Tuesday, 26 October 2010

Glaucoma:The Latest Diagnostic Tools


Issue: September 2001

Glaucoma:The Latest Diagnostic Tools
Today's technologies are faster, more accurate and able to detect glaucoma much earlier.Here's an overview of what's available.
By Mireille P. Hamparian, M.D., Encino, Calif., and Alan L. Robin, M.D., Baltimore, Md.

Recent advances in technology have done a great deal to enhance our ability to detect and treat glaucoma in its earliest stages. And increasing numbers of eyecare professionals are taking advantage of the new technologies.

For example, hundreds of disc imaging systems have been sold during the past decade. More have been sold at the Academy and ASCRS meetings in the past 2 years than in the previous 8 years combined. Not only are the instruments and software better, but reimbursement for related procedures has become much more reasonable.

A major step forward

Previous technologies, which primarily monitored changes in intraocular pressure (IOP), loss of visual function and grossly visible structural changes in the disc, made diagnosing and monitoring glaucoma difficult at best:

  • The sensitivity and specificity of disc changes and IOP as evidence of glaucoma are less than 50%. (Many patients who present with IOPs greater than 21 mm Hg or large cupping and cup-to-disc asymmetry don't have glaucoma.)
  • As an indicator of glaucoma, the nerve fiber layer is much more sensitive and specific. However, it's hard to see in vivo, and until recently we've had to rely on qualitative assessments -- sketches and photos of the optic nerve -- to monitor glaucomatous structural damage and progression. In addition, nerve fiber layer photos are difficult to read when the patient is elderly or African-American, and these are the patients most likely to have glaucoma.

In contrast, the new modalities can more reliably measure change in disc size and shape, as well as focal thinning in the nerve fiber layer. This allows us to intervene at an earlier stage of glaucoma progression and monitor those patients who present with elevated IOPs or large cup-to-disc ratios but still have normal perimetry.

Perhaps the most compelling reason to use the new imaging technology is that clinically detectable structural changes in the nerve fiber layer and optic disc can occur years before functional measurements of the optic nerve (such as standard automated perimetry) are able to detect a problem. In fact, a patient may lose half of his optic nerve head axons before perimetric defects become obvious. (Also, visual fields have inter-test variability; you need at least two or three of them to confirm a defect.)

Each of the new technologies has its strong and weak points. For example, some of the new modalities are primarily designed to screen for potential glaucoma, although they can also be used to follow progression of the disease. (Our ability to use these modalities effectively for the latter purpose will increase as we gain more experience with them.)

This article will help you choose which instrument or modality makes the most sense for your practice by reviewing some of the most relevant attributes of the options available.

Perimetry: Frequency Doubling Technology (FDT)

Zeiss Humphrey's FDT is a portable visual field analyzing device that's demonstrated relatively high sensitivity and specificity for detecting visual field loss in eyes with moderately advanced glaucoma. The patient observes a series of alternating light and dark bars, which rapidly switch between black and white. This causes most patients with healthy visual function to perceive twice as many bars as are actually there. (The level of contrast is set so that 99% of normal subjects observe the same effect.)

This frequency-doubling stimulus is presented randomly to a total of 17 different visual field locations within the central visual field.

How it works: We believe the stimulus is detected primarily by a subset of magnocellular retinal ganglion cells that have nonlinear response properties. These magnocellular ganglion cells may be among the first casualties of glaucoma. Hence, inability to experience the doubling phenomena indicates early glaucomatous damage.

Results of an FDT screening are considered abnormal when the following are present:

  • any defect in the central five locations
  • two mild or moderate defects in the outer 12 spots
  • one severe defect in the outer 12 spots.

Results are also considered abnormal if total test time for each eye is greater than 90 seconds.

When any of these criteria are present, the FDT is considered "positive." When you obtain a positive result, you can either quickly repeat the test or perform conventional threshold perimetry.

