AIRPORT CONCESSION: SIRIKA CALLS FOR INFRASTRUCTURE INVESTMENT,UPGRADE
Oru Leonard
Minister of Aviation in Nigeria, Senator Hadi Sirika has called for urgent need of infrastructure investments, upgrade and modernisation to meet international standard.
Sen. Sirika said this at a virtual meeting with Aviation stakeholders on Tuesday, where he spoke on the Nigerian Airport Concession Strategy. He noted that all airports in Nigeria are currently operating in a suboptimal environment,
The Minister explained that with the population growth and its increasing affluence, a private operator of the four main airports in the country will be able to operate the airports with an international standard and expand the facilities in accordance with traffic demand at each airport.
He also said that typically on Airport Public-Private Partnership (PPP), projects the Authority sets minimum service levels for the Concessionaire to comply with, adding that this will provide the Authority with a tool to set service standards for the operation of the terminals and secure reliable high-level products.
“The Nigerian Airport Concessions will be a Terminal Concession and the majority of its revenue will be derived from Non-Aeronautical sources; All other facilities at the airports and existing concessions outside the Airport Terminals will still be managed by FAAN.
“The Concessionaire will provide the investment required to upgrade the existing terminals, take over the new terminals and maintain them over a period of time to be determined based on financial assessment of each transaction; and Passenger Service Charge and Security Charge will be shared by FAAN and the Concessionaire and FAAN’s share of the charges shall be paid directly to FAAN by IATA,” he said.
Sirika disclosed that the concessionaire will sign service level agreements with the Federal Airports Authority of Nigeria, FAAN, and the Nigerian Airspace Management Agency, NAMA to ensure that airport operates efficiently.
He said, “FAAN will be required to provide manpower through Aviation Security, AVSEC, for the security of both the Airside and Landside, noting that the concessionaire will provide and maintain landside equipment, while FAAN will continue to provide and maintain Airside security equipment.
“All existing concessions within the Terminal concession will be inherited by the concessionaire and will be allowed to run its course before any review.
“Tariffs will be regulated in accordance with the procedures set in the concession agreement.”
Speaking, the Acting Director General, Infrastructure Concession Regulatory Commission (ICRC) Mr. Michael Ohiani, said the ICRC has provided the Ministry of all it needs for full compliance and international best practices in the concessioning process, He commended the Minister for the effort in ensuring that “this important transaction is undertaken in compliance with ICRC Act”.
Also speaking, the Managing Director, Federal Airport Authority of Nigeria (FAAN), Capt. Rabiu Yadudu, said a lot has been done in the last eight months to remove fear from people. He called for more interaction and participation, so that there will be an enhanced and sustainable process.
