Lagos Begins Major Water Sector Reform Through PPP Scheme
The Lagos Water Corporation (LWC) has moved forward with plans to strengthen water supply across the state through a Public-Private Partnership (PPP) arrangement aimed at improving infrastructure and service delivery for millions of residents.
The development was discussed during a Directors’ Meeting held at the corporation’s headquarters in Ijora, where the management reviewed progress on the concession process for the rehabilitation, upgrade and operation of major water facilities in Lagos.
The meeting, chaired by the Managing Director of LWC, Engr. Mukhtaar Temitope Tijani, also had in attendance transaction advisers, Mr. Olu Adebo and Mr. Dipo Oguntuga of Integrated Business Solutions (IBS).
During the session, Engr. Mrs. Titilola Oridami-Bright disclosed that the corporation received 23 bids across four project lots after technical and financial evaluations.
According to the corporation, the PPP initiative is expected to attract private sector investment into the water sector, improve operational efficiency and expand access to clean water, especially in underserved communities.
LWC noted that the concession framework would operate on a standard 20-year tenure with a unified five per cent royalty structure designed to ensure transparency and fairness among investors.
The corporation also explained that the project would focus on rehabilitating ageing facilities and expanding distribution networks to bridge existing supply gaps, noting that the agency currently serves only about 35 per cent of households in Lagos even at full operational capacity.
Under the arrangement, investors will be required to meet key performance targets, including increasing water supply availability to between 60 and 80 per cent in the initial phase, reducing non-revenue water losses to below 25 per cent within seven to eight years, and improving daily hours of water supply.
LWC further stated that the initiative includes measures to ensure financial sustainability, such as cost-reflective tariffs, periodic reviews, foreign exchange protection mechanisms and performance-based incentives aimed at attracting credible investors.
The corporation added that oversight and risk management structures involving the Lagos State Waterways Authority and the Ministry of Environment and Water Resources would be put in place to protect public interest and maintain service standards throughout the concession period.
Negotiations with preferred bidders are expected to commence soon in collaboration with relevant government agencies and regulators.
The Lagos State Government had earlier announced plans to concession seven mini and micro waterworks located in Lekki, Akilo, Victoria Island Annex, Magodo, Abesan, Alexander and Apapa as part of efforts to modernise the state’s water infrastructure.
