The House of Representatives on Tuesday resolved to set up
sub-committee to interface with Federal Ministry of Aviation, the
Financial Adviser, (FAD) and the Project Delivery Team, (PDT) on the
proposed airports concession by the Federal Government.
Chairman, House Committee on Aviation, Hon. Nnolim Nnaji disclosed
this in Abuja, after the presentation of the Minister of Aviation,
Senator Hadi Sirika on the Nigerian Airport Concession Strategy, who
assured that the airport terminals concession will not lead to job
losses, adding that the assets to be concessioned are: cargo
terminals, airport terminal buildings, Aprons and Car Parks.
Some of the lawmakers who spoke during the investigative hearing
including Hon. Linda Ikpeazu queried the rationale behind
concessionning after Federal Government had fully funded the
remodeling through borrowing, for which paltry 40% revenue sharing
formular would be for the Federal Government while 60% of the revenue
goes to the concessionaire.
Hon. Ikpeazu who queried the concessionning of already
profitable/viable assets, however urged the government to redirect the
planned concession in such a way that it would bring about development
of new airports, reduce airfare and other areas that would help to
increase patronage.
Hon. Ikpeazu who frowned at the development, observed that the
concessionaire which has no role to play in the repayment of Chinese
loan is the major beneficiary of the concessionning while Federal
Airport Authority of Nigeria (FAAN) has huge liability of remitting 25% operational cost into the Federation Account and payment of
salaries.
According to him, the sub-committee is to review the reports of the
FAD and the PDT which according to the chairman fell below expectations, also requested for the Assets Evaluation Report of the affected airports, (AER), cash flow of the airports, (up for concession), for the last five years, copies of all existing concessions on the four airports the on-lending agreement, repayment schedule and every other documents pertaining to the Airport concession.
In his opening remarks, Hon. Nnaji emphasized that the intervention of
the committee was not intended to oppose the policy of the executive
but to make sure that Nigeria and Nigerians are not shortchanged.
“Our aim is not to unnecessarily meddle with the policies of the
executive but as the representatives of the people, we would not close
our eyes to issues that may create instability and unrest in this
critical sector. This prompted our earlier meeting with the
leaderships of the aviation unions and the Nigerian Labour Congress,”
the chairman stressed.
Hon. Nnaji recalled that the concerns raised by the labour unions
warranted the committee’s letter to Ministry Aviation requesting for
the copy of outline business case for the concession, the Chinese loan
agreement for the four airports slated for concession, report of the
project delivery team, (PDT) and the report of the financial adviser,
(FAD).
Hon. Nnaji had also in his opening statements said, “in addressing
this matter, l expect all of us to be sensitive and show understanding
to safeguard the industry and the national economy.
“l equally expect all parties to be prepared to shift positions where
necessary in the interest of peace and harmony. There should be no
rigidity on the part of labour and the ministry. Let everyone be
guided by one ideal- the overall interest of the nation,” he added.
According to the Minister, the approved aviation sector roadmap
include: Airport Concession, Establishment of a National Carrier,
Maintenance, Repair and Overhaul Centre, Development of Agro-Allied
Cargo Terminals, Establishment of an Aerospace and Aviation
University, Establishment of Aviation Leasing Company, Development of
an Aerotropolis (Airport City), Search and Rescue and Establishment of
five Airport Free Trade Zones.
According to the documents presented to the Committee, some of the
challenges faced on resumption of duties in November, 2015 include:
recession, falling in price of oil price, inadequate safety, security
and surveillance equipment, dilapidated infrastructure and obsolete
equipment, external debt of $1 billion Chinese terminal buildings,
large number of unemployed trained professional Nigerian aviators,
high debt profile of domestic airlines operators and local debt burden
– AMCON, Bi-Courtney, Sanderton Ventures Ltd, etc.
The Minister, Senator Hadi Sirika had also assured the committee that
the entire exercise would be transparently carried out and that the
ministry would cooperate with the subcommittee to ensure that proper
things are done.
The meeting was adjourned for continuous interactions to review the
progress until all the contentious areas are resolved.
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