The $23.7 million three-year management contract, which the
Federal Government signed with Canadian firm, Manitoba Hydro International
(MHI), to reposition the Transmission Company of Nigeria (TCN), is still
shrouded in controversies, investigations by THISDAY have revealed.
Federal Government signed with Canadian firm, Manitoba Hydro International
(MHI), to reposition the Transmission Company of Nigeria (TCN), is still
shrouded in controversies, investigations by THISDAY have revealed.
Investigations on the status of the
management contract revealed that it is still being vehemently opposed by
interests in the power sector.
management contract revealed that it is still being vehemently opposed by
interests in the power sector.
A top presidential source informed
THISDAY at the weekend in Abuja that irrespective of President Goodluck
Jonathan’s last minute intervention late last year to rectify and finally
approve the contract in the wake of its feared cancellation, Manitoba is yet to
actually assume control at TCN.
THISDAY at the weekend in Abuja that irrespective of President Goodluck
Jonathan’s last minute intervention late last year to rectify and finally
approve the contract in the wake of its feared cancellation, Manitoba is yet to
actually assume control at TCN.
The source, who described the status
of the management contract as being “half and half”, explained that Manitoba
was yet to actually get its “schedule of delegated authority” from the Ministry
of Power and as such, has been unable to begin actual work at TCN.
of the management contract as being “half and half”, explained that Manitoba
was yet to actually get its “schedule of delegated authority” from the Ministry
of Power and as such, has been unable to begin actual work at TCN.
According to the source, Manitoba’s
work at TCN has been largely frustrated by strategic political interests
camouflaged as national interests as well as desperate attempts to delete key
management positions from the contract which was signed between the Bureau of
Public Enterprises (BPE) on behalf of the Federal Government and Manitoba in
July with a commencement date of September 1, 2012.
work at TCN has been largely frustrated by strategic political interests
camouflaged as national interests as well as desperate attempts to delete key
management positions from the contract which was signed between the Bureau of
Public Enterprises (BPE) on behalf of the Federal Government and Manitoba in
July with a commencement date of September 1, 2012.
“The Manitoba/TCN management contract
is still hanging in the balance as I talk to you today, except if the government
wakes up tomorrow morning to act otherwise.
is still hanging in the balance as I talk to you today, except if the government
wakes up tomorrow morning to act otherwise.
“What we have is a half and half
contract where Manitoba is really being opposed and prevented from assuming
full control at TCN because the Ministry of Power and other vested interests
are bent on changing provisions in the contract, especially the market
operations, which is part and parcel of TCN.
contract where Manitoba is really being opposed and prevented from assuming
full control at TCN because the Ministry of Power and other vested interests
are bent on changing provisions in the contract, especially the market
operations, which is part and parcel of TCN.
“People who are already at TCN do not
want to leave and that is understandable because there is a lack of clarity in
the whole process.
want to leave and that is understandable because there is a lack of clarity in
the whole process.
“The government pays Manitoba in line
with provisions in the contract but has also failed to give them the schedule
of delegated authority which will empower Manitoba to commence work,” the
source said.
with provisions in the contract but has also failed to give them the schedule
of delegated authority which will empower Manitoba to commence work,” the
source said.
The presidency source further
revealed: “Up till now, I understand that Manitoba still writes to NERC, the
regulatory authority, updating them on the status of the contract.
“The ministry also, still conducts recruitment for TCN at this stage which is
not in accordance with expectations for the sector and the role TCN should
play.
“This lack of clarity affects the market especially as we are about to get
payments from the preferred bidders of PHCN successor companies.
revealed: “Up till now, I understand that Manitoba still writes to NERC, the
regulatory authority, updating them on the status of the contract.
“The ministry also, still conducts recruitment for TCN at this stage which is
not in accordance with expectations for the sector and the role TCN should
play.
“This lack of clarity affects the market especially as we are about to get
payments from the preferred bidders of PHCN successor companies.
“The whole issue is weaved around
strategic political interests that are camouflaged as national interests, the
ministry and others have their eyes on certain positions and seem desperate to
condemn aspects of the contract but in all sincerity, there is nothing bad with
provisions of the contract.”
strategic political interests that are camouflaged as national interests, the
ministry and others have their eyes on certain positions and seem desperate to
condemn aspects of the contract but in all sincerity, there is nothing bad with
provisions of the contract.”