Advantages of the FDT. These include:

  • The FDT is very easy for a technician to use; it requires only a few minutes of instruction. The menu is simple, and operation leaves little room for error.
  • It features a screening mode and a full threshold mode. (The screening algorithm is a quick and accurate tool for glaucoma detection.)
  • The machine isn't at all intimidating for the patient. It has no perimetric "bowl," so the patient can feel comfortable without claustrophobia.
  • The FDT tolerates up to 6 diopters of blur, so the technician usually doesn't have to worry about proper spectacle correction.
  • The test requires no eye drops; it's unaffected by pupil sizes as small as 2 mm.
  • The test can be performed under normal lighting conditions.
  • The procedure takes only 45 to 70 seconds per eye to perform.
  • The FDT has a unique pre-test capability to help you determine which threshold perimetry algorithm (if any) would be best to use.
  • The instrument is relatively portable. (It weighs about 15 pounds).

Other points to consider. These include:

  • The test is subjective; it depends on the patient's response.
  • Because structural loss of retinal nerve fibers may precede functional loss, this technology has limited usefulness for early detection of glaucoma.
  • Determining which results are normal and which indicate early glaucoma can be difficult.
  • The FDT may not be useful for long-term follow-up and detection of change.
  • The FDT printout looks different from the printouts produced by other instruments, which most of us are used to. It requires a little practice to interpret.

Perimetry: The Swedish Interactive Thresholding Algorithm (SITA)

SITA algorithms (used by the Humphrey automated visual field perimeter) have done a lot to revolutionize perimetry. SITA algorithms are designed to perform visual fields similar to those that use the full threshold algorithm, but with one important advantage: SITA algorithms don't depend on the conventional staircase method. For that reason they significantly decrease test times, while still maintaining the integrity of the test results.

How it works: Instead of using the usual staircase methods, which test each area in the visual field once, SITA returns to check a second time -- but only if nearby areas show a suspicious result. (This helps keep the test time short.) As the test proceeds, these functions are updated.

SITA fast. SITA fast differs from SITA standard in the number of crossings, the step size and perhaps most important, the amount of allowable error in the threshold estimate. If a given test result is reliable (based on the patient performance indices the device provides), it can dependably detect scotomas along with their relative depths and help quantify the level of glaucoma damage.

For patients who still can't perform a reliable test with the SITA full threshold because of problems with attention span or rapid fatigue, the SITA fast test can often be quite useful.

Advantages of the SITA algorithm. These include:

  • Patients and technicians are happier with the shortened test time.
  • Quicker testing allows you to perform almost 30% more examinations in a given time period. This, in turn, allows you to recoup the cost of the perimeter much more quickly -- and make more efficient use of your technicians' time.
  • This test has a slightly higher mean sensitivity than tests using earlier algorithms, perhaps because of the shorter testing time and reduced patient fatigue.
  • Both inter- and intra-test variability of the SITA is comparable to conventional full threshold perimetry. In fact, it displays a little less variability between repeated tests, probably also as a result of reduced fatigue, which allows for earlier and more reliable detection of visual field deterioration.

Other points to consider. These include:

  • The test is subjective.
  • It doesn't detect nerve fiber loss at its earliest stage, and therefore doesn't detect glaucoma at its earliest stages.
  • SITA can't calculate short-term fluctuation or corrected pattern standard deviation.
  • One of the remarkable things about SITA fast is that it operates most of the time right at threshold. However, this characteristic can limit its utility in a screening situation because its high speed is less tolerant of patient errors than SITA standard.

Note: Some doctors who have worked with this algorithm have concluded that the relative sensitivity of the tests depends on how far the disease has progressed:

  • SITA standard is much more sensitive than either SITA fast or full threshold in early field loss.
  • SITA standard and full threshold are comparably sensitive in moderate loss.
  • In advanced disease, they show minimal difference in sensitivity.

Perimetry: Portability and design advantages

A new perimeter, the Oculus Easyfield, uses familiar technology, but offers practical advantages because of its size and cost. It's the first portable and relatively inexpensive device that can both screen patients for glaucomatous damage and quantify results (making it possible to monitor progression and accurately follow these patients).

