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C O N F I D E N T I A L SECTION 01 OF 03 LAGOS 000138 
 
SIPDIS 
 
STATE PASS NSC FOR BOBBY PITTMAN 
 
E.O. 12958: DECL: 06/25/2016 
TAGS: PGOV PREL PM EPET ECON KDEM NI
SUBJECT: NIGERIA: DELTA STATE DEVELOPMENT PROGRAM CLAIMS 
CREATION OF 6,000 JOBS 
 
REF: LAGOS 066 
 
Classified By: Consul General Donna M. Blair for Reasons 1.4 (B,D) 
 
¶1. (C) Summary: Gary Akpobire, Director of the Delta State 
Integrated Development Agency (DIDA) told Pol-Econ Chief on 
February 17 that Delta State's development plans are 
proceeding apace.  The state plans four new gas-fired power 
plants to drive industry, but Akpobire seemed unaware of 
problems resulting from gas shortages occasioned by the low 
domestic price paid for gas.  Delta State has signed 
investment agreements with Abu Dhabi and with the China 
Investment and Trade Commission (CITIC). Delta State is also 
in the process of recruiting 5,000 new teachers; the state's 
teachers have been paid on time for the last eight years, and 
work consistently without striking, the Majority Leader said. 
 Delta is improving health care to citizens by providing free 
maternity care and eye treatments, and upgrading clinics. 
Akpobire claimed that the Delta State Oil-Producing Areas 
Commission (DESOPADEC), which pioneered the concept of 
modular refineries for the State, is unable to manage the 
refineries once constructed, further evidence of a power 
struggle over control of the refineries.  To streamline 
dispute resolution, the State will establish an alternative 
dispute resolution system in the courts, and set up a system 
for handling community clashes over land.  Concerned about 
the impact of oil and gas spills on the health of the 
population, the State Assembly is looking into the issue. 
While Akpobire's plans to upgrade systems are commendable, 
most appear still to be on the drawing boards as the State 
looks for investors or other partners.  One industry with 
both a ready-made domestic market for its product and almost 
unlimited capacity to provide for its own power needs is the 
refining industry.  Chief Okirika originated the idea of 
building modular refineries in Delta State (Ref) but the 
State Government has tried mightily to take ownership of the 
concept.  Hopefully, the arm-wrestling will not strangle the 
development of this potentially important project. End 
Summary. 
 
¶2. (SBU) Gary Akpobire, Director of the Delta State 
Integrated Development Agency (DIDA), Paul Owumi, Assistant 
to Delta State Governor Emmanuel Uduaghan, Mrs. Irene Imilar, 
Majority Leader, Delta State House of Assembly; and Princess 
Pat Ajudua, Minority Leader, Delta State House of Assembly, 
met with Pol-Econ Chief on February 17 to describe 
development underway in Delta State. 
 
Development Plan Contingent on Power Generation 
--------------------------------------------- -- 
 
¶3. (SBU) Development of infrastructure projects in Delta 
State, pursuant to the Delta State Master Plan which Akpobire 
has shepherded over the past two years, is underway.  The 
state is clearing sites for four power plans; these will be 
gas powered, and constructed under partnership with the 
international oil companies (IOCs) (Note: Akpobire did not 
say whether the IOCs had agreed to the plan. End Note). Delta 
State, like Rivers, already has in place a gas 
infrastructure, which it plans to expand, that will bring gas 
to the plants.  Ten thousand mw plants are planned for Asaba 
and Warri, while smaller 2,500 mw plants are planned to drive 
industry and serve offgrid areas of the state.  Asked about 
the availability of gas at the current price, Akpobire 
shrugged off the question, saying "Delta State is the source 
of Nigeria's gas."  Investors had expressed interest in 
purchasing the power, Akpobire said, which will allow the 
state to establish a manufacturing base, and guarantee 
sufficient electricity to power water purification, 
telecommunications and internet technology, and waste 
management systems.  The Ports of Dubai and Singapore have 
both expressed interest in helping Delta develop its deep sea 
port.  The Warri airport will be expanded, and the State 
hopes to see it become a hub between Argentina, Brazil and 
Russia. 
 
Abu Dhabi Signs Investment Agreement 
------------------------------------ 
 
¶4. (SBU) The State has signed two investment agreements, one 
 
LAGOS 00000138  002 OF 003 
 
 
with Abu Dhabi, and the second, worth 1.4 billion naira, with 
the China Investment and Trade Corporation (CITIC).  Pan 
Ocean, an indigenous oil company, is planning to build a gas 
treatment plant that will "dry" the wet gas produced in the 
area.  Gazprom is also interested in the state's gas.  Bratts 
is preparing to construct a shopping mall, and the state is 
making plans to assure that there are 15,000 rentable rooms 
available.  The assets of Panalpina, an oil services firm 
that left Nigeria in the wake of a corruption scandal, has 
been sold to a consortium; the consortium will re-open the 
business near the port of Warri. 
 
