FG pegs Airport concession at N30bn, gives other conditions
By Tobi Adetunji
The Federal Government has fixed N30 billion per bidding for firm or consortium interested in concession of four international airport terminals in Lagos, Abuja, Port Harcourt and Kano.
The request for qualification (RFQ), as part of efforts to run the facilities efficiently and profitably, is open to firms or consortia with track record in airport terminal management.
Recall that the Federal Government earlier proposed 20 to 30 years concession tenure for the facilities, which will enable private investors to own, operate and recoup investments.
The Federal Executive Council (FEC) in 2016 approved the concession of the four major airports in a move to have them run efficiently and profitably.
However, the Minister of Aviation, Hadi Sirika, at a project update session with stakeholders, said the concession exercise is open to all qualified entities with the capacity to turn around the fortunes of the facilities.
Earlier week, the Ministry of Aviation, in compliance with the Infrastructure Concession Regulatory Commission (ICRC) and National Policy on Public-Private Partnership (N4P), released a request for qualification for the concession.
According to the Permanent Secretary, Federal Ministry of Aviation, Hassan Musa, in an official memo a copy of which was made available to Nigeria NewsDirect.
the four major commercial airports: Nnamdi Azikiwe International Airport, Abuja; Murtala Muhammed International Airport Lagos; Malam Aminu Kano International Airport and Port Harcourt International Airport, Omagwa, and surrounding communities are intended to develop into efficient, profitable, self-sustaining, commercial hubs which will create more jobs and develop local industries through a Public-Private Partnership (PPP) arrangement.
“The Federal Government of Nigeria (FGN) through the Ministry of Aviation is inviting bids from reputable Airport Developers/Operators/Financiers/Consortia for prequalification for the Concession of selected Airports Terminals under a Public-Private Partnership (PPP) arrangement.
“The airport’s terminal concession is one of the critical projects under the Aviation Sector Roadmap of the FGN and fits well within the scope of the Ministry’s strategic plan for the sector. The execution of this project is meant to achieve the Federal Government’s objective in terms of air transport value chain growth by developing and profitably managing customer-centric airport facilities for safe, secure and efficient carriage of passengers and goods at world-class standards of quality,” the memo read in part.
Highlighting other important details and requirements that the bidders must showcase under the Public Private Partnership PPP, he harps on the technical, financial and operational capacity of the firm.
He further revealed that, Eligibility requirements include the full names of firm/consortia; evidence of Company Registration; ownership structure of bidding entity; audited financial statements; sworn affidavit; power of attorney/board resolution and in the case of a consortium, evidence in the form of a letter of association agreement.
The terms further stated that to be pre-qualified for consideration as a prospective PPP partner for the project, the prospective firms/consortia must have the technical, operational and financial capability including; experience in the development and operation of an international airport and cargo terminals; evidence of financial capacity in support of the company or consortium’s ability to undertake the airport concession illustrated by a minimum net worth of N30 billion and letters of support from credible financial institutions in support of the consortium’s ability to manage and operate the airport terminals.
The request emphasizes that the RFQ is the pre-qualification stage of the procurement process for the Project in which interested parties are required to meet the pre-qualification requirements specified in the RFQ package.
Only pre-qualified parties will proceed to the Request for Proposal (RFP) stage and shall execute a Non-Disclosure Agreement prior to issuance of the RFP documents.
Director, Public Affairs, Ministry of Aviation, James Odaudu, added that the interested international parties has been urged to partner with local firms in compliance with the requirements of the Federal Government’s local content development policy while submission of RFQs through electronic media will not be considered.
