Re: BPE Did Not Grant Interstate An Extension

RIGHT OF REPLY

Obi Anuforo
The piece entitled “BPE DID NOT GRANT INTERSTATE AN EXTENSION”, by one Frank NduNdibe, published on the back page of THISDAY newspaper of 11th September, 2013, was too disdainful and misleading requiring a response to prevent the innocent-reading public from being converted by the warped logic of the writer. This is even more so when palpable age-old venom of the writer is brought to bear on what should have been a robust discourse, given the currency of the subject matter, and also against the background of the avalanche of facts and figures that the writer would have benefited from. I therefore proceed as follows.

First, it is saddening to see how the writer detoured from business to persons, picking on Sir Emeka Offor with relish and dishonestly trying to tie his present with a past. It is fine to say that Interstate is principally promoted by multi-billionaire businessman, but reductionist to limit the firms’ transactions to him alone. If the writer has not been following the process, it is trite to educate him on the composition of the consortium.

Interstate is made up of the highly successful Chrome Group, Power House International and Metropolitan Electricity Authority (MEA) of Thailand. These companies are high profile in all ramifications and are managed by world class experts, with cosmopolitan flavours. MEA for instance has over 50 years experience in the management of electricity distribution and is responsible for the distribution and sales of electricity to users in Bangkok and metropolitan vicinities, including Nonthaburi and Samutprakarn provinces. MEA’s distribution area covers 3,195 square kilometres divided into 14 districts with a population of about eight million and energy sales of 44,714 GWH of electricity. Chrome and Power House International are no less superb in multifaceted endeavours, enabling them to grow over time as multi-billion dollar investments. Their synergy provided a good ground for their emergence as the preferred bidder for the Enugu Electricity Distribution Plc, over and above competitors with obvious managerial and capital deficiency, despite esoteric pretensions.

While the writer is not satisfied with the credentials of Interstate, and obviously lacking facts to fault them, he went for an easier target: personality. In doing this, a libellous claim was made on one “whooping $98million” Turn Around Maintenance (TAM) contract, further raising questions on execution. This is clearly a case of leaving the ball to kick the leg. It is unfortunate that NduNdibe did not raise these issues many years after the so-called contract was awarded and executed, but now suddenly wakes up to it, because kicking the leg, instead of the ball is easier for the player that lacks deft, style and panache. I would rather not be drawn back to that history, at least as an example of elevating discourse to the present for proper projections into the future.

The writer might need to know that in the bid for the Enugu Electricity Distribution Plc, Interstate posted the highest ATC&C loss on the opening day of the bids and was therefore a preferred bidder in line with the Request for Proposal (RFP). Prior to the declaration of Interstate as a preferred bidder, it was discovered that there were typographical errors in its submissions. The consortium was invited to correct them, which they did in what is adjudged as acceptable in procurement, and conforms to international best procurement practice. Even arithmetic errors can be corrected by an evaluating entity in the business of procurement. And not least so is typographical error. The BPE did not even do this on the firms’ behalf, but invited it to do it themselves, in the interest of transparency, after which Interstate was announced as the preferred bidder, before the consortium paid the required 25% of the reserve price of $126million.

Like every other preferred bidder, Interstate then went about arranging the balance of 75%, eventually concluding financing arrangements with a consortium of some local banks, and the African Export Import Bank. Pursuant to its deference to due process as spelled out in the Shares Purchase Agreement (SPA), Interstate promptly wrote a letter to the BPE, August 2nd notifying them of the Afreximbank facility and the need for the BPE to validate the financial arrangement. The validation would usually be needed for the bank to permit a drawdown on the facility. Another letter followed August 19th, 2013, requesting same from the BPE, while yet another one was written August 21st, 2013, when words from BPE did not come on the validation request. The writer might also need to know that the SPA allows the vendor and Interstate 20 working days on both sides, in case either falter in obligations. On the strength of Interstate letter, the BPE validated the financial arrangement in an eventual response from the agency on August 22nd, by which time Interstate had substantially progressed in the payment of its balance for the Disco. 

There is no valid evidence to the contrary.
Also trusting in the abilities of Dr. Okey Ikechukwu, it would be out of place to speak for him. However, it brings us back to the earlier point about preferring to talk about persons and not the issues around them. Why not pick on his points, rather than his person? Okey is outstanding as an intellectual and opinion moulder, who should be free like NduNdibe to canvass his views. Between NduNdibe’s and Okey’s articles, we can see which is more rigorous, more insightful, and less acrimonious. Importantly, Interstate has paid for the Enugu Disco and fears about performance are merely streaming from the psychologies of the faithless. The track record of the consortium is towering and they would deliver once more. Let daggers be sheathed and let the South-east be lit in peace. I rest my case.