking and measurement needed to verify that activities are producing intended outputs, outcomes are being achieved as planned, and projects are contributing to institutional impacts.

Key Benefits of the Framework

The institutionalisation of this framework will deliver the following key benefits to the University:

1. A complete, integrated M&E system with effective coordination across all levels
2. Enhanced tracking systems and robust databases
3. Regular monitoring and updates of core performance indicators for every partnership activity
4. Systematic periodic performance reporting on the various PPP initiatives in the University
5. Documented institutional knowledge on PPP initiation and implementation

PART 2: MONITORING AND EVALUATION PLAN

2.1. Scope of the Monitoring and Evaluation Plan

This section provides a comprehensive overview of the monitoring and evaluation process, detailing each stage from data collection and management through analysis, reporting, and dissemination. It outlines the logical framework, M&E implementation plan, institutional M&E structure, and defines responsibilities and information needs and responsibilities.

2.2 The Logical Framework of the M&E Plan

The logical framework outlines the core indicators for tracking, monitoring and evaluating impact, outcomes and outputs, giving definition of each of the indicators, which are directly measuring directly measuring the expected results, or indirect i.e. measured through proxy indicators related to the expected result as well as highlights the assumptions surrounding each strategic objective. The following tables provide the logical framework for the various levels of result chain.

Outputs and Outcomes

Strategic Objective 1: Modernise and expand University infrastructure capacity

The following indicators in Table 1 are targeted towards modernising and expanding infrastructure capacity at the University of Nigeria through Public-Private Partnership initiatives.

Table 1: Logical Framework for Strategic Objective 1

Strategic Objective 2: Achieve Long-term Financial Viability

The following indicators in Table 2 are targeted towards achieving long-term financial viability at the University of Nigeria through Public-Private Partnership initiatives.

Table 2: Logical Framework for Strategic Objective 2

Strategic Objective 3: Enhance Service Quality and Delivery Excellence

The following indicators in Table 3 are targeted towards enhancing service quality and delivery excellence.

Table 3: Logical Framework for Strategic Objective 3

Strategic Objective 4: Enhance University Access and Institutional Attractiveness

The following indicators in Table 4 are targeted towards expanding access to educational opportunities and improving the attractiveness of the University of Nigeria through Public-Private Partnership initiatives.

Table 4: Logical Framework for Strategic Objective 4

Table 5. Impacts

2.3. Stakeholders, Responsibilities and Information Need

The PPP initiatives in the University of Nigeria can involve multiple stakeholders at different levels. Table 6 summarises the key stakeholders’ responsibilities and some of the likely information needs/use of the M&E data.

Table 6: Key Stakeholders’ Responsibilities