The Federal Executive Council (FEC) has approved the ratification of the award of a contract worth $11,174,769,721.74 for the implementation of the Lagos-Calabar coastal standard gauge railway project.
The council in its meeting presided over by Vice President Yemi Osinbajo at the presidential villa, Abuja on Wednesday also approved the acquisition of a 20% minority stake worth $2.76 billion by the federal government in Dangote Refinery.
Similarly, it gave the go-ahead for the award of contracts for the rehabilitation of Warri and Kaduna refineries at the combined cost of $1.484 billion.
Minister of Information and Culture, Lal Mohammed; Minister of State for Petroleum Resources, Timipre Sylva; Minister of State for Education, Chukwuemeka Nwajiuba and the Minister of Power, Sale Mamman briefed correspondents at the end of the meeting.
Speaking on the memo presented to FEC by the Minister of Transportation, Rotimi Amaechi, who was absent at the briefing, Lai Mohammed explained the approvals for rail projects.
He said “The first one actually has to do with the Kano-Jibia rail and then the other one has to do with the Port Harcourt-Maiduguri route.
“Actually, what was approved there today was funding to ensure that work starts immediately on those two routes.
“Another memo that was approved today was the ratification of the President’s approval for the award of the contract for the Lagos-Calabar coastal standard gauge rail.
“You’ll remember that this is a very old project, which we inherited. Under the former administration, approval was given, but nothing was done, but today, the council has given the approval to commence the Lagos-Calabar coastal route.
“This particular route is very important because, after the Lagos-Kano route, this Lagos-Calabar coastal route actually will link all the coastal cities in the country.
“The proposed route alignment is to go from Lagos to Shagamu, Shagamu to Ijebu-Ode, Ijebu-Ode to Ore, Ore to Benin City, Benin to Sapele, Sapele to Warri, Warri to Yenagoa, Yenagoa to Port Harcourt, Port Harcourt to Aba, Aba to Uyo, Uyo to Calabar, Calabar to Akamkpa to Ikom, to Obudu Ranch, with a branch line from Benin City to Asaba, Onitsha Bridge and then Port Harcourt to Onne Deep Seaport.
“This particular project is very important, especially for our coastal economy.
“The cost of the project is $11,174,769,721.74 and we have six years for the completion of this project.”
Sylva, who spoke on the acquisition of a minority stake in the Dangote Refinery, revealed that the council also approved the award of contracts for the rehabilitation of Warri and Kaduna refineries worth $1.484 billion.
The Minister of State for Petroleum Resources said: “Council approved the award of contracts for the rehabilitation of Warri and Kaduna refineries to Messers Saipem SPA and Saipem Contracting Limited at the combined total sum of $1.484 billion, $897,678,800 Warri refineries and $586,902,256 for Kaduna refineries.
“The Executive Council also approved the acquisition of 20% minority stakes by the NNPC in Dangote Petroleum and petrochemical refinery in the sum of $2.76 billion.
“The completion of the rehabilitation of Warri and Kaduna refineries is going to be in three phases. The first phase will be completed within 21 months, in 23 months phase two will be completed and in 33 months, the full rehabilitation will be completed.”
Giving an update on the Port Harcourt refinery, he said work is going on as planned as the contractors have already been paid 15% of the contract sum.
He added: “Work has already commenced in Port Harcourt refinery, already the first 15% of the contract sum has been paid to the contractor and the contract was fully mobilised to site.
“We also discussed in council the need for us to give periodic updates. Soon, we’ll be going to inspect the work in the Port Harcourt refinery, and you will all be with us on that visit.”
The council also approved the award of contracts under the ministries of education and water resources.
The Minister of State Education, Chukwuemeka Nwajiuba, revealed that his ministry presented two memos to FEC, saying: “Today, the Federal Ministry of Education presented two memos. The first one dealt with the ratification of the convention Nigeria had already acceded to. The convention seeks to regularise the recognition of certificates and diplomats all across Africa.
“The second memo also dealt with the award of contract for the building of two blocks of social science complexes at Adamawa State University in Mubi for a total sum of N1,103,000,000 which was a TETFUND allocation that emerged from the year 2017 through 2021.”
On his part, Minister of Power, Engr. Sale Mamman said FEC approved two projects for his ministry.
He explained: “One is the construction of 2 by 60 MVA 132 33 substation at Gagarawa, Jigawa State in favour of Messrs Power Control and Appliances Limited in the sum of N454,212,396.05.
“The second one is the award of the contract for the engineering, procurement and construction of 2 by 30 MVA 132 33 substations at Bonny, Ibom, Akwa Ibom State in favour of Messrs YEMEC West Africa Limited in the sum of US$6.2 million offshore plus N1.8 billion onshore.”
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