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The Nigerian Nationwide Petroleum Firm Restricted (NNPC) has come below scrutiny for its dealing with of the award of contract to 4 firms for the rehabilitation of the nation’s pipelines, depots and different downstream crucial infrastructure.
The state-owned oil firm is within the eye of the storm following BusinessDay’s unique report on the award of recent petroleum pipeline contracts to Oilserv Restricted, A.A RANO Nigeria Restricted, Macready Oil & Gasoline Service Firm Restricted, and MRS Oil Nigeria Plc, which triggered an uproar from business operators.
Business stakeholders and consultants have raised considerations in regards to the transparency and equity of the contract allocation technique of the Design, Finance, Rehabilitate, Construct, Function and Switch mannequin.
Consultants who spoke to BusinessDay stated the 2 downstream corporations, MRS Oil Nigeria Plc and A.A RANO Nigeria Restricted, that gained pipeline contracts would have a aggressive benefit over others.
5 bidders among the many over 200 candidates for the pipeline contracts who spoke to BusinessDay alleged that the NNPC ignored customary procedures in its dealings with retailers that gained pipeline contracts.
“NNPC Ltd deviated from the usual analysis protocol by sidelining key stakeholders just like the Infrastructure Concession and Regulatory Fee (ICRC), Ministry of Justice, Bureau for Public Procurement, and different challenge supply staff members (PDT) in selecting the retailers that emerged winners,” a supply who was a part of the bid course of instructed BusinessDay.
Learn additionally: Uproar in oil sector after NNPC favours MRS, AA Rano once more
“This has fuelled allegations that the method might not have been performed with the required stage of accountability,” he added.
BusinessDay had on Wednesday solely reported that the NNPC had chosen Oilserv Restricted, A.A RANO Nigeria Restricted, Macready Oil & Gasoline Service Firm Restricted, and MRS Oil Nigeria Plc as most popular bidders for the rehabilitation of NNPC downstream pipelines and related depots and terminal infrastructure by way of construct function, and switch (BOT) to cowl the 4 tons.
The 4 tons are LOT 1: Port Harcourt Refinery-related infrastructure; LOT 2: Warri Refinery-related infrastructure; LOT 3: Kaduna Refinery-related infrastructure; and LOT 4: Atlas Cove–Mosimi/Satellite tv for pc-related infrastructure.
One other supply conversant in the bidding course of stated market watchers have been shocked in regards to the emergency of an organization that didn’t take part within the bidding course of however was declared the winner.
Learn additionally: MRS generates additional cash from operations than friends
“LOT 2 was awarded to a retail firm, regardless of stories that the corporate didn’t take part within the bidding course of for this particular LOT. The popular winner for LOT 4 didn’t make it to the monetary bid tender however they have been allotted LOT 4,” the supply stated.
He famous that such deviations from customary practices have raised considerations in regards to the integrity of the contract allocation course of and the potential for favouritism.
“The allegations surrounding the pipeline contracts underscore the necessity for a radical evaluation of the contract allocation course of to make sure that it adheres to established business requirements and greatest practices,” one other supply who pleaded anonymity stated.
The NNPC had but to offer a response as on the time of publication.
Consultants stated Nigeria’s pipeline community rehabilitation challenge, which goals to facilitate crude provide to refineries and product evacuation, is of paramount significance to the vitality sector.
Learn additionally: Subsidy removing spoils West Africa’s stolen petrol market
“A safe and dependable pipeline system is essential for the nation’s efforts to deal with provide shortfalls and improve the operational effectivity of its refineries seamlessly,” Daniel Ogbeide, an vitality analyst, instructed BusinessDay.
“As Nigeria seeks to transition from a state monopoly to a extra diversified and aggressive vitality panorama, it’s important that transparency and accountability stay on the forefront of all operations,” he added.
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