About 78 companies have submitted virtual bids to rehabilitate critical downstream pipelines, associated depots and terminal infrastructure of the Nigerian National Petroleum Corporation (NNPC) through the Finance, Build, Operate and Transfer (BOT).
Group Managing Director of the NNPC, Mr. Mele Kyari, stated that the exercise was in fulfilment of NNPC’s commitment to transparency and accountability as an Extractive Industries Transparency Initiative (EITI) partner company.
“This is not possible to achieve if we do not have the leadership disposition that is in support of transparency. We must take all necessary steps to make sure that our transactions are known to the citizens of this country, that we do things for the common good of all of us and that in doing our business, we must ensure integrity,” the GMD stated.
He posited that as an EITI partner company, NNPC is a global company, completely transparent to its shareholders and stakeholders stressing that the Corporation must always disclose her transactions, contracting processes, selection of its partners, identities of partners and beneficial owners of the partners.
“Nobody will cut corners, nobody will cheat the shareholders of this company and also this company will ultimately deliver value to its shareholders,” Kyari added.
He noted that the Finance, Build, Operate and Transfer (BOT) model became imperative in the Corporation’s journey to rehabilitate its downstream infrastructure which over time have become vulnerable, lost value and integrity due to age and incessant vandalism.
“Some of these assets are as old as forty years (40) years and they are due for replacement and when you want to do a replacement of this scale, you do need a lot of resources. And we know that we require these assets so we decided that we bring in private partners who will fund these pipelines, they will construct it, operate it with us and then ultimately they will fully recover their investment from the tariff which we will pay for using these pipelines and as soon as they recover their cost and their margin, they will hand over these assets back to us,” Kyari explianed.
Kyari disclosed that by the end of the first quarter of 2021, the final partners of the bid opening would be selected.
He assured the bidders that the NIPEX portal which was deployed for the pre-qualification exercise was a time-tested technology that would not give room for any human indiscretion.
Meanwhile, the Director General of the Infrastructure Concession Regulatory Commission (ICRC), Engr. Chidi Izurah, commended the NNPC leadership for driving a transparent bid opening processes, noting that NNPC is showing to the world that things could be done correctly such that would yield value for Nigerians.
He said the NNPC has shown to the world that it is driving a totally transparent Public Private Partnership process in line with the infrastructure revolution of President Muhammadu Buhari.
Earlier, the Chief Operating Officer, Downstream, Lawrencia Ndupu, who was represented by the Managing Director, Petroleum Products Marketing Company, Musa Lawan, said the Nigerian Pipelines and Storage Company (NPSC) operates 5,120 length of pipelines which traverses the entire country with two coastal depots in Lagos and Calabar assuring that the public bid opening processes is being done transparently.