NIGERIA: GGESS SUSTAINABLE DEVELOPMENT

UNCLAS SECTION 01 OF 02 LAGOS 000322 SENSITIVE BUT UNCLASSIFIED - HANDLE ACCORDINGLY SIPDIS STATE PASS USTR FOR USTR AGAMA STATE PASS USAID FOR GWEYNAND AND SLAWAETZ STATE PASS OPIC FOR ZHAN AND MSTUCKART STATE PASS TDA FOR LFITT, PMARIN STATE PASS EXIM FOR JRICHTER DOE FOR GPERSON,CHAYLOCK TREASURY FOR DFIELDS, AIERONIMO, RHALL DOC FOR 3317/ITA/OA/KBURRESS DOC FOR 3130/USFC/OIO/ANESA/DHARRIS 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 LAGOS 00000322 002 OF 002 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