Leadership (Abuja)
Ben Dunno
7 July 2008
Abuja — The Anglo Dutch Oil giant, Shell Petroleum Development Company (SPDC), has called on communities in the Niger Delta region to form themselves into registered foundations, in order to be able to benefit from the pool of funds available for the development of the region from both international and local sources.
Giving this advice over the weekend, the Social Performance and Community Affairs Director of SPDC, Mr. Ubaka Emelumadu, said that donor bodies were ready to give out funds to known and registered foundations as a guarantee that the fund would be appropriately channelled and used for developmental projects. He spoke at a ceremony to mark the signing of a subcontract agreement between Dorman Long Engineering Limited a contracting firm to SPDC and Decsalfa Limited, an indigenous company, at the Shell office in Warri at the weekend. Emelumadu stated that communities from their Eastern operations who formed themselves into trustees were already in a position to benefit from the state government, their local governments and international donors from the European Union and the World Bank.
He said that from the EU alone, some $500m is targeted at the Niger Delta, but warned that the funds may not reach the region if the donors do not have assurance that it is going to be managed by a formal structure as provided by the foundation.
"Foundations inspire donors' confidence that the funds they make available would be judiciously utilised by the beneficiary communities," he added. He explained that what Shell was trying to achieve in bringing together its contractor, Dorman Long and a firm from its host community was to build back the trust that was eroded between it and the Amatu I community of Iduwini Clan when the Shell facility, the Sea Eagle was shut down several months ago, because it is one way of making the communities to have a sense of belonging.
Already Shell has created a Community Content Team, as an aspect of the Nigeria Content Initiative, with target for building contracting capacity for big projects in the Niger Delta, right down to supporting communities to set up companies if need be.
"Today's event is the beginning of a journey and I foresee that more will follow, because Community Content is looking at things that could happen," Emelumadu said. Chairman of Decsalfa, His Royal Highness Decca E. Keredei, the Amananawei of Amatu I community, Iduwini Clan said that the signing ceremony was the beginning of a journey to make members of host communities part of the oil and gas business, and thanked Shell for initiating the process for economic capacity building in his domain. The traditional ruler pledged the commitment of the community to continue to provide a conducive environment for Shell to operate.
"Decsalfa welcomes Dorman Long and Shell to the EA area. We are ready to work with you. Be transparent and open to the people by showing them opportunities that they can make their contribution, because the local people have a lot to contribute to the development of the area", Keredei added. Senior Manager of Dorman Long Engineering Limited, Osita Adubasim, commended the community for making the process that led to the signing of the subcontract agreement the shortest in his eighteen years experience in the oil and gas industry.
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