OPINION: WHY THE FG DOESN’T TRUST AMAECHI’S WATER PROJECT
Posted by: THEWILL_ Posted date: December 27, 2013 In: Opinion

The recent lamentation by the governor of Rivers state over the World Bank/ADB loan ‘non-approval’ or delay by the Federal Government smacks of bluff, subterfuge, and depicts the extreme political chicanery that has invaded governance, at the expense of citizens. It has become a direct blackmail, as if a Guarantor is simply an insignificant signatory to the ADB loan agreement.

Banks will always advice that is dangerous to recommend anyone who you do not trust. Being a Guarantor to a World Bank/ADB loan is even more dangerous. The penalties of failure in performance or payments is stiff not just for the Borrower, but also the Guarantor, especially, if the Guarantor is a member state, and it is all clearly stated in Section 10 of the General Conditions Applicable to the African Development Bank, Loan Agreements and Guarantee Agreements (Non Sovereign Entities) document.

Every responsible government will first of all profile the Borrower’s performance in major collaborative projects like PPPs, and the Borrower’s project management capacity. The will to commence a project is never enough, what counts to a Guarantor is the ‘capacity’ to comply with the terms of the loan agreement, and to perform and deliver as agreed. The Federal Government is right to have hesitated, because an analysis of major projects undertaken by the Rivers state government calls for gradualism in the Guarantor’s approval process.

The $150m Mega Specialist Hospital project turned out to be a scam. The government doesn’t even talk about it these days. On September 29, 2009, the governor said “the Justice Karibi Whyte Mega Specialist Hospital has been designed to make Rivers State the number one Medical Tourism destination in Africa. It would have a leisure arm that would make it a major tourist attraction.” He promised it would be completed by December, 2011. This project is in collaboration with Clinotech Canada. The project is nowhere, as I write.

The $318m Mega Monorail project is another. This perhaps will go down in the history of the Southern Nigeria as the biggest white elephant project ever. As early as September, 2010, the governor had doled out N11b for the project. The governor assured that the monorail, not the entire project, not the phase 1, but the phase 1A will be completed by December 2013. After four years of award, less than 25% of the project has been achieved. The governor promised his people that “that the monorail would be the first of its kind in West Africa, and will be developed for mass transportation within the Port Harcourt metropolis, decongest roads in the city, and create job opportunities.” The project failed!

The Rivers state government has not been completely honest with the FG and the World Bank/ADB.

The state government has barely met the conditions set by the World Bank.

The State Ministry of Water Resources developed a Water Master Plan for Port Harcourt and Obio/Akpo. The design was concluded since 2011. Thereafter, the governor promised to release N5billion available for the first phase of the project, nothing happened. Much later, the governor reneged, and decided to adopt the Cross River state model.

They began the chase for $200m World Bank/ADB loan.

The State Water Board has been without form. The World Bank/ADB listed conditions for the loan. Amongst which is that a reform must be undertaken to create an autonomous agency that will have its own board of directors and a finance management framework that is independent.

The governor directed the speaker to pass a bill for the creation of the Port Harcourt Water Corporation, Rivers State Small Towns Water Agency, and the Rivers Water Regulatory Agency. The bill was signed on the 30th day of May , 2012. Since then, like every other bill passed by the rubber stamp Assembly of the state, it has remained just a documentation. Only a bill board exists at the Rumuola Water station in Port Harcourt.

The Rivers State Ministry of Water Resources has since advertised vacancies in these ‘demo’ agencies in national dailies. Of course, these advertisements were also included in the documentation to the World Bank. But if you were one of those who applied, Sorry! Nothing is happening. It is all deceit. No such agencies exist in the state. Therefore, the most fundamental condition given by the World Bank/ADB has not been met. No Board, no management, no organization, no structure. Rivers state has not met any of these conditions.

The Amaechi administration is desperate for the World Bank loan because it provided zero allocation for Water in the state 2013 budget. Consequently, all water stations in Rivers state are grounded as I write. Would any responsible government allow things to get this bad because they are waiting for a loan?

