NNPC Says Allegation of AKK Contract Inflation is Baseless, Unfounded, Malicious … Threatens Just correct Motion Against On-line Publication
The Nigerian Nationwide Petroleum Corporation (NNPC) has brushed apart, in its entirety, the allegation that the Ajaokuta-Kaduna-Kano (AKK) Gasoline Pipeline Venture became inflated to the tune of $1.527billion, describing the accusation by an online medium in opposition to the Nationwide Oil Firm as unfounded, baseless and untrue.
A delivery this day in Abuja by the Corporation’s Community Normal Manager, Community Public Affairs, Dr. Kennie Obateru, stated that the NNPC became brooding about instituting perfect actions in opposition to the medium and her collaborators.
NNPC stated within the delivery that the corporate brought the untrue accusation to the eye of the Bureau for Public Procurement (BPP) which entirely rejected the speculative diagnosis of the online medium as unfounded and no longer portraying the correct map of the BPP’s file on the matter.
“This is clearly a concocted diagnosis geared toward attacking the character of the Community Managing Director (GMD) of NNPC, Mallam Mele Kolo Kyari, and the integrity of the Bureau of Public Procurements (BPP). Mallam Mele Kyari did no longer change into the GMD till July 2019 and he’s being mentioned in a process that took map in 2017 by the story of the publication. This is extraordinarily unlucky and malicious, brooding about that a extra lower of $300million of the contract designate became achieved below the Mele Kyari-led NNPC Management leading to the recognition by the Federal Executive Council as an remarkable action.
The starting up explained that BPP, following an intensive review and diagnosis of the procurement insist, confirmed that the unit prices for line pipes adopted by the NNPC for the conducting get been cheap in contrast with recent market prices for 40”, 36”, 20” and 14” steel pipes, adding that it became on that foundation that BPP confirmed and granted certificates of no objection dated August 11, 2017.
NNPC stated that the AKK conducting underwent a clear and open competitive tender process that resulted within the emergence of the most practical bidders, questioning how a competitive tender process will be inflated.
“Approval of all relevant authorities get been bought after an intense scrutiny by the numerous businesses. This is a deliberate strive and mislead the Nigerian public with baseless recordsdata”, the delivery exclaimed.
NNPC said the AKK pipeline conducting became one in every of the fundamental landmark tasks which get had clear processes from inception to this level, with the total evaluation exercise implemented by NNPC and Infrastructure Concession Regulatory Commission (ICRC).
The company cited the numerous stringent due process studies and scrutiny, internally and externally, which the AKK pipeline conducting became subjected to to contain:
• Conduct of conducting bankability look for, at conducting’s conception in 2013, undertaken by Normal Chartered Financial institution to verify appetite for attracting financing from international crew
• Execution of conducting feasibility and Entrance Cease Engineering Affect (FEED) by a revered international firm, ILF of Germany, in 2014. The particulars developed at this share had ample engineering make essential factors to allow a competitive class of estimate to be submitted by the contractors
• Advertisement of the conducting in each local and international print media in 2013. After completion of the FEED look for by ILF in 2015, the prequalified bidders get been issued tender documents
• Competitive tendering and evaluation of the bids by each NNPC and transaction advisers, Alpine and additionally by a crew from ICRC
• Broad review of the conducting make and the wonderful cost in 2017 by the BPP, culminating within the issuance of a Certificate of No Objection in August 2017
• Receipt of due process certificates for the conducting, alongside side Novel Alternate Case and Last Alternate Case from ICRC and Native Impart material Compliance Certificate from Nigerian Impart material Pattern and Management Board (NCDMB) ahead of presenting to the Federal Executive Council (FEC) for approval in December 2017
• Renegotiation of the contract when financing became no longer to be offered by the contractors following a stalemate resulting from the incapacity of the firm awarded the contract to progress financing in 2019, leading to extra lower of $300million of the contract designate below the Mele Kyari-led NNPC Management
• Formation of a Steering Committee in July 2020 by Mallam Mele Kyari comprising key conducting stakeholders as NNPC, Ministry of Finance, Ministry of Justice, the Central Financial institution, Debt Management Administrative center, Nigeria Extractive Industries Transparency Initiative (NEITI) and manual from the Presidency to make positive transparency within the implementation of the conducting.
NNPC stated that after several failed makes an strive within the closing 13 years to initiate the AKK conducting actions, the leadership of Mallam Mele Kyari, within twelve months of stewardship brought the conducting heading within the accurate course leading to the award of the contract at a competitive designate and eventual flag off of constructing that the area witnessed in June 2020.
The starting up known as on all successfully-which manner Nigerians to present the Mallam Mele Kyari-NNPC led Management the credit it deserves, at the same time because it encouraged them to coach the execution of the conducting which it said became being undertaken in a clear and aggressive manner based fully on Transparency, Accountability, Performance Excellence Agenda of the Corporation.
NNPC immediate individuals of the public to push apart the online medium file which it described as malicious, baseless and a straight assault on the character of the particular person of its Community Managing Director and the BPP, and designed to distract Mallam Kyari from winning pursuit of delivering the Next Stage Agenda of President Buhari.
Dr. Kennie Obateru
Community Normal Manager
Community Public Affairs Division
seventh September, 2020.