The Nigerian National Petroleum Corporation (NNPC) has assured stakeholders that the $2.8 billion Ajaokuta-Kaduna-Kano, AKK, gas pipeline project will not go the way of other such mega infrastructure in the country that failed in the past.
This assurance was given by the Managing Director of the Nigerian Gas Company (NGC), a subsidiary of the NNPC, Mr. Seyi Omotowa, while speaking during a web conference tagged: “Economic and Investment Opportunities of the AKK Gas Pipeline,”.
Recall that the construction of the project which is a section of the Trans-Nigeria Gas Pipeline (TNGP) with a capacity to transport about 2.2 billion cubic feet of gas per day was launched by President Muhammadu Buhar and is being financed through an 85 per cent debt and 15 percent equity with a loan facility from the China Export & Credit Insurance Corporation (Sinosure) with a 12-year repayment plan and completion period of 24 months.
Omotowa noted that all stakeholders involved in the project had put in place measures to ensure its completion on schedule.
He said that the corporation was considering increasing its 15 per cent equity share of the project so as to reduce the loan burden.
Omatowa gave the factors responsible for the failure of such projects in the past, as poor scope definition, optimistic scheduling, issues around changes that occur during execution and poor contractor selection processes had been resolved.
Things are being done differently on the AKK project, by the application of the transparency, accountability and performance excellence initiative, Omatowa assured.
According to Omatowa, the NNPC project for the first time is having a steering committee led by the GMD, comprising top management of NNPC and key external stakeholders from the office of the chief of staff, representatives of Ministries of Justice, Finance and National Planning, CBN, Debt Management Office as well as NEITI.”