$150m W’Bank Loan: Again, Meter Manufactures Kick over Alleged Breach of Procurement Process

Peter Uzoho

Following the alleged procurement process breach by the Transmission Company of Nigeria (TCN) over the $150 million distribution section recovery, local meter manufacturers have again written a protest to the Minister of Finance and Coordinating Minister of Economy, Mr Olawale Edun.

They also urged the minister of power to encourage businesses to minimise importation so as to build a sustainable local manufacturing capacity and create the much-needed employment at this time.

The Association of Meter Manufacturers of Nigeria (AMMON) reminded the minister that even as there was a subsisting court order to the bid opening slated for Thursday, October 13, 2023, the TCN insisted on violating the procurement process.

In the letter signed by the Acting President of AMMON, Ademola Agoro and the Secretary, Duro Omogbenigun, the association referred to earlier letter to the to the office of the minister presenting their grave concerns on the violation of the procurement act and misalignment with local content directives as contained in Executive Orders 2 and 5.

The 36-member industry association explained that the Distribution Section Recovery Programme (DISREP) was a $500 million loan facility by the World Bank, approved by the Federal Executive Council (FEC) for the supply of and installation of 1,250,000 fully Built Unit (FBU) Smart meters to the 11 Discos in Nigeria.

The bulk metering procurement process at the cost of $120 million is managed by the Project Management Unit (PMU) of TCN and supervised by Bureau of Public Enterprise (BPE) on behalf of the finance ministry.

The tender notice for the International Competitive Bidding (ICB) was issued on the  March 30, 2023 with the submission deadline on  May 17, 2023.

However, AMMON pointed out that five areas unfairly impact local manufacturers including, importation of Fully Built Units (FBU), provision granting 45 per cent import duty waiver to foreign bidders, huge financial performance and experience criteria that eliminate local manufacturers in favour of foreign counterparts.

The inclusion of the overly punitive criteria, according to AMMON, was completely unrealistic; untenable considering that TCN is a market participant and fully aware of the lingering liquidity and meter market activity.

AMMON stated that TCN, as understood published the bid without due consultation with the borrower and wasn’t duly reviewed by other relevant stakeholders like NERC.

It argued that the objective of the programme was to revive the nation’s power sector by granting access to power to about 80 million Nigerians by guaranteeing the financial viability of the distribution companies so that they become job creators along with local meter providers.

The association’s request came just as the Federal High Court sitting in Kano will tomorrow (Wednesday) commence hearing on the matter between the incorporated Trustees of AMMON in Suit No: FHC/KN/262/2023 and TCN and others.

The association had filed a motion exparte on October 3, 2023, praying the court to grant an interim injunction restraining the 1st defendants and respondents from taking any steps, or any further steps towards the conclusion of the bid procurement process.

Presiding Judge, Justice A. M Liman had also granted an interim injunction restraining the defendants from terminating, interfering, frustrating, or cancelling the due performance or execution of the award of the contract between the TCN and members of AMMON.

According to the meter manufacturers, TCN went ahead to open the bid on October 5, 2023 despite the order of the Judge.

 AMMON had alleged that the government’s wholly-owned transmission firm had advertised for bids for phase 2 of the project for only foreign companies without protecting the interest of local manufacturers.