Power Projects – How Due Process DG Deceived House

No Comments » March 23rd, 2008 posted by // Categories: Energy Development Project



 

THIS DAY

 

Power Projects: How Due Process DG Deceived House

From Paul Ibe in Abuja, 03.23.2008

 

Contrary to claims by the Director-General of the Due Process Office, Mr. Emeka Eze that projects under the National Integra-ted Power Project (NIPP) were not certified by the Due Process Office, documents obtained weekend showed that at least 29 firms went through the process and were issued due process certificates.

Eze had last Tuesday before the House of Repre-sentatives Committee on Power and Steel probing expenditure on the power sector between 2000 and 2007, said the $3.54 billion NIPP projects being a presidential intervention did not pass through the Due Process
Office for payment.

But documents obtained by THISDAY showed 29 companies awarded contracts under the NIPP project were issued with certificates for contract award. The certificates issued by the Budget Monitoring and Price Intelligence Unit (BMPIU) stated that “the project(s) satisfied all due process requirements for proceeding to seek Federal Executive Council (FEC) consideration.”

Copies of due process certificates obtained by THISDAY include those of Lahmeyer (NIPP Design Consultancy), Elens Konsult (Distribution Consultancy, Lot 1 Abuja), Himios (Distribution Consultancy, Lot 2 Benin), Waltech Engineering (Distribution Consultancy, Lot 4), Alpha Consortium (Distribution Consultancy, Lot 5), Valenz Holdings (Distribution Consultancy, Lot 6), Yaroson Partnership (Distribution Consultancy, Lot 8) and Steag Encotec (Distribution Consultancy, Lot 9).

Others are Chemo Technics Ltd. (Transmission EPC, Lot 1), Chrome Consortium (Transmission EPC, Lot 2), Energo Nig. Ltd. (Transmission EPC, Lot 3), Payma Bargh (Transmission EPC, Lot 4), Hoquado Nigeria Ltd. (Transmission EPC, Lot 5), Gitto Construction (Transmi-ssion EPC, Lot 6), KEC International (Transmission EPC, Lot 7), Pivot-Kal (Transmission EPC, Lot 8), Matelec (Transmission EPC, Lot 9) and Charnnel (Transmission EPC, Lot 10).

Also issued with due process certificates are Lahm-eyer International/O. T. Otis Engineering Consortium (Design Consultancy), General Electric International (Gas Turbine and Transformers), Steag/AENL (Consultancy Services, Lot 3), Rockson Engineering/Burns McDonnel (EPC of BoP, Lot 2), Marubeni Engineering (West Africa) Limited (EPC of BoP, Lot 1) and (EPC of BoP, Lot 6), John Brown /SGI (Project Consultancy, Lot 1), Steag Encotec GmbH/AENL (Project Consultancy, Lot 2), Marubeni Engineering (West Africa) Limited (EPC of BoP, Lot 3), Rockson Engineering/Burns McDonnel (EPC of BoP, Lot 4) and Lahmeyer International/O. T. Otis Engineering Consortium (Design Consultancy, Distribution Network).

The value of the contracts issued with due process certificates obtained by THISDAY totals N255,482,693,168.55. The United States Dollar component is $188,445,082.90 while the Euro component totals #195,219,227.08 Euro. The documents stated that funding for the projects will come from the Consolidated Federation Account, Excess Crude Funds.

World Bank Vice President and erstwhile Senior Special Assistant to former president Olusegun Obasanjo and Head of defunct BMPIU, Mrs. Obiageli Ezekwesili and Tajudeen Oyawoye, Special Assistant to the former president and member of BMPIU signed one of the due process certificates – that of Lahmeyer International for design consultancy valued at N789,606,373.22.

The certificate dated June 22, 2005 has reference No. 2519/S.19/Vol.111/05/2085.

Eleven of the certificates were signed by Prof. Kunle Ade Wahab, Special Adviser to former President Obasanjo and Ezekwesili’s successor at BMPIU and Abimbola Ogunseitan, Snr. Special Assistant to former President Obasanjo and Deputy Head of the defunct BMPIU. Two of the certificates were dated November 22, 2005, one December 1, 2005, one June 22, 2006, six dated July 4, 2006, and one dated December 22, 2006.

Seventeen other due process certificates were signed by Oyawoye and Prof. Wahab.

Eze had during his appearance before the House Committee on Power and Steel said the Due Process Office (now known as the Bureau for Public Procurement) did not certify any project because they were borne out of a presidential intervention.

Eze, who observed that the NIPP initiative was started before the enactment of the Public Procurement Act said “there are laws in place and people who have been found wanting should be punished if they break it.”

He told the House Committee probing expenditure on power sector between 2000 and 2007 that “since the funds were not from the Presidency, but from the Excess Crude Account, they did not come to us for payment. Due Process started July 2002 but became effective 2003.”

However, Governor of Cross River State and former Minister of Power and Steel, Mr Liyel Imoke had told the probe panel last Monday that all contracts under the NIPP were approved by the Federal Executive Council, passed through Due Process and were duly issued with Due Process Certificates.

He maintained the same position that all the contracts were approved by FEC and certified by the Due Process Office shortly before departing for Calabar last Tuesday.

“For the NIPP there was advertisement for expression of interest by contractors and consultants for all the projects later tendered and awarded. All these contracts had due process certificates and Federal Executive Council (FEC) approval. Provision was made in each contract for 25% advance payment duly secured with advance payment guarantees from first class banks. In addition, every contractor had to submit a performance bond from a first class bank to government before receiving the 25% advance payment,” he said.

He said the work of the House Committee on Power and Steel probing the expenditure that was made in the power sector between 1999 and 2007 is desirable, as it falls within the purview of their legislative oversight. top 20 economies by the year 2020,î he said.

Imoke said that the challenge of developing the infrastructure for power is even more daunting in the light of competing needs for resources.

Our case can be likened to that of an athlete who joined the race midway. He or she has the Herculean task He said that it is important for the Committee to identify any infractions in the period under probe, so that they could be dealt with in line with the laws of the nation, thus paving the way for renewed commitment in accelerated development in the power sector.

However, he said that the completion of the NIPP is inevitable for Nigeria’s quest to be one of the 20 leading world economies by the year 2020.
He said that it has become imperative to add new capacity (generation, transmission and distribution) to the power sector, as the recent experience in South Africa and other economies has shown that development in the power sector cannot afford to be static.

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