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NNPC, Tecnimont seal deal on PH refinery rehabilitation

The Nigerian National Petroleum Corporation (NNPC) on Tuesday signed a $1.5 billion contract with Italian company, Maire Tecnimont SpA, for the rehabilitation of the Port Harcourt Refinery.
The contract which was approved two weeks ago by the Federal Executive Council will take 44 months to execute with phase one completed within 24 months while phase 2, 32 months and last phase 44 months.
Group Managing Director of NNPC, Malam Mele Kyari who spoke at the signing of the contract in Abuja, said that the contractor was selected with high level of transparency.
“My colleagues and I are very proud of what is happening today, a tender process which cumulated in this event of today, the signing of contract for the rehabilitation of Port Harcourt Refinery.
“This is a monumental history for us”, he said.
He said that the corporation was aware of misgiving in the public on the cost of rehabilitation of the refinery but noted that the NNPC would maintain high level of transparency in the process of carrying out the work.
For those questioning the $1.5 billion cost, Kyari said the bidding process was transparent.
“First and foremost, we all agree that no one will drag in labour unions, transparency international, infrastructure concenssioning and regulatory agency of the country into a tender process. If we had anything to hide or worry about, we won’t do this.
“Me and my colleagues, we are very proud that we did this so that this tender process which culminated in this event of today is monumental history for us.
“We are aware of the many of the misgivings in the public space around cost, around political compromises, even around potentially why do we even have to do this. We understand this.
“Some people in their own world because if they have the opportunity, this is what they would do. If they have the opportunity they would hiked up the cost, they would have seen it as an opportunity to make or earn income that they have not worked for. They would also see it as an opportunity for political patronage.
“As we speak, I can confirm to you that if I see the COO Technomont, I cannot recognize him. As a matter of fact when I came in, I had difficulty remembering whether I had met him, with due respect”, he stated.
Kyari noted that NNPC had in the past made mistakes on strategies on refineries, but are determined to fix the refineries.
“Since 2010, we thought that we will do this rehabilitation work through the original refinery builders. We have said this over and over. Original refinery builders are not in the business of fixing refineries. That is not their line of business”.
He explained that Technimont was recommended by the original builders of the Port Harcourt refinery to work with NNPC.
He added the same process would be adopted for the rehabilitation of the Warri Refinery too.
He disclosed that the cost in public domain include taxes like value added tax.
“The actual cost exclusive of VAT is actually $1.299 billion with provisional sum of $162 billion. That is the value of the contract”, he added.
He assured that the project will be delivered on time and on budget as agreed.    
On his part, Technimont Vice President Sub-Saharan African Region, Mr. Davide Pellizola said the company is very proud to have won the contract for the rehabilitation of the Port Harcourt refinery.

Written by ExpressDay


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