The fear of losing in court and the likely setback for the power sector reforms may have made President Goodluck Jonathan to reverse his termination of the management contract of the Transmission Company of Nigeria (TCN) to Manitoba Hydro International of Canada on Tuesday.
The Bureau of Public Procurement (BPP) finally sent a ratification letter to the Bureau of Public Enterprises on Monday, reports said, putting a stop to the controversy over the contract process.
Manitoba Hydro had threatened to go to court to seek redress in the event of an eventual cancellation of its $23.7 million contract to run the TCN for three years which formally commenced on September, 1, 2012.
Last week Tuesday, reports were rife in the media of President Goodluck Jonathan's approval of the contract's cancellation, citing non-adherence to procurement procedure. The development was greeted with wide criticism from industry experts and other members of the public who feared that the move could set reforms in the sector back.
A source in the Power ministry told Daily Trust yesterday, "Manitoba had threatened to go to court if the contract was cancelled and they apparently have an argument because a contract had been entered into with them by the federal government. Terminating the contract without any fault of theirs was a legitimate ground for them to seek redress and could have won in court."
When Daily Trust contacted the Managing Director of Manitoba Hydro in Nigeria, Mr. Don Priestman yesterday, he declined to comment.
Mr. Priestman said, "I am yet to receive any official notification. That is all I would like to say now. May be when I get more information later, we can talk."
It took the Bureau of Public Enterprises (BPE) five years to conclude the TCN contract with Manitoba, starting during the administration of former President Olusegun Obasanjo through that of late President Musa Yar'adua and down to President Goodluck Jonathan. It was done through bidding where the Power Grid of India lost out.
However, a memo from the Bureau of Public Procurement (BPP) to the President alleged the process was flawed and recommended the termination of same.
The President had acquiesced to the recommendation as confirmed by his spokesman, Mr. Rueben Abati to Reuters last Wednesday.
The President however denied that it was canceled later.
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It is regratable Mr Jonathan's personal involvement to subvert Manitoba Hydro submission to become patner in the nation's effort to develope sustainable energy program .Many of us have some idea for that reaction which did not give damn reason to persuade anybody .Judging from past records , I will be very concerned with more contracts to Indian business because that country have had too many shaddy and faulty contracts with this nation in the past. India can be praised to have developed this far, and must be commended how they have managed corruption and developement together. In contrast, China found the incompatible relationship between the two evils and chose mandatory death penalty sanction as means for control and it has worked effectively . History of past Indian contract with Nigeria include the following ; Nigeria Railways,(Raiways Hospital) before Dr,Okechukwu Ikejiani. Operation of the entire Rail Line proper which killed the entire industry and the nation had no suchg thin as Rail service for donkey years. In the North where they mesh comfortably with Muslim society, they're alfa and omega, the culture of corruption have been part of doing business in the Region ever. Remember the indigenization program intended to transfer minor business operation including small scale trade to citizens, many Indian made fabric traders and drycleaners along Nnamdi Azikiwe Street were very quick to apply their well known quck fix to undermine that program to halt . Infact one big importer of expired drugs ran away after arrangement with his local staff to manage his business . Canadian Coporations like Manitoba Hydro will not enter into such arrangement with you. Imagine how much under the table arrangement will go with the huge expense to be spent in Nigerian government privatization program to bribe public officials who've been placed to run such contract ? At the very least, factor in extra half of the real cost to produce more looters and extend the nation's cultural corruption and extend inequality among the citizens. That is the Canada Hydro's disadvantage and reason to disqualify the best among Jonathan's choice .
The truth is that the process was flawed with the rejection of Power Grid of India's bid. The company is 10 times better than Manitoba and it offered to deliver at a cheaper rate yet the financial bid which was the second part of the process was not concluded because a former minister had interest. The BPP was saying the right thing but has been cowed into submission by friends of the minister and we do not know the fate of the country in terms of power because Manitoba supplies power to a province in Canada with little population while Power Grid of India has the capacity to supply power to the whole of India with 1 billion population. Favouritism should be chased away from national decision making in vital sectors like this.