Despite its relatively small size and cost, the Oculus Easyfield is a capable glaucoma detection device. Preliminary comparative studies suggest the Easyfield may be more sensitive and specific to moderate and severe glaucoma damage than the FDT test. (Evaluations are currently under way comparing full-threshold perimetry testing by the Easyfield and Humphrey instruments.)

How it works: The technology is similar to conventional computerized static perimetry.

Advantages. These include:

  • The small size and relatively low cost may increase the cost-efficiency of glaucoma detection.
  • Unlike most conventional perimeters, the Easyfield
    doesn't require the patient to put his head inside a bowl, which some patients find claustrophobic.
  • If you screen for glaucoma and results are positive, threshold determinations can be made with the same instrument.

Other points to consider. These include:

  • The Easyfield doesn't provide a large normative database for statistical comparison.
  • The Easyfield lacks statistical packages for longitudinal follow-up.

The Easyfield and Humphrey FDT are similar in size and price (about $7,000), but the FDT instrument weighs 19 pounds, compared to the Easyfield's 13 pounds.

Scanning laser ophthalmoscopy

The Heidelberg Retina Tomograph II (HRT II) uses confocal scanning laser imaging technology to create a detailed, 3-D topographic map of the optic nerve head. The measurements permit analysis of rim and cup volume, cup shape, and indirect analysis of retinal surface height and other topographic parameters. The HRT II also indirectly calculates the thickness of the nerve fiber layer (NFL). It includes a normative database for comparison, and graphically displays deviation from that database. (It can perform a similar comparison to previous visits by the same patient.)

How it works: The HRT II uses CAT-scan-like technology to record three sequences of cross-sectional images during a 4-second period, and then assembles the resulting data into a 3-D topographic map. First-time measurements are analyzed using regression techniques developed by Moorfields Eye Hospital in London, which evaluate the relationship between neuroretinal rim area and optic disc area.

The instrument also divides the optic nerve and surrounding region into six sectors and evaluates each sector separately. An on-screen color map indicates whether each section falls within normal, borderline or abnormal parameters.

Advantages of scanning laser ophthalmoscopy. These include:

  • Images may be obtained through undilated pupils and early cataracts.
  • Low level light is used.
  • Minimal operator training is required. The HRT II features single-button operation.
  • The color-coded maps are relatively easy to read and interpret.
  • The HRT II automatically rejects images that are blurred by poor focus or patient movement. It provides a standard deviation figure for each image that tells you how accurate that measurement was.

(Heidelberg has also recently enhanced the capabilities of the HRT II with an optional macular edema module. This module provides a way to measure macular thickness changes over time using topographic retinal thickness measurements and macular mapping techniques.)

Other points to consider. These include:

  • Image resolution depends on the optics of the human eye. Cataracts may impede the quality of the image.
  • Variations in topography can be caused by blood vessels in the cup and fluctuations in IOP, and the optic nerve head.

Scanning laser polarimetry

The GDx and GDx Access nerve fiber analyzers (from Laser Diagnostic Technologies Inc.) measure the retinal nerve fiber layer (RNFL) thickness with a scanning laser polarimeter based on the birefringent properties of the RNFL. Measurements are obtained from a band 1.75 disc diameters concentric to the disc.

How it works: This technology uses a polarized near infrared (780 nm) laser beam to scan across the fundus at the optic nerve head and peripapillary retina. The birefringence causes a change in the state of polarization of the reflected light, known as retardation. The amount of retardation that occurs is linearly related to the thickness of the RNFL.

In vitro measurements in an animal model show excellent correlation between retardation and RNFL thickness, with resolution of measurements at about 13 microns. The GDx displays higher retardation values in the superior and inferior regions of the disc, corresponding to greater RNFL thickness in these areas. The scan also shows reduced retardation over blood vessels, corresponding with the observation that vessels embedded within the RNFL reduce the thickness on top of the vessels.

