‘No PPP arrangement with Oando on electric buses’ — Lagos replies Funso Doherty

The Lagos state government says it does not have a public-private partnership (PPP) arrangement with Oando PLC on electric mass transit buses.

Addressing issues of transparency in the electric bus project, Funso Doherty, a chartered accountant, wrote an open letter to the Lagos state government on May 4.

In the letter, Doherty asked the Lagos state government to stay further action on its partnership with Oando PLC.

Doherty further described Lagos state’s choice of the company as its partner for the initiative as “baffling”.

Responding in a letter dated May 8, 2023, Ope George, special adviser to the governor on public-private partnerships, said the Lagos government and Oando Clean Energy Limited (OCEL) signed a memorandum of understanding (MoU) in April 2022 — not a PPP arrangement or joint venture.

George said the primary objective of the MoU is to reduce greenhouse gas emissions caused by the transportation sector, by developing a framework for infrastructure and investment to drive the implementation of sustainable transport.

He said the objective is to be achieved through a proof of concept (PoC) programme to ascertain the viability of adopting electric vehicles for mass transit in Lagos state (on an initial basis).

“It is instructive to mention without equivocation, the relationship between OCEL and the LASG with respect to the Project is neither a PPP arrangement nor a joint venture at this time,” George said.

“In addition, it is important to note that, upon conclusion of the PoC Stage, the viability or otherwise of the Project will be ascertained objectively, following which the public procurement process will be initiated, with all approvals and ratifications obtained prior to the formal implementation of the Project as legally required;

“In line with existing legislation, the procurement process will provide an avenue for a comprehensive evaluation of the technical and financial proposals, negotiation of definitive terms to govern the transaction and subsequent execution of binding
agreements;

“The OPPP assures you and the general public that the administration of Governor Babajide Sanwo-Olu will not compromise public interest, due process, transparency and or compliance with prevailing laws in implementing the Project;

“The LASG remains accountable to its people and is proud to be the first state in Nigeria to establish a PPP Office in line with global standards to govern its operations.”