Rivers communities welcome Lekoil, Green Energy JV’s HCDT project

Some communities in Andoni Local Government Area (LGA) of Rivers State have expressed delight over the implementation of the Host Communities Development Trust Fund (HCDT) by the indigenous oil company, Lekoil and Gas Limited, and its JV partners, Green Energy International Limited.

In line with the provisions of the Petroleum Industry Act (PIA) for oil companies to set aside three percent of their profit for the development of their host communities, the firm on Wednesday awarded developmental contracts to three of its host communities in Andoni Council.

The contracts include internal road projects, completion of town hall building projects, construction of culverts, and scholarship and bursary schemes from primary to postgraduate levels in Ukama Ekede, Asukama, and Asukoyet communities, respectively.

Community Consultation and Project Selection

The communities noted that the companies consulted with them to identify their needs before embarking on the projects, saying this is how it ought to be and urging other firms to emulate.

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

He said: “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 its 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 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 a 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.”

He stated 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 also revealed that no contract was awarded for the Ayama Ekere community because the funds in the pool were not enough to execute the 1.4 kilometres of road project nominated by them. He stated that each community currently has N84 million in its pool and that the community has been directed to choose another project that can be executed within the available resources.

“There are four communities in the HCDT; quite unfortunately, the contracts today are for three communities because yesterday we engaged the other community to tell them that the project they want, the resources in the pool, will not be enough to execute 1.4 kilometres of road, which runs into over N700 million. We engaged them to tell them that they should go home and, in consultation with the board, identify other needs. Now, for the other three communities, Ukama Ekede has two projects: the contract for the implementation of a scholarship scheme and bursary from primary school to postgraduate levels. The other project is the construction of about a 1-kilometre link road to Ukama Ekede.

“The next community, Asukama, has three projects: they have a town hall that they have been working on for a while now. So, we are awarding a contract to enable the completion of that project. They also have a cross culvert that will link the two segments of the community together. Asukama also enlisted scholarships and bursaries for their youths and children from primary to postgraduate levels. The other community is Asukoyet, where we awarded a contract for internal roads of about one kilometre. Those were the projects we awarded today.

“The PIA also advocated for local content. So, the award of contracts to local contractors was, one, in compliance with the local content, and two, for development. Everybody needs an opportunity to develop. So, these contractors that were selected today, by the end of the execution of these contracts, may have learned a lot to improve their capacity to deliver in the future.

“We have 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, 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.

Source: TheGuardian