VANGUARD
Inconsistent government policies, high annual turnover and cash flow requirements are currently threatening execution of the $155 million Phase 2 of Nigeria’s National Mass Metering Programme, NMMP.
The project is a World Bank-funded 1,250,000 metering scheme targeted at procuring and distributing smart electricity meters to 11 electricity distribution companies, DisCos in the country.
Former President Muhammadu Buhari’s administration had intentionally executed the nation’s metering programme to positively promote indigenous production, deepen local capacity, conserve foreign exchange, and create additional one million direct jobs and three million indirect employment opportunities through the granting of import duty waivers and other incentives, targeted at enhancing their operations.
But the current Phase 2 of the NMMP approved by the Federal Executive Council, FEC, for the supply and installation of 1,250,000 Fully Built Units, FBUs, managed by the Project Implementation Unit, PMU, of the Transmission Company of Nigeria, TCN, and supervised by the Bureau of Public Enterprises, BPE, is structured to favour foreign companies more than the 35 local manufacturers of the product in Nigeria.
Bid requires high turnover, cash flow, others in dollars
The bid guidelines sighted by Vanguard, listed high annual turnover, cash flow, and security bid in dollars as conditions to be met by bidders.
For a bidder to prove its financial capability, the bid stated: “Bidder shall submit last five years audited financial statements, which shall include balance sheets, profit and loss statements, cash flow statements, and auditor’s reports and must demonstrate the current soundness of the bidder’s financial position and indicate its prospective long term profitability.
“Cash flow of Lot 1: $4,465,000; Lot 2: $5,105,000; Lot 3 $5,285,000; Lot 4: $5,885,000; and Lot 5: $4,950,000.
“In case a bidder bids for more than one Lot, then the cash flow requirement shall be added. Bidder must meet above financial capabilities as a single bidder or in case of Joint Venture (existing or intended) each member must meet 30 per cent of the requirement and at least one member must meet 70 per cent of the requirement.”
In terms of turnover, it stated: “Bidder shall have minimum average annual sales revenue (turnover) over the last three years of not less than Lot1: $26,790,000; Lot 2: $30,640,000; Lot 3: $31,707,000; Lot 4: $35,307,000; and Lot 5: $29,695,000.
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