State Recruits 5,000 Teachers 
----------------------------- 
 
¶5. (SBU) To improve education in the state, Delta is 
recruiting 5,000 new teachers.  The state has placed 
application forms in all the banks, so it will be easy for 
potential applicants to access them.  Over the past year, the 
state has recruited professionals to train in welding for 
pipeline repair, dredging, construction and software 
engineering.  The state's Ministry of Education has also been 
revamped.  The Ministry has been split in two, with one half 
devoted to higher education and the second to lower 
education.  The higher education focuses on the university 
and the polytechnic institutes to ensure that graduating 
youths reach a certain level of proficiency.  For lower 
levels of education, a uniform standard has been adopted so 
that the State can assure that the quality of education in 
the riverine communities is the same as in Asaba, the State 
capital.  Teachers are all getting training, and receiving 
standard textbooks from which to teach.  The State 
Commissioner of Education has been recruited from the UK, and 
a former University of Lagos professor has been recruited to 
oversee the State's higher education.  According to Majority 
Leader Imilar, teachers have been paid promptly at the end of 
each month for the past eight years, which has assured that 
Delta State teachers have not had to go out on strike. 
 
State Improves Health Care Delivery 
----------------------------------- 
 
¶6. (SBU) The state is providing free maternity care, and free 
eye care to citizens. The state has upgraded health centers, 
which are now all staffed by doctors. Delta State has the 
highest HIV prevalence in the country, so the Majority and 
Minority leaders have cooperated on a bill that will educate 
and sensitize the public to the problems of HIV-AIDS, and 
make treatment available at both the state and local levels 
of government.  The state is increasing the number of 
specialty hospitals in the state.  There will be a teaching 
hospital specializing in heart and respiratory medicine at 
Ogara.  A second specialty hospital will be built in Asaba, 
to supplement the services being provided by the existing 
Baptist hospital, located near the center of the state, and 
the old Warri hospital. 
 
State Taking DESOPADEC's Modular Refineries? 
-------------------------------------------- 
 
¶7.  (C)  Delta State Oil Producing Areas Development 
Committee (DESOPADEC) Chair Chief Wellington Okirika is 
currently in the United States to inspect a modular refinery 
that he wants to have installed, Akpobire said.  However, 
DESOPADEC does not have the ability to operate the refinery, 
Akpobire alleged.  As a result, the two women legislative 
leaders will travel to the United States to see the Ventech 
and other modular refineries. (Comment:  Both the Majority 
and Minority leaders are Itsekiri, as is Delta State Governor 
Uduaghan, while Chief Okirika is Ijaw.  There are indications 
that the Governor has been holding up DESOPADEC's progress on 
the refineries, an idea initiated by Chief Okirika.  That 
this Itsekiri delegation is traveling to the United States 
independently of Chief Okirika appears to be further evidence 
of a power struggle over control of the modular refineries. 
End Comment) 
 
Dispute Process Will Reduce Clashes Over Land 
--------------------------------------------- 
 
 
LAGOS 00000138  003 OF 003 
 
 
¶8. (SBU) The state has had four or five clashes between 
communities over land during Akpobire's tenure.  These 
clashes are essentially boundary and border disputes, which 
tend to be over extremely small plots of land, and to begin 
when the planting season begins in the spring.  From studying 
these disputes, Akpobire is convinced that if poverty is 
alleviated, communal clashes of this type will be fewer and 
fewer.  However, to handle those disputes that do arise, the 
State plans to commence a land dispute resolution process 
through which a land security officer will mediate disputes. 
This program will roll out during the second half of this 
year, Akpobire said.  To speed resolution of other civil 
disputes, the Majority Leader has sponsored a bill promoting 
Alternative Dispute Resolution (ADR) as an adjunct to the 
court system, she said. 
 
Study of Oil Spill Effect on Health Underway 
-------------------------------------------- 
 
¶9.  (SBU)  The State is concerned about the impact of oil and 
gas spills on the health of the communities, Akpobire said. 
The State Assembly's Chair of the Oil and Gas Committee has 
begun looking into this issue.  While the State has done 
studies on the impact of the spills on economic activity, 
such as reduction in fish stocks, the health aspects of 
spills have not yet been studied.  Akpobire said he had heard 
of cancers and eye problems, the latter the result of gas 
flaring. Once the data is collected, the State will use it in 
an effort to end flaring and clean up the land. 
 
¶10.  (C) Comment: While Akpobire's plans to upgrade systems 
are commendable, most appear still  to be on the drawing 
boards as the State looks for investors and other partners. 
One industry with both a ready-made domestic market for its 
product and almost unlimited capacity to provide for its own 
power needs is the refining industry.  Chief Okirika 
originated the idea of building modular refineries in Delta 
State (Ref) but the State Government has tried mightily to 
take ownership of the concept.  Hopefully, the arm-wrestling 
will not strangle the development of this potentially 
important project. 
 
BLAIR