Privatisation: World Bank Endorses BPE, Others
From Paul Ibe in Abuja
The World Bank has endorsed the Bureau of Public Enterprises's (BPE) management of the privatisation programme and its implementation of the Privatisation Support Project (PSP) of the bank.
Also giving the thumbs-up by the bank are the Nigerian Communications Commission (NCC) and Lagos State Water Corporation (LSWC), all beneficiaries of the bank's grant in support of privatisation in the country.
The World Bank had at the end of its Mid-Term Review of the BPE in April this year urged the agency to shape up in three key areas namely transaction, procurement of funds and judiciary (application of funds) or face the dim prospect of having its status downgraded to "low."
But documents sourced from the World Bank shows that the BPE did not only meet the target of the Brettonwood institution in all areas, but surpassed it in some others.
THISDAY gathered that a World Bank Mission, which was in the country July 23-31 to assess the performance of the PSP noted that "Over the last few months, BPE, NCC and LSWC have achieved substantial progress in carrying out their work programmes, strengthening project judiciary management, and improving compliance with social and environmental safeguards in key sector reforms and privatisation as agreed upon during the MTR."
The Mission which aim was to essentially review progress made in the implementation of the decisions reached during the MTR and Country Portfolio Performance Review (CPPR) of April and June 2004 respectively also noted with satisfaction that the BPE and the other agencies have committed to key actions aimed at sustaining this momentum.
Accordingly, the Mission stated: "Notwithstanding the delays in passing the Power Sector Reform Bill, the mission recommended to upgrade the project rating to satisfactory on the basis of its sustained performance, results achieved on the ground, and the agreed action plans of the project executing agencies."
The World Bank Mission reported that "over the last few months the BPE has achieved strong progress towards meeting the key criteria for High Case Scenario."
It was gathered that the Mission noted with particular satisfaction that the BPE exceeded the initial target of seven transactions agreed upon during the MTR in April by bringing 10 enterprises to the point of sale within the short period.
The enterprises included National Trucks Manufacturing Company (NTM), West African Refining Company Limited (WARCO), Aluminium Smelter Company of Nigeria (ALSCON), Delta Steel Company (DSC), and Daily Times of Nigeria (DTN).
Others are Ihechiowa Oil Palm Company (IOPC), Ore-Irele Oil Palm Company (OOPC), Central Hotel Kano (CHK), Electricity Meter Company of Nigeria (EMCON), and Peugeot Automobile Nigeria Limited (PAN).
The mission added that "a compliance review suggested that these transactions were carried out with adequate due diligence."
Following this development, BPE will be able to source the much-needed funds from the World Bank and the International Development Agency (IDA) to drive the privatisation process as it enters its most crucial stage.
The World Bank in 2001 made available a grant of $114 million to support the privatisation programme of the Federal Government. The NCC, telecommunications regulatory agency, and the LSWC among other organisations have been benefiting from the grant.
However, in April this year, the World Bank in its first review since making the funds available in 2001 raised a number of objections to issues regarding transaction, procurement, and judiciary.
The bank and the BPE agreed that seven transactions should be brought to the point of sale before its July review and that the agency should review all transactions and prepare adequate time line for their completion.
It recommended improvement in the quality of staff manning its fund and separation of the account of funds from the Federal Government and those from the World Bank.
Also, the bank had urged that issues concerning improper processes through which funds were used and improper auditing of the privatisation proceeds account be addressed. The April MTR had also indicated that BPE was not procuring the funds, a situation, which was attributed to lack of undertaking major transactions in the last two years.
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