The Federal Executive Council (FEC) has approved the award of contracts for the rehabilitation of Warri and Kaduna refineries to Messrs Saipem SPA and Saipem Contracting Limited at the combined the sum of $1.484 billion.
The Minister of State, Petroleum Resources, Timipre Sylva, disclosed this Wednesday, while briefing State House reporters on the outcome of the federal cabinet meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
According to him, the Warri refinery rehabilitation got $897,678,800, while Kaduna Refinery would cost $586,902,256.
Sylva said the completion of the rehabilitation of Warri and Kaduna refineries would be in three phases.
"The first phase will be completed within 21 months. In 23 months, phase two will be completed and in 33 months, while full rehabilitation will be completed," he added.
The minister, while giving an update on the Port Harcourt Refinery, said: "Work has already commenced. Already, the first 15% of the contract sum has been paid to the contractor and the contractor was fully mobilised to the site.
Daily Trust reports that FEC had on March 17 this year approved the sum of $1.5 billion for the rehabilitation of the largest refining company in the country, Port Harcourt Refinery, to an Italian company, Tecnimont spa with three funding components from Nigerian National Petroleum Corporation (NNPC) Internally Generated Revenue (IGR), budgetary allocations provisions and Afreximbank.
Sylva also disclosed that FEC approved the acquisition of 20% minority stakes by the NNPC in Dangote Petroleum and Petrochemical Refinery in the sum of $2.76 billion.
Meanwhile, the Federal Executive Council (FEC) approved $11,174,769,721.74 for the contract for the Lagos-Calabar coastal standard gauge rail expected to be completed in six years.
The Minister of Information and Culture, Alhaji Lai Mohammed, who announced this after the weekly meeting said the project was important after the Lagos-Kano route because it would link all the coastal cities in the country.
He also revealed the commitment of the federal government to the Kano-Jibia rail project as well as the Port Harcourt-Maiduguri rail contract.
Mohammed said: "The Minister of transportation has another appointment and he presented two memos and both memos actually have to do with the commitment of the administration to expand and consolidate on the rail projects. The first one actually has to do with the Kano-Jibia rail and then the other one has to do with the Port Harcourt-Maiduguri route.
"Actually, what was approved there today was funding to ensure that work starts immediately on those two routes. Another memo that was approved today was the ratification of the President's approval for the award of the contract for the Lagos-Calabar coastal standard gauge rail. You'll remember that this is a very old project, which we inherited. Under the former administration, approval was given but was nothing was done, but today, the council has given the approval to commence the Lagos-Calabar coastal route.
"This particular route is very important because after the Lagos-Kano route, this Lagos-Calabar coastal route actually will link all the coastal cities in the country. The proposed route alignment is to go from Lagos to Shagamu, Shagamu to Ijebu-Ode, Ijebu-Ode to Ore, Ore to Benin City, Benin to Sapele, Sapele to Warri, Warri to Yenagoa, Yenagoa to Port Harcourt, Port Harcourt to Aba, Aba to Uyo, Uyo to Calabar, Calabar to Akamkpa to Ikom, to Obudu Ranch, with a branch line from Benin City to Asaba, Onitcha Bridge, and then Port Harcourt to Onne Deep Seaport.
The Minister of State, Education, Chukwuemeka Nwajiuba said the council approved the convention to regularise the recognition of certificates and diplomats all across Africa.
Nwajiuba said FEC also gave nod to the award of contract for the building of two blocks of social science complexes at Adamawa State University in Mubi for a total sum of N1,103,000,000.
Also briefing, the Minister of Power, Engr. Sale Mamman said the FEC has graciously approved the construction of 2 by 60 MVA 132 33 substation at Gagarawa, Jigawa State in favour of Messrs Power Control and Appliances Limited in the sum of N154,212,396.05.
"The second one is the award of the contract for the engineering, procurement, and construction of 2 by 30 MVA 132 33 substation at Ibino Ibom, Akwa Ibom State in favour of Messrs YEMEC West Africa Limited in the sum of US$6.2m offshore plus N1.8 billion onshore."