Aviation minister denies conflict with CCECC over airport concession

Minister of aviation, Hadi Sirika has denied any conflict in the planned airport concession and the agreement reached with the Peoples Republic of China EXIM Bank.

Sirika also clarified some contentious issues that the planned concession has thrown up over the years.

In a statement titled, ‘Frequently Asked Questions (FAQ)’ released by the ministry of aviation, Sirika explained that the delivery of the concession project will help Nigeria achieve its objective in terms of air transport value chain growth by developing and profitably managing customer-centric airport facilities for safe, secure, and efficient carriage of passengers and goods at world-class standards.

The minister, who described Nigeria as Africa’s largest economy with a broad range of investment and tourism opportunities, said investing in and continuous development of assets for the concession was key to unlocking these opportunities.

He said the airports have huge potential but are currently operating at a sub-optimal level due to a myriad of factors to be addressed through their concession.

Four airports earmarked for concession are Murtala Mohammed International Airport Lagos, Nnamdi Azikiwe Airport, Abuja (International & Domestic), Port Harcourt Airport (International & Domestic) and Mallam Aminu Kano Airport (International & Domestic).

Addressing the alleged conflict between Nigeria and China over the concession, the minister stated: There is no conflict. China Civil Engineering Construction Corporation (CCECC) was contracted to deliver a number of infrastructure projects throughout Nigeria in 2013. The passenger terminal development works are a small part of this, and the Federal Government has every intention to service its obligation.”

On how much the Federal Government intends to generate through this concession project, Sirika made reference to a significant amount and cost-saving on the part of government without expatiating how.

“A typical airport concession transaction might rely on a deal structure comprised of an investment commitment by the concessionaire for a minimum duration, an annual concession fee and a share of net operating income.

“These are prized aviation assets and as such we expect to generate a significant amount of direct investment in what we intend to be an equitable deal for all parties. That said, the initial or short-term objective is to deliver significant cost- saving to the Federal Government. FAAN will no longer be solely responsible for maintenance, investments, and day-to-day management into these airports.”