The Senate Committee on Local Content has expressed displeasure over the delay in the execution of the $2.8billion Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project.
The project is being handled by Brentex CCP Limited.
On Tuesday in Abuja, the committee, which is chaired by Sen. Natasha Akpoti-Uduaghan (PDP, Kogi-Central), engaged the contractor on the matter, specifically asking for details on the $1.27bn component of the contract meant for the building of stations along the gas line.
The Chairman of Btentex CPP Limited, Sani Abubakar, blamed the delay in the attempts being made by the Nigerian National Petroleum Company Ltd (NNPCL) to descope the $1.27bn station component, forcing a delay of about 18 months.
He stated, “NNPCL has written to us that they are descoping the $1.27bn stations (TGS) component of the contract and we have been in discussion with them for the past eighteen months.
“So, the delay in the execution of the contract is not from us but from the NNPCL.”
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However, Akpoti-Uduaghan told the contractor that on account of the information made available to the committee, the NNPCL is making the move to take the stations component of the contract from Brentex because the company was not keeping to the timeline for project execution.
She spoke more, “Should I tell you, you are refusing to mention something? The reason the NNPCL is considering descoping is that they are not satisfied with the pace of work.
“Let’s be very honest, they said it was supposed to be completed in 2022; it wasn’t completed and they gave you first extension to 2023 and even recently extended again, to complete everything by May, 2025.
“To the very best of every stakeholder’s knowledge, the stations are in your control because it still makes part of the $1.27bn as you said and the only person delaying is you.
“Consequently, to sum it up, just submit every correspondence between your company and NNPCL.
“If they have written to you to descope, let us see that letter because I’m very sure, NNPCL must have stated in such a letter that if you do not complete it by so, so date, we will take away this.
“They won’t just say we are descoping.”
The committee adjourned to make more inquiries into the issue.
