REPS SET TO INVESTIGATE NAOC, SAIPEM OVER ABANDONMENT OF OKPAI IPP PROJECT

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The attention of the House of Representatives has been drawn to the abandoned phase 2 of the NNPC-NAOC joint venture Okpai Independent Power Plant (IPP) project. 

In a motion brought before the House at Tuesday’s plenary, the member representing the Ndokwa/Ukwuani Federal Constituency, Rt. Hon Nnamdi Ezechi, said the project, which was approved by the National Electricity Regulatory Commission (NERC) and whose construction commenced in November 2017, had achieved approximately 90% completion before it was abandoned by the contractors, Saipem Contracting Nigeria Limited (SCNL) and the Nigerian Agip Oil Company (NAOC).

Hon. Ezechi highlighted the distressing state of decay at the project site, where millions of dollars worth of equipment and turbines lay idle, obscured by overgrown weeds. 

He emphasized that the abandonment of the IPP phase 2 project not only jeopardized a substantial investment of over $38.7 billion, but also undermined the potential increase in electricity generation crucial to the nation’s development.

Expressing worry about the seeming lack of transparency regarding the contract sum for the project, Hon. Ezechi raised concerns about the accountability and integrity of the project’s execution.

In response, the House unanimously supported the motion and directed its Committee on Power to conduct a comprehensive investigation into the project’s funding and the conduct of the contractors, including the Nigerian Agip Oil Company and Saipem Contracting Nigeria Limited. 

The Committee was mandated to identify the obstacles that led to the project’s abandonment and submit a detailed report to the House in four weeks time.

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