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Vanguard Online Edition : FG breaks Cotecna's cargo inspection monopoly

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FG breaks Cotecna's cargo inspection monopoly

By Godfrey Bivbere
Monday, October 18, 2004

LAGOS—THE Federal Government has bowed to pressure from the public as it has concluded plans to re-award the contract for the scanning of goods coming into the country through at least five companies as against the sole agency granted COTECNA in the previous arrangement. Also, the country has been divided into zones for intending companies to manage. The Presidential Committee set up by the Federal Government to revisit the award of the scanners at the nation’s entry points preparatory to the implementation of the destination inspection scheme in the country, last Monday concluded a fresh tender for the supply of equipment.

The committee which is headed by the Minister of Transport, Dr. Abiye Sekibo, Vanguard gathered, divided the various entry points in the country into three Lots for prospective investors to bid for.  Lot one is made up of Apapa and Tin-Can Ports, Kano and Abuja airports, and Jibia and Banki border posts. Lot two comprises Port Harcourt airport, Idiroko border, Onne and Port Harcourt Ports, while Lot three covers Seme border, Ikeja airport and Warri and Calabar ports.

Official sources said at the end of the open bidding, SGS offered 30 per cent of the value of all cargoes that are scanned with their equipment in Lot one, 34 per cent for Lot two and 45 per cent for Lot three.

In its bid, Control Union offered 30, 50 and 70 per cent for each of the three Lots respectively while COTECNA bidded 75, 90 and 1.35 per cent respectively for the same LotS. Other bidders were CONTEC Global and Jerrod Inspection that submitted their bids without any fee attached.

Global Scan, the source further noted, in its bid stated that users charge would be one per cent Fee On Board (FOB) for every cargo coming in or going out of the ports. The company, according to the source, also said local charges would be $90 for every 40 footer containers, $45 for 20 footer container while trucks and trailers would be charged $40, $35 and $25 for large, medium and small respectively. For Pallets, the company proposed $18, $10 and $5 depending on the size of the cargo.

The committee had created a level playing field for all the bidding companies in line with government's due process policy to ensure the country ultimately benefits at the end. To ensure the above, Vanguard learnt that the committee specified the number of scanners needed for each location, a specific manufacturer (HEIMANN of Germany) has been given and the different models specified.

The committee not only ensured that whichever company got the contract would bring in the best technology available, it also created the same investment ground for the bidding companies as well as safe guard against the dumping of substandard equipment in the country.

In a letter with reference number ECD/P/546/S.I/III/1006 and dated 24/09/04 sent by the committee to the various companies, it stated that the contract which is on the basis of Build, Own, Operate and Transfer (BOOT), would last for seven years during  which the owners are expected to have recouped their investment. At the end of the seven years, the scanners become property of the Federal Government.

The letter also instructed that as part of the requirement, winners are expected “to execute your portion of the contract with at least 25 per cent Nigerian participation.”

Other members of the committee are,Minister of the Federal Capital Territory (FCT), Mallam Nasiru El Rufai; Minister of State for Finance, Mrs. Esther Usman; a representative of the Central Bank of Nigeria (CBN); Director General of the Economic and Financial Crimes Commission (EFCC), Nuhu Ribadu; Director-General of Due Process in the Presidency, Mrs. Oby Ezekwesili, and the Comptroller General of Customs, Mr Jacob Gyang Buba.

 

 

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