Delta concessions Asaba Airport, to earn N100m annually

 

• APC berates Delta Govt. over concession of Asaba Airport

Delta State government in a strategic move to further develop the Asaba Airport and make it run profitably has signed off the airport facility to concessionaires in a deal that will see the state earning at least, N100 million in concession fee yearly.

The strategic move which is the first of such concession in the country will also earn the state 2.5 per cent yearly revenue earnings over the next 30 years that the concession agreement would run.

It will be recalled that the previous administration built the facility and opened operations in 2008 and in 2015 it was downgraded by the Nigerian Civil Aviation Authority (NCAA) over dilapidated infrastructure and poor maintenance culture.

The State governor, Dr. Ifeanyi Okowa, said at the agreement signing ceremony between Delta State government and Asaba Airport Company Limited in Asaba that the concession was motivated by the desire to have the critical facility developed into a full international air travel destination and profit-oriented asset for the host state.

“Considering the cost alone, no state government can run an airport the way it should function to bring the maximum benefit to the people. So, we have decided to follow this route. I want the Delta people to know that this concession and the signing ceremony with the concessionaires today are in the best interest of the Delta people, and I hope that other States with state-owned airports will follow suit,” Okowa said.

Okowa explained that on the assumption of office, they embarked on the facility upgrade, including the construction of a new runway, Instrument landing system and field lighting to have the airport return to 24-hour operations in 2019.

According to him, while the upgrading was in progress, the State had since 2015, begun the transparent processes to bring in the private sector to take up the facility and transform it into a regional hub.

He revealed that following a rigorous bidding process, the state settled for a consortium of concessionaire operators/ investors “with the technical and financial capabilities to redevelop, finance, design, operate, maintain and manage the Asaba International Airport for the benefit of Deltans”.

The master concessionaire and sub-concessionaire model adopted for Asaba Airport produced FIDC-Menzies Consortium as the major shareholder, with technical partners like Air Peace airline as the anchor airline and MRO operator; while Multifreight Cargo and Logistics will manage the cargo aspect.

Others are Arbico Construction Company to develop the Business Park, Hotel and Convention Centre; Rainoil Limited and Cybernetics Limited to develop tank farm and aviation fuel supply, and Quorum Aviation Limited to develop and manage the private jet and helicopter terminal.

The concessionaires have the mandate to invest N28 billion in the mandatory capital project in the next three years and run the Asaba International Airport for an initial 30 years period, having paid the State government N1 billion as an upfront fee.

Managing Director of Asaba Airport Limited, Adebisi Adebutu, stated that the goal of the concession was to reposition the airport to be the best in West Africa.

Adebutu disclosed that the immediate work would be to modernise the airport through the terminal upgrade and laying of optic fibre for internet services.

The long-term project, he added would be to build a cargo facility, retail and leisure centres, airport hotel and the creation of an airport city.

On his part, Director-General of the Nigerian Meteorological Agency (NIMET), Prof. Sani Mashi, who spoke on behalf of other aviation agencies, lauded the initiative, describing it as the best way to make such high-capital ventures run optimally and profitably.

He pledged to support the concessionaires as the airport widens operations and increases revenue.

Meanwhile the Delta Chapter of the All Progressive Congress (APC), has berated the state government over the concession of Asaba International Airport to a concessionaire.

The party’s reaction was conveyed in a statement signed by its State Publicity Secretary (Caretaker), Mr Sylvester Imonina in Asaba.

Titled “Asaba Airport Concessionaire, another monumental fraud”, Imonina said the party concurred that “the government has no business in business’’.

“This will mean that the business of any serious minded government is to provide enabling environment for private businesses to thrive.

“It is on this premise that Delta APC supports any government that is transparent in the concessionaire of public properties.

“Unfortunately, the fraud called concessionaire of Asaba Airport will go down in history as the greatest bleak, shady business and economic coup against Deltans.

“It is an affront to common sense that an airport business, wherein more than N40 billion was invested, was concessioned for N4 billion and to yield N100 million annually because of vested interests,’’ the party noted.

He added that it was shocking that there was no advertisement or adequate information on plans by the government to concession the airport.

The party challenged the State Government to put in the public domain all that transpired about the concession of the airport.

“Also, the government should show to Deltans the corporate bodies that partook in the exercise and how much each of them bidded.

“We call on Deltans, and all people of goodwill, to kick against this obvious shenanigans, called concessions of Asaba Airport.’’ (NAN).