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Lekoil awards multiple contracts for community projects in Rivers

By Obiabin Onukwugha

Three communities in Rivers State, Ukama Ekede, Asukama and Asukoyet communities in Andoni local government area of Rivers State, have been picked as beneficiaries of developmental projects in their domain as a result of implementation of the provisions of Petroleum Industry Act (PIA).

On Wednesday, the contract for construction of selected developmental projects including internal road projects, completion of town hall building project, construction of culvert, scholarship and bursary schemes from primary to postgraduate levels in these communities has been awarded by an indigenous oil company, Lekoil and Gas Limited, and its JV partners, Green Energy International Limited.

The contracts are in line with the provisions of Petroleum Industry Act (PIA) for oil companies to set aside 3% of its profit for the development of host communities.

Hence, Lekoil and Gas Limited, and its JV partners awarded the selected developmental projects to three out of its four host communities.

No contract was awarded for the fourth host community, Ayama Ekere, because the N84 million project fund in the community’s pool is not enough to execute the 1.4 kilometres of road project nominated by residents of Ayama Ekere community.

Speaking with journalists shortly after the contract signing in Port Harcourt, capital Rivers State, the Chairman, Board of Trustees Ukama Ekede, Ayama Ekere, Asukama, Asukoyet Host Communities Development Trust Fund (HCDT), Comrade Nathan Asuk stated that the contracts were selected in consultation with the communities.

His words: “What happened today is the manifestation of a series of activities from the signing into law of the Petroleum Industry Act. Immediately after the signing, Green Energy International Limited and it’s technical partners, Lekoil and Oil Services Nigeria Limited in consultation with the communities and in line with the PIA engaged the communities to identify their needs.

“The needs were identified and were incorporated into the Communities Development Plan of the four communities. From then we started working in the boardroom trying to put things together. Today is actually the manifestation of those things that we did long time ago.

“Today is the signing and award of contracts. Those projects that communities have identified as their needs, that we see as interventions that could be achieved, that could be given to the communities for the improvement of their lives is what we have just done.”

Asuk also pointed out that the contract award went through a competitive bidding process, pointing out that the contracts were awarded to local contractors in line with the PIA Act and further to drive economic development in the communities.

He added that no contract was awarded for Ayama Ekere community because the money in the pool is not enough to execute the 1.4 kilometres of road project nominated by people of the community.

According to him, each community currently has N84million in its pool and that Ayama Ekere community has been directed to chose another project that can be executed within the available resources in their pool.

“The PIA also advocated for local content. So the award of contracts to local contractors was, one, in compliance with the local content, two, for development. Everybody needs opportunity to develop. So this contractors that were selected today, may be at the end of the execution of these contracts, some of them must have learnt a lot to improve on their capacity to deliver in the future.

“We are having a time frame of about three months for the execution of the projects. Each of the communities has about N84 million to its credit for the execution of their projects,” he stated.

On his part, the Base Manager, Lekoil and Gas Limited, Engr. Chris Okoli, expressed the commitment of the company and its JV partners to work with the communities in line with the provisions of the PIA. He also solicited the leadership of the communities to prevail on their youths to avoid sabotage of their operations.

 

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