$2.6bn AKK Pipeline 10% Completed – Contractor
About 100 per cent local content is currently deployed for the construction of the $2.6bn Ajaokuta-Kaduna-Kano gas pipeline project, the contractor handling the project, Oilserv Limited, has said.
The Managing Director, Oilserv, Emeka Okwuosa, also told journalists during a recent inspection of the project that the gas pipeline, which was flagged off in July this year, was about 10 per cent completed.
Economic Confidential reported last Wednesday that China had approved and would disburse its 85 per cent loan required to fund the $2.6bn project.
The AKK pipeline project is 85 per cent funded by the Bank of China and Sinosure, a Chinese export and credit insurance corporation, while the Federal Government, represented by Nigerian National Petroleum Corporation, provides 15 per cent equity.
Brentex/China Petroleum Pipeline Bureau-CPP Consortia and Oilserve/China First Highway Engineering Company-CFHEC Consortia were announced as the Engineering Procurement and Construction contractors for the project.
Commenting on the workforce deployed for the construction of the project, Okwuosa said, “As a company, Oilserv is 100 per cent representative of local content from engineering to procurement to construction.
“The things we have to buy overseas that we cannot manufacture here, of course, are bought overseas. So, we are abiding by the stipulated local content laws.
“And you can see clearly that the materials we use here, even the vehicles we deploy here, are Nigerian made by Innosons Motors. So clearly local content is exemplified here.”
On the percentage of work done so far on the project, with a scheduled completion date of 2023, Okwuosa said pre-construction work commenced early on site.
He said, “For the percentage of work done in the last six months, let’s put it in perspective, normally in projects like this, you do engineering design and then go on with the procurement of materials. After that, the construction follows.
“But because of the fact that procurement will take time to happen, for when you order pipes they have to mill it overseas and ship it to Nigeria, they (China) issued us with these pipes that they have. We are close to 10 per cent of the entire project. However, it will speed up as soon as we have our line pipes.”