By Adedapo Adesanya
The Senate Committee on Local Content is set to commence investigations into the alleged breach of the country’s Local Content Act by Saipem Contracting Nigeria Limited, on the construction of Nigeria LNG Limited’s Train-7 project.
This followed a petition raised by Mr Moboluwaduro Abimbola, copied to the Senate President, Mr Ahmad Lawan, and the Independent Corrupt Practices and other related offences Commission (ICPC) who raised the alarm that Saipem breached Nigeria’s local content laws.
In the petition, Mr Abimbola alleged that the Italian firm did not involve indigenous companies in the processes of awarding contracts on the Nigeria LNG Limited’s Train 7 project.
The contract for the construction of Nigeria LNG seventh gas plant project, commonly known as Train 7, was awarded in 2019 to SCD JV Consortium made up of three companies, namely Saipem, Daewoo and Chiyoda.
The petitioner claimed that the Nigerian Content Plan for the Train-7 project was approved and that a Certificate of Authorisation had been issued by the Nigerian Content Development and Monitoring Board since March 22, 2019.
Abimbola also said that a few months into the commencement of the project, the National Assembly received several petitions which detailed how Saipem, the principal partner in the delivery of the project, had allegedly created a strange system.
The strange system, according to him, excludes qualified Nigerian companies in the bidding and award process of contracts.
He maintained that the practice was against the local content laws deliberately reserved for Nigerians to benefit from.
The $10billion Train-7 project is expected to increase NLNG’s overall capacity to 30 million tonnes per annum (mtpa) from the current 22 million tonnes per annum (mtpa), while further adding immense value to the nation and the people.
It is expected to create more than 12,000 direct jobs and additional 40,000 indirect construction jobs, and develop Nigerian local capacity and businesses.
Modupe Gbadeyanka