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FG approves N9.9-bn for Calabar gas pipeline project
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Briefing State House correspondent after the federal executive council (FEC)meeting, at the presidential villa, Abuja, John Odey, minister of information and communications said the meeting which was presided over by Vice President Goodluck Jonathan, also approved the sum of $46.6 million for the upgrade of airport safety facilities in the West African sub-region.
He said the memos brought before the council’sought “rectification of an anticipatory approval for the re-award of the contract for the engineering procurement and construction of the 20 inches by 107-kilometre Calabar-Adanga Gas Transmission Pipeline in favour of Messers Castech Consortium in the sum of N9,867,845,40.90 only with a completion period of 15 months.”
The minister noted that “federal government as part of its effort towards improving power situation in the country embarked on the construction of several power plants under the National Integrated Power Project with one of the plants being located in Calabar, thus necessitating the extension of gas infrastructure.”
The council Odey noted “had in its meeting of April 4, 2007 approved the award of this contract to IDT Aljamin and Wilbros Consortium with Messers Wilbros as the leading partner. However, due to non-performance in the execution of the contraction following the disagreement by the contractors, the former ministry of power and steel requested for re-certification of the contract and re-award in favour of Messers Castech Consortium in the same amount in other to meet the requirement for timely delivery of this project.”
He said “based on the ministry recommendation, the immediate past president approved the termination of the contract with Messers IDT Aljamin and Wilbros Consortium and re-awarded same to Messers Castech and Council today approved that award. The project is supposed to be completed within the period of 15 months.”
The minister who was flanked at the briefing by Charles Ugwu, minister of commerce and industries and Ibrahim Nakande, minister of state for information and communications, disclosed that the meeting also considered a memo from ministry of commerce and industry on Nigeria Industry Development Strategy (NIDS), which considered the cluster concept of industrialisation.
He added that the “council looked at the cluster concept as a plank for industrial policy for growth of SMEs and its envisaged mode of operation across the country,” stressing that cluster concept can only materialise when peace returns to the troubled Niger-delta region.
“The Niger delta as being designed to be the petrochemical hub in Nigeria. Council today reiterated this position during the presentation of the cluster concept by the minister of commerce. The need for peace to reign in the region for this concept to drive industrial development has become imperative.”
“Council today adopted the cluster concept as one of the draft strategies for Nigeria’s industrial development to be considered in the vision 202020 strategies. Council further directed the presentation of industrial development strategy to the National Economic Council and to encourage participation by all stakeholders and the state,” he said.
The commerce and industries ministry, Odey stated came up to the council with a memoranda to appraise the status of the ongoing Economic Partnership Agreement (EPA) negotiation between Economic Community of West African States (ECOWAS), Mauritania and the European Union (EU) of which Nigeria is negotiating under the platform of ECOWAS.
“It will be recalled that the EU and the 77 African, Caribbean and Pacific countries launched negotiation on the Economic Partnership Agreement under the platform of the Cotonou partnership agreement which was signed in June 2003. The EPA is supposed to replace the Lome Conventions,” he revealed.
The EPA according to the study will have the following impact on the economy of Nigeria and the sub-region, and therefore need proper study so that the impact will be made clear to all stakeholders and government “to have an informed decision.”
The ministerial monitoring committee on EPA meeting in October 2007 in Abidjan, the minister stated “reiterated its conviction that the EPA constituted a framework capable of ensuring the economic and social development but it however added that the conditions for concluding the negotiation by December 31, 2007 were yet to be met.”
Other issues considered by the council included the approval for the establishment of a food, science and technology body to regulate the conduct and activities in the sector.
He said the memos brought before the council’sought “rectification of an anticipatory approval for the re-award of the contract for the engineering procurement and construction of the 20 inches by 107-kilometre Calabar-Adanga Gas Transmission Pipeline in favour of Messers Castech Consortium in the sum of N9,867,845,40.90 only with a completion period of 15 months.”
The minister noted that “federal government as part of its effort towards improving power situation in the country embarked on the construction of several power plants under the National Integrated Power Project with one of the plants being located in Calabar, thus necessitating the extension of gas infrastructure.”
The council Odey noted “had in its meeting of April 4, 2007 approved the award of this contract to IDT Aljamin and Wilbros Consortium with Messers Wilbros as the leading partner. However, due to non-performance in the execution of the contraction following the disagreement by the contractors, the former ministry of power and steel requested for re-certification of the contract and re-award in favour of Messers Castech Consortium in the same amount in other to meet the requirement for timely delivery of this project.”
He said “based on the ministry recommendation, the immediate past president approved the termination of the contract with Messers IDT Aljamin and Wilbros Consortium and re-awarded same to Messers Castech and Council today approved that award. The project is supposed to be completed within the period of 15 months.”
The minister who was flanked at the briefing by Charles Ugwu, minister of commerce and industries and Ibrahim Nakande, minister of state for information and communications, disclosed that the meeting also considered a memo from ministry of commerce and industry on Nigeria Industry Development Strategy (NIDS), which considered the cluster concept of industrialisation.
He added that the “council looked at the cluster concept as a plank for industrial policy for growth of SMEs and its envisaged mode of operation across the country,” stressing that cluster concept can only materialise when peace returns to the troubled Niger-delta region.
“The Niger delta as being designed to be the petrochemical hub in Nigeria. Council today reiterated this position during the presentation of the cluster concept by the minister of commerce. The need for peace to reign in the region for this concept to drive industrial development has become imperative.”
“Council today adopted the cluster concept as one of the draft strategies for Nigeria’s industrial development to be considered in the vision 202020 strategies. Council further directed the presentation of industrial development strategy to the National Economic Council and to encourage participation by all stakeholders and the state,” he said.
The commerce and industries ministry, Odey stated came up to the council with a memoranda to appraise the status of the ongoing Economic Partnership Agreement (EPA) negotiation between Economic Community of West African States (ECOWAS), Mauritania and the European Union (EU) of which Nigeria is negotiating under the platform of ECOWAS.
“It will be recalled that the EU and the 77 African, Caribbean and Pacific countries launched negotiation on the Economic Partnership Agreement under the platform of the Cotonou partnership agreement which was signed in June 2003. The EPA is supposed to replace the Lome Conventions,” he revealed.
The EPA according to the study will have the following impact on the economy of Nigeria and the sub-region, and therefore need proper study so that the impact will be made clear to all stakeholders and government “to have an informed decision.”
The ministerial monitoring committee on EPA meeting in October 2007 in Abidjan, the minister stated “reiterated its conviction that the EPA constituted a framework capable of ensuring the economic and social development but it however added that the conditions for concluding the negotiation by December 31, 2007 were yet to be met.”
Other issues considered by the council included the approval for the establishment of a food, science and technology body to regulate the conduct and activities in the sector.
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