Now, for any loan to a state/state agency to get the final nod of the World Bank/ADB, a key condition is that the national government – in this case the FG – must act as a guarantor. Considering the record of the Rivers state government in collaborative ventures like the few projects listed above, would you recommend that the FG guarantee a $200m loan to a government that has been unable to deliver on any major project? The Guarantor is as liable as the borrower.

The problem is not Mrs. Okonjo-Iweala, the problem is Gov. Amaechi’s government. They could not deliver on the $150m Mega Specialist Hospital; they could not deliver on the $315m Mega Monorail Project. How can he deliver on this?

WHO PAID U TO DO DIS? IF U NO NO SIN DEN CAST D FIRST STONE

The problem with Nigeria is not the politicians, not the people but the PRESS.
Responsible journalism demands that the journalist should look beyond the posturing, declarations and statements by individuals to read in-between the lines and present facts as they are.
Amaechi is an imaginary comical political `hero` created by a politically bigoted press who will rather highlight his mischievous political utterances against the federal government than x-ray the waste and plundering of public resources under his watch and control.
A man who bought private jets of N9 billion (though he claimed it`s N7 billion)and paid cash for it is looking for a loan of $120 million to give his people drinking water when the states GDP is $140 billion, same with Vietnam. And it is taking him 6yrs to realize his state people needs drinking water and without this loan he can not achieve that.
This man needs to be stoned first and reviewed later.

luvinhubby: The problem with Nigeria is not the politicians, not the people but the PRESS.
Responsible journalism demands that the journalist should look beyond the posturing, declarations and statements by individuals to read in-between the lines and present facts as they are.
Amaechi is an imaginary comical political `hero` created by a politically bigoted press who will rather highlight his mischievous political utterances against the federal government than x-ray the waste and plundering of public resources under his watch and control.
A man who bought private jets of N9 billion (though he claimed it`s N7 billion)and paid cash for it is looking for a loan of $120 million to give his people drinking water when the states GDP is $140 billion, same with Vietnam. And it is taking him 6yrs to realize his state people needs drinking water and without this loan he can not achieve that.
This man needs to be stoned first and reviewed later.

The media is part of the problem with Nigeria

i remember during his first one year in office, Ameachi had problems with rivers state elders and his defense then was that they wanted him to share the 100 billion Naira he claimed to have saved for the rivers people and that he was going to use the said money for this same water project ..he should stop all this his games and do what is right ..SHUT UP AN GO BACK TO WORK

Interesting article.... I wud also love to hear d RSG's side sha

taharqa: Interesting article.... I wud also love to hear d RSG's side sha

Amaechi is obviously becoming a scammer and propagandist.

I have been asking these very same questions for a while now but people who cant point out a map of Rivers state even if its pasted on their heads seem to observe his "developmental strides" more than those on ground here. I ask again, why wasnt part of the monorail money used to revive at least the Rumuola water works ?

luvinhubby: The problem with Nigeria is not the politicians, not the people but the PRESS.
Responsible journalism demands that the journalist should look beyond the posturing, declarations and statements by individuals to read in-between the lines and present facts as they are.
Amaechi is an imaginary comical political `hero` created by a politically bigoted press who will rather highlight his mischievous political utterances against the federal government than x-ray the waste and plundering of public resources under his watch and control.
A man who bought private jets of N9 billion (though he claimed it`s N7 billion)and paid cash for it is looking for a loan of $120 million to give his people drinking water when the states GDP is $140 billion, same with Vietnam. And it is taking him 6yrs to realize his state people needs drinking water and without this loan he can not achieve that.
This man needs to be stoned first and reviewed later.

You captured it well . . . .Kudos . . .

gbam........ .next[b][/b]
abeg who cook beans?

Seun Osewa, Afam4Ever & co, please move this thread to front page. Fowl Nyash don open.

jmaine:
You captured it well . . . .Kudos . . .

I am still organising your palm-wine & bushmeat, i pay my debts...

Was hoping this post will make front page for proper analysis by Nigerians as to the true intentions of Nigerian politicians and Chibuike Amaechi.

front page please

luvinhubby: Was hoping this post will make front page for proper analysis by Nigerians as to the true intentions of Nigerian politicians and Chibuike Amaechi.

you know that wont happen

talktimi: you know that wont happen

Balancing opinion requires placing facts from both ends of an issue before the court of public opinion.
Mukina & Afam, do the needful, front page on this one will not desecrate anybody`s groove.

