Why water reform programmes are not succeeding in Nigeria- Dennis Mwanza

This is quite revealing and lack of good governance impede implementation. There are good policies in the Water and Sanitation sector but those in authority are not bothed.

This is really a sad narrative about Nigeria. It’s quite a big challenge but surmountable.
The Civil Society would need to sit up to their responsibility and then there would be some good hope.
However, the Civil Society is constraint by exposure and finance.
So we have a ready actor but handicap for effeciency.

Permit me to correct the erroneous impression of Mr. Dennis Mwanza on why Ortech’s management contract with Cross River State Water Board limited was terminated and ended in court. Mr. Mwanza has inferred why answering a question on the readiness of African water utilities to embrace Privatisation that the contract was terminated because the contract was not transparently engaged and because Ortech’s performances were not monitored.
This is far from the truth. To set the records straight, the ORTECH management contract with Cross river state was transparently and mutually established. The background is that the African Development Bank (AfDB) in early 1990s provided Cross River State (CRS) with a loan facility of USD$ 116 million to improve public water supply in the State. In 1998, as part of a reform process, the State Government incorporated the Water Board as a Limited Liability Company with 100% ownership by the Government.

In mid-2001 before the new facilities were due for completion, the Cross River State Government recognized the need for an expert management of the new facility, and a new approach to water supply services. A number of international utility operators including Severn Trent (UK), Vivendi (France), and SUEZ-LYSA (France), were invited to express interest in the running of the utility. However, none was willing to commit resources for a relatively long-term operation in Cross River.

ORTECH has had a long association with Cross River State and in 2002-2003 the Governor invited us to come up with solutions to make the best use of the water supply system and at the same time ensure that the system was maintained to provide a 24-7 service. At that time there was no World Bank or other funding available to the State and also, I might add, the Infrastructure Concession Regulatory Commission and many of the other regulatory institutions did not exist. At this time, Cross River State Water Board was the least in terms of performance, amongst the 36 State Water agencies in Nigeria.

In 2003, ORTECH Nigeria Limited introduced the concept of the Public-Private Partnership (PPP) to the Government of Cross River State. The concept was reviewed and accepted, and in December 2003, following detailed discussions and negotiations, the Cross River State Government signed a tripartite PPP management contract (MC) with ORTECH and the CRS Water Board, with the Cross River State Government as Guarantor. The PPP contract became effective in 2004, after the new facility was Commissioned and ready for use.

Ortech was able to surmount the governance problems Mr. Mwanza mentioned, bedeviling Nigerian Water utilities and turned Cross River State Water Utility into a model and a performing utility.

All consumers connected to the Calabar system receive clean water that is safe to drink and water was available 24/7. This are verifiable information. I challenge any one of you to say that you have achieved this.
The Ortech Calabar project attracted an investment of 150million US dollars from the World Bank to develop other water infrastructures in Cross River State. This is in a view to replicate in other towns of the State, what Ortech was doing in Calabar, Akampa and Ugep. It might interest you to note that while Cross River State with a population of 3.5 million attracted 150 million US dollars, Lagos State with 18 million population, attracted only 100 million dollars.
Again the success of the Ortech project made the AFD invest 50 million euros in Cross River State also.
Cross River State water board became the number one water utility in Nigeria in terms of performance and many utilities in Nigeria and across Africa were visiting to learn about Ortech and its success story with Calabar. The narrative that ORTECH project in Calabar was a WINDOW DRESSING was a mere fallacy. The mistake is that many are castigating the project merely because it was not procured through World Bank international bidding procedure. The project achieved its purpose, therefore instead of pushing the project aside, stakeholders should have helped build on what was already achieved.

On the assertion that there were no controls, we will state here, that the entire project was not run by ORTECH alone, but by a PPP Committee. The PPP Committee comprised of:

• Both the chairman of the board of CRSWB and managing director of CRSWB
• A representative from the State Government
• The executive director finance, of CRSWB
• A representative of the federal Government. The aim of the presence of this officer was decided by the FGN to monitor all externally financed projects.
• The PPP committee was chaired by a Director of the CRSWB Ltd
• ORTECH senior staff where very much part of this committee as well as the Cross River Water Board General Manager Operation Division who was an ORTECH Staff.

All issues pertaining to the operation of the project were discussed frequently and agreed. Minutes where prepared for each of these meetings. These minutes were signed by all parties prior to the next meeting.
Very precise figures, stating expenditures were presented by ORTECH during these meetings and were discussed in detail. Various decisions were taken and recorded to be eventually implemented.
It can be said that it was this committee that was running the project and not ORTECH. ORTECH was only implementing what was decided during these meetings.
From time-to-time meetings were held with His Excellency the Governor of Cross River State to discuss important issues such as Water Rates and Project Expansion Development.

The project books were audited both by internal and external auditors and the project maintained a joint account with the management of CRSWB.

The truth is that for 13 years the inhabitants of Calabar, Ugep and Akamkpa had interrupted 24/7 water supply thought the period Ortech managed the operations of the board.

If the project has been a total misconception and a money drain on the state, how is it that water dried in the taps of Calabar just months after Ortech left?

This is a question for many who have intentionally closed their minds and refused to award ORTECH their deserved award for proving that water can flow from the taps in Nigeria and Africa. What it takes is only determination and purposeful management. Staff have to work, and management have to lead, just like ORTECH proved. The Calabar project was terminated in July 2015, since then, has governance and regulatory policies provided water in the taps and homes of Calabar inhabitants despite the millions of dollars invested? No, because the taps are dry in Calabar, Akamkpa, and Ugep.

Nzeakor Ikechukwu Silas
Ortech Nigeria Limited.