Cost of Gas Pipeline Project up 10%

Officials of the West African Gas Pipeline Company (WAPCO) on Tuesday said the initial cost of the project had risen sharply in view of the rising cost of energy equipment arising from the recent hikes in crude oil prices.

Briefing the Ghana News Agency after a stakeholders' forum in Accra, Mr Jack Derickson, Managing Director of WAPCO, said 93the three months delay in completing the project would result in about 10 per cent marginal cost in the original figure of 500 million dollars=94. He said the major works left were the construction of the compressors at the Lagos end of the project and issues bordering on research and monitoring.

The major items now are the upcoming civil works at Alagbado and Lagos Beach Compressor Station (LBCS), completion of mainline welding and burial and commencement of tie-ins.

"We also intend to receive major equipment including compressor modules at site and piping at Alagbado and LBCS are working at getting manufacturers of items for installing the compressors at the Nigerian end of the project as well as complete trenching works in Takoradi and Tema."

The Research and Monitoring Stations are to be built in Tema and Takoradi, and hydro-testing of pipeline followed by the inauguration of the pipeline and other facilities.Asked if the foundation members were willing to pick up the extra bills, Mr Derickson said it was something they were working on and did not expect any hiccups.

Presenting an update on the extent of construction offshore, Mr Barth Nwagboso, Project Director, said the installation of the 20-inch mainline from Takoradi in Ghana to Badagry in Nigeria was completed last April. The lateral pipelines in Cotonou, Lome and Tema have also been completed.


"What is ongoing now is the sub-sea tie-ins and pre-inauguration of the offshore pipelines and trenching works in Takoradi and Tema. Ms Michelle Cowherd of the Environmental Unit commended the collaboration with the various Environmental Protection Agencies in the four countries saying further studies were being conducted for baseline noise and air quality assessment within nine months of the issuance of permits.

She said construction and post-construction monitoring was ongoing noting that WAPCO had responsibilities to ensure that construction was done in accordance with environmental and social commitments among other things. 24 Oct. 06