…okays N3bn for NCDC laboratory equipment acquisition
The Federal Executive Council (FEC) has approved the sum of $1.5 billion for the rehabilitation of the Port-Harcourt Refinery. The Council, chaired by President Muhammadu Buhari, at the Presidential Villa, yesterday, also okayed the sum of N3,070,892,988 for the procurement of laboratory equipment for the Nigeria Centre for Disease Control (NCDC). Briefing journalists after the meeting, Minister of State for Petroleum, Timipreye Silva, said the contract for the rehabilitation of the refinery was broken into three phases of 18, 24 and 44 months and awarded to Tecnimont Spa, an Italian company adept in refinery maintenance. According to him, the funding has three components from Nigerian National Petroleum Corporation (NNPC) Internally Generated Revenue (IGR), budgetary allocations provisions and Afreximbank. Sylva, who assured of involvement of local contents in the execution of the contract, said: “The Ministry of Petroleum Resources presented a memo on the rehabilitation of Port Harcourt refinery for the sum of $1.5 billion, and it was approved by council today.
“So, we are happy to announce that the rehabilitation of productivity refinery will commence in three phases. The first phase is to be completed in 18 months, which will take the refinery to a production of 90 percent of its nameplate capacity.
“The second phase is to be completed in 24 months and the final stage will be completed in 44 months and contract was approved. And I believe that this is good news for Nigeria. “The contractor that was approved by Council today is Messrs Tecnimont spa, of Italy, it’s an Italian EPC company that won the bid and that was approved by Council.”
Responding to question on operations and maintenance, the minister said: “That has been a big problem for our refineries, as we all know; that was also exhaustively discussed in Council and the agreement is that we are going to put a professional Operations and Maintenance company to manage the refinery when it has been rehabilitated. “In any case, it is actually one of the conditions presented by the lenders, because the lenders say they can only give us the money if we have a professional operations and maintenance company, and that already is embedded in our discussions with the lenders and we cannot go back on that.”
Asked whether the fund for the maintenance is available, Sylva said, “I want to answer that the funds are all in place and work will commence forthwith.” Commenting on when other refineries in the country would get government attention, he said, “Discussions are ongoing. We want to take one at a time and I want to assure you that before the lifetime of this administration expires, work on all the refineries would have, at least, commenced.”
On why the government did not go back to the original builders of the refinery, Sylva said: “The first action was to go to the original refinery builders, but you all know, like I do, that if you have a Toyota car, and your Toyota car develops problem, you don’t have to go to the builders of the Toyota to fix it. Usually, there are people in the business of building Toyota cars, there are also people in the business of maintaining Toyota cars. Asked who the lenders of the funds were, the minister said: “There are various components to the funding: there is funding from NNPC internally generated revenue, there is funding from the budget and there is also a debt funding. For the lenders, we are dealing with AFREXIM bank and they are very committed to us, we have actually concluded discussions with AFREXIM.”
On the issue of local participation in the rehabilitation of the refinery, Sylva said: “As you know, there is a local content law. The Nigerian Content Development and Monitoring Board (NCDMB) is fully part of the contracting process and has safeguarded the interest, adequately of our local contractors, so our local people will be fully involved with the Tecnimont spa.” Asked whether the government merely bowed to organised Labour’s insistence that local refineries be rehabilitated before full deregulation, Sylva said “First, I am not aware of any such agreement that deregulation should only take place after the refineries have been fixed, that was at no time part of our agreement.
But of course, this government, from the very beginning, has been in the process of fixing and rehabilitating this refinery. So, it is not because of our discussion with Labour, but it is actually the desire of the administration to ensure that our refineries work and that is the process that has borne fruit today.” Minister of Health, Osagie Ehanire, in his briefing, disclosed that the council approved N3.070 billion for six contracts for the purchase of various laboratory equipment by the Nigeria Centre for Disease Control (NCDC) across the country.
He said: “The Ministry of Health presented a memo on behalf of NCDC public health laboratory specialist and for Center for Disease Control. It is for six contracts for laboratory equipment and to the total worth of N3,070,892,988 for various equipment and supply, to strengthen the work of NCDC in various parts of the country, to be more ready for the work they do in diagnostics preparedness, not only for COVID-19, but for any other disease outbreak of public interest in the future.” Minister of Works and Housing, Babatunde Fasola, on his part, said Council approved the revised estimate total cost of the Enugu-Onitsha Highway which is N8.649 billion.
The 22 kilometre section of the 100 kilometre road is being handled by Niger Construction in order to expedite completion. He said: “Variation was to cater for the change of the pavement surface, the binder course and the wearing course to increase thickness and also to utilise modified bitumen and also to strengthen the shoulders and some bridge works.
Council approved the variation of N8.649 billion in favour of Niger Construction.” Minister of State, Budget and National Planning, Clem Agba, told journalists that the Council approved a memo on the reviewed National Integrated Infrastructure Master Plan 2020 to 2043. According to him, “The maiden Master Plan was from 2014 to 2043 and embedded in it as a living document is that it ought to be reviewed every five years.
There are about seven asset classes that are contained in the master plan. This is in the areas of transportation, energy, ICT, agriculture, water and mining, social infrastructure, housing and regional development, security and vital registration. Those present physically at the Council meeting at the Chamber were the Vice President, Yemi Osinbajo, Secretary to the Government of the Federation (SGF), Boss Mustapha and Chief of Staff to the President, Ibrahim Gambari. Ministers at the meeting were those of Finance, Budget and National Planning, Zainab Ahmed, Justice, Abubakar Malami, Agriculture, Sabo Nanono, Water Resources, Suleiman Adamu, Foreign Affairs, Geoffrey Onyeama and Industry Trade and Investment, Niyi Adebayo