The Nation Newspaper

Category: Energy

  • ‘Non- completion of Alaoji, others won’t stall privatisation’

    The delay in the completion of Alaoji,Omoku and Gbarain power plants will not affect the sale of the 10 power assets under the NIPP, the  Niger Delta Power Holding Company (NDPHC) that superintends the National Integrated Power Plants (NIPPs), has said.

    The company has completed the construction of Omotoso, Egbema, Ogwode, Olorunsogo, Benin and Calabar, while Alaoji, Omoku, and Gbarain power plants are yet to be completed.

    The Bureau of Public Enterprises (BPE) has said the ongoing privatisation of the NIPP assets is being delayed by the problem of gas that had stalled the signing of the gas purchase agreements that would make the transactions bankable.

    NDPHC’s spokesman, Yakubu Lawal, told The Nation, that shortage of gas is the only problem delaying the privatisation of the plants. He said that non-completion of the three plants by the contractors has no basis with the sale of the 10 plants from which the government is targeting 5,000 megawatts (MW) to achieve its aspiration to generate 10,000MW.

    Lawal said that due diligence has been conducted by the companies that bought the plants, adding that the transactions was done in a transparent manner. He said: “There was a shares agreement between the companies and the government before transactions on the plants started. The buyers have carried out due diligence and know the state of the plants. It is not compulsory that the plants must be completed before the plants are sold.”

    He said the NDPHC has done a lot to make the plants look better, strong and effective, adding that the plants would improve power supply when they are privatised.

    The BPE’s Director General, Benjamen Dikki, said the country has a capacity for 11,000 megawatts, adding that power supply would improve when the infrastructure problems in the sector are solved.  Dikki said the combination of adequate gas supply to thermal and hydro-power plants would help in improving electricity supply.

  • Oil glut beyond OPEC’s control

    The supply side glut in the oil market combined with the decline in global demand makes it difficult for oil producers to effectively exercise any control over oil prices, according Seth Kleinman, Citi Energy Analyst.

    According to Hellenic Shipping News, even in the context of recent serious geopolitical issues that could potentially cause supply disruptions and high oil prices, the world is witnessing a decline in oil prices. Brent has traded since early July within the range of $95 to $110. It is hovering around $98 to $100 a barrel on the London-based ICE Futures Europe exchange.

    On the supply side a lot of excess stocks combined with new sources of production such as US shale oil, massive gas substitution are depressing the oil prices. Kleinman said the medium term outlook for oil demand is not encouraging as the emerging market demand growth, particularly from China is on a decline.

    The long held belief that emerging markets are perennial sources of oil demand is fast changing partly because of the changes in economic growth dynamics and partly because of massive energy substitution of natural gas — often obtained through the hydraulic fracturing of shale rock for oil, and fuel-efficiency mandates in many key countries.

    Kleinman said the prospect of oil demand hitting a plateau this decade looks increasingly possible than the market seems to think. The Shale boom in the US has already upended energy markets and it has largely accepted the fact that the spread between gas and oil will stay wide for the foreseeable future.

    The huge rush for substitution of oil with gas in the US, Europe and some of the leading emerging markets like China and Latin America is going to have a long-term impact on oil prices than previously anticipated.

    While European regulations are also putting pressure on its oil industry, even in China LNG substitution in automobile sector is happening on a massive scale. In February last year the European Commission issued draft legislation that would mandate LNG filling stations be located every 400km on the core trans-Europe highway network. This same legislation will mandate LNG filling stations be located at all 139 maritime and island ports in Europe, also by 2020.

    Kleinman said increased focus on fuel economy across the US, Europe, Japan and China have started impacting the oil demand. Research by Citigroup estimates that new vehicles’ fuel economy is increasing by about 2.5 per cent a year.

    Adding to the downward price pressure on oil will be the lack of incentive for Middle Eastern oil producers, particularly Saudi Arabia to cut production. Petroleum exports account for about 90 per cent of Saudi Arabia’s state budget. Saudi Arabia announced $130 billion of investment in 2011 to create jobs and a $500 billion plan infrastructure projects, making deep cuts to stabilise the market a difficult possibility.

  • TEM: Delay in implementation stalls power sector agreements

    TEM: Delay in implementation stalls power sector agreements

    INVESTORS in the companies unbundled from the Power Holding Company of Nigeria (PHCN) are shunning some essential agreements that could lead to improved power supply owing to delay in the implementation of the Transitional Electricity Market (TEM).

