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Airport Expansion to gulp N106 billion in Chinese Loan

By on September 7, 2012

Minister of Aviation, Stella Oduah

The Federal Government has disclosed plans to borrow N106 billion from the Chinese in order to expand 6 airports across the country. The airports that will be expanded by Chinese contractors are Lagos, Abuja, Rivers, Kano and Enugu.

Aviation minister, Stella Oduah said: “As we travel round the world, we see and admire international airports in other countries and wish that our nation could boast of just one that can truly go by the name international airport. Today, following the approval of FEC, we have concluded arrangements to commence construction of not just one, but five brand new, world class international airports.

“The company that is doing the execution is a Chinese company. When the Chinese NEXIM or any country NEXIM gives a loan, that country’s contractor will have to do the execution. That is the process we follow.

“They will have to decide on who will do the awarding of the project, so ours is for Bureau of Public Procurement (BPP) to check if its in line with our regulation to ensure that the loan is in order. Once BPP gives no objection then we are free. Secondly, on what it will be spent upon, I want to say they are five international airports and six international perishable cargo terminals and all that is N106 billion all inclusive.”

The airports will be completed within two years with a concessionary loan of 22 years and five years moratorium of an interest rate of 2 per cent.

Also the minister disclosed that the first phase of the aviation roadmap, which is the remodeling and reconstruction of 11 airports around the country had reached 80% completion.

“These include: the Murtala Mohammed International Airport and the General Aviation Terminal (GAT), both in Lagos; Nnamdi Azikwe International airport, Abuja; the Port Harcourt International Airport, Omagwa; the Akanu Ibiam International airport, Enugu and the Malam Aminu Kano International Airport, Kano. Others include the Margaret Ekpo International Airport, Calabar, Yakubu Gowon airport, Jos; the Yola, Kaduna and Sam Mbakwe Airport Owerri,” Oduah explained.