When contacted to comment on the
situation, Chief Executive Officer of MHI, Mr. Don Priestman, confirmed that
Manitoba has not taken control at TCN but hopes to do so as soon as the
recently constituted board of the company is confirmed by the government.
Priestman said: “We are not in charge at TCN but we would have loved to be in
charge. However, we are working with our Nigerian counterparts at the TCN,
collecting data, attending meetings and doing studies but we are not in
charge.”
situation, Chief Executive Officer of MHI, Mr. Don Priestman, confirmed that
Manitoba has not taken control at TCN but hopes to do so as soon as the
recently constituted board of the company is confirmed by the government.
Priestman said: “We are not in charge at TCN but we would have loved to be in
charge. However, we are working with our Nigerian counterparts at the TCN,
collecting data, attending meetings and doing studies but we are not in
charge.”
He disclosed that Manitoba was not
happy with the implementation of the contract, saying: “Of course, nobody would
have expected that but that is what we have seen and we have to be very patient
with the government and hopefully we will see some changes soon because there
are very important developments that had just happened recently in the sector.
happy with the implementation of the contract, saying: “Of course, nobody would
have expected that but that is what we have seen and we have to be very patient
with the government and hopefully we will see some changes soon because there
are very important developments that had just happened recently in the sector.
“The government has announced the
constitution of the board for TCN as well as a new Minister of Power and we
look forward to their confirmation.”
THISDAY also sought to know if Manitoba was experiencing any form of overt
opposition from people at TCN and Priestman said: “Well, there are people who
do not want changes and others who do.
constitution of the board for TCN as well as a new Minister of Power and we
look forward to their confirmation.”
THISDAY also sought to know if Manitoba was experiencing any form of overt
opposition from people at TCN and Priestman said: “Well, there are people who
do not want changes and others who do.
“But I think we are hopeful that
these two significant developments will speed up the process and we can get our
schedule of delegated authority.”
these two significant developments will speed up the process and we can get our
schedule of delegated authority.”
Efforts to get the reaction of the
Ministry of Power on the continued opposition to the management contract were
not successful as none of its public information officers agreed to comment,
following the redeployment of its former Deputy Director, Media, Mr. Greyne
Anosike.
Ministry of Power on the continued opposition to the management contract were
not successful as none of its public information officers agreed to comment,
following the redeployment of its former Deputy Director, Media, Mr. Greyne
Anosike.
The Manitoba/TCN contract had been
subjected to controversies with various interests scheming to undo certain
provisions in the contract meant to reposition TCN for its expected roles in
the emerging electricity market.
subjected to controversies with various interests scheming to undo certain
provisions in the contract meant to reposition TCN for its expected roles in
the emerging electricity market.
The Bureau of Public Procurement
(BPP) had last year accused the BPE of mis-procuring the contract, which it
said required a certificate of no objection from it. That action led the
government to intervene in the contract.
(BPP) had last year accused the BPE of mis-procuring the contract, which it
said required a certificate of no objection from it. That action led the
government to intervene in the contract.
Also, Vice-President Namadi Sambo had
recently set up a committee comprising the Minister of State for Power, Hajia
Zainab Kuchi; Chairman of the Nigerian Electricity Regulatory Commission
(NERC), Dr. Sam Amadi; Director of the Budget Office, Bright Okogu; TCN;
Chairman of the Presidential Task Force on Power (PTFP), Beks Dagogo-Jack; and
the Market Operations of TCN, to amongst other things, come up with a suitable
structure for the Market Operator.
recently set up a committee comprising the Minister of State for Power, Hajia
Zainab Kuchi; Chairman of the Nigerian Electricity Regulatory Commission
(NERC), Dr. Sam Amadi; Director of the Budget Office, Bright Okogu; TCN;
Chairman of the Presidential Task Force on Power (PTFP), Beks Dagogo-Jack; and
the Market Operations of TCN, to amongst other things, come up with a suitable
structure for the Market Operator.
Source: Thisday
