To increase federal warehouse capacity for central storage, and to ensure the effective maintenance them in response to the substantial supply gap for federal warehousing for the storage of donated public health commodities; and the need to harness best practice O&M processes through a private sector operator, to address ongoing challenges related to inventory management, human resources and quality assurance.
Description of asset
The two warehouses located in Lagos and Abuja are prefabricated and identical, with a combined total 6,530m2 of floor space and the capacity to hold 7,680 pallet spaces. The Abuja Premier Warehouse is complete, with construction at the Lagos Warehouse estimated to be 80% complete as at January 2017 which provides the physical infrastructure – an insulated warehouse, made up of pre-engineered modular components (prefabricated insulated expanded polystyrene sandwiched panels) – as well as the fittings and operating components, including offices, furnishings, racking, kitting, security and office equipment. This modular design is both pre-engineered and customizable.
Description of services
To provide an adequately-sized and effectively-maintained pharmaceutical grade central storage hub for donated public health commodities through an operations and maintenance (O&M) PPP process
Rationale for selection of PPP model
Analysis was done by CPCS and a management contract appears to be the most suitable PPP option for WIB operations. Under this model, the ownership of the facilities will remain with the government; however, a private sector partner would be contracted to operate and maintain the infrastructure for a fixed contract term. The private partner would have the technical know-how, managerial expertise and related experience to operate this type of facility. The private partner would be paid a predetermined rate for operating costs plus an agreed upon management fee. In order to provide an incentive for improved operational performance, the private partner could also be paid an additional amount for achieving pre-specified performance targets. Alternatively, the management fee could be pro-rated based on achievement of predetermined performance levels
Stakeholder consultations were done by CPCS. The CPCS Team reviewed the data obtained from prior consultations with key stakeholders at the national program-level and collated data for commodities related to each program. The CPCS Team consulted with PFSCM, the PSM Units of the three largest program – NASCP, NMEP and NPHCDA. We have also relied on some alternative data maintained by FMOH. These consultations were carried out in the form of open-ended interview questions, aimed at gathering the following information:
i. Changes in demand since the Preliminary Needs Analysis (2011)
ii. Demand for temperature-controlled space
iii. Frequency of deliveries
iv. Estimated spoilage rate
v. Feedback regarding the private sector operator model
Project Summary document
Information will be published as soon as it is available.