Advantages of scanning laser polarimetry. These include:

  • Clinical measurements are highly reproducible.
  • Readings can be done very quickly.
  • Operation is straightforward. The technician doesn't need to mark the optic nerve, just center a circle within the optic nerve region.
  • This technology has a higher sensitivity than the Glaucoma Hemifield test.
  • Using this technology doesn't require pupil dilation.
  • Results are independent of the optical resolution of the eye.
  • This technology is specifically designed to measure the critical retinal nerve fiber layer, where glaucomatous damage can be seen first.
  • A Both GDx instruments feature an age- and race-related normative database for valuable first visit comparison.

Other points to consider. These include:

  • Polarizing structures of the eye other than the RNFL may interfere with the retardation values; the cornea (and to a much lesser degree the lens) are also birefringent. (Both instruments include a compensator unit to correct for retardation arising in the lens and cornea.)
  • Peripapillary atrophy and chorioretinal scars may increase retardation values, although these artifacts are apparent on the image.

Note: Even though retardation values of structures of the eye other than the RNFL can interfere with the accuracy of these measurements, values are constant for any given individual. Consequently, serial scans may be used to follow a patient over time and determine progression of disease.

  • RNFL thickness values in normal and glaucomatous eyes show considerable overlap because of large variability in the number of axons among normal subjects. Accordingly, the mean retardation values of the GDx vary considerably among normal subjects.

However, retardation ratios of the superior or inferior region compared to the temporal area have good correlation with visual field mean deviation for both normal patients and those with glaucoma. (Sensitivity and specificity can be as high as 96% and 93% respectively.)

The two formats. Differences between the GDx Nerve Fiber Analyzer and the GDx Access include:

  • The GDx Nerve Fiber Analyzer captures the image with four times more pixels than the GDx Access.
  • The Access unit is a smaller, more portable unit available for lease only, with a fee-per-exam program. (In contrast, the Nerve Fiber Analyzer must be purchased.) The GDx Access includes software upgrades and services.

The GDx is better suited for a large volume practice with a sizeable glaucoma population. The GDx Access is better suited for a smaller glaucoma population.

Optical coherence tomography

Optical coherence tomography (OCT) is similar to ultrasonography, but it makes its measurements using light instead of sound. For that reason, it has much higher resolution in both axial and lateral dimensions. (The OCT instruments from Zeiss Humphrey have a resolution of 10 microns axially and 20 microns for transverse.)

Because this technology has obvious potential for glaucoma detection, Zeiss Humphrey has recently produced a new version of the instrument -- the OCT2 -- with added features specifically designed to increase the instrument's usefulness in glaucoma detection. The OCT2 lets you monitor three relevant variables: the optic disc, the RNFL, and macular thickness and structure.

How it works: Optical coherence tomography uses low-coherence interferometry to measure the echo time delay of light, which is backscattered from different layers in the retina. (The OCT uses a super luminescent diode with a bandwidth of 30 nm as its light source; the OCT2 uses a broad band of wavelengths.)

The instrument then uses the time delay of the backscattered light to calculate the distance between reflecting surfaces, based on the refractive index of the medium. A constant value of 1.36 is assumed for retinal tissues.

By scanning the beam across the retina, the OCT2 creates a two-dimensional cross-section of the area being scanned. This makes it possible to "see" the structural condition of the internal tissues, including photoreceptors, retinal pigment epithelium and choroid.

The instrument can measure retinal changes directly using nerve fiber analysis or monitor progression using volumetric analysis and checking cup-to-disc ratios. OCT measurements of the RNFL correlate well with the functional status of the eye as measured by automated visual fields.

Coding and Reimbursement

In 1999 the American Medical Association approved procedure code 92135, known as "scanning computerized ophthalmic diagnostic imaging" (previously known as scanning laser glaucoma testing). This code encompasses all of the laser imaging technologies of the optic nerve and nerve fiber layer, including the HRT, GDx and the OCT. The Health Care Finance Administration (HCFA) has approved the code for reimbursement for Medicare patients.

Some other useful facts about reimbursement:

  • The national average Medicare reimbursement allowable for these procedures is $59.68 per eye.

  • These tests can only be billed once a year for patients diagnosed as glaucoma suspects. For all other glaucoma diagnoses, the code can be billed twice a year.

  • Fundus photography can't be billed the same day if code 92135 is used. However, your office can bill visual fields on the same day.

