20 March
Commercial close
The contract agreement was signed
Telecom
Enugu , Abia , Cross River , Delta , Ebonyi , Imo
Implementation
Transmission Company of Nigeria
26-06-2018 16:27:50
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.
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.
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.
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 engagement with key stakeholders.
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.
20 March
The contract agreement was signed
18 June
Installation Commences
20 March
Contract expires after 15 years
REDACTED PPP AGREEMENT
| 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 |
| 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 |
| 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 |
