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Loan approved for Ajaokuta-Kaduna-Kano Gas Pipeline project

Friday, 18 Dec 2020

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The Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project in Nigeria has received approval of a loan worth USD 2.6 billion for its implementation.

The funds will be disbursed by the Bank of China and Sinosure, a Chinese export and credit insurance corporation. The two institutions are set to fund 85 percent of the entire project costs while the Federal Government, represented by NNPC, will provide the remainder 15 percent through equity.

The AKK Gas Pipeline project was flagged off in July 2020 by President Muhammadu Buhari. The project which covers a distance of over 600 km is approximately 15 percent complete and would be delivered on schedule.

The project is being executed in three phases. Phase-I covers a distance of 200 km between Ajaokuta and Abuja, while Phase-II and Phase-III covers a distance of 193 km and 221 km from Abuja to Kaduna, and from Kaduna to Kano respectively.

Brentex/ China Petroleum Pipeline Bureau-CPP Consortia and Oilserve/ China First Highway Engineering Company-CFHEC Consortia were announced as engineering, procurement and construction contractors for the project.