FG okays $1.4bn for rehabilitation of Warri, Kaduna refineries

The Federal Government has approved the sum of $1.484 billion for the rehabilitation of Warri and Kaduna refineries.

Minister of state, Petroleum Resources, Timpriye Sylva, disclosed this on Wednesday to State House correspondents after the Federal Executive Council meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa.

According to him, $897,678,800 was approved for the Warri refinery and $586,902,256 for the Kaduna refinery.

He said: “Council approved the award of contracts for the rehabilitation of Warri and Kaduna refineries to Messers Saipem SPA and Saipem Contracting Limited at the combined total sum of $1.484 billion, $897,678,800 Warri refineries, and $586,902,256 for Kaduna refineries.

“The Executive Council also approved the acquisition of 20% minority stakes by the NNPC in Dangote Petroleum and petrochemical refinery in the sum of $2.76 billion.

“The completion of the rehabilitation of Warri and Kaduna refineries is going to be in three phases.

“The first phase will be completed within 21 months, in 23 months phase two will be completed and in 33 months, the full rehabilitation will be completed.

The minister also said work has already commenced in the Port Harcourt refinery, adding that the first 15% of the contract sum has been paid to the contractor and the contract was fully mobilized to the site.

“We also discussed in council the need for us to give periodic updates.

Soon, we’ll be going to inspect the work in Port Harcourt refinery, and you will all be with us on that visit, ” he stated.

The FEC had in March approved $1.5 billion for the rehabilitation of the largest refining company in the country, Port Harcourt Refinery, to an Italian company, Tecnimont spa, with three funding components from Nigerian National Petroleum Corporation (NNPC) Internally Generated Revenue (IGR), budgetary allocations provisions and Afreximbank.

Sylva also disclosed that FEC approved the acquisition of 20% minority stakes by the NNPC in Dangote Petroleum and Petrochemical Refinery in the sum of $2.76 billion.

Also, the Federal Executive Council (FEC) has approved the sum of $11.17 billion for the Lagos-Calabar coastal rail project to link all coastal cities in the country by rail in six years.

Minister of Information and Culture, Lai Mohammed, announced this while briefing state house correspondents after the virtual FEC meeting on Wednesday at the Presidential Villa, Abuja.

Mohammed said Rotimi Amaechi, minister of transportation, presented two memos which had to do with federal government’s commitment to expanding and consolidating on the rail project.

“The first one actually has to do with the Kano-Jibia rail and the other one has to do with the Port HarcourtMaiduguri rail,” he said.

“Actually what was approved today was funding to ensure that work starts immediately on those two rails.

“And then, also another memo that was approved today was the ratification of the president’s approval for the award of contract for the Lagos-Calabar Coastal Standard Gauge.”

Mohammed said the project was an old project which was inherited by the current administration.

He said that under the former administration, approval was given but nothing was done.

“Today, the council has given approval to commence the LagosCalabar coastal rail,” he added.

“This particular route is very important because after the LagosKano route, this Lagos-Calabar coastal route actually will link all the coastal cities in the country.

“Actually, the proposed route alignment is as follows; it will go from Lagos to Sagamu, Sagamu to IjebuOde, Ijebu-Ode to Ore, Ore to Benin City, Benin-City to Sapele, Sapele to Warri, Warri to Yenogoa, Yenegoa to Port Harcourt, Port Harcourt to Aba, Aba to Uyo, Uyo to Calabar, Calabar to Akamkpa to Ikom, Obudu Ranch with branch lines from Benin-City to Agbo, Ogwashi-ukwu, Asaba, Onitsha and Onitsha Bridge and then Port Harcourt to Onne Deep Sea Port.

“This particular route is very important especially for our coastal economy; the cost of the project is 11. 17 billion dollars.”