Senate to probe NNPC’s planned $2.317bn Ajaokuta- Kaduna- Kano gas pipeline

THE Senate has resolved to invetigate the Nigerian National Petroleum Corporation (NNPC) over the planned execution of a $2.3 billion Ajaoluta-Kaduna-Kano gas pipeline.

Chairman, Senate Committee on Public Procurement, Senator Joshua Dariye, who stated this in an interview, said the Red Chamber would look at the project even though the details of the contract had not been brought to its attention.

The proposed gas pipeline project valued at about N834 billion caught the attention of industry watchers following NNPC’s request for a certificate of no objection from the Bureau of Public procurement (BPP).

There were insinuations the project might not have been well thought out, especially in terms of financial outlay, a development said to be causing ripples in the industry.

The NNPC recently requested the BPP to furnish it with the clearance certificate to enable it to proceed with the award of the Engineering, Procurement and Construction, (EPC) of the planned Ajaokuta- Kaduna-Kano (AKK) Gas Pipeline.

The petroleum corporatin said that the award would go to the  three most competitive Tenderers with the project  totalling the sum of  $2.317 billion (N834.12 billion).

Senator Dariye said: “The Senate doesnt get involved in Executive action, especially at the planning stage or when projects are being proposed. It is their own responsibility and that of the BPP to ensure that the process was carried out in a very transparent manner and to ensure that all the bidding processes were followed which include publications in the tenders journal.”

He further disclosed that even though the attention of the Senators had not been drawn to the project the lawmakers would ask question during oversight.

He said that the planned construction was being handled by the Executive, adding that the BPP has a duty to ensure that the  bidding process is transparent and followed the due process.

Dariye further said: “ It is too early for the Senate to react. We can only come in and investigate when our attention us brought into it or when we discover during our oversight function that the process was not transparent. It is then we can look at it. But at the moment, let us allow the BPP to do its job. When the Senate is drawn into it, we will take action. But for now, the Executive is handling the process.”

The NNPC had in a memo to the BPP sought the approval of the agency, for a Certificate of No objection to enable the corporation obtain Federal Executive Council’s approval “to award the engineering, procurement and construction, (EPC) of Ajaokuta- Kaduna-Kano(AKK) Gas Pipeline to three most competitive Tenderers…”

The memo.further indicated that the first tenderer, an oil company was awarded Lot 1 “Ajaokuta TGS KP O – Abuja 200 length 200 km of a negotiated lump sum of USD 727,250,000 and additional sum of USD 50,907,500 only for project Management and Engineering Consultancy Services and 2 years spare parts amounting to the total price of USD778,157,500 to cover the payment for Customs Duty, factory Acceptance Test and Training of Operation and maintenance staff, Engineers Expenses and contingency for unforeseen works.”

Another consortium was given “Lot2: Abuja TGS KP200- Kaduna KP 393, total length 193 km of a negotiated Lump Sum price of USD 710,150,000.00 and additional sum of USD 49,710,500.”