Oil & Energy
NNPC Shortlists 78 Firms For Pipelines Rehabilitation Bidding
The Nigerian National Petroleum Corporation (NNPC) has shortlisted 78 companies to bid for the rehabilitation of oil pipelines and deport infrastructure across the country.
It would be recalled that over 300 companies applied through the official portal published in the national dailies on Aug. 7 and only 78 companies met the expiration time of noon on Sept. 18.
The Group Managing Director of NNPC, Malam Mele Kyari, at the virtual public bid opening for the rehabilitation of the NNPC group downstream critical pipelines and associated depots/terminal infrastructure on Friday in Abuja, said the corporation was committed to transparency.
Kyari said that the process of selection of companies would be transparent and those who would win the bid would undergo a process of Build, Operate and Transfer (BOT) system.
He said that President Muhammadu Buhari had mandated the corporation to ensure transparency and accountability in all its operations.
He said that this would help the NNPC to deliver its services to all stakeholders efficiently, especially to the ordinary Nigerians, adding that the management of the corporation had aligned to the order.
The GMD said that it was unfortunate that the oil pipelines deteriorated over the years with activities of hoodlums and vandals, forcing its to be underutilised.
“You know that this project requires huge finances that is why we are adopting BOT, pipelines globally are managed by the private sector. What we are doing today is in line with global best practices.
“Some of them are as old as 40 years, they are due for replacement and when you want to do replacement of this scale, we do need a lot of resources, which we don’t have.
We have decided that we will bring in private partners who will rehabilitate the pipelines, they will fund it, they will operate it with us and ultimately, they will recover their investment from tariff on the pipelines.
“As soon as they recover their costs, earn their margins, they will hand over to the country, that is what we want to do,” he said.
Kyari said that the selected companies would have maximum of two years to deliver on the project, adding that by first quarter of 2021, the names of selected companies would be announced.
In his remarks, Mr Musa Lawal, the representative of the NNPC downstream, said that the corporation operated about 5,120km pipelines across the country.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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