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Nigeria Scraps Canada Power Contract In Privatisation Setback - Politics (6) - Nairaland

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Re: Nigeria Scraps Canada Power Contract In Privatisation Setback by mosunade(f): 9:18am On Nov 16, 2012
They will soon say it was because of their online rants.
Re: Nigeria Scraps Canada Power Contract In Privatisation Setback by Nobody: 10:53am On Nov 16, 2012
^^^
[img]http://t3.gstatic.com/images?q=tbn:ANd9GcTXTLfF5s0oXkvt3FVccfLhCyu2Jcqxw7jtjvRlyBhlzS1mTge50A[/img]

So we are suppose to rejoice on reading about the ambivalence of an administration beholden to powerful interests groups.
Tell us something we don't already know! tongue

The nation’s capital Abuja is awash with meetings and intrigues as various pro- and anti-privatisation groups battle over the fate of the three-year management concession contract won by the Canadian firm, Manitoba Hydro International (MHI) to manage the Transmission Company of Nigeria (TCN).

The influential power brokers in the power sector that are fingered to have underdeveloped the sector through official manipulations are at work to send the Canadians away to have their way.

It was learnt Thursday night that some minority groups are fighting too to ensure that the powerful forces bent on driving Manitoba away are frustrated.
The doves are said to be persuaded that whether the management contract won by MHI is annulled or the company given the execution letter to begin the restructuring and revitalisation of the TCN will determine whether the power sector reform privatisation programme is on course or gets to a crushing stop.

Even through the anti-privatisation forces on Wednesday declared victory as they manipulated the media to announce the annulment of the management concession contract, the day of long knives is still on between Nigeria’s privatisation agency, the Bureau for Public Enterprises (BPE), the Bureau for Public Procurement (BPP), Federal Ministry of Power and the Presidency. The situation is simple the issue of MHI managing the TCN is inconclusive.

The worry of power sector stakeholders in Abuja yesterday is that the Federal Government has refused to issue a definite statement on the state of affairs nor has it communicated to the firm the way forward. Yet the anti-privatisation forces have gone ahead to dismantle communication facilities including the telephone lines of MHI at the headquarters of the PHCN, where they are sharing offices with the TCN. Investigation by The Guardian yesterday shows that their telephone lines have been disconnected, limiting their official communications.
Source: http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=104952:fresh-intrigues-over-electricity-reforms&catid=1:national&Itemid=559
Re: Nigeria Scraps Canada Power Contract In Privatisation Setback by courage89(m): 4:52pm On Nov 16, 2012
Fresh intrigues over electricity reforms .

• ‘Power brokers frustrate Manitoba’

• Contract not revoked

• Anti-privatisation forces, others clash

A COCKTAIL of intrigues is brewing in the nation’s seat of power, the presidency, for the soul of the electricity industry, especially the juicy transmission sector.

There is but one aim in all this: To cancel Manitoba’s contract at all cost. It was learnt Thursday night that contrary to the spate of publications in a section of the media, the Manitoba’s contract has not been revoked.

The nation’s capital Abuja is awash with meetings and intrigues as various pro- and anti-privatisation groups battle over the fate of the three-year management concession contract won by the Canadian firm, Manitoba Hydro International (MHI) to manage the Transmission Company of Nigeria (TCN).

The influential power brokers in the power sector that are fingered to have underdeveloped the sector through official manipulations are at work to send the Canadians away to have their way.

It was learnt Thursday night that some minority groups are fighting too to ensure that the powerful forces bent on driving Manitoba away are frustrated. The doves are said to be persuaded that whether the management contract won by MHI is annulled or the company given the execution letter to begin the restructuring and revitalisation of the TCN will determine whether the power sector reform privatisation programme is on course or gets to a crushing stop.

Even through the anti-privatisation forces on Wednesday declared victory as they manipulated the media to announce the annulment of the management concession contract, the day of long knives is still on between Nigeria’s privatisation agency, the Bureau for Public Enterprises (BPE), the Bureau for Public Procurement (BPP), Federal Ministry of Power and the Presidency. The situation is simple the issue of MHI managing the TCN is inconclusive.

The worry of power sector stakeholders in Abuja yesterday is that the Federal Government has refused to issue a definite statement on the state of affairs nor has it communicated to the firm the way forward. Yet the anti-privatisation forces have gone ahead to dismantle communication facilities including the telephone lines of MHI at the headquarters of the PHCN, where they are sharing offices with the TCN. Investigation by The Guardian yesterday shows that their telephone lines have been disconnected, limiting their official communications.

The TCN is one of the 18 successor firms unbundled from the former PHCN. But unlike the 17 others slated for either outright privatization or sale of equity, it was slated for management contract, meaning that it is firmly in government control but managed by a world-class power sector firm.

Nigeria’s power reform roadmap is anchored on the setting up of an independent regulator for the sector (Nigerian Electricity Regulatory Commission (NERC), setting up of the commercial framework for the sector (via cost reflective electricity tariffs) and the Nigerian Bulk Electricity Trading Company (bulk trader), privatisation of PHCN six successor generation companies and 11 PHCN successor distribution companies, and the continued strengthening of the fuel-to-power segment.

