President Buhari’s cabinet members have endorsed the $2.8 billion Ajaokuta–Kaduna–Kano (AKK) gas pipeline project which is expected to be delivered through a Build and Transfer (BT) PPP model with 100 per cent Contractor Financing.
The 614 kilometres, 40-inch gas pipeline project was presented by Ibe Kachikwu, Minister of State for Petroleum to the Federal Executive Council (FEC) together with the Compliance Certificate at the December 13, 2017 meeting.
READ ALSO: Nigeria’s AKK-Pipeline project lacks economic viability
The Public-Private Partnership PPP Compliance Certificate of the project in line with the Infrastructure Concession Regulatory Commission ICRC Act and the National Policy on Public-Private Partnership was issued by the ICRC on July 10, 2017.
The AKK Gas Pipeline Project constitutes Phase 1 of the Trans-Nigeria Gas Pipeline (TNGP) Project, originating from Ajaokuta traversing Abuja, Kaduna and terminating at a terminal gas station in Kano.
In 2008, the Federal Government approved the Nigerian Gas Master Plan (NGMP) to accelerate the development of gas pipeline infrastructure for domestic and export markets with the intent of maximizing the effect of gas in the domestic economy, ensuring long – term energy security while optimizing the country’s export gas capability.
READ ALSO: President Buhari to flag-off $2.8 billion Ajaokuta-Kaduna-Kano Gas Project
In line with the Infrastructure Concession Regulatory Commission (Establishment) Act 2005, the ICRC provided regulatory guidance to the NNPC during the project development stage. The ICRC will also take custody of the Public-Private Partnership agreement, monitor and ensure compliance during the project execution phase.
“The proposed pipeline will be supplied with quality gas sourced from various gas gathering projects,” the ICRC said on Wednesday in a statement signed by its Acting Director-General/CEO, Chidi K.C. Izuwah.
Authorities at the ICRC say they are pleased with President Buhari’s leadership on this project which they term “monumental and nationally transforming.”
“We also congratulate the Minister of State, Petroleum Resources Dr Ibe Kachikwu and the GMD of NNPC, Dr Maikanti Kachalla Baru on this laudable attempt at bequeathing to Nigeria a viable platform for sustainable growth and competitiveness in line with President Muhammadu Buhari’s infrastructure development vision,” Izuwah said in the statement.
Onyinye Nwachukwu, Abuja