  • The code for an FDT screening is 92080. (In Baltimore, Md., it's reimbursed at $60.43 for two eyes.)

  • The SITA visual field test is coded as 92083. (It reimburses at $65.95 for two eyes in Baltimore, Md.)

  • Coding for perimetry and fundus photography is per patient, but coding for computerized imaging is per eye.

-- Mireille P. Hamparian, M.D., and Alan L. Robin, M.D.

Advantages of OCT technology. These include:

  • Unlike ultrasonography instruments, OCT instruments are noncontact.
  • The OCT2 includes a limited age-related normative database.
  • The OCT 2 can compare current scans to previous scans of the same patient.
  • The OCT2 can scan in a straight line, or in a circle (which is particularly useful for scanning the optic disc). In addition, it can scan a series of concentric circles and create a donut-shaped retinal nerve fiber layer thickness map, or make a series of straight-line scans through a single point and use the information to analyze disc structure.
  • In most cases, the performance of the OCT isn't affected by the refractive state of the eye, minimal nuclear sclerosis or media opacities.
  • In addition to optic nerve measurements for detection of glaucoma, the OCT can be used for diagnosing diseases of the retina, as well as the anterior segment and cornea.

Other points to consider. These include:

  • It requires pupil dilation.
  • Posterior subcapsular and cortical cataracts can significantly impair the quality of measurements.
  • The normative database is still small.
  • Although the depth values of the scan are independent of the optical dimensions of the eye, the length of a scan across the fundus does depend on the optical dimensions of the individual eye.
  • The assumption of a constant value for magnification results in a small error in standard deviation.
  • Although significant differences in RNFL thickness between groups of normal and glaucomatous subjects have been demonstrated, considerable overlap of individual measurements between the groups exists because of variability of RNFL thickness in normal subjects (as discussed earlier).

Everybody wins

This new generation of technology makes it possible to do a much better job of catching glaucoma early and monitoring its progression. In addition to quantifying various aspects of optic nerve topography and retinal nerve fiber structure that were previously very difficult to assess, the technologies offer our practices a host of benefits:

  • The simpler, more user-friendly nature of the new technologies means that a less-trained technician (requiring less salary) can operate them. This also allows for better utilization of manpower.
  • The need for less training means less trauma when a technician leaves your practice. (In contrast, performing fundus photography requires great skill, so replacing a good technician can be a real problem.)
  • We can evaluate our patients more profitably because tests take less time.

Future advances in technology and design will no doubt offer even greater benefits for patients and practices alike. But in the meantime, today's options have plenty to offer, and both your practice and your patients stand to benefit. If you've been considering purchasing some new instrumentation to help bring your practice into the 21st century, there's no time like the present.

Characteristics that Count

For these new technologies to have value in today's clinical practice, certain requirements should be met:

  • The technology must be able to detect glaucoma earlier and be more sensitive for assessing disease progression than previous technology.
  • The new technology should provide immediate validation of the quality of its results.
  • Research must demonstrate the clinical relevance of the measurement data. For example, can the data be used for categorizing individual patients? Can it differentiate between early glaucoma and late glaucoma? Can it distinguish patients with ocular hypertension and other risk factors from primary open-angle glaucoma (POAG) patients?
  • Costs associated with the use of the new modality -- including the cost of the machine itself and the cost of necessary associated equipment and manpower -- must be justifiable. Does using the instrument result in cost savings for the practice? Or, if there is increased cost, can this be justified by benefits such as reduced numbers of patients under review, less frequent or time-consuming visits, and/or improved data from which treatment decisions can be made?
  • The time required to acquire and analyze data must be reasonable.
  • The new technology should be easy to integrate into existing clinic structures.
  • The technology must be patient-friendly.
  • The patient should be able to perceive a benefit from using it.
  • The instrument should be easy for a technician to use and maintain so that minimal additional training is required.
  • Results should not require extra processing (i.e. film processing).
  • Resulting data should be easy for a clinician to understand so that he can instantly put the results into clinical practice.
  • Testing time must be short enough to prevent patient fatigue from becoming a confounding factor.