    The agreements – Gas Supply and Purchase (GPSAs), Power Supply and Purchase and others cannot be signed because of delay in the implementation of TEM.

    The implementation of TEM, according to the Nigerian Electricity Regulatory Commission (NERC) will set in motion, the execution of  rules that would guide the Nigerian Electricity Supply Industry (NESI) as well as the enforcement of compliance and sanction of defaulting market participants in the electricity supply value chain.

    NERC explained that TEM would also ensure that the electricity market is operated in an orderly manner with all the participants (gas suppliers, power generation firms, distribution firms that buy the power, and the transmission firms that wheel the power to different parts of the country), expected to show commitment to sanctity of contract or be penalised.

    What guides the market is the interim market rules provided by the power sector regulator – the Nigerian Electricity Regulatory Commission (NERC). The interim rules will continue to guide the operation of all the market participants until the TEM is fully in place. The interim rules were issued before the takeover of the successor companies in November last year by new investors and modified in April this year to address the challenges observed in the sector between the time of handover and end of first quarter of this year.

    Speaking on the importance of implementation of the TEM as an instrument that will drive the electricity market, the Group Chief Executive Officer, Forte Oil Plc, owner of the privatised Geregu Power Plant, Mr. Akin Akinfemiwa, told The Nation that the company has not signed Gas Supply and Gas Purchase Agreements GPSAs  because it needed guarantee of an uninterrupted gas supply and the purchase of the power it will generate.

    Forte Oil has invested $90 million in the Geregu Power Plant to overhaul it and bring its output to the installed 414 megawatts (Mw) capacity from about 100Mw it  generates.

    Akinfemiwa said the necessary agreements will be signed when the company is sure that the power plant will get adequate gas supply and the power it generates also bought by distribution companies.

    He said: “Gas supply to the power plant is subject to the TEM.  We have not been able to sign the appropriate GPSAs for us to guarantee maximum supply to the plant. “Obviously, when we sell, we will not be able to sell everything we generate because of the existing market dynamics. So, once the TEM is introduced, we can now call for enough gas for us to be able to generate in line with the TEM.

    “The renovation work on the plant is expected to be completed in the next 18 months (first quarter of 2016) and will bring the plant’s generation to 414Mw at full capacity.”

    An official of Transcorp Ughelli Power Limited, one of the privatised assets, told The Nation in confidence that the company is eager to see the commencement of the TEM because besides creating standard rules of operation, it will  increase the potential revenue for the company and its shareholders.

    Currently, the interim market rules (IMR) that guide the electricity market pending when the TEMwill be fully in force, according to NERC, “seeks to enforce, maintain and ensure adherence by licensees  and other participants in the electricity market to the provision of the Act and other instruments for the purpose of achieving; the creation, promotion and preservation of an efficient electricity industry and market and the fostering of a culture of regulatory compliance; the facilitation of the swift investigation and resolution of incidences of regulatory non-compliance and the  fair and transparent determination of rights and obligations.”

    The IMR, which was signed by NERC Chairman and Chief Executive, Dr. Sam Amadi provides for regulation, which shall apply to energy produced and delivered as well as associated services during the interim period.

    “The rules are in exercise of the powers conferred on the Commission by section 96 of the Electric Power Sector Reform Act (2005). “The interim rules are intended to cover all electricity taken from the transmission system by the distribution companies with adjustment made to account for any bilateral arrangements between generation companies (Gencos) and distribution companies (Discos).

    “The existing arrangements shall be maintained save to the extent that they are modified by the order of the Commission. The objectives of the rules are to establish a framework to govern trading arrangements during the Interim period when Power Purchase Agreements (PPAs) between the privatised Power Holding Company of Nigeria (PHCN) successor generation companies and Nigerian Bulk Electricity Trading Plc (NBET) and Vesting Contracts between NBET and the privatised PHCN successor distribution companies will not be effective.”

    TEM is expected to commence in November, this year after earlier dates of commencements in March and September this year failed.

  • Gas price increase good for sector, say experts

    The Federal Government’s decision to raise the price of gas to power plants to $2.50 per thousand cubic feet from its current $1.50 will encourage investment in gas projects, the Chief Executive officer, Frontier Oil Limited, Dada Thomas and the Managing Director, Seven Energy Limited, Philip Ihenacho, have said.

