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The House of Representatives will commence probe into the concession of five ports to INTELs by the Bureau of Public Enterprises (BPE) following a deluge of petitions, the Deputy Chairman of the House of Representatives Committee on Privatisation and Commercialisation, Mr Abasi Braimoh, has said.
Braimoh told newsmen at the weekend that the committee would ascertain the alleged selective privatisation process which led to the emergence of INTELS as the sole concessionaire of five ports namely, Onne FLT B, Onne FOT A, Warri Old terminal A, Warri new terminal B and Calabar new terminal A. He said the committee will visit Onne, Warri, Calabar and Lagos ports to find out if due process was followed in the processes leading to the signing of a 50 year exclusivity agreement. He said shortly after former President Olusegun Obasanjo gave the ports away at different sums under the privatization policy of his administration, the public began churning out petitions to the committee. Braimoh said the committee is planning a public hearing at the end of its tour to the ports, adding that the BPE exclusively declared that no single bidder would be awarded more than one concession and that no one would be allowed to operate more than one concession. The Nigeria Ports Authority (NPA) and INTELS entered into a 20%:80% profit and cost sharing joint venture which granted INTELS the exclusive right to utilise NPA ports and facilities for handling oil and gas cargo for an initial period of 21 years, optionally extendable for another 15 years. The agreement gives INTELS monopoly over the business of oil and gas transportation logistics and the right of first refusal on land to be offered for occupancy by NPA. It also involves the express agreement for the NPA not to enter into a relationship that could conflict with INTELS JV. But the lawmakers are worried that the agreements are not exactly in the best interest of the country by virtue of the nature of operations and remittances of INTELS, since the payments for its services are not usually made to its Nigerian accounts. Braimah said, "It is doubtful whether a 50 year exclusivity agreement in favour of a single logistics company is fit when the substance of our oil and gas industry would have been severely depleted, or perhaps exhausted, within that same period". The House committee explained that the concessioning is also an aberration of the privatisation goals of increasing efficiency of port operations through the promotion of competition and also against national security interests. Braimah also explained that the" handling of the concessioning exercise suggests several afterthoughts and indiscretion in the management of the exercise, particularly by NPA and BPE. The exercise was skewed in favour of INTELS who was not known to have expressed interest along with others in January 2004" Braimah described the agreements as being "similar in nature to the one Nigeria had with Global Infrastructure Holdings Limited (GIHL) over Ajaokuta: It has everything for the operators of INTEL and nothing for itself. We might have to lift the veil of incorporation to ascertain the vested interests which the long lease agreements seek to satisfy". INTELS have a long standing leasehold relationship with the NPA which gives it virtual monopoly over the exclusive use of these dedicated facilities, thus controlling not less than 95% of the oil logistics business in Nigeria. BPE had in January 2004, invited interested companies to submit bids for various sea port terminals of the NPA. But it was doubtful if INTELS was among the companies which expressed interest in the concessioning as required by BPE’s publication. But by January 2005, BPE had jettisoned competitive concessioning and opted for a selective process which the bureau claimed to have adopted in view of the presidential directive which required it to resolve the issues of subsisting lease agreements and operational challenges being raised by all the stakeholders including INTELS.
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