-- Mireille P. Hamparian, M.D., and Alan L. Robin, M.D.

Dr. Robin is a world-recognized leader in the diagnosis, medical management and surgical treatment of glaucoma. He's clinical professor of ophthalmology at the University of Maryland, an associate professor at the Wilmer Institute of the Johns Hopkins School of Medicine and adjunct clinical professor for the Department of Veteran Affairs in the Maryland healthcare system. He has published and lectured extensively, and is a member of the editorial board of Graefe's Archives of Ophthalmology.
Dr. Hamparian is a glaucoma specialist in Enrico, Calif.

Email Address for article to be mailed to:
|
© Wolters Kluwer Pharma Solutions, Inc.|VisionCare Group
All Rights Reserved - Terms and Conditions of Service

Thursday, 30 September 2010

trufocal

Trufocals-Red.jpg
TruFocal eyeglasses from Zoom Focus Eyewear. (Zoom Focus Eyewear)

For many people past the age of 40, focusing on close objects restaurant menus, — for instance — just gets harder and harder.

More from WSJ.com:

Paper-Thin Screens With a Twist

A Genetic Test for Prospective Parents

Cash Prizes for Innovation Are Surging

Most people with this condition, called presbyopia, eventually give in and get reading glasses, bifocals or glasses with progressive lenses.

But what if there were another alternative that didn't require people to carry an extra set of glasses or have only part of their field of vision in focus at any one time?

Zoom Focus Eyewear LLC, of Van Nuys, Calif., has just such an option, and with it won this year's Silver Innovation Award. The solution: eyeglasses, called TruFocals, that the wearer can manually adjust to give clear, undistorted vision whether reading a book, working on a computer or looking into the distance.

The judges praised the potential large-scale benefit of TruFocals. Richard S. Lang, one of the judges and a physician at the Cleveland Clinic, called the technology a paradigm shift in the way it addresses a problem "that has been handled the same way for many years."

Mimicking the Eye

For more than 100 years, researchers have tried to come up with adjustable eyeglasses; a Baltimore inventor filed a patent on the idea in 1866. But a workable product that's easy to adjust, thin, lightweight and accurate proved elusive.

Stephen Kurtin, a California inventor who previously devised one of the first word-processing programs, turned to the problem in the early 1990s. His solution, TruFocal eyeglasses, mimic the way that the lens of the human eye stretches and contracts to adjust focus.

Each TruFocal lens is actually a set of two lenses: an outer lens, and an inner lens made of a flat glass plate attached to a flexible membrane that contains a clear, silicone-based liquid. A manual slider on the bridge of the eyeglasses adjusts the focus by changing the shape of the membrane. The outer lens can be custom made to correct other vision problems besides presbyopia, including nearsightedness and astigmatism.

Once the TruFocal lenses are adjusted, the entire field of vision is in focus, unlike bifocals and progressive lenses, which keep only a limited area in sharp focus. So a user can adjust the glasses to focus only on the book he's reading, then look up and readjust them to focus solely on the TV across the room.

One Shape, Several Colors

There were some false starts along the way. Mr. Kurtin considered using liquid-crystal electronics to adjust the focus, but the batteries proved problematic. The first model weighed seven pounds. But after nearly 20 years of refinements, the first TruFocal glasses were introduced in 2009.

There's a downside for the fashion conscious: The glasses come in one shape — round — and have been compared to the spectacles worn by Harry Potter. (They are sold in several colors, though.) The circular lenses are necessary to the workings of the technology; with any other shape, the flexible membrane couldn't keep a spherical shape when compressed.

TruFocals aren't the only glasses with adjustable lenses. But other products are mainly designed for users in the developing world, where optometrists aren't widely available; they are meant to be adjusted once by the user to correct the focus at a given distance and then set that way. The Zoom Focus product is aimed at wearers who want to make constant adjustments in their vision.

Next month, TruFocals will be rebranded as Superfocus glasses. The company will also change its name, to Superfocus LLC.

