The Federal Government has approved the issuance of 2.571 billion dollars loan facility classified as a sovereign guarantee to fund what it described as engineering procurement and construction, EPC contract for the Ajaokuta-Kaduna-Kano gas pipeline project.
The Minister of Finance, Budget and National Planning, Zainab Ahmed stated this while briefing journalists at the end of the Federal Executive Council, FEC meeting in the State House, Abuja.
Zainab explained that the approval is sequel to the presentation she jointly made with the Minister of State for Petroleum Resources, Timipre Sylva, which sought the council’s approval for the facility said to have been earlier approved by FEC in 2017.
According to her, yesterday’s approval was a revised lower cost of the facility with 10 per cent discount from the initial sum of 2.89 billion dollars approved in 2017 by FEC.
She noted that only 15 per cent of the sum would be paid by the Nigerian National Petroleum Corporation, NNPC while the balance of 85 per cent would be footed by a Chinese company, China Shure.
