Reps query approval process of $49m for rehabilitation of refineries

The adhoc Committee of the House of Representatives investigating the state of refineries in the country has queried the process of approval of $49 million by the Nigeria National Petroleum Company (NNPC) Limited for the rehabilitation of the nation’s refineries.

The approval was for made to pay Maire Tecnimont Nigeria limited, the contractor handling the project to conduct integrity test on the refineries

The committee had been engaging the NNPC and engineering company handling the contract for the $1.3 billion rehabilitation exercise of the refineries to determine its positive outcome.

It will be recalled that the Adhoc committee had on June 4, 2022 summoned the Managing Director of Tecnimont Nigeria Limited for explaination on the state of the refineries.

At the resumped hearing on Thursday, the Chairman of the House Adhoc committee, Hon. Ganiyu Johnson demanded the proof of payment by Maire Tecnimont Nigeria Limited by the NNPC, saying that the committee will get to the root of the matter.

“The House probe panel is determined to ascertain the actual cost of rehabilitation of the nation’s four refineries”, he said.

Responding to the issue, the Vice President sub-sahara Africa region and managing director (Nigeria) Tecnimont, Davide Pelizzola informed that the contract was awarded in 2019 at $49million by the Nigeria National Petroleum Corporation (NNPC) to Technimont.

He said that the the amount was for the first phase of the rehabilitation.

However, further inquiries by the committee revealed that the Port Harcourt refinery currently under construction was being handled by a Japan firm and not Maire Tecnimont.

Also speaking, the Executive Director, Refining of the NNPC
Philip Chukwu who represented the NNPC GMD, Mele Kyari said that the first advance payment was 10 percent of the amount adding that the second ‘ll be 5%.

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