___

Friday, 27 August 2010

Causes

CausesI have some ideas as to what you could do to fast track investments in the power sector. We need to borrow a leaf from the Americans. In the 70s, America did an audit of its power infrastructure in relation to its anticipated population growth and came to the conclusion that if something drastic was not done about ensuring heavy and radical investments in the power sector, the United States would have rolling black outs down the road. They analyzed their problems and came up with a plan.

The plan did work for them and I don't see why we should not borrow it here and implement.

What they did was to open up the power sector to private sector investment without any restrictions as to how much power you can generate and how you can distribute it. The current requirement in NIGERIA that private sector and state governments must surrender the power they generate to the national grid if it exceeds 100 MW MUST be abolished. It is the number 1 obstacle to investors readiness to come in boldly to invest. Your administration must by Executive order abolish this - the order must state as follows:

"individuals, private companies, Housing Estate Developers and Residents, Cooperatives, private and public consortia, state governments and local governments can generate any amount of MW of electricity that they wish. They also do not have to surrender the power they generate to the national grid. Every state government can generate the power that its state will need and pass any excess power to the National grid if it so desires."

An amendment should be proposed by the Presidency to the Electric Power Sector Reform Act 2005 which states that a single company cannot own and control the generation, transmission and distribution for the same power project. This is wrong. The only way an investor can be confident enough to invest is if it can have some level of control over how the power it has generated gets to the final consumer. Even if a power purchase agreement is signed it may not yield the desired results because a lot of communities across the country tap electricity for free from transmission lines and PHCN does not have the logistical capabilities, vision and integrity to plug those leakages. What it means is that the PHCN may sign a POWER PURCHASE AGREEMENT but may not be able to pay for the electricity it is purchasing from the company. After all, PHCN will have to use the funds it gets from the end consumers to pay the company that it is purchasing the power from. The whole system is bound to collapse eventually if the companies generating the electricity are not allowed to control the transmission and the distribution channels. A government guarantee of such a scheme where PHCN still has full control of the power transmission lines would have a high rate of default and will not be sustainable. The exigencies of the times make it necessary to sweep away these archaic provisions of the Electric Power Sector Reform Act 2005. You need to adopt a no 'holds barred' "gloves off" approach to end the hydra headed monster called power failure in Nigeria.

The US government gave SOVEREIGN GUARANTEES/IRREVOCABLE STANDING PAYMENT ORDERS (ISPO) to companies who expressed their readiness to invest. Not 1 cent of the US government's treasury funds came into the hundreds of power projects that sprung up from this deliberate policy. All the UNITED STATES government did was to guarantee the debt finance or loans that these power companies got from both UNITED STATES banks and foreign banks. Because of this, policy the banks were bullish about lending to the owners and sponsors of these projects. In order to protect itself the US government ensured that the companies that received the benefits of these guarantees were capable of carrying out and implementing the projects.

GEJ: You should do the same thing. Just copy the AMERICAN MODEL that worked perfectly well for AMERICA.

I am part of a consortium of EUROPEAN Companies that has in its possession 3, 000 MW GAS TURBINES. It still has it in its possession as a result of the failure of the original consignee to take the consignment in EUROPE as a result of the bankruptcy of that company. Typically turbines take 1 to 2 years to fabricate. Fortunately these turbines are in storage and on ground in EUROPE and are brand new. With your full support we can bring these turbines and deploy them in AKWA IBOM STATE (because of its high level of gas infrastructure) and get them up and running within maximum of 9 months.

If we can get expression of interest from you directly and your full weight and support behind the project I can assure you that we will implement it 100% without a dime of Federal Government money. What we will need is the Sovereign Guaranty of the Nigerian Federal Government and a POWER PURCHASE AGREEMENT that takes all the things I discussed above into consideration. We will raise the funds 100% and execute the project within 9 months and add the power to the NATIONAL GRID for the enjoyment of Nigerians.