    They said the initiative would drive investment in gas plants, boost activities in the energy sector and grow the economy.

    Dada said investors have been shying away from production and distribution of gas because of the relatively unattractive prices, adding that the development has affected companies using natural gas for operation.

    He said investors were not ready to sell gas at a cheaper price to power generation companies (GENCOs) when they consider the stress they go through in producing and transporting the product to where it is needed.

    He said: “The increase in gas price is encouraging. Gas prices are becoming increasingly attractive. This means more companies would invest in gas projects.  Gas projects gulp more money than oil projects. Now that the government has increased the price of gas, people would invest in gas projects realising that they would get returns on investments.”

    Dada said when the market forces determine the prices of gas, more investors would come in and the economy would be better for it.

    He said: “The government has been regulating the prices of gas in Nigeria. As long as prices are still regulated by the government, I assure you that most people would not invest in gas. There should be a willing buyer and a willing seller arrangement before the gas market can be attractive.

    “Once this arrangement is in place, buyers and sellers of domestic gas would be able to sit at roundtable and negotiate well.  “When power, petrochemical, fertiliser companies and others pay a realistic gas price, gas producers would be happy to expand their operations.”

    Ihenacho said gas producers have been having problems distributing the product to the end-users because it involves a lot of money.

    He said: “The gas infrastructure is yet to be put in place, making it difficult for gas producers to make good profit. He said the increase in gas prices would lead to increase in production.

    “The market-driven economy is the in-thing globally. Every player wants to maximise his output because the higher the price of the product the better for the producers. It is simple economics. Many want to invest in gas, but could not because it is not bankable. If lenders know that they would get their money back in time, nothing will stop them from lending to the gas sector. Non-bankability of gas project is a problem in the country. It is more difficult to finance gas projects because of its complex nature.”

  • ‘Talks between Shell, oil communities not deadlocked’

    Talks over compensation between Shell Petroleum Development Corporation (SPDC) and Bodo communities in Gokana Local Government of Rivers State, are yet to achieve the desired results, Chairman of Bodo Council, Sylvester Kogbara, has said.

    Bodo communities in Kogana, are among the five kingdoms in Ogoniland. The community and others in Ogoniland have a long history of environmental pollution, occasioned by exploration activities carried out by Shell and other International Oil Companies (IOCs) operating in the Niger Delta region.

    Kogbar, said Bodo and the other communities in Ogoniland have not arrived at a particular compensation fee with Shell.

    He said the communities are still meeting on the issue, adding that they would come out with their own position soon.

    He said: “Neither have we arrived at an agreement over a particular compensation fees nor accepted the proposed $1billion for the cleaning of oil polluted communities in the region. We only agreed that Shell, and other relevant stakeholders should come and clean our land, and not clean up fees.”

    He said the negotiation between Bodo community and Shell has not collapsed as is being reported in some quarters, adding that all hands are on deck to successfully resolve the issue.

    He said: “It is a great shame that the negotiations have not led to a settlement. I had hoped that this week would have seen the end of the litigation and enable us to start the process of rebuilding the community. However, Shell has continued to treat the people of Bodo with the same contempt as they did from the start when they tried in 2009 to buy us off by offering the community the total of £4,000 to settle the claims.

    “We told them in 2009, and we tell them again now, the people of Bodo are a proud and fiercely determined community. Our habitat and income have been destroyed by Shell oil. The claim against Shell will not be resolved until they recognise this and pay us fully and fairly for what they have done.”

    In a related development, a senior partner of the legal firm that represented the Bodo community, Martyn Day, said a post-impact ecological assessment study carried out on the Bodo creek in September 2009 showed severe reduction in the abundance of marine life, with shell fish no longer present and fish numbers dramatically reduced.

    The United Nations Environment Programme’s (UNEP) Environmental Assessment of Ogoniland 2011, had backed up these findings following a survey of the pipelines and visits to all oil spill sites, including the Bodo creek, which showed they had hydrocarbon contamination in water, with some sites to about 1,000 times higher than permitted under Nigerian and international laws.

    Efforts to get Shell’s spokesman, Precious Okolobo, to speak on the issue were unsuccessful as calls made to him were not picked.