Manitoba Hydro International was scheduled to take over TCN on September 1, 2012 in the management contract worth $23 million (N3.68 billion). But up till yesterday, the government has not named a supervisory board of about seven persons that will work alongside the incoming TCN expatriate firm’s management. Yet, MHI had been in Nigeria since the end of July, already drawing funds from the contract through the advance payment of commitment sum of $2.5 million (N400 million) with the signing of the contract between the Director General of BPE, Bolanle Onagoruwa and Mr. Lonrne Halpenny, Managing Director of MHI on July 23, 2012.

But instead of working to constitute the supervisory board of the new TCN, some interest groups are scheming for a review of the management contract between Nigeria and MHI. Under the contract, MHI will have on ground eight expatriate principal management workers who would be in charge of the offices of the Chief Operating Officer (COO) and directors of Transmission Service Provider, System Operations, Market Operations, Finance Director, ICT, National Control Centre and Human Resources.

Some who are opposed to the management concession contract with MHI including union and senior officials of the Ministry of Power initially wanted the contract reviewed so that Nigerian officials of the old order in TCN can provide directors for the departments of Market Operations, Finance Director and National Control Centre. As one of them told The Guardian, “yes, it is our view that the position of Market Operator position under the MHI contract should not be held by the Canadians. We want a Nigerian appointed to the position. In fact, market operations and systems operations under the TCN should not be part of the management contract. The positions should be held by Nigerians.”

With the current campaign and reports, it is clear that unless President Goodluck Jonathan disannuls the annulment of the MHI contract, victory is sure for the anti-privatisation forces.

Already, they have positioned “a management contractor” like Power Grid of India whose technical proposal was initially found inadequate as it failed to meet BPE’s benchmark to have its financial bid opened. That was why the financial bid of Manitoba was opened at the bids opening event. Still, some others are angling for the Chinese transmission firm.

But the fear is that being a government institution that manages a centralised market in China, the Chinese firm may not have the required experience in a market driven operation as envisaged in Nigeria. For the Power Grid of India, for now, the fear is that it has no international experience as it has only operated in India. This is in contrast to Manitobia, which has varied international experience. There is also another issue bothering some stakeholders spoken to in Abuja. This is the issue of the 30-day directive given to the Ministry of Power, not the BPE to organise a new management contract bidding process and get a winner. One source said:

“The fear is that the BPP is inadvertently working with anti-privatisation forces in misleading the President in claiming a management contractor can be procured in 30 days. This may be a tall order. It is not as easy as it sounds. The most feasible period could be six months.

“Another issue is that the BPP complained that BPE shortlisted from its data base of world class management contractors. Yet it recommended to the President that a shortlist of five management contractors be undertaken. One wonders if this is not its own goal. Again, the Ministry of Power, which is saddled with the job of conducting the bidding has no experience of privatisation as the management contract is a form of privatisation. The BPE, despite its experience in privatisation spanning over two decades, still needed the expertise of foreign consultants. And check the records, BPE worked for over a year with British Power International, a reputable consultancy, as advisers in procuring a management contractor. I think someone may be deliberately misleading Mr. President in order to halt any progress in ensuring regular supply of electricity in the foreseeable future.

“The other issue Nigerians should worry about is this: What is the signature of a Nigerian official worth? Perception they say, is reality. If the international investor perceives that the contract he won could just be annulled with a technicality, how many reputable firms could come in here to invest? I think the issue before Mr. President is whether we as a nation can sign a document and ignore the document and initiate another issue on the same issue. Where is our credibility? This issue goes beyond the Canadian firm. This is about who we are as a people. Can we be trusted in a contract situation?”

The Guardian had last week reported on the moves to dispense with the contractual agreement between the BPE and the MHI on the management of the TCN. And Wednesday, the fate of the contract hung in the balance following the confirmation by Special Adviser to the President (Media and Publicity), Dr. Reuben Abati that the contract had been cancelled. Abati confirmed to a foreign news agency that President Jonathan had cancelled the Manitoba power contract with immediate effect because due process was not followed in the award of the contract.

According to him, “the President would not want to compromise due process in anyway. I assure you that this does not in any way affect the ongoing privatisation of the power sector.”

Chief Executive Officer (CEO), Mr. Don Priestman told The Guardian that his firm was confused at the situation. He said: “Well, I heard about the cancellation of the contract through the media. There has been no form of communication. We are disappointed. We are here to do a job and we have not been given the authority we need. The transmission is essential in the privatisation process. If the privatisation process is to succeed, the transmission system is very important. And we have the expertise and what it takes to do the job. We do not want to be caught between the conflicts between government organisations. We are still hopeful that common sense will prevail and we will be asked to do the job for which we came here. We are watching and waiting for what government is saying.”

Asked the options before his firm, Priestman said, “we will for now watch and see how things unfold.”
Re: Nigeria Scraps Canada Power Contract In Privatisation Setback by queensmith: 5:52pm On Nov 16, 2012
Will Manitoba be compensated? If they disagree how can they resolve? Can they take the presidency to court? In Nigeria?

This is sad news, likely to chase away any other potential investors, everything is politics in Nigeria . . .corrupt politics.
Re: Nigeria Scraps Canada Power Contract In Privatisation Setback by Gbawe: 7:03pm On Nov 16, 2012
queensmith: Will Manitoba be compensated? If they disagree how can they resolve? Can they take the presidency to court? In Nigeria?

This is sad news, likely to chase away any other potential investors, everything is politics in Nigeria . . .corrupt politics.

Precisely.
Re: Nigeria Scraps Canada Power Contract In Privatisation Setback by aarifmistr: 7:59pm On Nov 24, 2012
Time for a revolution.....

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