The Infrastructure Concession Regulatory Commission (ICRC) has revealed that 2.8 billion dollars Ajaokuta–Kaduna–Kano (AKK) gas pipeline project would soon kick-off.
The Acting Director-General, ICRC, Mr Chidi Izuwah, revealed that the project would be executed through a Public-Private Partnership (PPP), under the supervision of the Minister of State for Petroleum.
“The Federal Executive Council (FEC), at its meeting on Dec. 13, gave approval to the 614 kilometer 40-inch gas pipeline project estimated to cost about 2.8 billion dollars.”
“The project will be delivered through a Build and Transfer PPP model with 100 per cent Contractor Financing. “ The AKK Gas Pipeline Project constitutes Phase 1 of the Trans-Nigeria Gas Pipeline (TNGP) Project.
“ It originates from Ajaokuta, traversing Abuja, Kaduna and terminating at a terminal gas station in Kano. The proposed pipeline will be supplied with quality gas sourced from various gas gathering projects,’’ he said
It would be recalled that 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
The aim was to maximize the effect of gas in the domestic economy, to ensure long–term energy security while optimizing the country’s export gas capability.
“In line with the ICRC Act 2005, the ICRC provided regulatory guidance to the Nigerian National Petroleum Corporation 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.’’ He said.
The ICRC boss also commended President Buhari for approving the project, which he said would ensure sustainable development in the country.
The ICRC Act 2005 empowers the commission to take custody of every concession agreement made under the act and monitor compliance with terms and conditions of such agreement.
It was established to regulate PPP activities in Nigeria and to address physical infrastructure deficit which hampers economic development.