Deltans have expressed outrage over Wednesdays move by Governor Ifeanyi Okowa in concessioning of the Asaba International Airport to a private firm Asaba Airport Company Ltd.
The Airport which has over N40b as investment and is one of the major legacy projects of the immediate past government led by Emmanuel Uduaghan administration is to be concessioned for a 30-year period and is expected to fetch the government N4 billion. An annual fee of N100 million each year during the concession period, with 10 per cent escalation every five years of the concession period is expected to be paid by the concessionaire.
Many have expressed disgust for Okowa’s action as even members of his party the Peoples Democratic Party (PDP) have questioned the intentions behind the governors action and why it was shrouded in secrecy.
The major opposition party in the state also joined the fray, describing the exercise as a fraud. In a statement on Thursday in Asaba by its publicity secretary, I Sylvester Imonina, the All Progressives Congress, APC said while it agreed that the government had no business in business, “Unfortunately, the fraud called concessionaire of Asaba Airport will go down in history as the greatest bleak, shadv business and economic coup against Deltans”.
According to the party, “It is an affront to common sense that an airport business, wherein more than N4Obillion was invested, was concessioned for N4 billion, and to yield N100 million annually because of vested interests”.
The APC expressed shock that there was no advertisement, or adequate information on plans by the government to concession the airport. It challenged the State Government to put in the public domain all that transpired about the concession of the airport.
“Also, the government should show to Deltans the corporate bodies that partook in the exercise and how much each of them bided. We call on Deltans and all people of goodwill to kick against this obvious shenanigans called concession of Asaba Airport,” parts of the statement read.
Many opposes of the governors move while lamenting the lengthy concession period also noted that the former governor of the state whose legacy project was being concessioned was notably absent and haven’t commented on the issue days after the concessioning despite been acknowledged by Okowa.
Although many theories have arisen to why the governor was absent or refused to comment on Okowa’s action, a source says that such was not ultimately necessary as neither was the governor invited or his attendance necessary.
The source who pleaded anonymity further stated that the recognition by the delta state governor dispelled any known beef as the history of the Airport could not be written without mentioning the governor.
The source who further noted that the former governor was not invited, while reacting to Uduaghan’s thought on the concessioning stated that Okowa was on track been that government were not proper managers of businesses.
“what Governor Okowa did was what Dr. Uduaghan would have done — concession it — because government is not a good manager of business. It would die in no time. But maybe he would have handled it differently”.
Okowa listing the various conditions attached to the concessioning said, “Terms of the concession are that 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.
“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”.
Recall, Dr. Emmanuel Uduaghan’s administration conceived and built the Asaba Airport 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 as well as act as a hub for export of agricultural and manufactured goods.
This vision wasn’t visible as the airport was downgraded to a Category 3 airport by the Nigerian Civil Aviation Authority (NCAA) just few months before the arrival of the Okowa administration.
The Delta governor citing high expenditure as reasons for the concessioning, said that in order to restore the original vision of the Airport, his administration was embroiled with fully rehabilitating, reconstructing the runway, taXiway and other ancillary works.
He added that they 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.
The decision to concession the airport for 30 years was approved by the State Executive Council at its October 14, 2020 meeting presided over by Governor Okowa.
The chairman of the Consortium is First Investment Development Company’s (FIDC), Adebisi Adebutu. Adebutu is a scion of the wealthy Kesington Adebukunola Adebutu (Baba Ijebu) family.
The Asaba Airport Company Limited, has technical partners as sub-concessionaires; They are Air Peace as the Anchor Airline and MRO operator; Multifreight Cargo and Logistics for the cargo and logistics centre; Arbico Construction Company to build the Business Park, Hotel and Convention Centre; Rainoil Limited, and Cybernetic Limited to develop the Tank Farm and provide aviation fuel; and Quorum Aviation Limited to develop the private jet and Helicopter Terminal of the airport.
