Private company takes over Asaba Int”ll Airport for 30 years


Delta state government has concessioned it’s Asaba international airport to private company to run for 30 years 
Governor Ifeanyi Okowa stated this during the signing of the concession agreement for the airport between the state government and the Consortium, Asaba Airport Company Ltd” at the Airport in Asaba.


He noted with thanks that the journey which began in 2015 which was aimed at partnering the private sector to build the airport to international standards has been realised.
The governor said the consortium were experts in the management of airports in so many countries, adding that the people of Delta would not regret the moves but reap the benefits that accrues thereafter.
Dr Okowa noted that the consortium would pay annual revenue of N100 million to the state government coffers, engage 20 per cent of workforce as local content and require pay an initial deposit of N1bn (one billion naira) to the government.


He said the new management would have to invest N28 billion to build, upgrade the airport to international standards over the period of the concession period.
According to him, “Terms of the concession are thst the assets and all infrastructure constructed by the Concessionaire, together with all related investments in, and upgrades to the assets, shall be handed back to the State at the end of the concession period.
“The concessionaire shall purchase and maintain in full force and effect any and all of the insurances required for the operation of the airport.


“The concessionaire shall pay to the state a royalty fee of 2.5 per cent  of the annual earnings before interest, taxes, depreciation, and amortization.
“The concessionaire shall pay to the state an annual fee of N100 million each year during the concession period, with 10 per cent escalation every five years of the concession period.


“The concessionaire shall pay to the state an upfront fee of N1 billion only on or before close of business on the 15th day following the signing of this agreement.  “My good people of Delta state, with over N28b expected to be pumped into the airport development by the Consortium over the concession period, the benefits to the State in terms of employment generation, economic growth, urban renewal, and tourism potentials are enormous”.
“My joy knows no bounds as we make another breakthrough in our goal to transform Asaba International Airport into a regional economic hub in line with the vision establishing it. 


“The journey to today’s ceremony began in November 2015 when I set up a Project Steering Committee headed by my Senior Policy Adviser with the mandate to shop for a consortium of Concessionaire Operators /Investors with the technical and financial capabilities to redevelop, finance, design, operate, maintain and manage the airport.
“As we may be aware, this airport was conceived and built by the previous administration of Dr. Emmanuel Uduaghan, not only as a passenger airport but one that will tap the vast economic potentials accruable from the proximity to the eastern commercial cities of Onitsha and Nnewi and be a hub for export of agricultural and manufactured goods. 


“Unfortunately, the vision suffered a major setback when the airport was downgraded to a Category 3 airport by the Nigerian Civil Aviation Authority (NCAA) just few months before my administration came into being.
“This administration had to fully rehabilitate, reconstruct the runway, taxiway and other ancillary works, completed the perimeter fence, and evacuated the hill beside the airport for the provision of obstacle free zone for the runway as demanded by the regulatory authority. 


“Subsequently, the airport was upgraded to Category 6, which enables aircraft as large as the Boeing 737 to land.
“In addition, this administration completed the installation of the Instrument Landing System and the Airfield Ground Lighting System.
 “As a result, the airport can now handle night operations; in the last two months, the airport has operated several night flights as approved by the NCAA and the Nigeria Airspace Management Agency (NAMA).”
The governor thanked the aviation agencies for their support while urging them to continue to support the new managers for effective result.


In a remark, the Consortium Chairman, Mr Adebisi Adebutu, thanked the government for giving its firm opportunity to run the airport while expression gladness that FIDC emerged the preferred bidder.
He pledged the consortium’s resolve to abide by the term of agreement to upgrade the airport to international standards and best in Africa in few years from today.
Also in a goodwill message, Director General, Nigerian Meteorological Agency (Nimet), Prof. Sank Abubakar Mashi, on behalf of other aviation agencies, pledged their resolve to support the consortium the way they supported the Delta Government to ensure success.


Earlier, in a welcome address, the Secretary to the State  Government (SSG), Mr Chiedu Ebie, said the decision by the governor to engage the private sector to mange the airport started five years ago.
According to Ebie, the signing of the agreement to concession the airport is an epoch making one despite the ravaging second wave of the Coronavirus(COVID-19) pandemic.
The highpoint of the ceremony was the signing of the concession agreement.

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