MORE POSERS OVER MANITOBA’S TAKE-OFF PLAN

• Govt reconsiders membership of supervisory board

• ‘Schedule of delegated authority ready with SGF’

•  Disquiet over role sharing at power ministry

ALTHOUGH the much-awaited schedule of delegated authority   that would enable Canadian firm, Manitoba Hydro International, to effectively take control of the Transmission Company of Nigeria (TCN) is ready, there are fresh hurdles before the company. The Guardian learnt from the Office of the Secretary to the Government of the Federation (SGF) that amid the take-off plan of the company, the government is rethinking the constitution of its supervisory board announced last December.

The $23.7 million three-year management contract was signed with the firm in July last year. But scheming within government circles to continue to control the ‘power house’, the ‘trading room’ of TCN, the market operation’s office, has allegedly led to several attempts to manipulate the contract.

The Transmission Company of Nigeria is responsible for evacuating generated electricity from generating companies and wheeling it to distribution companies.

The Guardian learnt that the SGF is co-ordinating the issue of the schedule of delegated authority, which has hampered the effective execution of the contract for the management of TCN, a contract that is now in its eighth month.

The modernisation of the TCN is a critical component of Nigeria’s electricity reform agenda. While government has honoured financial commitments to Manitoba, the firm is involved in mere ‘shadow boxing’ as a result of government’s refusal to honour certain components of the contract.

The new Minister of Power, Prof. Chinedun Nebo, had on February 19 hinted that the schedule of delegated authority would be issued to Canadian power firm, Manitoba Hydro Power (MHI) ‘next week.’

Almost three weeks afterwards, the process is yet to be concluded.

It was learnt at the weekend that the instrument is ready and now ready to be issued. But certain issues around the reconsideration of the membership of the announced TCN supervisory board is next on the agenda.

Another sort of ‘shadow boxing’ is currently ongoing at government’s own end. The Guardian could not confirm if the schedule of delegated authority to be issued to TCN ‘soon’ is for the total management of the transmission company, or whether government has managed to restructure it in line with the current bid for the soul of TCN.

President Goodluck Ebele Jonathan in mid-December last year through the Secretary to the Government of the Federation (SGF), Anyim Pius Anyim, announced the constitution of the supervisory board of the TCN.

Anyim said that the constitution of a supervisory board for TCN was part of efforts by the government to reposition the transmission company towards the attainment of the goals of the power reform programme of the Federal Government. The supervisory board of TCN will be led by former Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission, Hamman Tukur, as chairman, while Mr. Akinsola Akinfemiwa is vice chairman.

Other members include the Director of Human Resources Management, Bureau for Public Enterprises (BPE); a representative of the Co-ordinating Minister for the Economy and Minister of Finance; Director of Power, Ministry of Power; and a commissioner from the Nigerian Electricity Regulatory Commission (NERC).

The TCN board will also have the representative of the Manufacturers Association of Nigeria (MAN), representative of the generation companies (GENCOS), and a representative of the distribution companies (DISCOS) as members.

Three months after the board was announced, it is yet to start operation as a result of government’s failure to formally inaugurate it and swear the members in.

It was learnt that there are fresh concerns over the board, as it seems that government hurriedly constituted it without mentioning executive members, as is statutorily the case in government boards.

Now, there is confusion over where the executive members would come from. By the terms of Manitoba’s contract, the company is ordinarily expected to produce the executive members. But government’s inaction on the fate of the old management of TCN is putting fresh hurdles before the supervisory board of TCN.

The Guardian had reported earlier in the year that there are currently two Chief Executive Officers for TCN:  Don Priestman (from Manitoba) and Mr. Olusola Akinniranye (the Nigerian CEO).  The CEO oversees all the operations of the company, which include transmission, systems operations, market operations as well as finance and administration.

There are also market operators: Mr. Evarestus Mogbo (from Nigeria). The market operator is responsible for co-ordination of market operations in the entire power network and administration of market settlement, and collection and payment systems in the electricity market. The market operator also administers the electricity subsidy scheme, Multi Year Tariff Order (MYTO).

