James Emejo in Abuja
The Nigerian Sovereign Investment Authority (NSIA) has refuted media reports that it had been directed by the federal government to source $200 million for the settlement of a Chinese firm, Sunrise Power and Transmission Company Limited, following the International Court of Arbitration ruling in Paris against the federal government.
The report had alleged that the federal government, through the Ministry of Power had agreed to pay the sum, thereby mandating the NSIA to work out modalities for the settling the debt as a result of an alleged breach of contract among for the 1,525 megawatts Mambilla hydropower project and and the re-award of the same to another Chinese firm.
But, NSIA spokesman, Titilayo Olubiyi, said the authority had not received any instruction from the federal government to bankroll the judgement debt.
However, he explained that, “The only instruction we have is to conduct value engineering” on the project.
The report, however, stated that based on the terms of settlement, Sunrise is expected relinquish all claims to the project once the requirements contained in the agreement with the federal government were settled.
Findings,however, indicated that the NSIA’s mandate under the Presidential Infrastructure Development Fund (PIDF) in relation to the Mambilla project was restricted to conducting value engineering.
According to Olubiyi,”We have received no such instructions. The only instruction we have is to conduct value engineering.”
Essentially value engineering entails best-practice approach for validating the project as it ensures that notable challenges on the project can be pre-determined and addressed in advance.
The process also fosters cost reduction, improves project performance as well as efficiency, and enhances quality requirements.
It is largely employed to improve the value of the project by examining the function of each item or element and its associated cost.
