The Federal Government is set to disburse $2.5billion to the contractors of the Ajaokuta Kaduna and Kano, AKK, gas pipeline.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed this on Wednesday during her inspection of the project construction site in Ajaokuta, Kogi State.
According to him, while China is contributing 85 percent of the project fund, Nigeria is to pay 15 per cent counterpart funding.
The minister noted that the Federal Government of Nigeria has concluded its sovereign guarantee to the lender of the loan- Bank of China.
She said: “We have to give a sovereign guarantee to the lender so that the loan is concluded. I am glad to say the loan has been concluded. And very soon the disbursement will start to the contractor. For now, it is $2.5billion.”
Mrs Ahmed added that the project that is scheduled for completion in 2023.
Speaking on the project, the minister expressed satisfaction, saying that the contractor is doing an excellent and quality job.
The minister said: “This is the AKK project. We are here to see the work that has been done or that is being done. This is a very important national project. We will see that this project is being delivered on time.
“Despite the slow down in economic activities, this project’s work has not stopped even for one day. We are glad that gas is being passed from this line from Ajaokuta to Kaduna to Kano.
“This will help to revive industries in those parts of the country, create jobs. Even as the construction is going on , you can see a lot of economic activities going on here for those that are employed who are working on day to day basis with the workers on site.
“The contractor that is doing this segment one that you are seeing is actually doing an excellent and high-quality job. I commend NNPC for their forthright in pushing this project.”
Also speaking, the Nigerian National Petroleum Corporation, NNPC, Mele Kyari, said since the board of China has approved the loan, nothing human can stop the completion of the project.
He said the consignment of pipes for the project has arrived in Warri and may be conveyed to sites by road.
The NNPC boss said “The Bank of China has approved its loan and nothing will stop this project except force Majure -the act of God only, not human.
“We are delivering on time and on schedule. Our pipes are arriving on schedule. Just like Engr has said they are already in Warri. And we are moving them to site either by road.”
“This project has not stopped in one day. We will deliver this project on time and in the schedule. We have no issues with it.
“We have to give a sovereign guarantee to the lender so that the loan is concluded. I am glad to say the loan has been concluded. And very soon the disbursement will start to the contractor. For now, it is $2.5billion.”