Manitoba Hydro International has also appointed Mr. Alejandro Core as the new market operator for Nigeria. Manitoba is coming with about eight expatriate managers to run the transmission company for a period of three years in the first instance. TCN also has some executive directors and key management officials still in place.

Where the executive members of the pending supervisory board of the TCN would come from is the newest headache being experienced by government. Manitoba, it was learnt, has already nominated four executive members for the supervisory board, a situation considered ‘too large’ among government officials involved in the meetings to wriggle out of the board dilemma.

What to do and what not to do with the Nigerian management staff of TCN is also a source of worry in government. The Manitoba contract, it was learnt, did not anticipate a conflict of leadership positions.

Another dilemma plaguing the inauguration of the Manitoba board, The Guardian learnt, is the absence of a core politician who would act as the ‘eyes and ears’ of government and the ruling party on the board.

TCN’s licensed activities include electricity transmission, system operation and electricity trading.

Government’s latest interest in the TCN scheming, as has been previously reported by The Guardian, is the electricity trading component of TCN’s duties, “which is where the money is” as a stakeholder said.

The Chief Executive Officer of Manitoba, Don Priestman, confirmed that his firm was yet to get the schedule of delegated authority in a telephone message in response to an inquiry by The Guardian.

By the terms of the contract, the schedule of delegated authority was to have been issued to the firm since September. The schedule of delegated authority is the instrument that gives Manitoba full authority for running TCN.  With the signing of the contract in July, August was to be a transition period, while the schedule of delegated authority was to have been issued in September heralding full take-over.

Meanwhile, there is growing disquiet over the sharing of roles in the Ministry of Power, especially as the privatisation process gradually nears its end.

By the nature of roles at the Ministry of Power, the main minister supervises the generation, distribution companies, and the TCN while the minister of state is in charge of the Rural Electrification Agency (REA).

With the privatisation process, the most powerful body in the electricity industry would be the regulatory body, the Nigerian Electricity Regulatory Commission (NERC).

A NERC document stated: “The role of NERC with respect to the reform and development of the Nigerian electricity services industry continues to be of paramount importance as all developments in the sector are subject to NERC regulatory authority as the only agency statutorily empowered to issue licences and to monitor activities in the sector.”

With the NERC determined to exercise its mandate in full, the relevance of the Ministry of Power, and the continued existence of a large management structure for the ministry is now in doubt, according to a concerned stakeholder.

Besides, a source told The Guardian of how a certain memo before the Presidency seeking to clearly define the role of each of the ministers, especially now that the core functions of the ministry are gradually being eroded with the privatisation process, is brewing discomfort at the Power Ministry.

As it is, apart from routine supervisory and policy functions, the Ministry of Power would after the privatisation just be saddled with the administration of the REA and the completion of ongoing hydro-power plants and the execution of others.

This, in itself, according to what The Guardian was told, is the source of worry over role delineation between the two ministers at the helm of affairs.

REA was established under the Electricity Power Sector Reform (EPSR) Act to promote rural electrification programmes through the management of the Rural Electrification Fund and the implementation of the Rural Electrification Strategy and Plan. Inconsistency in government policy and poor funding have plagued the REA over the years, putting the agency in some kind of limbo and calling into question its continued existence.

Government has, however, spoken of plans to reposition the agency to lead the renewable energy drive. But no clear-cut strategy or plan has been announced on how this would be achieved, raising fresh concerns.

Reacting to an inquiry by The Guardian, Assistant Director at the Power Ministry, Ibrahim Haruna, ruled out any tension over the roles of the two ministers.

He said: “I am not aware of any tension over the delineation of roles between the two ministers. Their roles are well spelt out. The main minister is in charge of the TCN, the thermal plants, and the distribution companies. The minister of state is in charge of the REA and renewables, including the hydro-power plants. There is no conflict at all.”

He was, however, silent on what roles both ministers would continue to play after the privatisation process has been completed.

The Federal Ministry of Power is the policy-making arm of the Federal Government with the responsibility for the provision of power in the country.

Source: Guardian