Monday, 18 October 2021

* $1.2 billion for Lagos-Calabar coastal rail
• NNPC gets $2.76b for stake in Dangote Refinery

The rehabilitation of the Warri and Kaduna refineries, acquisition of 20 per cent stake in Dangote Refinery and the construction of the Lagos-Calabar coastal standard gauge rail line, are among the contracts approved yesterday by the Federal Executive Council (FEC).

Contracts worth $15.44 billion in the Transportation and Petroleum Resources ministries got the nod at the meeting chaired by Vice President Yemi Osinbajo.

Other contracts were approved for Education and Power ministries.

Information and Culture Minister Lai Mohammed, said $11.2 billion was approved for the Lagos-Calabar standard gauge rail line.

Minister of State for Petroleum Resources Timipre Sylva, said his ministry got approval on two memoranda, which included the award of $1.484 billion for the rehabilitation of both Warri and Kaduna refineries. A 20 per cent minority stake in Dangote Petroleum and Petrochemical Refinery will be acquired for $2.76 billion.

Besides the Lagos-Calabar coastal line, Mohammed said the FEC also approved funding for the Kano-Jibia and Lagos-Maiduguri rail lines.

Mohammed added: “Under the former administration, an approval was given, but was nothing was done, but today, the council has given 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 complete this project.”

Sylva said the rehabilitation of the refineries in Warri, Delta State and Kaduna, in Kaduna State, have been approved at a combined cost of $1.484 billion.

He explained that 15 per cent of the budget for the rehabilitation of the two refineries in Port Harcourt, which was awarded earlier this year, had been paid to the construction firm working at site.

The minister said FEC approved the award of contracts for the rehabilitation of Warri and Kaduna refineries to Messers Saipem SPA and Saipem Contracting Limited at $1.484 billion.

“The completion of the rehabilitation of Warri and Kaduna refineries is going to be in three phases. 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.”

Minister of State for Education Chukwuemeka Nwajiuba said: “Today (Yesterday), the Federal Ministry of Education presented two memos. The first one dealt with ratification of convention Nigeria had already assented to. The convention seeks to regularise the recognition of certificates and diplomats all across Africa.

“The second memo 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.

Power Minister Mamman Saleh said: ”The FEC has graciously approved two projects. One is the construction of 2×60 MVA 132 33 sub-station at Gagarawa, Jigawa State in favour of Messrs Power Control and Appliances Limited, in the sum of N154,212,396.05.

“The second one is the award of the contract for the engineering, procurement and construction of 2 by 30 MVA 132 33 sub-station at Ibiono-Ibom, Akwa Ibom State in favour of Messrs YEMEC West Africa Limited in the sum of $6.2 offshore plus N1.8 billion onshore.”

Published in Business and Economy

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