  • NNPC tackles Brass’, OKLNG’s problems, others

    NNPC tackles Brass’, OKLNG’s problems, others

    The Nigerian National Petroleum Corporation (NNPC) is finding  solutions to the troubled multi-billion dollar Olokola Liquefied Natural Gas (OKLNG), Brass LNG, and  expediting action on the building of the NLNG Train 7 plant, which has been on the cards for years.

    The construction of OKLNG suffered a setback when three major shareholders in the project pulled out. The project was conceived in 2007 by NNPC, British Gas (BG), Chevron and Shell.  BG and Shell withdrew from the project in June 2012 and July, last year while Chevron withdrew in August, last year. With the withdrawal of these international oil companies (IOCs), NNPC is the  only  shareholder left  in the project.

    In 2012, ConocoPhillips, a major shareholder in Brass LNG, withdrew from the project and ever since, no significant progress has been made in the project. The Nigeria LNG Train 7 project has been on the table for a couple of years and yet the final investment decision (FID) is to be taken.

    The Group Executive Director, Gas and Power, NNPC, Dr David Ige, said the corporation was back to the table to see how it could bring these projects on course.

    He said this was line with the government’s policy and strategy to create value in the gas sector and keep Nigeria’s share of global LNG market at 10 per cent.

    Ige told The Nation, that the discussions were initiated to address problems, such as investments, regulatory and community issues, among others, facing the projects.

    He said the projects were critical to the growth of the domestic and international gas market, hence the decisions to address the problems. “We have concluded the exit of ConocoPhillps from Brass LNG. We have seen the exit of Chevron and Shell from Olokola Liquefied Natural Gas. We are back on the table to address all the problems hindering OKNLG, Brass LNG and Train 7 projects. On Train 7, stakeholders are working to move the project to the next stage.  We are back on the table to identify the potentials in the three projects, and galvanise them for economic growth,” he said.

    He also said the discussion would determine the government’s next  action, adding that the projects are of great importance to the economy.

    The General Manager, Development, Shell Petroleum Development Company (SPDC), Bayo Ojulari, said: “We don’t have fiscal terms for deepwater gas. A country as big as this with all the resources, we don’t have a term for deepwater gas, which means that deepwater gas is being stifled because the policy we need to put in place to allow people to participate has not been provided.”

    Earlier, NNPC’s Group Managing Director, Joseph Thlama Dawha, said the development of the huge gas resources in the country’s offshore would help in fostering the energy sector’s growth.

    “We are working on an integrated approach to ensure that much of the gas being found in deep offshore is made available for LNG projects, among others, so that the three LNG projects  will be fed from that opportunity.

    ‘’We are working on a master plan to do this and we have commissioned consultants to look at that. Thirdly, we are committed to making sure that gas is available and affordable domestically.

    “We have a necessity to ensure that all of these projects go ahead. That is a necessity mandated by the law. Whether it is Train 7 or Brass or OK LNG, we are consistently putting those projects forward because strategically, our policy towards LNG is to keep our market share up. So, strategically we are committed to that and as far as government policies are concerned, we will pursue this.”

  • Forte Oil eyes strategic investments

    With the increasing competition in the downstream sector of the petroleum industry, Forte Oil is focusing on some strategic investments that will enhance its opportunity to capture more share of the market and make more returns for its shareholders, it was learnt.

    Its Group Chief Executive Officer, Mr. Akin Akinfemiwa, told The Nation during the launch of new 100 delivery trucks in Lagos that every investment the company makes is targeted at value creation having the shareholders’interest at heart.

    Forte Oil used to be the market leader in terms of number of retail outlets, but Akinfemiwa he said the  management doesn’t look at having the largest number of retail outlets, which add less to the balance sheet of the company but having less outlets that add the expected value.

    “We are not looking at numbers of retail outlets; we are looking at the volume. What we are doing is that our acquisitions are strategic in the sense that there is no point having 700 filling stations that give maybe just one million litres; we rather have 500 stations that will give us two million litres. So, we look at strategic acquisitions that will give us volume because that will shorten our operating and maintenance costs,” he said.

