NIGERIA: DESOPADEC'S "QUICK START" PROJECTS BRING

C O N F I D E N T I A L SECTION 01 OF 03 LAGOS 000066 SIPDIS STATE PASS NSC FOR BOBBY PITTMAN E.O. 12958: DECL: 06/25/2016 TAGS: PGOV PREL EPET ECON SENV KDEM NI SUBJECT: NIGERIA: DESOPADEC'S "QUICK START" PROJECTS BRING POTABLE WATER, JOBS, HOPE TO DELTA STATE Classified By: Consul General Donna M. Blair for Reasons 1.4 (B,D) ¶1. (C) Summary: Chief Wellington Okirika, Chairman of the Delta State Oil Producing Areas Development Council (DESOPADEC) told Pol-Econ Chief January 12 that in less than a year, he has put in place a series of "quick start" programs that provide potable water, free medical care for 200-300 persons per day, poultry farms producing broilers and eggs; rice, cassava, plantain and sugar cane farms engaging more than 60 farmers, and a microcredit program for 1,200 cooperatives. Chief Okirika has Presidential approval to build ten modular refineries with the capacity to process 100,000 barrels of oil per day, create 2,000 jobs and which may help eliminate illegal bunkering. Chief Okirika is widely praised for bringing viable development projects to the impoverished riverine communities of Delta State. If he can see the modular refinery process through to completion, he will have developed a way to real resource control for his people, and taken a step toward control of illegal bunkering as well. End Comment. ¶2. (SBU) Chief Wellington Okirika, Chairman of the Delta State Oil Producing Areas Development Council (DESOPADEC) reviewed with Pol-Econ Chief January 12 the status of development projects undertaken by the Council. These "quick start" projects have, in less than a year, created jobs for the impoverished communities and reduced restiveness, he said. Potable Water, Medical Care Calms Flashpoint Community -------------- -------------- ¶3. (SBU) An air-to-water purification system was installed in the Okerenkoko (phonetic) community, which has for years been a flashpoint for communal unrest, Chief Okirika said. The purification system has been in operation for six months. (Note: according to press reports, the system produces from 3,500 to 7,000 gallons of water per day, and serves, in addition to the Okerenkoko community, the communities of Kurutie, and Oporoza. End Note) The project has been so successful that First Lady Turai Yar'Adua has said that she wants to commission it, and DESOPADEC has budgeted for two such systems in each local government area, according to the DESOPADEC Chairman. The community also benefits from a DESOPADEC-sponsored health center that provides free medical care. The center provides care to 200-300 persons per day. The patients are drawn not only from Delta State, but also from Bayelsa State. Bayelsa patients are not turned away, but DESOPADEC is pressing Governor Silva to establish a Bayelsa State Oil Producing Areas Development Council (BASOPADEC),and to establish similar clinics, chief Okirika said. Poultry Farms Producing Eggs, Meat -------------- ¶4. (SBU) DESOPADEC has also established a series of poultry farms located all along the Escravos River, Chief Okirika said. They were begun in March 2008, and currently employ 45 women, from Ijaw communities, who have lost their means of livelihood as fishing in the creeks has been destroyed by pollution. The farms currently have 7,000 birds, and produce 200-600 eggs per day. DESOPADEC hopes to sell the eggs to Chevron's Escravos facility. DESOPADEC has also sent women to the college of fisheries for training in how to begin fish and shrimp farms, Okirika told Pol-Econ Chief. Rice, Cassava, Cane, Plantain Under Production -------------- - ¶5. (SBU) DESOPADEC has established rice and cassava centers currently employing 60 farmers, Okirika said. The rice farmers are already producing, and have 300 bags ready to be milled at the rice mill in Minna. Swamp rice is much sought after, according to the Chief, and DESOPADEC is seeking to meet a high standard. DESOPADEC gives the farmers an allowance that allows them to sustain themselves while crops are being planted, which has helped people who were doubtful that they would be able to survive as farmers. The farmers also receive help with the logistics of transporting their LAGOS 00000066 002 OF 003 products to market. Recently, Chief Okirika said, DESOPADEC took over a sugar mill in Ojobo. Cane is being planted, and production of sugar will begin shortly. DESOPADEC has established centers for the cultivation of plantain. The centers will purchase the plantains and process them into chips. Then they will be shipped to Lagos and Abuja, where they will be sold from sales centers established by DESOPADEC. Microcredit Program Begun for Coops -------------- ¶6. (SBU) In December of 2008, microcredits totaling 1.2 billion naira (approximately USD 8 million at the current exchange rate of 148.7 naira to USD 1) were provided to 1,200 cooperatives, Chief Okirika said. Each cooperative received 1 million naira (approximately USD 6,667) with which to provide microcredits. Microcredit consultants trained the cooperative members for two weeks. The cooperatives will monitor the use of the money to assure that it has been used for a good purpose; they may find that the funds will have been used to pay school fees, to add