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TCN'S FIBRE OPTIC CABLE TELECOMMUNICATIONS INFRASTRUCTURE (ALHERI ENGINEERING)

Sector

Telecom

Location

Enugu, Abia, Cross River, Delta, Ebonyi, Imo

Value

US$ 40 million

Phase

Implementation

Sponsoring Agency

Transmission Company of Nigeria

Last update

26-06-2018 16:27:50

TCN'S FIBRE OPTIC CABLE TELECOMMUNICATIONS INFRASTRUCTURE (ALHERI ENGINEERING)

Sector

Telecom

State

Enugu , Abia , Cross River , Delta , Ebonyi , Imo

Value

US$ 40 million

Phase

Implementation

Sponsoring Agency

Transmission Company of Nigeria

Last update

26-06-2018 16:27:50

  • Basic project information
  • Parties
  • Contract information
  • Gallery

Basic project information

  • Project need

    The demand for telecommunication services in Nigeria is increasing; however, the Nigerian backbone transmission relies mainly on microwave. Economic investment and fast profit are the advantages of microwave transmission, but the limited traffic capacity and poor anti-jamming capability are the disadvantages. The building of an optical fiber backbone network is the only way to solve the conflict between the limited traffic capacity and large demand.

  • Description of asset

    The focus of the project is the exploitation of TCN's vast infrastructure for the development of a sustainable and commercially viable FOC-based backbone network on a design, build, finance, and operate arrangement with a world-class telecommunications company. The project seeks to use as a foundation TCN’s existing FOC infrastructure to build a formidable network that is capable of providing stable inter-city broadband communication services to telecom operators and others who may require it, as permissible under the terms of the NLDL.

  • Description of services

    The project seeks to use as a foundation TCNs existing FOC infrastructure to build a formidable network that is capable of providing stable inter-city broadband communication services to telecom operators and others who may require it.

  • Rationale for selection of PPP model

    A design, build, finance, and operate model was selected for TCN's telecommunications infrastructure to ensure optimal operation of the FOC network with effective supervision, technology transfer throughout the period of fifteen (15) years, and to subsequently transfer the infrastructure back to TCN at expiration.

  • Stakeholder consultations

    Stakeholder engagement with key stakeholders.

  • Project Summary document

    Project status: The project is in dispute; however, the commission (ICRC) is mediating between the parties. For more information, see the audit reports under performance information and performance assessments.

    file_downloadAlheri Engineering Ltd.pdf

Project milestones

2006

20 March

Commercial close

The contract agreement was signed

2012

18 June

Beginning of construction or development

Installation Commences

2021

20 March

Expiry of contract

Contract expires after 15 years

Parties

Sponsoring Agency

Transmission Company of Nigeria

Sponsoring Agency Information

  • business_center Transmission Company of Nigeria

Private parties

ALHERI ENGINEERING COMPANY LIMITED:

Private Party Information

  • business_center ALHERI ENGINEERING COMPANY LIMITED:

Contract information

Redacted PPP Agreement Risks

Redacted PPP Agreement

  • REDACTED PPP AGREEMENT

    REDACTED PPP AGREEMENT

    file_downloadAlheri Engineering_Redacted.pdf

Risks

Type of risk Description Allocation Mitigation
Pre-Installation risk Risks associated with project preparation Public Sector Comprehensive project plan,
Pre-Installation risk Risks associated with Permits/Approvals Public Sector Effective stakeholder engagement with relevant approving entities
Installation / Completion Risk Risk that all installation works will not be carried out as in the plan and or completed as per schedule. Private Sector Effected Insurance
Cost risk Risks associated with cost Overrun Private Sector Effective budget and cost management controls
Termination Risk Risk of project terminated before predefined time Public and Private Sectors
Demand Risk Risk of inadequate demand and insufficient use of fibre optic infrastructure Private Sector Effective demand forecasting and planning and analysis
Exchange rate risk The risk of fluctuations in currency exchange rates Public Sector Use of currency options and hedging
Operating risk Risk of inefficient and ineffective operations management. Private Sector Operational procedures ,policies and controls
Termination provisions

Termination Provisions

  • Concessionaire

    Events of Default Brief description Termination Payments Documents
    Default Event Occurrence of predefined events such as authority insolvent or bankruptcy .
    Default Event Authority fails and/or refuses to fulfil its obligations as contained in the relevant articles
  • Authority

    Events of Default Brief description of events of default Termination Payments Documents
    Default Event Occurrence of predefined events such as concessionaire insolvent or bankruptcy .
    Buy Out Event Subject to provisions of the relevant articles

Gallery

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    About Us

    The ICRC was established to regulate Public Private Partnership (PPP) endeavours of the Federal government aimed at addressing Nigeria’s physical infrastructure deficit which hampers economic development.

    Contact us

    • languagehttp://www.icrc.gov.ng
    • emailinfo@icrc.gov.ng
    • call+234 9 4604900
    • room Plot 1270, Ayangba Street, Near FCDA Headquarters, Area 11, Garki, Abuja.

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