FG Gives PPP Approval for $2.8b Ajaokuta-Kaduna-Kano Gas Project

The Federal Government has approved and issued the Public Private Partnership (PPP) Compliance Certificate for the $2.8 billion Ajaokuta–Kaduna–Kano (AKK) gas pipeline project.

The Acting Director General of Infrastructure Concession Regulatory Commission (ICRC), Chidi K.C. Izuwah, confirmed this yesterday.According to Izuwah, this is in line with the ICRC Act and the National Policy on Public Private Partnership Izuwah in a confirmation statement said: “ The Federal Executive Council (FEC) at its meeting on December 13, 2017 gave approval to the $2.8 billion. The project will be delivered through a Build and Transfer (BT) PPP model with 100 per cent Contractor Financing.

 

The 614-kilometre 40-inch gas pipeline project was presented by the Minister of State for Petroleum to FEC together with the Compliance Certificate.

The AKK Gas Pipeline Project constitutes Phase 1 of the Trans-Nigeria Gas Pipeline (TNGP) Project. It originates from Ajaokuta traversing Abuja, Kaduna and terminating at a terminal gas station in Kano. The proposed pipeline will be supplied with quality gas sourced from various gas-gathering projects, “ he explained.

In 2008, the Federal Government approved the Nigerian Gas Master Plan (NGMP) to accelerate the development of gas pipeline infrastructure for domestic and export markets with the intent of maximizing the effect of gas in the domestic economy, ensuring long – term energy security while optimizing the country’s export gas capability.

The ICRC boss further added that in line with the Infrastructure Concession Regulatory Commission (Establishment) Act 2005, the ICRC provided regulatory guidance to the NNPC during the project development stage.

The ICRC will also take custody of the Public Private Partnership agreement, monitor and ensure compliance during the project execution phase.

 

Source: Guardian