a second room to a one room hut, etc. That is because people are in such dire straits that they will first have to fulfill some basic needs. After that, Okirika anticipates that the people will begin to start small businesses with a second or third tranche of microcredits. Chief Okirika said that he is familiar with the well-respected microcredit program in Benin City. Presidency Approves Modular Refineries -------------- ¶7. (SBU) DESOPADEC has been given the approval from the Presidency to purchase and run a series of modular refineries, which will be sited in each of the local government areas of the state, and which will each create jobs for 200 youths, Chief Okirika said. Mrs. Christy Silas, Director of the Nigerian Institute of Oceanographic and Marine Research (NIOMR),a member of the Board of Trustees of the Peoples Democratic Party (PDP) board, and a member of the DESOPADEC Board, facilitated the approval process with the President, and shepherded the proposal through reviews by the Minister of State for Petroleum, the former Advisor to the President for Petroleum, the Department of Petroleum Resources, and other agencies. The First Lady has indicated that she wants to attend the inauguration of the first modular refinery, Chief Okirika said. The Presidency was enthused about the project, the chief said, because the refineries will create jobs. The refineries will also help to eliminate illegal bunkering, the chief said, because the oil that would otherwise be illegally transported abroad for processing will be processed at these new refineries, Chief Okirika said. Okirika planned to travel to Ghana to tour that country's modular refinery. ¶8. (SBU) The refineries selected by DESOPADEC are capable of adding to their original capacity. They will begin production at approximately 20,000 barrels per day, so that when all are on line at the initial capacity, they will be able to process a total of 100,000 barrels per day. From the time a site survey is done, it will take approximately 14-18 months until a refinery begins operations. The refineries will be located in riverine communities all along the Escravos River, Chief Okirika said. Pulp and Paper from Mangroves -------------- ¶9. (SBU) Mangroves throughout the area have been killed by oil in the water, Chief Okirika noted. DESOPADEC believes that the dead wood can be cut and used for the manufacture of pulp and paper. DESOPADEC will then replant the mangroves so as to make the system sustainable. There are over 60 miles of mangrove along the coast. To utilize them, DESOPADEC is working with the Chinese, who will build the pulp and paper mill, and treat the effluent. An environmental impact assessment is going on right now, because DESOPADEC wants to be certain that the project is sustainable and the people and the environment protected. The plant will employ 120 people, LAGOS 00000066 003 OF 003 but is certain to create additional employment, in the replanting of trees, transportation of the wood to the plant, and the transportation of the finished newsprint from the plant. Chief Okirika anticipates that as many as 3,000 jobs in total could be generated by the project. Roads in Communities Yearning for Development -------------- ¶10. (SBU) DESOPADEC has undertaken to put in roads in "communities yearning for development", Chief Okirika said. In Undoguar (phonetic),17 kilometers of roads have been installed. In Isoko (phonetic),12 kilometers of roads have been installed. Eight kilometers of roads have been installed in an Itsekiri riverine area. In Osoro (phonetic) township, 10 kilometers of roads have been resurfaced. However, Chief Okirika said, roads do not impress the people; job creation does. Job Creation Protects Oil Facilities -------------- ¶11. (SBU) DESOPADEC has employed 2,500 people, graduates of universities, who have not been able to find jobs in eight years. There is a DESOPADEC liaison office in the center of each of the producing communities. Senior staff are posted there to monitor the projects and supervise. The sons and daughters of the communities are working there, and are paid promptly every month. Because their own children will be harmed by any disruption of oil production, the jobs program assures that the communities will not harm oil facilities, Chief Okirika said. ¶12. (SBU) Chief Okirika noted that, while Bayelsa, Rivers, Akwa Ibom and Cross River have not established Oil Producing Areas Development Commissions (OPADECs),Edo, Ondo and Imo states all have. The Edo State OPADEC is constrained as it has a very small budget. The Ondo State OPADEC has concentrated its efforts on primary health care. ¶13. (C) Comment: Although not a development expert, Chief Okirika has managed to get a series of projects benefiting the impoverished communities of Delta State up and running, and we have heard many people praise him for his efforts. His most important achievement may be to have won the apparent buy-in of the Presidency for the establishment of modular refineries. If he can manage to see this project through to completion, he will have developed a way to real resource control for his people, and taken a step toward control of illegal bunkering. Whether this model can be replicated elsewhere remains to be seen. BLAIR