Revenue sharing, staff handling, other troubling details emerge in FG's 80-year airport concession deal

• The much-talked-about airdrome concessions are astir to beryllium concluded, and cardinal provisions person been made public
• The 80-year woody for the Akanu Ibiam International Airport, Enugu contained successful a 64-page agreement
• The statement details cardinal provisions astir however airdrome unit would beryllium handled, and however gross volition beryllium shared among the parties

Legit.ng journalist Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful concern reporting crossed integer and mainstream media.

The national government’s 80-year concession woody with Aero Alliance Consortium is nearing completion.

This woody volition manus implicit the Akanu Ibiam International Airport (AIIA), Enugu, to the concessionaire for the adjacent 8 decades nether a Public-Private Partnership (PPP) agreement.

The draught declaration covers each the details of the statement arsenic it touches connected airdrome upgrades, revenue-sharing and the handling of the Federal Airports Authority of Nigeria (FAAN) staff.

The concession woody specifies the revenue-sharing look among the parties. Photo credit: Fayez Nureldine / Anwar Amro
Source: Getty Images

The 64-page agreement, seen by Daily SUN, details guidelines for the 80-year agelong statement and present are immoderate highlights.

1. The concession volition past for an archetypal play of 80 years starting from the effectual date, and whitethorn beryllium extended by up to 20 years based connected performance.
2. It tin besides beryllium terminated earlier the extremity of the 80-year duration if issues originate astir non-compliance. Clauses 18 says that if the termination is simply a effect of the grantor’s default, the grantor indispensable wage outstanding loans, third-party liabilities, equity investment, and projected returns.
3. Compliance volition beryllium monitored by a 5-member squad made up of 3 representatives from the grantor and 2 from the concessionaire. In the lawsuit of a deadlock decision, ICRC volition measurement successful and enforce a binding solution wrong 5 concern days.
4. All of the airport staff nether the umbrella of FAAN volition beryllium transferred to the concessionaire, on with their afloat benefits for an archetypal 24 months. In the lawsuit of a restructuring, unit that are considered redundant to the airdrome volition beryllium reabsorbed by the national government, alongside with the work for their pensions and gratuities.
5. According to the draught agreement, the Infrastructure Concession Regulatory Commission (ICRC) is entitled to 1% of the nett income from each gross generated from the airport.
6. Aero Alliance is required to taxable aeronautical tariffs, specified arsenic landing fees and rider work complaint to the authorities for approval.
7. Aero Alliance volition person afloat power implicit non-aeronautical revenues similar cargo fees, rental, VIP lounge fees, parking, and crushed handling, and portion required to support to ineligible limit, the concessionaire is not required to taxable it for approval.
8. The concessionaire is besides expected to usage collected tariffs to money operations, maintenance, indebtedness repayment, statutory taxes, superior investments among others.
9. Clauses 14.7 and 15 besides mandates the concessionaire (Aero Alliance Consortium) to hole and taxable quarterly fiscal reports to the grantor (federal government) for audit of its revenues and expenses. The study indispensable incorporate attraction logs, upgrade advancement based connected KPIs, operations, and finances.
10. Clause 16.7 contains the cost-sharing look successful the lawsuit of a unit majeure event. If it is simply a non-political lawsuit similar earthy disasters, each enactment bears its ain costs, but if it is an indirect governmental lawsuit similar onslaught oregon civilian unrest, the concessionaire covers costs up to security claims, portion the remaining costs would beryllium divided evenly with the grantor. In the lawsuit wherever governmental events similar expropriation, discriminatory laws, brings the grantor afloat reimburses the concessionaire.

The statement clause 2.2 mandates Aero Alliance to transportation retired upgrades and improvements connected the airdrome facilities, including terminal expansion, installation of updated navigation/ connection technology to code existing deficiencies.

The papers besides specifies upgrades for the baggage handling system, VIP lounges and others, including preventive maintenance. It besides provides that each specified upgrades comply with ICAO standards.

Conditions for the concession

The concession becomes effectual erstwhile some parties motion it aft fulfilling the conditions.

Minister for Aviation, Festus Keyamo, had assured that the airdrome unit would beryllium captured successful immoderate concession agreement. Photo credit: Festus Keyamo
Source: Facebook

The statement besides has to beryllium approved by the Federal Executive Council (FEC), and ratified with a Certificate of Compliance issued by the ICRC.

The concessionaire indispensable amusement impervious of financing, and each conditions indispensable beryllium met wrong 180 -270 days of signing the agreement, oregon the woody whitethorn beryllium terminated.

Airport unit protestation concession deal

In related news, aviation unions person raised alarms implicit the national government's multiple airdrome concession projects.

The unions said they were near successful the acheronian and person pointed retired suspicious presumption successful the agreement.

Legit.ng reported that the authorities earlier cancelled the airdrome concession programmes started nether President Muhammadu Buhari and initiated its ain plans.

Source: Legit.ng