    He said the acquisition of the 100 delivery trucks will add positively to Forte Oil’s stock and bottom-line. On how the acquisition will impact on the company’s stock’s price, he said: “Basically, we have the confidence to bring in more customers because with an efficient and effective logistics, what we can do is to have that confidence to bring in more customers on board and also make that drive revenue. When it drives revenue, we are able to translate that into robust returns to our shareholders and of course when the dividends and returns are high obviously the share price will go up.”

    On how the trucks would be managed, Akinfemiwa said the National Association of Road Transport Owners (NARTO) and Petroleum Tanker Drivers (PTD) have  roles to play but Forte Oil will still be in charge of the supply and distribution plan in order to meet customer satisfaction. He said: “We have identified components of customer service delivery, which we are also committed to implement such but the way the downstream works is that we have the owners and the operators.

    “Operators are the NARTO and PTD. In terms of distribution, it is what we tell them to distribute that will be distributed. So we are still in charge of own supply and distribution plan, which is driven basically by customer service or request of the customer. It is the request of the customer that goes into own supply schedule and we advise the logistic operators and they carry out what we advised.”

    He also said because health and safety is a key component of the company’s transformation strategy, the management appointed a tested and competent operator in the industry, PSL, a skills development firm, to train the drivers that will drive the trucks. The firm is giving the drivers who have been recruited adequate training that will guarantee not only the safety of lives but also the safety of the trucks on the road, he added.

    As part of the strategic investment programme, Akinfemiwa said Forte is carrying out tremendous renovation on Geregu Power Plant, which it acquired last year. He said: “On the power investment, we have awarded the contract to Siemens at approximately $90 million for the major overhaul of the Geregu Power Plant. Once the major overhaul is carried out and also the inception of the Transition Electricity Market, power will contribute about 40 per cent to the company’s revenue. It is something that we look forward to as a business and it is something that is expected to drive our revenue and ultimately shareholders returns or value.

    “The overhaul has started and will take approximately 18 months. Geregu was bought as almost a brand new plant; there is no need for expansion but we want to consolidate on what we have to be able to get the kind of result we expect.

    “The value of these 100 trucks put together is about N2.5 billion and this is the first batch. The second batch, which will also be 100, is expected to cost N2.5 billion bringing the total investment on delivery trucks to N5 billion.”

  • IPMAN seeks govt’s intervention in kerosene, diesel supply

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Federal Government to intervene in the downstream sector of the petroleum industry to ensure adequate supply of Dual Purpose Kerosene (DPK) popularly called kerosene and Automotive Gas Oil (AGO) commonly called diesel, to avert scarcity.

    IPMAN’s Chairman, Mosimi depot, Comrade Dele Tajudeen, made the request during a meeting of the association at Mosimi, Sagamu, Ogun State.

    He told reporters that while premium motor spirit (PMS) – petrol – is available at the depot and is distributed to the members’ filling stations, kerosene and diesel don’t get to the depots.

    He said the absence of storage facilities for kerosene at Atlas Cove makes it impossible for the product to be transported to Mosimi depot for distribution.

    Tajudeen also said the association was not opposed to deregulation of petroleum product but before then, the Petroleum Industry Bill (PIB) must be passed to ensure a  level playing ground for  stakeholders.

    Tajudeen, while reacting to the allegation of misappropriated N500 million by IPMAN, said the allegation was baseless. “The association did not make N500million in turnover and there is no way it could have been misappropriated. Although they did not have legal standing to have access to our account, where did they get such figures? We will sue them for libel if they cannot substantiate their claims with evidence.”

    A faction of IPMAN led by Adeleke Dada alleged that the Dele Tajudeen-led faction misappropriated N500 million belonging to the IPMAN.

    Dada said: “They misappropriated about N500million during their tenure because  they made about N10 million per month from all of the unnecessary levies, which were illegal collections, and which were not accounted for.

    “During the period of fuel scarcity, the government did not increase the price of petroleum, it was their administration that increased the price in their own capacity to the rate of N110 per litre, which is very wrong, the government didn’t tell them to increase it.

    “We had enough of the product in Mosimi depot, so, whenever there is scarcity, they used that opportunity to hike fuel price so as to enrich their pockets, which was not good on the masses. We are going to call on the Economic Financial Crimes Commission (EFCC) to probe them because they embezzled the unnecessary levies that were paid to them.”

    However, Tajudeen said the meeting was to sensitise the members on the forthcoming election scheduled to hold on October 15, having been elected into office in 2010.