It's hard to believe that water is still a big problem in some cities in Nigeria.

What are we suppose to do with this half baked opinion I ask the OP and the OW these following questions:

1. How much of the approved $150million loan has been released to the River state government for the mega hospital and how much did the RSG budget for that hospital in 2013?

2. How much of the approved $315million loan has been released to the River state government for the mono-rail and how much did the RSG budget for that hospital in 2013?

In one fell swoop you told us that $318million was borrowed for the mono rail and in another paragraph you told us it is $315million. How can we then trust you that your figures are factual?

In your assessment of the level of completion of the mono rail, you claimed only 25% of the project has been completed. However, you did not avail your readers how you arrived at that percentage sum, any reference for them to verify your claim, and more importantly the stage the project out to be according to the contract agreement signed between the RSG and the handling contractors.

In your concluding statement, you allude to the fact that the problem with the $200million water project loan is with Amaechi and not Okonjo Iweala, however, non of your submission buttress any fact for any sensible individual to reach similar conclusion as you deed in your write up.

Save for the reform of the River state water board you claim RSG or indeed Amaechi failed to carry out which was part conditional on the loan approval, you deliberately or in a calculated attempt failed to tell your would be readers, the reasons for the allege non reforms of the water board, vis-a-viz the previous and current composition of the River State water board.

While I also have very serious concerns on the delay bedevilling the Mono rail in P/H, as I think it is a fantastic project that would kick start a new mode of transportation in that state, however, rather than playing the devil and the light game with such a project in a public daily, RSG is one of the few state governments I know organises open forum for public update about her government policies and projects, where questions are asked and feedback is given by the governor or his representative, so why can't this OP and the OW go to one of those 'open' fora and ask the governor or His representatives the questions?

taharqa: Interesting article.... I wud also love to hear d RSG's side sha

You might want to skim through the thread below:

https://www.nairaland.com/1571142/ross-alabo-george-why-fg-doesn

Kelsoft provided some insights on the same issue therein.

Reptyle:

You might want to skim through the thread below:

https://www.nairaland.com/1571142/ross-alabo-george-why-fg-doesn

Kelsoft provided some insights on the same issue therein.

Thank you for that link and also the link to the 2013 budget of RSG. It is now clear to me, just as I posited in my earlier post that the OW is economical with the truth and playing the devil and the light game with such critical projects.

Shame on the OW and the OP.

Omo_Tier1: What are we suppose to do with this half baked opinion I ask the OP and the OW these following questions:

1. How much of the approved $150million loan has been released to the River state government for the mega hospital and how much did the RSG budget for that hospital in 2013?

2. How much of the approved $315million loan has been released to the River state government for the mono-rail and how much did the RSG budget for that hospital in 2013?

In one fell swoop you told us that $318million was borrowed for the mono rail and in another paragraph you told us it is $315million. How can we then trust you that your figures are factual?

In your assessment of the level of completion of the mono rail, you claimed only 25% of the project has been completed. However, you did not avail your readers how you arrived at that percentage sum, any reference for them to verify your claim, and more importantly the stage the project out to be according to the contract agreement signed between the RSG and the handling contractors.

In your concluding statement, you allude to the fact that the problem with the $200million water project loan is with Amaechi and not Okonjo Iweala, however, non of your submission buttress any fact for any sensible individual to reach similar conclusion as you deed in your write up.

Save for the reform of the River state water board you claim RSG or indeed Amaechi failed to carry out which was part conditional on the loan approval, you deliberately or in a calculated attempt failed to tell your would be readers, the reasons for the allege non reforms of the water board, vis-a-viz the previous and current composition of the River State water board.

While I also have very serious concerns on the delay bedevilling the Mono rail in P/H, as I think it is a fantastic project that would kick start a new mode of transportation in that state, however, rather than playing the devil and the light game with such a project in a public daily, RSG is one of the few state governments I know organises open forum for public update about her government policies and projects, where questions are asked and feedback is given by the governor or his representative, so why can't this OP and the OW go to one of those 'open' fora and ask the governor or His representatives the questions?

