US embassy cable - 02ABUJA3014

UNCLAS SECTION 01 OF 02 ABUJA 003014 
 
SIPDIS 
 
 
SENSITIVE 
 
 
E.O. 12958: N/A 
TAGS: PGOV, ECON, EFIN, ENRG, NI 
SUBJECT:  NIGERIA: DESPITE UNTAPPED DAM, GOMBE STATE 
MOVING SLOWLY FORWARD 
 
 
1. (SBU) SUMMARY: During an October 4-6 visit to 
Gombe State, Ambassador Jeter surveyed Gombe's 
power, water, education and health sectors with 
Gombe State officials, in the course of a second Ambassadorial 
foray to the Northeast.  With its agricultural 
potential and good hydroelectric promise, Nigeria's 
14-year old Dadinkowa Dam sadly remains unused 
because the GON never completed the project's final 
stages.  Gombe State is keen on finishing the GON- 
owned dam (Nigeria's second largest), but has not 
identified funding sources or investors.  While 
completing a much-needed small water supply system, 
the State's larger unfinished water project may soon 
stagnate because of lack of funding. Since assuming 
office in 1999, Gombe's Governor Hashidu has 
improved his state's water supply, rural 
electrification, and security. Hashidu is well 
positioned to win re-election in 2003, but will then 
have an uphill battle funding his more ambitious 
projects. END SUMMARY. 
 
 
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AGRICULTURE DEPENDENT 
---------------------- 
 
 
2. (SBU) Ambassador Jeter, accompanied by Econoff, 
Staff Assistant, and EDDI Coordinator, visited Gombe 
State (Northeast region) on October 4-6.  With over 
80% of the State's population agrarian, Gombe's 
economy is hamstrung by years of neglect of the 
agriculture sector under military and civilian rule. 
Situated in Nigeria's Savannah region, agriculture 
production and revenue suffer from unpredictable 
rainfalls and poor farm-to-market roads. 
 
 
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DAM'S POTENTIAL UNTAPPED 
------------------------ 
 
 
3. (SBU) Ambassdor Jeter visited Gombe's Dadinkawo 
Dam on October 5 with state Water Commission 
Executive Director Jamrlu Ishiyaku Gwamna. Operated 
by the Federal Government's Upper Benue River Basin 
Development Authority, Dadinkowa Dam is Nigeria's 
second largest. The dam was originally planned to 
furnish hydroelectric power and water to 66,000 
hectares of farmland.  However, the dam produces no 
power and only irrigates 50-100 hectares through a 
heavily silted 3-mile canal system. The canals, 
originally designed to be 5 miles long, have never 
been used for their original purpose.  The GON-owned 
Dadinkowa was never fully operational because past 
military regimes misappropriated money or never 
funded installation of the turbines needed to 
generate power for hydroelectricity and irrigation. 
 
 
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UNTAPPED POTENTIAL 
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4. (SBU) The GON announced in August 2001 that it 
would allocate USD 32 million to refurbish 
Dadinkowa. Abuja-based political opponents of 
Governor Abubakar Hashidu however blocked the 
funding, according to an Embassy source. A Gombe 
State official told Econoff that they did not expect 
any GON financing, Gombe now sought an Individual 
Power Project (IPP) investor to install turbines, 
establish a power grid, and sell electricity to a 
local cement plant, light industries and consumers 
in Gombe City. 
 
 
5.  (SBU) COMMENT: Navigating the bureaucratic maze 
to get all the relevant GON agencies and offices to 
agree to an IPP could be a difficult but not 
impossible task.   Also, Gombe will have to figure 
out how the IPP could tie into NEPA lines and how it 
will fit in with plans for NEPA's eventual 
privatization. An U.S.-based consulting firm, which 
hopes to broker a deal to equip Dadinkawo, has 
informed Econoff that General Electric (GE) Hydro 
will visit Gombe next month to assess the viability 
of the State Government's plan. END COMMENT 
 
 
6.  (SBU) The dam's design calls for installation of 
2 turbines, 2 water cooled generators, a switch 
yard, and 5 km transmission line to connect into 
NEPA lines. It is estimated that the dam could 
produce 34 MV of electricity. The cost to complete 
Dadinkowa's power plant is approximately USD 30 
million. 
 
 
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LONG-TERM WATER CONCERNS 
------------------------ 
 
 
7.  (SBU) The Ambassador and party also visited 
Gombe State's proposed USD 65.5 million regional 
water supply system under construction by the 
Pakistani engineering firm Shaukat and Raza. The 
regional scheme, which takes its supply from 
Dadinkowa and designed to provide service to 11 
towns, has only reached 30% completion since 
construction started in 1999.  Gwamna said the State 
had financed the entire project until now, and hoped 
to receive at least 10% from local governments.  He 
was unsure whether the 30% due from the GON would be 
forthcoming this year.  He added that the State 
Government was paying just enough to keep the 
contractors working, and would provide additional 
funding in the future.  Even when the project is 
completed, the state was not sure how it would 
collect fees-for-service to keep the system 
operating. (COMMENT: Like Dadinkawo Dam, this 
ambitious water scheme remains unfinished. If the 
GON does not furnish its 30% share or Gombe State is 
unable to fund the entire project, the Pakistani 
contractors may depart, leaving another costly 
opportunity missed.  END COMMENT) 
 
 
8. (SBU) The Ambassador also visited a new USD 5 
million 13-borehole deep water supply system.  Paid 
for by the State Government and built by a Chinese 
company subsidized by Beijing, the system supplies 
about 40% of Gombe's capital city's water. (COMMENT: 
Water scarcity will remain a problem for developing 
Northeast towns like Gombe City. If Dadinkawo Dam is 
not used as a water source, water scarcity will 
hinder the capital city's economic development. END 
COMMENT) 
 
 
9.  (SBU) Gombe's Commissioner for Education Dr. 
Habu Dahiru briefed the Ambassador on the State's 
campaign to enroll new students, noting that 
enrollment has increased three-fold since 1999. 
Dahiru stressed that, like most of Nigeria, the 
State lacks classrooms and trained teachers.  The 
Ambassador also visited a local health clinic where 
Gombe had established an HIV/AIDS testing and 
counseling facility, and an incubation facility for 
day-old chicks which is going some way to satisfy 
the growing demand for poultry in the State. 
 
 
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COMMENT 
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10.  (SBU) With growing school class sizes and 
decrepit health clinics, Gombe State is hard pressed 
to maintain its modest facilities without major 
federal government intervention and investments. 
Governor Hashidu has made some progress, providing 
citizens improved drinking water, rural 
electrification, and relative security for rural 
residents, particularly the farmers who, for years, 
were subjected to the armed cattle raiders and 
banditry from marauding gangs.  Hashidu, who has a 
strong chance of winning re-election in 2003, will 
have an uphill battle finding investors to complete 
Dadinkowa or finance his large water project. 
Overall, however, the Gombe State Government is well 
run and Hashidu is providing strong and honest 
leadership. END COMMENT 
ANDREWS