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Transactions - JANUARY 2, 2018

Nigeria approves $2.8b gas pipeline PPP

by Jody Barhanovich

The Federal Executive Council (FEC) of Nigeria has approved a $2.8 billion gas pipeline project, Ajaokuta–Kaduna–Kano (AKK), and is set to commence on its construction.

The AKK Gas Pipeline Project constituted phase 1 of the Trans-Nigeria Gas Pipeline (TNGP) Project, according to a statement. The 40-inch pipeline will span 614 kilometers and will transport gas north from Ajaokuta, through Abuja and Kaduna, before terminating at a terminal gas station in Kano.

The project will be delivered through a Build and Transfer PPP model with 100 percent contractor financing. The Infrastructure Concession Regulatory Commission issued the PPP for the project in July 2017 but it has been in development since 2008 after the government approved the Nigerian Gas Master Plan.

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