With the launch of DIDP in May 2007.The law setting up the programme introduces the Administrative funding of DIDP. It specifies a take-off grant from Delta state as well as other investors who have a stake in the programme. Currently, they are funded from the office of the Governor of Delta State
DIDP is established to act as a ‘’principal’’ Public/Private sector developer and an adviser.DIDP is staffed with experienced project developers with expertise in the development of infrastructure projects in the Energy, water, transportation and ICT sectors. They can deploy resources at any point during a project’s development, from inception to financial closing. DIDP’s mandate allows us to develop projects on our own or co-develop with a private sector developer.
DIDP assumes the pre-development costs of projects which would typically include legal, logistics, technical advisor expenses, Cost of feasibility studies and similar pre-financial closing development cost.
GETTING DIDP SUPPORT
As a PPP Project agency, DIDP’s bias will be to obtain the best deal for government and ensure that the infrastructure project will have a readily ascertainable developmental impact to help meet the needs of the state. Hence, the government’s strong support of a project will be an important consideration when deciding their involvement.
DIDP has the in-house capability to model output sales and input cost targets in any selected project, capital cost target, operating and maintenance expenses and other business costs to determine the economic feasibility of a particular project. We can also assess the viability of sourcing for finance for any project.
DIDP will then implement the financing plan by advising on the necessary equity and debt financing, and negotiating the various financing agreements.In addition to its in-house engineering capability, DIDP has access to external engineering resources to determine a project’s optimal technical solution, both in terms of project technical, configuration and economic impact.
DIDP can then implement this technical solution by initiating preliminary engineering design, proceed with equipment selection, and define lump sum capital cost for a project and the life cycle cost.
As an initiative, our objective is to seek the most cost effective solution for government, and manage the negotiations for each project.
Our participation in a project will include identifying preliminary permits required, project site obstacles and issues, as well as any regulatory restraints and their economic impact.
As part of the financing and developmental process, DIDP can also arrange for the environmental impact studies and assessments, and subsequently apply for and secure for the project environmental permits from appropriate government agencies.
As the developer of a project, DIDP will outline the preliminary ownership and financing structure of the project, including an off-take, input supply analysis, and tax analysis.
DIDP has access to internal and outside professional resources to implement the business structure, negotiate and secure all major commitments, including off-take agreement, feedstock agreement, turnkey construction contract, operation and maintenance agreement and financing documentation.