FG Approves Disbursement Of N953bn For AKK, Commends Job Execution

By Kunle Harmony

The federal government has approved the disbursement of N953 billion ($2.5) billion contract fund required for the execution of the Ajaokuta-Kaduna-Kano (AKK) pipeline.

This disclosure was made yesterday by the minister of finance, budget and national planning, Mrs. Zainab Ahmed during an inspection tour of the project.

Ahmed assured that funding would not be a hindrance as the government is committed to ensuring its completion in record time.

She said government had met its funding obligations on the project. According to her, “We have to give a sovereign guarantee to the lender so that the loan is concluded. I am glad to say the loan has been concluded, and very soon the disbursement to the contractor will start. For now, it is $2.5billion. We are glad that gas is being piped across the country.”

She stressed further that the development would help to revive industries across the country.

On his part, the minister of state for petroleum resources, Chief Timipre Sylva, described the pipeline project as the most significant industrialisation initiative embarked upon by the federal government in recent years.

He noted that the AKK project is the backbone of the nation’s economic development, adding that Nigerians are eagerly awaiting its completion.

Also, the group managing director of Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, expressed satisfaction with the progress made so far on the contract, even as Oilserv, the contractor, says over 10 per cent of the project has already been completed.

It may be recalled that the project, which was flagged off by President Muhammadu Buhari earlier this year is being executed in part by Oilserv, an indigenous pipeline and engineering firm.

The chairman of Oilserv, Emeka Okwuosa has said that over 10 percent of the project has been completed as the first phase of the pipeline spanning over 13 kilometers has been laid.

He added that nearly 100 per cent of the people working on the project, as well as other materials were sourced locally, stressing that the implementation of the project exceeds extant local content threshold.

“Over here we employ locals as we move to the community and empower them as sub-contractors; it is a testimony to the development of local content,” he said.

Okwuosa noted that while most Chinese funded projects are executed by firms from China, he has deployed the most sophisticated technology as a representation of local capacity.

“The things we have to buy overseas of course are things we cannot manufacture here. We are abiding by it; the materials and vehicles are from here. Most of our vehicles are from Innoson. So clearly local content is exemplified.

“For the line pipes, based on the fact that the loans are obtained from China, the line pipes have to be from China. Apart from that every other thing comes from Nigeria,” Okwuosa stated.

On his part, the vice chairman, Brentex-CPP, Sani Abubakar said his company will ensure the establishment of three pipeline academies at the end of the 24 months projected for the execution of the AKK pipeline.