OBC for Development and Concessionning of Mechanics Villages in Nigeria
National Automotive Council Nigeria wishes to improve mechanics villages
Rebel developed an Outline Business Case (OBC) for the preparation and implementation of Mechanics Village PPPs in Nigeria. Mechanics villages are typically found on informal sites outside the major cities, and few are developed with the necessary infrastructure and sanitation facilities. Most car repair is done in the open with inadequate tools and equipment. To address these problems, the National Automotive Council wanted to partner with the State Governments, mechanics and other stakeholders to encourage private sector participation in new design, financing, contrasting, operation and maintenance of selected mechanic villages through concessioning or other contractual arrangements.
Rebel was retained as a cross sectoral PPP specialist
Procurement and contracting of the new facilities will follow Nigeria’s National Policy on PPP. This policy requires that an Outline Business Case (OBC) is prepared and approved before procurement. This is where we came in. As a specialist in PPPs and with ample experience in Europe, Asia and Sub-Saharan Africa, we are able to work across different sectors and environments. As Rebels, we are keen to apply our minds to the potential of PPP in previously untried sectors. We understood that the issue of mechanics villages did not just amount to a regular case of industrial or commercial development. They represented a challenge of formalization and regulation needed to address their many negative externalities (pollution, social injustice, urban blight, road safety, etc.).
And developed an Outline Business Case based on stakeholders wishes
In order to address this challenge, we have had to explore a very diverse range of stakeholders requirements: from local/state authorities and the mechanics themselves to unions and other representative organizations. It meant we had to adopt a grassroots approach: we inspected a significant number of existing mechanics villages and spoke with their stakeholders. This was fruitful and, quite frankly, a bit exciting. We developed an outline BC which will be used by authorities to make an informed decision about concessioning of mechanics villages. The challenge ahead will be to properly market these business cases and achieve real change in Nigeria’s mechanics villages. We are extremely happy to contribute to that.