*Warri Airport to Open in 2 Weeks
The Delta State government on Tuesday signed agreement to concession the Asaba International Airport to FIDC-Menzies Consortium on Public-Private Partnership for 30 years, just as it announced that the Osubi airport, Warri would reopen in the next two weeks.
The state government said the objective of the concession was to free the funds, which government spends on the maintenance of the airport to other priorities and at the same time to ensure the upgrade and expansion of the facility with private sector driven funds.
The governor of the state, Dr Ifeanyi Okowa disclosed this during the ceremony to concession the airport in Asaba, noting that the consortium of investors are expected to expend at least N28 billion on various developmental investments on the airport over the 30 years concession period.
The government further said that the consortium was expected to make the payment of N1 billion to the state within 15 days of commencement of activities, while another sum of N100 million was expected from the concessionaire annually and would be escalated every five years.
Okowa also said that the new arrangement would boost economic and social activities in the state.
He explained that the government concessioned the airport to FIDC-Menzies Consortium as the preferred bidder to operate as the Master Concessionaire, while others would act as sub-concessionaires for the entire concession years.
The consortium has technical partners like Air Peace as the Anchor Airline and Maintenance, Repair and Overhaul (MRO) operator, Multifreight Cargo and Logistics; for cargo and logistics centre, Arbico Construction Company; to develop the business park, hotel and convention centre, Rainoil Limited and Cybernetics Limited; to develop the tank farm and provide aviation fuel, while Quroum Aviation Limited would develop and manage the private jet and helicopter terminal.
The concession of Asaba Airport made it the first state-owned aerodrome to be concessioned in the country.
Okowa said that the airport could only be made more efficient when handed over to private investors whom he said were experienced in management of airports.
He explained that at inception, the vision of the government was to make airport a regional hub for exportation of agricultural produce for the country, but lamented that it suffered a huge setback some few years back when it was downgraded to Cat 111 by the Nigerian Civil Aviation Authority (NCAA) due to drop in standards.
With the downgrade, he explained that the airport could only accommodate small aircraft, which defeated the vision of the State Government.
He, however, said that in order to make the airport functional, the state government had to reconstruct the runway, construct perimeter fences, upgrade the Instrument Landing System (ILS) and other facilities, leading to its upgrade by the regulatory agency.
According to him, the new initiative by the state government had attracted new investors, new airlines, which now jostle to operate to the airport and improved economic activities for the state.
He said: “It is the business of the Master Concessionaire to manage the airport, develop the cargo, hotel and conference centre, airlines operating into the airport and the MRO facilities among others.
“The name of the airport shall remain Asaba International Airport and there shall be no new other Greenfield airport within the concession period. Also, 20 per cent of its staff must be from Delta State and there should be mandatory capital project to be completed with the three years of commencement.”
While delivering his speech, the Governor also announced that he reached agreement with the Federal Airports Authority of Nigeria (FAAN) to reopen the Osubi airport in Warri in the next two weeks.
He also disclosed that he had agreed with United Nigeria Airlines to start operating to the airport and expressed hope that other airlines would also resume flights to the airport, which was being serviced by Air Peace, Arik Air and aero Contractors before it was closed.
In his remarks, during the ceremony, the Chairman, Asaba Airport Company Limited, Mr. Adebisi Adebutu, assured that the management would rebrand the airport and make it one of the best within the continent.
Adebutu explained that the long-term plan of the management was to upgrade the airport into an airport city where all activities would take place.
He assured that the management would resuscitate the facility for improved job creation.
The Director-General of Nigeria Meteorological Agency (NiMET), Prof. Sani Mashi, speaking on behalf of other heads of aviation agencies, said that concession of airport was the way to go for rapid development of aerodromes across the country.
He lauded the Delta State Government for taking the audacious step and challenged other state governments with airports in their state to take a cue from the government.
He said that the concession of the airport would lead to the harness of its potential and promised that aviation agencies would support the state government with expertise advice and others who are willing to follow suit.
