Lagos, July 23, 2023: A Convener, Electric Power Consumer Right Advocacy Group, Mr Adetayo Adegbemle, has kicked against the Federal Government’s plans to use the $155 million World Bank loan to import fully built meters into Nigeria.
Adegbemle, who is also a convener of PowerUpNigeria, made this known in a statement in Lagos on Friday.
Many commentaries wondered why Nigeria’s local meter manufacturers have kicked against the World Bank/TCN-PMU bid process for procurement of 1.25 million meters with the $155 million World Bank loan.
Adegbemle said the plans to import meters into the country was against the local content of the federal government policies.
He said that such development would kill the local metering industrial base in the country.
The activist noted that for every loans that a country took from the World Bank, the implementation of that loan was captured in procurement plan of the country.
According to him, the procurement plan is governed by the World Bank procurement policy which guides and defines what can be done and what cannot be done.
“This is, indeed, an issue that should worry every patriotic Nigerian that is concerned with the way we presently run our country, and surely knows that we can do better.
“It is rather also a proper time to take a step back from all World Bank loans that we are accessing, and assess whether the conditions of these loans in any way impact positively on Nigeria.
“Also, Nigerians, that are definitely directly impacted by these loans, and that will ultimately also pay these loans back.
“It is also high time we stopped taking loans to fund consumption, and our subsidy policy is reviewed from consumption oriented to production base.
“One area that I noticed we have not given much attention is the procurement policy of the World Bank which is operated in 177 nations.
“For every loan that a country takes from the World Bank, the implementation of that loan is captured in the procurement plan of the country.
“The procurement plan is governed by the World Bank procurement policy which guides and defines what can be done and what cannot be done.
Adegbemle urged the federal government to review the subsidy policy from consumption oriented to production base, nothing that the current administration should stop taking loans to fund consumptions.
He said they argued that the high financial and technical qualification criteria for the metering project contradicts what was captured in the World Bank procurement guidelines 2020.
Adegbemle said the key principle behind the procurement policy of the bank was to achieve value for money, integrity in the delivery of services, fit for purpose efficiency, fairness, and transparency.
The public analyst said it was not necessary for the PMU to define in percentage terms the joint venture between the foreign and domestic firm.
He said: “The 70 per cent and 30 per cent dichotomy introduced in the RFP was not done in the spirit of clause 5.38.
“This had given a window for domestic firms to ride on the back of one of parties in the Joint venture to qualify for the and have the capacity to carry out the task .
“The procurement process will allocate appropriate responsibilities, risk, and liabilities to all the parties involved.
“In this case the risk of supplying the SKDs to the domestic economy lies with the foreign party, the risk of clearing and assemblage is the responsibility of the local party and that of installation.
“If a joint venture party qualifies the SKD funding component can be wired directly to the foreign firm which eliminates the risk of project failure,” he said.
Adegbemle, therefore, said if the PMU wanted, they could have right from the beginning, ensured the full participation of local and international actors in manner that takes into consideration the key policies of the federal government.
