Power Privatisation - Do NOT Sell Power Plants To Indians, Say Nigerians

http://www.vanguardngr.com/2011/03/power-sector-privatisation-indians-again/

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VANGUARD, LAGOS

Power sector privatisation: Indians again?

Mar 21, 2011
   
SINCE August 26, 2010 when the President of the Federal Republic of Nigeria, Dr. Goodluck Ebele Jonathan, GCFR unveiled his administration’s road map in the Power sector, various business groups and investors have indicated interest in participating in the acquisition of the Power Generating Plants.

Firms such as Essar, Reliance, Tata, among others have expressed interest in response to BPE’s advert in the national dailies of December, 2010. This much is contained in most of the Newspapers that rolled out on Monday 7, March 2010, following the deadline of the submission of Expression of Interest by potential investors to the BPE.
Our concern is the domination of Indian firms such as Tata, Essar, and Reliance in the race to acquire the Power Generating Plants given the pedigree of Indian Investors in Nigeria. It will be helpful to go down memory lane to  put the Government and Nigerians on the alert.

The Ajaokuta Steel Company in Kogi State was concessioned to the Indians in the early days of the Obasanjo administration. It did not take long before the Government discovered their pilfering prowess when they started stripping the assets of the dying steel company.

The Government at that time did not waste any time to chase them from Ajaokuta so that even if nothing is added to the Plant, it should not be pilfered and reduced to a scrap yard.
Then came the Mittal group with Global Infrastructure Holding Company that bought the Delta Steel Company as scrap for a meager US$20 million without paying a dime.

They succeeded in rehabilitating the steel rolling plant from where they made the money to pay the Government the cost of purchase. This is the kind of business the Indians are known for.

They want to reap without sowing. DSC as it is today can best be described as a rolling mill with its production of round bars and billets leaving out other economic products of the Steel Plant that will require capital investment.
They are repatriating huge foreign exchange to their home country from DSC without investing a kobo. Contractors’ payment  is unduly delayed, the community is  strangulated using the greedy Chiefs and middlemen, the safety of the environment is ignored with hazardous chemical waste being discharged into the atmosphere from their furnace, the premises is the dirtiest that can be seen of any steel company across the world.

Until recently, there was  mass importation of jobless Indians in the name of expatriate into the country to work in DSC.

The Management became weary of their people when they discovered that most of them colluded to steal their money. Most of their so called expatriate were then repatriated leaving us with a small number of expatriates in DSC at the moment. Are these the elements  we want to  replicate in the Power Sector?

Nigerians I'm sure are weary of investors who will rather exploit than add value to the system. The international electronic media e.g CNN has been awash with advertisement such as ESSAR investing $100 million in Nigeria’s Power sector.

They are used to buying scraps for pea nuts and ripping off developing economies without any capital investment. Otherwise, how did they arrive at the figure to invest? They are already sending a signal to the Federal Government that the Power Plants to be sold are worth less. Before now, they have been reluctant to invest in the Niger Delta describing it as unsafe and unfriendly environment to do business.

How come they are so enthusiastic and excited at buying our Power Generating Plants located in the heart of the Niger Delta now?  If they have so  much financial muscle as they want us to believe, they should apply for license to build new plants which the Nigerian Electricity Regulation Commission (NERC) will gladly issue once they meet the requirements.

There is abundant natural gas as raw material for gas fired thermal power generating plant. This way, they will be bringing in capital, increase the nation’s generating capacity, adding value and creating jobs. They should forget buying old plants at cheap rate and sustaining the present generating capacity of the plants as they have demonstrated in their various investments in other sectors.

We have decided to go this far to show the insincerity of the Indian Investors in Nigeria so that our Government and Nigerians will be cautious in dealing with them, noting their sugar coated tongue, empty show of wealth and technical wherewithal. Let them show their capacity in value adding.

Moreover, the Government should be aware that indigenous Investors have the capacity to turn around these power plants, increase their capacity and stabilise the sector for the enjoyment of Nigerians and businesses in the country. Just to remind us that company such as NAFCON was acquired by Nigerians and the Technical Team that rehabilitated the Plant and  has  kept it running is predominantly Nigerian.

The impact of that investment in the immediate community of Onne and Eleme can only be imagined not to talk of the multiplier effect on the economy of Rivers State in particular and Nigeria in general. This feat can be replicated in the Power sector with all patriotism.

There are serious minded Nigerian entrepreneurs  whom the Government can negotiate with in the acquisition process of the Power Plants. These must be credible entrepreneurs with track records in the turnaround of moribund businesses  not  portfolio-carrying government contractors with offices in State House.

Niger Delta, the home of gas in the country cannot be stripped unclothed once again of their resources by foreigners who care little or nothing about her people and environment. The people are prepared to defend their rights and their God given resources by every legally acceptable means known to the comity of Nations.
They are very hopeful and mindful of the effects of functional Power Plants to them, their families and the economy. They know what Indians can do and are not prepared to entertain them anymore.

We have concentrated on the Power Plants because it is the key to power stability in the country. The distribution aspect is trading which is what Indians know how to do best. It is what is generated that can available for distribution. The more megawatts we can generate the better for the country hence we think it is the fulcrum of the Power Sector and most significant component of the Power Sector.

Having exposed the cunning and exploitative tendencies of Indians, we do not need them because they will not add any value to the Power sector. We have seen them before, we know them. They can connive with corrupt government officials who will in turn project them positively to government top officials. This will certainly not be in the interest of Nigeria and Nigerians.

Mr TIMOTHY JUMBO, an engineer, writes from Sapele, Delta State.

who should we sell to? South Africans?

No sell to Nigerians-

people I know Now are scarmbling to fund it

I'm not sure it makes sense to discriminate against Indian buyers.

Just need to screen prospective buyers a bit more, make sure they are sufficiently qualified.

Indians have a history of screwing up national projects in Nigeria.

I'll bet they would sell to an Indian before they do an Igbo man.