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Completion of airports remodelling project to gulp N100billion

By BusinessNews Staff on September 5, 2015

The federal government would need not less than N100 billion to be able to complete the on-going airports remodelling project, a top official of the Federal Airports Authority of Nigeria (FAAN) has revealed.

The official said this whopping amount would be expended on the projects because some of the facilities at the airports have degenerated due to the abandonment of the project.

The airports remodelling was started in 2011 during the tenure of Senator Stella Oduah as the Minister of Aviation. Within two years, some of the projects were completed while others were at various stages of completion.

Following Oduah’s removal as Minister, the projects were abandoned by the successive administration.

Chairman of Arik Air Joseph Arumemi-Ikhide and the CEO of Medview Airline, Alhaji Muneer Bankole said one of the major challenges in the aviation sector is the dilapidated airport without modern facilities.

Specifically, Bankole expressed the regret that the remodelling project was terminated before they could be completed, noting that as domestic carriers are growing and acquiring more aircraft, the facilities at the airports would not be able to accommodate on-going expansion in their operation.

Speaking in the same vein, Arumemi-Ikhide said that the snag against the acquisition of more aircraft is that there are no spaces to park them and where they would operate from, unless the facilities were modernised and expanded.

“To me, what the government needs to do is to concentrate on infrastructure. Improve the terminals, get transit section, get the conveyor belt. Let us buy heavy duty conveyor belt for God’s sake; not conveyor belt meant for small operation and the thing is damaging people’s bags. With this and good fuel supply the airlines can operate efficiently,” the Arik Air Chairman said.

When Chief Osita Chidoka took over as the Minister of Aviation his priority was not airport remodeling, but customer oriented service.

It was learnt that the contractors handling the airport remodelling projects were left in the lurch and when they made requests for the renewal of the contracts they did not receive positive response.

FAAN source said the agency had widened the scope of the contract to include new jobs that were not envisaged at the initial contract award in 2012. The company had in 2014 indicated that there were areas not properly covered by the initial contract for which the company had to cover.

FAAN official also told THISDAY that with poor crude oil sales and strict fiscal policy of the new administration, the best option would be to concession the airport facilities. Some government officials in the Presidency were said to have kicked against concession because “they believe that government should not hand over its assets to private investors.”

Former Managing Director of FAAN, George Uriesi has reasoned that concession would be the only way the facilities could be maintained and modernised to meet the yearnings of airlines and passengers.

[ThisDay]

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