The Nigerian National Petroleum Corporation (NNPC) yesterday 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.
Speaking yesterday during a web conference tagged: “Economic and Investment Opportunities of the AKK Gas Pipeline,” the Managing Director of the Nigerian Gas Company (NGC), a subsidiary of the NNPC, Mr. Seyi Omotowa, noted that all stakeholders involved in the project had put in place measures to ensure its completion on schedule.
President Muhammadu Buhari had officially launched 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.
It 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 added that the corporation was considering increasing its 15 per cent equity share of the project so as to reduce the loan burden.
He said from experience, all the factors responsible for failure of such projects in the past, including poor scope definition, optimistic scheduling, issues around changes that occur during execution and poor contractor selection processes had been resolved.
Omotowa said: “We believe that from the experience we will bring along with other partners in construction technologies of the consortium, it will help in achieving the timeline for completion.
By Emmanuel Addeh, ThisDay