Aviation Minister,Hadi Sirika
Aviation Minister. is determined to carry through with the concessioning of major airports in the country. Sirika signaled this to the aviation industry when he inaugurated two committees that are expected to assist government in achieving this objective, which he announced at his office in Abuja on Thursday.
The two committees are the Project Steering Committee and the Project Delivery Committee. Incidentally, the Project Steering Committee is headed by the Minister of state, Aviation ,himself. Other members are the Solicitor general/Permanent Secretary, Federal Ministry of Justice, Mr Taiwo Abidogun, the Director General ,Infrastructure Concession and Regulatory Commission, ICRC, Benjamin Dikko , the Permanent Secretary, Ministry of Aviation, Mr Sabiu Zakari, Deputy Director of PPP unit of the Aviation Ministry(who will serve as secretary) and representatives of the Ministries of Finance, Budget and National Planning.
He said that the steering committee would provide the general policy direction and steer the course of the Public Private Partnerships, PPPs for the aviation industry. This will include inviting and working with consultants on the technical ,financial and legal framework that would guide the PPP process to concession the major airports and other infrastructure projects.
Whereas, the Project Delivery Committee would handle the day-to-day execution and management of the PPP including the airport concession plan which is already on the cards.
The Minister actually described the members of the Project Delivery Committees as “the foot soldiers” of the concession process who have the onerous duty to ensure that there are no lapses and that the concession process delivers on its promise of providing better services at the airports. This committee will be chaired by the Director of Planning in the Ministry of Transportation/Aviation.
Sirika first publicly mooted the idea of airport concession as a way out of inadequate government resources, several months ago. The Minister’s announcement of the plan had come as a surprise to many in the industry. But true to his words, Sirika is forging ahead to ensure that the plan gets a smooth landing.
Sirika make it clear that the economic situation in which the country found itself presently necessitated a recourse to the concession strategy, since the government may not be able to adequately fund infrastructural projects including those in aviation. Said Sirika:”The amount of money required is astronomical and the challenge to get the money is Herculean. So we have to look elsewhere ,as that is the global best practice in activity of this nature “,he said.
Perhaps, for those yet in doubt about the dire funding situation and are looking up to government, the Minister asks:” Where is the money ? Where will the money come from?”
The Minister of State, Aviation made a point of duty to address some of the concerns of some stake holders over the impending airport concession arrangement. ”Contrary to the belief of many Nigerians” he said,” concession was not the same as privatization.”
He declared: “Concession and privatization are not synonymous.”
He explained that under the concession arrangement, the ownership of the airports and other facilities remains that of the Federal Government, which may not be so with privatization.
He also took time to allay the fears of one of the labour unions in the aviation industry that has expressed fears that the concession plans of the Minister could lead to massive job losses in the aviation agencies.
The Minister pointedly addressed this issue :” I think that their argument does not hold water, as they have not done their research well ”,he said, adding: ”They are mistaking concession for privatization.”
“It is important for the public to know that in concession, the assets remain with the people ,which is the Nigerian public,” he stated.
Then to the big question: Why concession? Sirika provides the answer: “Our infrastructure in aviation and transportation is dilapidated. They are not ideal. They don’t attract customers. They don’t show our nation to be in tandem with global happenings.”
For that reason, he said,” we believe we should concession our airports.” Government’s focus in terms of funding may then shift to achieving the long sought goal of re-establishing a national carrier which he said,” will feed these airports as a hub,” and establish a maintenance and overhaul centre to build companies that will service and maintain the national carrier and other participants in the sector.”
Nonetheless, the Aviation Minister wants to ensure that the Public Private Partnership framework to be put in place to achieve these goals does not short change government and the Nigerian public which is why the two committees have been created to facilitate the process.
The terms of reference of the Project Steering Committee includes the approval of technical ,financial and legal framework, for the successful preparation and execution of the concession; Provision of policy guidelines and general direction on all matters relating to PPP and concession of projects and programmes in the aviator sector.
Others are: To consider and facilitate necessary permits, clearances and carrying relevant stakeholders along in the processing of PPP/concession matters; approve action plans, budgets and financial requests submitted by the Project Delivery Committee and serve as the final decision-making body on PPP/concession matters on air transportation generally.
Although creating a new template for PPP/concession agreements for infrastructure in the aviation industry may not be a piece of cake, Sirika is convinced that these goals can be achieved with all seriousness ,hardwork, determination and dedication from all those involved in laying the groundwork — including himself.
Then, the entire process should not take too long.” Once we start, within 24 months ,we should be able to have a new Lagos, Port Harcourt, Abuja and Kano airports, which will create an opportunity that in establishing the national carrier, it will create more jobs and facilitate trade and commerce,” Sirika said.
Popular Posts
