The Infrastructure Concession Regulatory Commission (ICRC) said that the 2.8 billion dollars Ajaokuta–Kaduna–Kano (AKK) gas pipeline project would soon commence.
The acting Director-General, ICRC, Mr Chidi Izuwah, in a statement on Thursday in Abuja, said that the project would be executed through a Public-Private Partnership (PPP), under the supervision of the Minister of State for Petroleum.
“The Federal Executive Council (FEC), at its meeting on Dec. 13, gave approval to the 614 kilometer 40-inch gas pipeline project estimated to cost about 2.8 billion dollars.
“The project will be delivered through a Build and Transfer PPP model with 100 per cent Contractor Financing.
“ The AKK Gas Pipeline Project constitutes Phase 1 of the Trans-Nigeria Gas Pipeline (TNGP) Project.
“ It originates from Ajaokuta, traversing Abuja, Kaduna and terminating at a terminal gas station in Kano. The proposed pipeline will be supplied with quality gas sourced from various gas gathering projects,’’ he said.
Izuwah recalled that in 2008, the Federal Government approved the Nigerian Gas Master Plan (NGMP) to accelerate the development of gas pipeline infrastructure for domestic and export markets.
He said that the aim was to maximise the effect of gas in the domestic economy, to ensure long–term energy security while optimising the country’s export gas capability.
“In line with the ICRC Act 2005, the ICRC provided regulatory guidance to the NNPC during the project development stage.
“ The ICRC will also take custody of the Public Private Partnership agreement, monitor and ensure compliance during the project execution phase,’’ he said.
Izuwah also commended President Buhari for approving the project, which he said would ensure sustainable development in the country. (NAN)