You forgot to tell us which loan and what percentage of it was released to Rivers state to acquire a N9 billion aircraft, did the certification and insurance and put it in the air.
If your economics is correct, in scale of preference, water comes way before aircraft.

Please we should get Kelsoft to also come here to enlighten all the ignorant posters above who were already baying for blood.

luvinhubby:
You forgot to tell us which loan and what percentage of it was released to Rivers state to acquire a N9 billion aircraft, did the certification and insurance and put it in the air.
If your economics is correct, in scale of preference, water comes way before aircraft.

I am not sure how well schooled you are. However, let me remind you that you do not join issues upon issues to resolve a thing. You raised allegations on an issue citing three others to buttress your point. I only asked you simple questions which ordinarily a smart person would ask Himself or Herself before putting out an opinionated piece in the public domain.

If your write up is filled with inconsistency and seemingly evading position when you should be straight to the truth, your piece would achieve nothing and only make people see you as bias.

Rather than ask more questions about the jet, perhaps let address the ones on ground first, then you can open another thread another day for the jet issue?

So now go back and address the simple questions I asked you

Reptyle:

You might want to skim through the thread below:

https://www.nairaland.com/1571142/ross-alabo-george-why-fg-doesn

Kelsoft provided some insights on the same issue therein.

I hv seen that comment, and d next one, from @kelsoft and it was not helpful at all. It was not able to contest, talkless of debunking, d main arguments in d @OP's article... I wud still hv to await RSG's counterarguments, guy

Omo_Tier1: What are we suppose to do with this half baked opinion I ask the OP and the OW these following questions:

1. How much of the approved $150million loan has been released to the River state government for the mega hospital and how much did the RSG budget for that hospital in 2013?

2. How much of the approved $315million loan has been released to the River state government for the mono-rail and how much did the RSG budget for that hospital in 2013?

In one fell swoop you told us that $318million was borrowed for the mono rail and in another paragraph you told us it is $315million. How can we then trust you that your figures are factual?

In your assessment of the level of completion of the mono rail, you claimed only 25% of the project has been completed. However, you did not avail your readers how you arrived at that percentage sum, any reference for them to verify your claim, and more importantly the stage the project out to be according to the contract agreement signed between the RSG and the handling contractors.

In your concluding statement, you allude to the fact that the problem with the $200million water project loan is with Amaechi and not Okonjo Iweala, however, non of your submission buttress any fact for any sensible individual to reach similar conclusion as you deed in your write up.

Save for the reform of the River state water board you claim RSG or indeed Amaechi failed to carry out which was part conditional on the loan approval, you deliberately or in a calculated attempt failed to tell your would be readers, the reasons for the allege non reforms of the water board, vis-a-viz the previous and current composition of the River State water board.

While I also have very serious concerns on the delay bedevilling the Mono rail in P/H, as I think it is a fantastic project that would kick start a new mode of transportation in that state, however, rather than playing the devil and the light game with such a project in a public daily, RSG is one of the few state governments I know organises open forum for public update about her government policies and projects, where questions are asked and feedback is given by the governor or his representative, so why can't this OP and the OW go to one of those 'open' fora and ask the governor or His representatives the questions?

What is this one blabbing again?? Was this supposed to make sense?

Omo_Tier1:
I am not sure how well schooled you are. However, let me remind you that you do not join issues upon issues to resolve a thing. You raised allegations on an issue citing three others to buttress your point. I only asked you simple questions which ordinarily a smart person would ask Himself or Herself before putting out an opinionated piece in the public domain.

If your write up is filled with inconsistency and seemingly evading position when you should be straight to the truth, your piece would achieve nothing and only make people see you as bias.

Rather than ask more questions about the jet, perhaps let address the ones on ground first, then you can open another thread another day for the jet issue?

So now go back and address the simple questions I asked you

You do not need to write an epistle to make sense.
The sincerity of Amaechi is being questioned by the op and your long......whatever! did not addresss any of it. Please try another way.