SUPPORT FOR SMALL BUSINESSES

Ensure that the N500 Billion you said has been set aside to stimulate the economy gets to the small eatery operator, the businesses center/cyber cafe operator and other similar small businesses. It should not go to only big companies. Kindly study the model of the US SMALL BUSINESS ADMINISTRATION -http://www.sba.gov/ I know we have SMEDAN – http://www.smedan.gov.ng but it has not been an effective organization compared to the US SMALL BUSINESS ADMINISTRATION. From the next link you will see the various units that they have and what they do, are doing and have been doing over the years -http://www.sba.gov/aboutsba/sbaprograms/index.html

Mr. President need to recreate SMEDAN and copy the US Model in order to ensure that the funds that are meant to get to small businesses actually get to them. A situation where $500m that was set aside by the CBN for small businesses by the last administration is 100% released to a single big business is scandalous. This was made possible by virtue of a waiver that was granted at the time to the Banks by CBN. Small businesses are the greatest employers of labour and the biggest tax payers as evidenced by the Success of the LAGOS STATE GOVT's PAYGO TAX Program. This fact is also known globally. It is also the best way to support fresh graduates who may not be able to secure employment immediately after their NYSC. Many of them have ideas for small but effective businesses. We need to accept the fact that the biggest employers of labour are small businesses and we should do all we can to support their emergence and growth.

The Loan Program is SBA’s primary program for helping start-up and existing small businesses, with financing guaranteed for a variety of general business purposes. SBA does not make loans itself, but rather guarantees loans made by participating lending institutions. In this way, taxpayer funds are only used in the event of borrower default. This reduces the risk to the lender but not to the borrower, who remains obligated for the full debt, even in the event of default.

I will urge your administration to put in place a loan program like this one for unemployed graduates to enable them to access loans. Your administration will source for the funds from the Banks and guarantee repayment. The banks will be the source of the funds not the government. U can weave this into the N500 billion program that u just announced. To qualify for it the graduates would submit a business proposal and the proposal should be reviewed by a Unit set up in each branch of every bank to handle such applications. You can put a cap of N1m per borrower on the loans to be given and give them a 5 year repayment term @ 7% interest rate , with zero prepayment penalty for those that want to pay back early. The scheme can allow a past borrower who pays up the loan in less than 3 years to access additional loan of N5m on the same repayment terms. I would urge you to take a serious and hard look at this proposal and let it form part of your agenda for change in Nigeria!

BUNMI AWOYEMI is an Oil & Gas and Energy Consultant.

Bookmark and Share

Subscribe to comments feedComments (1 posted):

Success Alenoghena Eugene on 07/08/2010 04:39:25
avatar
I advise the President and his entire team of special advisers to take a critical study of this open letter and apply the methods therein for the
betterment of our dear country, (Nigeria).

Mr. President needs credible people in the likes of Bunmi Awoyemi whose brilliant ideas will move this country forward and not those sycophants that
are parading themselves within the presidency.

I advise the National Assembly members to take a proper study of this letter also and put in place as a matter of urgency,adequate legal and business framework that would make investors comfortable in the country.

This is what Ghana is doing and it;s working. Apart from the framework, Ghana’s democratic credentials are exemplary enough to attract any investors and as you must know, Ghana's economy is rated among the best and safest in Africa right now.

With their brilliant policies and strategies aimed at expanding their economy, there is a call on the global business community to explore and invest in attractive opportunities within the various sectors of Ghana's economy. The Ghana Government is also taking their time on their Oil, just to ensure that Ghana’s oil becomes a blessing rather than a curse to the country.

For example, I have a mandate right now to source for investor(s) for the establishment of a 200,000bpd Export Oriented Oil Refinery in Ghana.The project is purely 100% private initiative and the Government playing the facilitator's role with assurance of sovereign guarantee to investors who expressed readiness to invest.

Nigeria should not be ashamed at this moment to lean from Ghana's policies and strategies. All we (Nigerians) need right now is good governance, meaningful development and peaceful co-existence.

Finally, I urge all Nigerians and the National Assembly members to take a serious and hard look at what Bunmi Awoyemi had proposed and let it form part of your next agenda for a change in Nigeria!

GOD BLESS NIGERIA!

Success Alenoghena Eugene
CEO - Shiolona Ltd, (Marine Oil & Gas).