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Viewing cable 08LAGOS64, DELTA STATE, DESOPADEC: MAJOR & MINOR

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Reference ID Created Released Classification Origin
08LAGOS64 2008-02-15 15:27 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Lagos
VZCZCXRO9673
RR RUEHMA RUEHPA
DE RUEHOS #0064/01 0461527
ZNR UUUUU ZZH
R 151527Z FEB 08
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC 9760
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 9490
RUEHNY/AMEMBASSY OSLO 0180
RUFOADA/JAC MOLESWORTH AFB UK
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
UNCLAS SECTION 01 OF 03 LAGOS 000064 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED - HANDLE ACCORDINGLY 
SIPDIS 
 
STATE FOR AF/W, INR/AA, DS/IP/AF, DS/ICI/PII, DS/DSS/OSAC 
OSLO FOR HELENA SCHRADER 
DOE FOR GPERSON, CAROLYN GAY 
TREASURY FOR ASEVERENS, SRENENDER, DFIELDS 
COMMERCE FOR KBURRESS 
STATE PASS USTR FOR ASST USTR FLISER 
STATE PASS TRANSPORTATION FOR MARAD 
STATE PASS OPIC FOR ZHAN AND MSTUCKART 
STATE PASS TDA FOR NCABOT 
STATE PASS EXIM FOR JRICHTER 
STATE PASS USAID FOR GWEYNAND AND SLAWAETZ 
 
E.O. 12958: N/A 
TAGS: PGOV PREL SENV NI
SUBJECT: DELTA STATE, DESOPADEC: MAJOR & MINOR 
INFRASTRUCTURE PLANS AWAIT IMPLEMENTATION 
 
REF: 07 LAGOS 793 
 
SENSITIVE BUT UNCLASSIFIED--HANDLE ACCORDINGLY 
 
1.  (SBU) Summary: Delta State's Integrated Development 
Project and the Delta State Oil Producing Areas Development 
Commission (DESOPADEC) made a joint presentation to the 
Mission's FCS officer.  DESOPADEC plans to order modular 
refineries and gas gathering plants to jump start the local 
economy and has purchased an air to water purification unit 
to provide potable water to riverine inhabitants.  The Delta 
State Integrated Development Project purchased 20 General 
Electric turbines for electrical power generation and 
outlined an elaborate development program. End Summary. 
 
---------------------------------- 
DESOPADEC to Buy Modular Refinery, 
Gas Gathering System 
---------------------------------- 
 
2.  (SBU) Chief Wellington Okirika, Chairman of the Delta 
State Oil Producing Areas Development Commission (DESOPADEC), 
told Commercial Attache and Poloffs on January 28 that he had 
identified two U.S. companies from which to purchase modular 
refineries and gas gathering plants (Reftel); they are 
conducting due diligence on these companies.  Okirika said he 
chose the companies because they sent representatives to 
Warri.  Delta State has to set up its own refinery because 
decision makers in Abuja see the Delta as too risky and have 
issued refinery licenses to companies in other regions. 
(Note: None of the licenses issued have resulted in the 
development of refineries. End Note.) 
 
3.  (SBU) Godwin Akpobire, Head of the Delta State Integrated 
Development Project, estimated Delta has 896,000 barrels per 
day (bpd) of oil reserves; most of this is shut in due to 
community protests in the state.  Okirika said Delta's gas 
gathering plants would be fueled from flared gas, noting that 
Nigeria is second only to Russia in gas flaring, and stranded 
gas is currently not exploited by the oil companies. 
Akpobire said UK companies have come to Delta to consider how 
best to harness gas reserves. 
 
--------------------------------------------- ---- 
DESOPADEC: February Installation for Water System 
--------------------------------------------- ---- 
 
4.  (U) Okirika said DESOPADEC has purchased one reverse 
osmosis air to water purification unit (used in Kuwait, 
Dubai, and Burkina Faso) and hopes to install it near 
Okerenkoko, Delta State in early February.  Ground water 
reportedly has a high salt content and requires more 
processing than water removed from humid air; Okirika said 
each purification unit produces approximately 1,600 
gallons/day.  DESOPADEC plans to offer free 24-hour medical 
care next to each purification unit; Okirika was confident 
these would operate unimpeded because the people would see 
the linkage between safe water, health care, peace and 
security. 
 
