NIGERIA: GGESS SUSTAINABLE DEVELOPMENT

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STATE PASS USAID FOR GWEYNAND AND SLAWAETZ
STATE PASS OPIC FOR ZHAN AND MSTUCKART
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E.O. 12958: N/A
TAGS: PGOV EAID ECON EPET NI
SUBJECT: NIGERIA: GGESS SUSTAINABLE DEVELOPMENT
SUBCOMMITTEE LAUNCHES PROJECT COORDINATION MECHANISM


1. (SBU) Summary: The Subcommittee on Sustainable Development
(SSD) of the Gulf of Guinea Energy Security Strategy (GGESS)
met on July 14 in Akwa Ibom (AI) State. Participants for the
State Government, international oil companies, Niger Delta
Development Commission (NDDC) and banks agreed to provide
project information for a joint matrix. The matrix will help
ensure that state functional ministries assume responsibility
for projects upon completion. AI state plans to include
representatives of local government areas at the next
quarterly meeting to be held in the State. Implementation
will require significant capacity building particularly at
the Local Area Government (LGA) level. End Summary.


2. (U) Pol-Econ Chief and Poloff attended the July 14 Meeting
of the Gulf of Guinea Energy Security Strategy (GGESS)
Subcommittee on Sustainable Development (SSD) in Akwa Ibom
State. Prior to the meeting, the chairman of the SSD, Mrs.
Dayo Akinmoyo, Corporate Strategy and Planning, NNPC and
former personal assistant to President Olusegun Obasanjo,
explained that the SSD is one of four GGESS sub-committees.
The other sub-committees are: Small Arms, Money Laundering,
and Oil Bunkering. The sub-committee's purpose is to bring
parties together at the state level and to establish
transparency, eliminate duplication of effort and foster
sustainability by involving the functional ministries.
Akinmoyo stated that she had "never seen such passion from
governors" to find solutions to the problems in their states
as she has from the current set of governors. She claimed
that all the core state governors have agreed that the state
was the correct working level at which to tackle the problem
of development in the Niger Delta. In attendance were
representatives of Akwa Ibom ministries, NNPC, NDDC, Exxon
Mobil, Addex Petroleum, Zenith Bank, and the London Business
Development Agency.

Akwa Ibom: Power, Roads, Water are Priorities
--------------


3. (U) Akwa Ibom Commissioner for Economic Development Orak
Udosen told the SSD that Governor Akpabio's government wanted
to make its mark with "systematic planning of infrastructure
and development projects." He stressed that in the past,
many projects had been initiated but then abandoned due to
inadequate planning. Furthermore, neither oil companies nor
international aid agencies should be pursing projects that
are not part of the over-all Akwa Ibom State Development
Plan. He reiterated that the goal of the GGESS sub-committee
was to establish a framework for coordinating the diverse
efforts of various public and private organizations, both
foreign and domestic, in order to create sustainable
development in Akwa Ibom and other core Delta states.
Significantly, the committee at state level includes the
functional ministries in order to ensure the sustainability
of projects.

Functional Ministries Essential for Sustainability of Projects
-------------- --------------


4. (U) Participants discussed their ongoing and proposed
projects. Exxon Mobil pointed out that in some areas the
company is paying teachers' salaries and providing
electricity to local communities from their own generators.
It was noted that sustainability for a project such as a
school entails assuring that teachers are available and that
their salaries are paid on time; for a hospital built by a
donor, sustainability means hiring medical personnel and
purchasing equipment; for a power plant, sustainability means
regular maintenance. Many of these are state government
functions the Exxon Mobil representative said. Udosen agreed,
clarifying that this was the reason for including functional
ministries in the SSD.


5. (U) Dr. Chris Ekong, former Commissioner for Economic
Development and Facilitator of Akwa Ibom Development
Partners, identified capacity building for good governance
and project management at the LGA level as essential for
sustainability. In addition, he said this is an area in

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which international aid would be particularly effective and
appreciated. The lack of capacity at the LGA level
contributes significantly to waste, corruption and ultimately
project failure, he said.

SSD Raises Pointed Questions about NDDC Projects
-------------- ---


6. (U) Both IOC representatives and Akwa Ibom officials asked
pointed questions about NDDC projects. Dr. Ekong stressed
that the Delta needs NDDC to do "mega projects not
boreholes." Dr. Ekong told the NDDC representative that it
was imperative he hand over a list of NDDC projects in the
State so that Ekong could assure that the functional
ministries assumed responsibility for them upon their
completion. He also challenged NDDC's claim that its
projects are community-based; Ekong said he knew of projects
where a borehole had been drilled in an individual's
compound, out of reach of the community.

SSD to Coordinate Projects via Matrix
--------------


7. (U) GGESS-SSD coordinator Akinmoyo will prepare a matrix
which NDDC, IOCs and the State will populate with on-going
and proposed projects in the state. The matrix will contain
information about the nature, location, sponsor, total
budget, funds spent and progress made for all development
projects in the state. Dr. Chris Ekong pledged that the
state government will provide complete information about its
own projects and transparency in reporting how funds are
spent to match the transparency the State is requiring of the
IOCs and international donors. He said the matrix will
eliminate duplication of projects, and enable all
participants to keep track of spending and progress on
projects. It will also alert functional ministries to
projects which will require sustained support in the form of
personnel and maintenance. The SSD itself will meet
quarterly.

COMMENT
--------------

8. (SBU) Comment: The SSD appeared to be a useful forum in
which issues bearing on sustainability could be discussed and
is also a good tool for involving the functional ministries.
The matrix could prove an effective monitoring tool.
Nevertheless, Poloffs remain skeptical about implementation
in light of the severe capacity shortages at the LGA level.

This cable has been cleared by Abuja.
BLAIR