The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru has directed the Chinese Consortium and the NNPC Project Team on the Ajaokuta-Kaduna-Kano (AKK) Pipeline Project to ensure timely finalization of the term sheet for the project financing agreement.
The Chinese consortium is made up of Bank of China and Sinosure.
A statement by NNPC spokesman Ndu Ughamadu said the GMD who had to cut short his holy pilgrimage trip to Saudi Arabia for a stop-over in Dubai, United Arab Emirates reiterated the need for both parties to ensure speedy conclusion on the details of the agreement towards its full execution during Mr. President’s state visit to China next month.
President Muhammadu Buhari is scheduled to attend the Forum of China-Africa Cooperation (FOCAC) Summit holding from the 1st to 4th September, 2018 in the Chinese capital, Beijing. The AKK Project will be top on Mr. President’s agenda.
The NNPC had earlier clarified that the execution of the AKK gas pipeline project was progressing under the original concept of 100 percent contractor financing model contrary to some media reports of a possible resort to ‘’proceed of gas tariffs’’ as new means of funding because of purported collapse of negotiation with Chinese lenders.
The Corporation noted that the successful conclusion of the contractor financing terms would pave way for the historic ground-breaking ceremony which would take place after the conclusion of the front-end activities.