78 Companies Bid for Rehabilitation of NNPC Critical Pipelines
The Director General of the Infrastructure Concession Regulatory Commission (ICRC), Engr. Chidi Izuwah, has commended the leadership of the Nigerian National Petroleum Corporation (NNPC) for totally driving a transparent bid opening processes for the rehabilitation of NNPC pipelines and its critical downstream infrastructure noting that NNPC is showing to the world that things could be done correctly such that would yield value for Nigerians.
Engr. Izuwah said that the novel NNPC virtual public bid-opening exercise was in line with the ICRC infrastructure revolution drive.
“You showed to the world that you’re driving a totally transparent Public Private Partnership process in line with the infrastructure revolution of President Muhammadu Buhari. Today’s public bid opening for the rehabilitation of NNPC pipelines,depots/terminal infrastructure is quite commendable. I commend the GMD Mallam Mele Kyari, his team and the NNPC Group for showing to the world that things can be done properly and in the best interest of the shareholders,” Engr. Izuwah stated.
No fewer than seventy eight (78) companies submitted virtual bids to rehabilitate critical downstream pipelines, associated depots and terminal infrastructure of the Nigerian National Petroleum Corporation (NNPC) through the Finance, Build, Operate and Transfer (BOT).
In his opening remarks, the Group Managing Director of the NNPC, Mallam Mele Kyari, stated that the exercise was in fulfilment of NNPC’s avowed commitment to transparency and accountability as an Extractive Industries Transparency Initiative (EITI) partner company and as directed by President Muhammadu Buhari that all its operations must be guided by integrity.
“Nobody will cut corners, nobody will cheat the shareholders of this company and also this company will ultimately deliver value to its shareholders,” Mallam Kyari stated.
He noted that the Finance, Build, Operate and Transfer (BOT) model became imperative in the Corporation’s journey to rehabilitate its downstream infrastructure which over time have become vulnerable, lost value and integrity due to age and incessant vandalism.
“Some of these assets are as old as forty years (40) years and they are due for replacement and when you want to do a replacement of this scale, you do need a lot of resources. And we know that we require these assets so we decided that we bring in private partners who will fund these pipelines, they will construct it, they will operate it with us and then ultimately they will fully recover their investment from the tariff which we will pay for using these pipelines and as soon as they recover their cost and their margin, they will hand over these assets back to us,” Mallam Kyari informed.
Mallam Kyari averred that by the end of the first quarter of 2021, the final partners of the bid opening would be selected. He assured the bidders that the NIPEX portal which was deployed for the pre-qualification exercise was a time tested technology that would not give room for any human indiscretion.
Submitted by: Press release
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