    He said all parties are invited to participate in the election to move the association forward.

  • Heirs Holdings to increase power supply to 1000mw

    The Tony Elumelu’s pan-African investment vehicle, Heirs Holdings, one of the investors that bought the privatised successor companies unbundled from the defunct Power Holding Company of Nigeria (PHCN), has said it will generate  a quarter of Nigeria’s power consumption needs in the next five years.

    Heirs Holdings’ interests in the power sector include the Transcorp Ughelli Power, a thermal power  plant, which it acquired last year under the privatisation programme of the Federal Government.

    A senior official of the company, who told The Nation about Heirs Holdings’ plan to embark on mass power generation through the expansion of the Transcorp Ughelli Power, said the industry is a catalytic sector, and the development of the country and that the continent cannot happen without fixing it.

    He described the United States’ Power Africa Initiative as an amazing opportunity to democratise access to power for Africans, adding that Heirs Holdings’ $2.5 billion investment and commitment to the initiative reflects how excited the management of the company is about it.

    The administration, he noted, made a bold decision when it decided to effect changes envisaged by the Power Sector Reform Act that had been on the books since 2005.

    The source noted that the government’s bold step was reinforced during President Barack Obama’s last visit to Africa. We felt more strongly than ever, the need to help power Africa, the official added.

    The source said: “Our experience so far at Ughelli power plant is a testimony to the size of the opportunity. Our team has taken that plant from 150MW capacity, when we took over in November 2013, to 450MW today; we expect it to increase to 700MW by October and to achieve 1000MW by the second quarter of 2015. At that rate, we’ll be contributing 20 per cent of Nigeria’s total power generation.”

    Furthermore, he said, the firm was working on a Greenfield project that would expand the capacity of Ughelli by 1000MW in the next five years and that they had signed a memorandum of understanding (MoU) with the General Electric (GE) and Symbion Power to facilitate the deal.

    The official identified unreliable transmission infrastructure, access to uninterrupted gas supply and timely settlement of invoiced payments as three main challenges to the power sector.

    He said: “In Nigeria, one of the biggest challenges to power generation is transmission and in fact, while Ughelli Power Plant generated at full capacity for the first time in July, we’ve been asked to scale down generation because of the outdated transmission system; for every 100MW generated and sent to transmission company, 40 per cent is lost, partly due to this infrastructure issue.”

    While regulation is not a key challenge, the official said it was an issue in the sector that if addressed, could speed up growth.

    “We need pragmatic regulation that recognises that in Nigeria, the sector is nascent and so policies must be designed to encourage growth. In fairness, the Federal Government is confronting these challenges head on,” he added.

  • Dawha urges workers on innovation

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Joseph Dawha, has challenged the Information Technology Division of the Corporation to evolve ideas and strategies to support the management’s three-point agenda.

    He challenged the staff at the corporation’s IT knowledge sharing and direction setting workshop in Abuja. He said NNPC in the short term would focus on three key areas of ramping up production by its upstream subsidiary, the Nigerian Petroleum Development Company (NPDC) to 250,000 barrels of crude oil daily; boosting gas supply and expanding gas infrastructure to enhance availability of gas for power generation and feedstock for gas-based industries; and driving performance management and improving core processes to instill a culture of performance and boost productivity.

    Dawha, who was represented by the Group Executive Director, Business Development, Dr. Attahiru Yussuf, urged the Division to be proactive in generating ideas and deploying cutting-edge technologies that could promote the efficient and speedy achievement of the three key short-term objectives of management.

    “I urge you to re-equip yourselves in order to play a leading role in accelerating change across the entire Corporation. To lead this transformation, our IT executives must re-imagine their roles by seeing themselves – and encouraging others to see them – as chief executives of an information business.

    “Like any chief executive, our IT leadership should bring vision, direction, and organisation to NNPC’s big data investment priorities. That means engaging internal customers on their biggest challenges while attracting the best talents and suppliers; most importantly, it means being accountable for execution and results,” Dawha said.

    He said he anticipates “firm decisions on five levers that are required to step up the impact of IT in NNPC to enable us achieve the above corporate aspirations.”

    He listed the five levers to include: effective IT governance; availability and stability of connectivity; supportive technology adoption programme; pace of technology assimilation capacity; and consistent use of proven methodology.