5.  (U) DESOPADEC expects to release naira 1.5 billion 
(approximately USD 12.7 million) to microfinance cooperatives 
in mid-February, Okirika said.  DESOPADEC anticipates that 
its Waterways Monitoring Committee will begin to reduce the 
activities of armed youth.  The militants have agreed to 
allow contractors to work in riverine areas, Okirika said, 
and as a result, Delta State has awarded 300 contracts for 
2-3 bedroom houses, roads, schools, jetties, and water 
projects. 
 
LAGOS 00000064  002 OF 003 
 
 
 
------------------------------------- 
State Integrated Development Project: 
Big Plans, Little Progress 
------------------------------------- 
 
6.  (U) Akpobire outlined for the Commercial Attache his 
extensive plans for a 1,058 km road network (interstate 
highway, intercity network, and intra-city network), a 540 km 
railway, and a deep sea port near Escravos.  He said the 
state plans to construct its own market across the river from 
Anambra's Onitsha market.  This will help extend commercial 
activities into Delta State.  Further, Akpobire predicted a 
contract for an airport in Asaba, Delta's capitol city, would 
be awarded by early January.  The airport would be 
international and its management privatized, he said. 
 
7.  (U) Akpobire said adequate power is badly needed; 
although the state provides 450 megawatts a day to the 
national grid, it receives virtually none in return.  To 
ameliorate this, the state government purchased 20 General 
Electric turbines to be used for production, generation and 
transmission of electric power.  Akpobire said he would like 
to provide each region of Delta State what it needs to help 
industries located there to survive. 
 
8.  (U) U.S. and Dutch companies are reportedly dredging 
canals in Delta to improve community access and travel time 
to larger cities.  One overland canal was recently opened by 
the state in cooperation with the Niger Delta Development 
Commission (NDDC), Akpobire said.  Twelve dredges were 
purchased from the Netherlands and another 18 will have to be 
purchased, Akpobire estimated.  It will take nine years to 
complete the canal system planned for the state.  Opening 
overland canals in the state's riverine areas will take 
approximately nine years to plan and complete.  Akpobire 
reasoned the canals would make the region more secure, 
provide employment opportunities, and allow DESOPADEC to 
fulfill its mandate.  Some youth have already been hired to 
take soil and water samples where the state plans to dredge, 
Akpobire told Poloffs. 
 
9.  (SBU) Akpobire proudly told Poloffs militants have left 
the camps to take part in training at a newly opened dredging 
training center where they are being taught professional 
skills.  He predicts 4,500 youth will be weaned from the 
militant life and into productive employment.  He noted the 
importance of offering alternatives to militants and said he 
might consider foreign training.  He said the militants 
suffered a "failure of hope" and need tailored training to 
rekindle that hope.  Akpobire plans to publicize success 
stories in an effort to show youth how they can improve their 
lives by abandoning militancy. 
 
--------------------------------------- 
State, DESOPADEC Seek Reliable Partners 
--------------------------------------- 
 
10.  (U) Akpobire is seeking foreign partners to help build 
that state's financial and technical capacity.  The Governor 
has asked DESOPADEC Chairman Okirika to conduct due process 
and due diligence on interested companies to verify their 
legitimacy and assess project sustainability and commercial 
viability.  Okirika wants to work with U.S. companies because 
they are held accountable through U.S. courts.  Akpobire said 
American citizens (Amcits) should not be afraid to visit 
Delta State as the area is far safer than it once was; Amcits 
are currently working as doctors in the creeks, as part of a 
DESOPADEC program that has helped 3,000 persons at eight 
 
LAGOS 00000064  003 OF 003 
 
 
centers.  Okirika is seeking help in accessing drugs and 
equipment for these clinics. 
 
11.  (SBU) Comment: We have heard numerous development 
schemes and business opportunities in the Niger Delta; some 
sound feasible, some are larger than life but most fail to 
get off the ground.  Neither Delta State's nor DESOPADEC's 
plans for major infrastructure projects have yet reached the 
implementation stage.  Interestingly, the project these two 
officials described as most advanced was the dredging project 
with the NDDC.  End Comment. 
 
12.  (U) This cable was cleared by Embassy Abuja. 
BLAIR