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FG begins request for proposals stage of airports concessions

FG begins request for proposals stage of airports concessions
July 02
11:24 2022

The federal government has commenced the request for proposals (RfP) phase of the Nigeria airports concessions programme (NACP).

The federal ministry of aviation said this in a recent statement on its website.

The ministry said the programme commenced on June 1, and would close on September 5, 2022

“The federal ministry of aviation, in line with the Infrastructure Concession Regulatory Commission (establishment, etc.) Act, 2005, and global best practice, hereby informs all stakeholders, local and international, development partners, and members of the media, that the Request for Proposals (RfP) phase of the Nigeria Airport Concessions Programme (NACP), commenced on the 1st of June. Shortlisted bidders have since been notified in writing and via the transaction portal (http://www.nacp.aviation.gov.ng/),” the statement reads.

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“The RfP stage of the programme will close on the 5th of September 2022. All shortlisted bidders are thus encouraged to ensure that they make their submissions in a timely manner and as per the detailed guidelines included in the bidders’ package.”

Speaking on the development, Hadi Sirika, minister of aviation, described the programme as a critical milestone, and expressed hopes that negotiations would be concluded before the year ends.

“We are delighted to inform all stakeholders and indeed, all Nigerians, that a critical milestone in this programme has now been reached. We anticipate that the programme, including the final negotiations stage will be concluded before the end of the year, thereby allowing for the affected assets to be handed over to the absolute best private sector operators well before this administration hands over to a new, duly elected government,” Sirika was quoted as saying.

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In June, 2021, the federal government announced plans to concession four airports for a period of 20-30 years.

The airports include the Murtala Muhammed Airport (MMA), Lagos; the Nnamdi Azikiwe International Airport, Abuja; Malam Aminu Kano Airport, Kano and Port Harcourt International Airport, Rivers state.

A concession is a public-private partnership (PPP) arrangement where a government-owned asset is being operated and maintained by a private investor for a period of time on terms contained in a contract.

But not all stakeholders were happy about this particular arrangement.

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The Federal Airports Authority of Nigeria (FAAN) had said if the federal government continued with its concession policy, it would place the union at a disadvantage of bearing a $1 billion repayment loan.

FAAN said the economics of the concession did not add up and that the policy would be unfavourable to them.

The Trade Union Congress of Nigeria (TUC) also criticised the move on the grounds of the project’s viability.

“Concessions have been made in the past and there is nothing to show for it today. The tenacity with which the minister of aviation and his cronies are going about the project is a matter of concern to us in the labour movement,” TUC had said.

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However, in August, 2021, the federal government commenced the bidding process for the concession of the four major international airport terminals in the country.

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