78 firms bid to rehabilitate pipelines, depots - NNPC
The Nigerian National Petroleum Corporation on Sunday announced that 78 companies had submitted virtuals to rehabilitate its downstream pipelines associated depots as well as terminal infrastructure.
This would be done through the finance, build, operate and transfer model.
According to the Managing Director of NNPC Group, Mele Kyari, the exercise was in line with the fulfilment of the corporation's commitment to transparency and accountability as an Extractive Industries Transparency Initiative partner company.
Kyari disclosed this via a statement issued by the firm's spokesperson, Kennie Obateru in Abuja.
He said the finance, build, operate and transfer model becomes necessary in the corporation's bid to rehabilitate its downstream infrastructure, which has lost its value and integrity over time due to age and frequent vandalisation.
He said that some of the infrastructures were as old as 40 years and were due for replacement. He added that there would be a need for resources in order to make such a replacement.
"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 and operate them with us.
"And 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 margin, they will hand over these assets back to us", Kyari was quoted to have said.
Kyari had also stated that by the end of the first quarter of 2021, the final partners of the bid opening would be selected.
He gave an assurance to bidders that the NIPEX portal which was deployed for the pre-qualification exercise was a time-tested technology which would give room for human indiscretion.
According to the corporation's Chief Operating Officer, Downstream, Lawrencia Ndupu, the Nigerian Pipelines and Storage Company operates 5,120 length of pipelines.
She added that the pipelines pass through the entire country with two coastal depots in Calabar and Lagos. The public bidding processes were done with transparency, she said.
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