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Stakeholders angry with NIMASA over concession of National Maritime Domain

Published by Nigerian Compass on Fri, 27 Jan 2012


Stakeholders in the maritime sector are not happy over concession of the national Maritime domain to the alleged Niger Delta militants.They explained that it contravenes the International Maritime Organisation's security codes and convention and that it would put shipping trade into jeopardy.The stakeholders said that the Federal Ministry of Transport and Nigerian maritime Administration and safety Agency( NIMASA) had approved a memo that officially auctions the national maritime domain to a company allegedly belong to one of the leading Niger Delta militants.It would recalled that on January 5, 2012, the Ministry of Transport submitted a memorandum to the Federal Executive Council titled: 'Award of contract for the strategic concessioning partnership with NIMASA to provide platform for tracking ships and cargoes, enforce regulatory compliance and surveillance of the entire Nigerian maritime domain.The council noted that the principal objective of NIMASA'S activities is to ensure that safety and security of Shipping/Maritime Trade in a protected marine environment but resource constraint has made it difficult for NIMASA to acquire the requisite operational platforms which are needed to effectively patrol and carry out surveillance of Nigeria 's entire coastline.The memo explains in parts: 'Note that the surveillance operations will be carried out in collaboration with the Nigerian Navy in line with the existing Memorandum of Understanding (MOU) between NIMASA and the Nigerian Navy under the Maritime Command and Structure; note that the project is aimed at addressing the challenges in the Maritime Industry'Note that the scope of works covers Monitoring, Patrol, Enforcement of Conventions and Improvement of Revenue;(vi) Note that the Platform upon completion will enhance effective patrol and surveillance of Nigeria 's entire coastline to achieve total Maritime Domain Awareness'Note that due National Security nature of the project, Direct Procurement was adopted to this procurement under the Public Procurement Act. Section 42 (1) f;(viii) Note that Due Process Guidelines, were followed and the ICRC has approved the PPP arrangement on a 'no cure no pay' basis in favour of Messrs Global West Vessel Specialist Nigeria Limited (GWVSL) with an initial investment in the sum of $103,400,000. Inclusive of all taxes on a contractor financed Supply Operate and Transfer (SOT) Concession for a period of 10 years based on performance;'Note that the BPP reviewed the procurement process and issued a Certificate of 'No Objection' for the Provision of Platforms for Tracking Ships and Cargoes, Enforcement of Regulatory Compliance and Surveillance of the Entire Nigerian maritime Domain for Ministry of Transport/Nigerian Maritime Administration and Safety Agency, in favour of Messrs Global West Vessel Specialist Nigeria Limited (GWVSL), with an initial investment in the sum of USD103,400,000.00 Dollars only, on a contractor financed supply and Transfer (SOT) concession for a period of 10 years and renewable for further 2 terms of 5 years each based on performance as recommended by ICRC and no more to avoid undue monopoly of the service by Concessionaire;'Note that the projected amount accruable to government over the concession period will not be less than N124billion.'Note that the President vide letter Ref. No. PRES/99/MT/61, 9th November, 2011 had granted anticipatory approval for the project;'Note that the Attorney General of the Federation/Minister of Justice has reviewed and approved the Draft Agreement.'Note that this project is contractor financed and does not require any Government Appropriation. Note that this project will create 1375 job opportunities to Nigerian professional and non-professionals directly and 1620 jobs indirectly; and'Ratify the Presidents anticipatory approval for the concessioning of the Provision of Security, Monitoring and Enforcement Operational Platforms on Nigerian Waters to Ministry of Transport/Nigerian Maritime Administration and Safety Agency (NIMASA). In favour of Messrs Global West Vessel Specialist Nigeria Limited (GWVSL), with an initial Investment of the sum of $103,400,000.00 only. Inclusive of all taxes on a Contractor-financed Supply Operate and Transfer (SOT) Concession over 10 years concession period and renewable for further two terms of five years based on performance.'Some stakeholders alleged that Messrs Global West Vessel Specialist Nigeria belongs to Tampolo, the famous leader of one of Niger Delta militant factions.It was learnt that the Presidency sent the memo to the National Assembly last week requesting it to consider it in place of the earlier memo on coastal guards submitted by late President Umaru Musa Yar'adua. The essential difference between the two memos is that while Yar'Adua envisaged an outfit that is composed by various agencies of government related to maritime functions, President Goodluck Jonathan's memo is contracting the job to a private company in spite the national security implications.Given the tribal bias that President Jonathan has so far exhibited in his appointments, one could easily see that the expected jobs will largely, if not completely, be composed of Niger Deltan militants. This neatly fits into the Ijaw nation agenda. With the militants manning the maritime domain from Lagos to Calabar, anything can happen.There is the fear among many Nigerians that Jonathan is working hard to secure the entire resources of the region in the hands of his Ijaw tribesmen. So-called ex-militants are presently manning pipelines in the region.When has Nigeria become so bankrupt that an organization like NIMASA that generates hundreds of millions of dollars annually would not be able to invest $103.4million on something as crucial as its infrastructure that is so essential to our national security'The contract does not have a total sum. All we are told is that the initial investment would be $103.4million. How would a contractor commit himself to a contract that does not have a total sum'Equally ambiguous is the benefit that will accrue to the Federal Government: 'not less than N124billion above the existing earnings', or less than $1billion over a period of ten years! This means in the absence of any sharing formula even if the contractor would pay the federal government only a billion dollars in ten years where he makes, say, $10 billion, he is deemed to have performed satisfactorily. This is dubious.Who are the 1,375 Nigerian professionals and 1,620 non-professionals that are going to be employed by the company' No commitment to their composition is given in the memorandum whatsoever. One can clearly see a situation where the entire workforce would be made up of Niger Delta militants. There is nothing in the memorandum to ensure a national spread of the opportunities.What happens if the contractor does not perform' Nothing except the phrase 'no cure no pay.'One really wonders how 'the BPP reviewed the procurement process and issued Certificate of 'No Objection', and how the Attorney General of the Federation/Minister of Justice reviewed and approved the agreement.Why would the President approve such a sensitive memo in anticipation without waiting for his Council'Why the attempt to gain the approval of the National Assembly within a day without allowing members to study it
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