"Federal Government Hands over Lagos Airport to Canadian Firm"

Thursday, January 11, 2001

Federal Government Hands over Lagos Airport to Canadian Firm
Nigeria - The Post Express


Lagos - The wind of privatisation may have commenced its movements towards
the aviation industry with yesterday's approval by the federal government
for Messrs Sanders Ventures Limited, a Canadian firm, to take over the
reconstruction of the burnt domestic terminal of the Murtala Muhammed
Airport, Ikeja, on a Build, Operate and Transfer (BOT) scheme.

The reconstruction which would cost the Canadian firm about N2.650 billion
would be run by the Great Toronto Airport Authority (GTAA) on commercial
basis for 10 years before transferring it to government at an 18 per cent
interest per annum.

Disclosing this at the end of the meeting of the Federal Executive Council
presided over by Vice President Atiku Abubakar, Transport Minister, Chief
Ojo Maduekwe, said that the BOT scheme was in line with the Federal
Government's privatisation programme.

"When all the ingredients of the Build, Operate and Transfer were
considered, it was felt that since we already have a privatisation policy in
respect of aviation like many other sectors, it will be against our
programme if government just simply went ahead to commit this kind of money
or close to it in building the airport. So the idea was to treat it purely
at the commercial level by having a private group that can fund it, run to
commercially charge fees, because that is the practice everywhere," he
explained.

He maintained that the Messrs Sanders Ventures Limited whose proposal was
considered had an edge especially as it was already factored into the Royal
Group of Canada arrangement for a manufacturing facility in Nigeria.

The group, he said, had committed $30m in establishing manufacturing
facility in Nigeria within the next 15 months.

According to him, the Vice President has directed the company to move into
action immediately.

On completion, the new terminal building, according to Maduekwe, would have
additional facilities like flight information display system, smoke dictator
sprinklers, water hydrants, fire extinguishers, sewage treatment, boreholes
and water treatment, escalators and travellators, lead baggage clocking
system, access control, passenger and baggage security and the like.

"Indeed it will be a state-of-the-art airport terminal," he added.

The council also approved the sum of N1.989 billion and a foreign component
of $2million for construction work at the Mallam Aminu Kano International
Airport, Kano, of the said amount, N1.3 billion is for the construction of a
runway; N565 million for the construction of a new domestic terminal
building while $2 million an N100 million would be for offshore and onshore
costs of upgrading the airfield lighting from two to three.

Similarly, the sums of US$3.8 million and N189 million were set aside for
the upgrading of the lighting at the Muturla Muhommed Airport, Ikeja. "It is
instructive to note that the old airfield lighting at both airports were
installed over 20 years ago and they have suffered extensive wear and tear,"
he added.

The council, according to him, also awarded the contract for the building of
a digital radio link from Keffi to Jos by Nigeria Mobile Telecommunications
Ltd (M-Tel). The contract given to Messrs SUMTACK Ltd at the cost of $1.2m
(N138m) is to be completed within three months.

He explained that the approved fund fell under the ongoing cellular
expansion project of M-Tel.

"M-Tel had been incapacitated in bringing cellular services to the North
Eastern part of the Nigeria due to the unavailability of NITEL digital
transmission facilities in most parts of the states in the region," he
stated.

The council also approved the request of the minister of culture and
Tourism, Chief Alabo Graham-Douglas, for the establishment of a national
hall of fame in Abuja. The Vice President however was said to have directed
the Minister of Federal Capital Territory Alhaji Ibrahim Bunu to urgently
provide good site for it.

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