The House of Representatives has summoned the contractor handling the $1.5 billion Port Harcourt Refinery, Milan based Tecnimont SpA.
Chairman, Ad-hoc Committee investigating the ‘status of Refineries in the country, Hon. Ganiyu Johnson who issued the notice frowned at the flagrant disregard for previous invitations.
According to the Group Managing Director, Mele Kyari disclosed that the contractor handling the contract for Port Harcourt rehabilitation issued a $300 million bond guarantee, a development which the lawmakers queried, hence requesting relevant documents.
Kyari who was represented by General Manager, Refineries & Petrochemicals, Mr Mustapha Yakubu, affirmed that the contract was awarded at the sum of $1,299,598 and completed the procurement as a lump sum contract, in addition to the sum of $99 million VAT and $162 million for other works.
He assured that the project which has attained a 30% completion level would be completed by March 2023.
Recall that the Managing Director of Sapien Engineering Company Limited, Walter Pelviana confirmed receipt of $135 million for the comprehensive technical survey of Port Harcourt Refineries, adding that an additional sum of £2.3 million was approved for the inspection of both Warri and Kaduna Refineries.
According to him, the contract which kick-started on the 6th May 2021 has attained a 30% completion level overall, with the target of March 2023 while part of it would be delivered within 32 months and the entire project is expected to be completed within 42 months.
He however maintained that the contracts for the rehabilitation of Warri and Kaduna Refineries have not been awarded, thereby debunking the fake news.
To this end, the Committee requested FEC approval of the $1.5 billion for Port Harcourt Refinery, approval of various expenditures incurred on the 26th July 2017 worth $5.321 million for comprehensive technical plants as well as another $55 million paid on the same day.
The lawmakers however expressed dismay over the response of the Sapien representative who expressed ignorance over the subject matter.
After perusing the documents submitted by NNPC to the Committee, the lawmakers also observed that similar contracts for the three refineries were awarded to another company (Technomont) in 2019.
The lawmakers also alleged that the contract was awarded to Sapien without further due diligence adding that the contract was not subjected to competitive bidding.
He however noted that the Kaduna Refinery cannot receive crude oil as a result of the damaged petroleum pipelines spanning 610 kilometres from Warri, Delta State.
When asked to give details of the actual amount spent on Turn Around Maintenance (TAM) on the refineries over the past 10 years, the NNPC representatives could not give a precise amount spent.
He stated that the last Turn Around Maintenance on Port Harcourt Refinery was done in 2000, adding that up till 2018 the Refinery was not operating optimally hence shutdown deliberately for the purpose of the ongoing rehabilitation.
When asked about the value of the Port Harcourt Refinery, the NNPC Group Managing Director said: “I cannot say exactly but it’s in billions.”
The lawmakers also queried the sum of $18 million expended by NNPC as well as an additional sum of $50 million above the approval limits, alleging that such development amounted to contract splitting.
To this end, the Committee demanded details of the $18 million expenditure, $50 million expended on the same day as well $1.5 billion approved for the Port Harcourt Refinery.
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