VZCZCXRO2123
RR RUEHMA RUEHPA
DE RUEHOS #0793/01 3650832
ZNR UUUUU ZZH
R 310832Z DEC 07
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC 9663
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 9407
RUEHNY/AMEMBASSY OSLO 0162
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 02 LAGOS 000793 
 
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: NIGER DELTA: DESOPADEC FOR OIL COMMUNITY 
DEVELOPMENT; WILL THE MONEY GET THERE? 
 
REF: LAGOS 07 502 
 
¶1.  (SBU) Summary: The Delta State Oil Producing Areas 
Development Commission (DESOPADEC) has begun to develop 
riverine areas by offering health care to 180,000 individuals 
and by opening bids for more than 100 development projects. 
A decrease in oil production meant DESOPADEC received USD 8.5 
million in November (it receives 50 percent of Delta's 13 
percent derivation); a Commissioner told Poloff DESOPADEC 
would "do what it can" but that its allocation should be much 
higher. End Summary. 
 
-------------------------------- 
A Commission for the Communities 
-------------------------------- 
 
¶2.  (SBU) Community agitation led to the creation of the 
Delta State Oil Producing Areas Development Commission 
(DESOPADEC) under former Governor James Ibori and President 
Obasanjo.  Ibori appointed DESOPADEC Chairman Chief Okirika 
and commissioners from oil producing communities; Uduaghan 
appointed new commissioners following his May 2007 
inauguration because communities had not approved of their 
representatives.  According to Okirika, commissioners 
recorded short and long term needs of their communities, 
which were provided by traditional rulers, leaders, women, 
and youth.  Okirika told Poloffs on December 13 that 
DESOPADEC would meet community needs based on available 
funding. 
 
¶3.  (SBU) The Commissioner of Health Education and Social 
Services for DESOPADEC told Poloffs that unlike the Niger 
Delta Development Commission (NDDC), which has a broad 
regional mandate, DESOPADEC would succeed because it has a 
more narrow focus. 
 
--------------------------------------------- ----- 
DESOPADEC: 8 Commissions for Community Development 
--------------------------------------------- ----- 
 
¶4.  (SBU) DESOPADEC is divided into eight sections, each 
overseen by a commissioner politically appointed by the 
Governor from an oil producing community.  DESOPADEC has 
reportedly advertised contracts for over 100 projects in 
local newspapers, according to Chairman Okirika.  The 
Chairman hoped these projects would be awarded in early 2008. 
 Below is an outline of DESOPADEC's sections and the status 
of its projects: 
 
--Industrialization of Degraded Environment (this area is 
heavily reliant on technical partners and investors): 
 
a. Ten modular refineries/gas gathering plants would be given 
to communities, who would reportedly provide them with fuel. 
Thirty percent of the plants' profit would go to DESOPADEC, 
35 percent to investors, and 5 percent to the producing 
community.  (Comment: Detail as to how, exactly, oil or gas 
would be obtained by communities and sent to these modular 
refineries was sketchy. End Comment.) 
 
b. DESOPADEC is interested in procuring reverse osmosis 
equipment which could create up to 1,600 gallons of potable 
water a day from humid air. 
 
--Health, Education and Social Services: DESOPADEC has funded 
primary health care clinics and will pay for needed hospital 
operations; 180,000 individuals have reportedly received 
medical care. 
 
 
LAGOS 00000793  002 OF 002 
 
 
--Infrastructure and Waterways: DESOPADEC would like to 
introduce water taxis to riverine areas; this would require 
jetty building and waterway dredging, Chairman Okirika said. 
 
--Agriculture and Aquaculture: There are proposed centers for 
rice, cassava, fishing, poultry, sugar cane, plantains, and a 
pig farm.  Six rice centers have been surveyed and are ready 
for site-clearing. 
 
--Micro Credit Facilities: DESOPADEC would like naira 1.4 
billion (USD 11.9 million) to be available for micro credit 
through local banking institutions.  Consultants would teach 
recipients how to spend their funds and respect their 
obligations to the bank. 
 
--Finance and Supply 
--Project Inspection 
--Legal Department 
 
-------------------------------------- 
Finances: Don't Ask Too Many Questions 
-------------------------------------- 
 
¶5.  (SBU) On December 13, one commissioner told Poloffs 
DESOPADEC receives 50 percent of the state's 13 percent oil 
derivation allocation and is therefore dependent upon oil 
production.  DESOPADEC was given naira 35 billion (USD 300 
million) when it was inaugurated and its November allocation 
was over naira 1 billion (USD 8.5 million). However, our 
contact said he could not give an exact figure and told 
Poloffs he had learned not to "ask so many questions" about 
revenue. 
 
¶6.  (SBU) DESOPADEC "does what it can" but funding levels 
could be much higher, the commissioner said.  Public 
enlightenment is needed so that project demand could be 
tailored toward available resources, he opined.  However, 
proper use of DESOPADEC's allocation depends upon the 
integrity of all involved.  There are currently no internal 
controls to monitor areas for corruption, such as working 
hours and illegal medical sales, he lamented. 
 
---------------------------------- 
Share Facilities to Temper Rivalry 
---------------------------------- 
 
¶7.  (SBU) One commissioner said DESOPADEC-built structures 
such as clinics, could be located near oil producing 
communities, but also available to non oil producing areas 
for all people to benefit.  This, he contended, would 
mitigate community rivalry and unrest. 
 
------- 
Comment 
------- 
 
¶8.  (SBU) Chairman Okirika is well known in Delta State and 
has been praised by other contacts (including youths) as 
someone interested in community development.  Okirika's 
strong relations with Former Governor Ibori and current 
Governor Uduaghan appear to be paying off since DESOPADEC 
received its allocations, albeit less than hoped for. 
However, it remains to be seen how transparent and 
accountable its spending will be.  End Comment. 
 
¶9.  (U) This cable was cleared by Embassy Abuja. 
BLAIR