26 April 2012

Nigeria: FG Approves N100 Billion to Solve Gas Supply Problems

The Federal Executive Council Wednesday took major decisions to improve power supply situation in the country as well as awarded contracts in the maritime and educational sectors for N89, 472,200,000.

Briefing State House correspondents after the meeting presided over by President Goodluck Jonathan, Minister of Information, Mr. Labaran Maku, who came with the Minister of Transport, Senator Idris Umar, said the Council had to take the major decisions to lift the country from the present power supply problems due to lack of adequate gas to fire the thermal stations.

To ensure an improvement, he said the council approved the construction of strategic gas supply pipelines in Obiafu/Obrikom in Rivers State and Oben in Edo State. The two jobs were awarded to two Nigerian companies, Nestoil and Oilserv, both based in Rivers State.

Nestoil was awarded its own side of the contract for N19, 250,001,456.24 and $192,500,131.48 while the contract awarded to Oilserv was valued at N29, 520,429,031.33 and $83,924,564.75 million. Both have 24 months to deliver on the project.

"Council therefore approved the construction of strategic gas supply pipelines in Obiafu/ Obrikom in Rivers State and Oben in Edo State to two companies with duration of 24 months. Upon completion, the pipelines would facilitate gas supply to power plants, especially the ones located in the South and thereby improve power supply," he explained.

Also approved was the 25 year National Ports master plan for the Transport Ministry and the Nigeria Ports Authority (NPA) and awarded contract for the consultancy services of the plan for N266.9 million to Messrs CPSC Transcom International and DHV, Tripple E and Magnartis with completion period of nine months.

Equally, the council said it was setting up Information and Communications Technology (ICT) Centres by the Petroleum Technology Development Fund in educational institutions across the country to be implemented in phases.

Maku explained that the Phase 1 of the project which involved the building of physical structures has been completed hence the move to equip them in the next phase with ICT facilities.

He added that the contract for equipping the centres was valued at N9.9 billion with various completion periods given to different companies handling the project.

He said the project was expected to assist in skills transfer, create employment for at least 1000 Nigerians who would be involved in the construction and handing over of the projects.

The contract for additional woks at the National College of Petroleum, Kaduna was also approved by the Council and awarded to Messrs Kashnur Nigeria Limited and Prince and Princess Properties for N2.94 billion.

While Prince and Princess Properties will handle the building of the students hostel Lot A1 for N1.04 billion with 52 weeks completion period while the Lot 1B hostel was awarded to Kashnur for N1.08 billion with 52 weeks completion period.

Construction of the Multi-Purpose hall of the institution was awarded to Messrs Faranab Investment Limited for N551 million with 40 weeks completion period while Staff School Lot3b was awarded to Messrs Terraina Construction Limited for N294.5 million with 30 weeks completion period.

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