Airport Concession: FG Invites Bids For Prequalification, Assures FAAN Workers Of No Layoffs

The Federal Government through the Ministry of Aviation in compliance with the Infrastructure Concession Regulatory Commission (ICRC) and National Policy on Public-Private Partnership (N4P), on Monday, released a request for prequalification for the concession of four International Airport terminals and related services.

The document signed by the Permanent Secretary, Federal Ministry of Aviation, Engr. Hassan Musa, and made available to Journalists in Abuja by the Director, Public Affairs, Ministry of Aviation, Mr. James Odaudu, stated that the four major commercial airports – Nnamdi Azikiwe International Airport Abuja; Murtala Muhammed Internatıonal Aırport Lagos; Malam Amınu Kano Internatıonal Aırport and Portharcourt Internatıonal Aırport – and surrounding communities were intended to be developed into efficient, profitable, self-sustaining, commercial hubs which will create more jobs and develop local industries through a Public-Private Partnership (PPP) arrangement.

The document says, “The Federal Government of Nigeria (FGN) through the Ministry of Aviation is inviting bids from reputable Airport Developers/Operators/Financiers/Consortia for prequalification for the Concession of selected Airports Terminals under a Public-Private Partnership (PPP) arrangement.”

It further stated that the airport’s terminal concession was one of the critical projects under the Aviation Sector Roadmap of the federal government of Nigeria and fits well within the scope of the Ministry’s strategic plan for the sector.

The release further noted that the execution of the project was meant to achieve the federal government’s objective in terms of air transport value chain growth by developing and profitably managing customer-centric airport facilities for safe, secure and efficient carriage of passengers and goods at world-class standards of quality.

According to the document, the eligibility requirements are; “Full names of firm/consortia; Evidence of Company Registration; Ownership structure of bidding entity; Audited Financial Statements; Sworn affidavit; Power of Attorney/Board Resolution and in the case of a consortium, evidence in the form of a letter of association agreement.”

It explained that to be pre-qualified for consideration as a prospective PPP partner for the project, the prospective firms/consortia must have technical, operational and financial capability including; Experience in the Development and Operation of an International Airport and Cargo Terminals; Evidence of Financial Capacity in support of the company or consortium’s ability to undertake the airport concession illustrated by a minimum net worth of NGN 30 billion and Letters of Support from credible financial institutions in support of the consortium’s ability to manage and operate the Airports terminals.

“The modalities for application submission shall be in a sealed envelope containing 7 copies neatly bound (1 original and 6 copies clearly marked) of the completed RFQ and the required supporting documents, which shall be clearly marked “RFQ for the Concession of Airport Terminals’ and addressed to the Permanent Secretary, Federal Ministry of Aviation, Federal Secretariat Complex Abuja.

It further said that the Application should be submitted either physically or by pre-paid, registered/certified mail or courier to the address provided, adding that the submission shall be on or before 15:00 hours Nigerian Time (14.00hrs GMT) on 27th September 2021.

“The request emphasised that the RFQ is the pre-qualification stage of the procurement process for the Project in which interested parties are required to meet the pre-qualification requirements specified in the RFQ package. Only pre-qualified parties will proceed to the Request for Proposal (RFP) stage and shall execute a Non-Disclosure Agreement prior to issuance of the RFP documents.

“The document urged the interested international parties to partner with local firms in compliance with the requirements of the Federal Government of Nigeria local content development policy while submission of RFQs through electronic media will not be considered.”

….As FG Assures FAAN Workers Of No Layoffs

Meanwhile, the Federal Government has allayed the fears of the Federal Airports Authority of Nigeria workers of any layoffs as plans to concession four major international airports in the country get underway.

Aviation Minister, Hadi Sirika, gave the assurance at a virtual meeting with aviation stakeholders in Lagos, on Wednesday, on the concession update of the four airports.

Sirika said instead more hands would be engaged as most of the airports were under staffed.

The News Agency of Nigeria reports that the four airports billed for concession are: the Mallam Aminu Kano International Airport, Murtala Muhammed International Airport, Port Harcourt International Airport and the Nnamdi Azikiwe International Airport.

The minister informed the stakeholders that there wouldn’t be any need to sell the country’s assets, but to concession them in a manner that would modernise the airports and have them operated to create more jobs as well as generate more revenue for the country.

“We will not sell the assets that belong to over 200 million Nigerians and the future generation of this country.

“We are not going to sell because those that were sold were lost, so, we in government believe that we should hold those assets for the Nigerian people in trust.

“We must make those assets better to provide the services that are needed. So, we said, rather than sell out rightly, we will concession.

“In other words, we would give it up to someone who would operate them and make them better.

“We will then get more money, the people will enjoy better services, the industry grows and after a certain time, the airports will come back to us,” he said

The minister further explained that the airport terminal buildings to be concessioned would generate their revenues from non-aeronautical resources, while all other facilities at the airports and existing concessions, outside the airport terminals, would still be managed by FAAN.

He added that the concessionaire would sign service level agreements for runway, taxiway, security and air traffic Management with FAAN and NAMA to ensure that the airport operated efficiently.

The minister also said that the concessionaire would provide the investment required to upgrade the existing terminals, take over the maintenance of new terminals over a period of time, based on the financial assessment of each transaction.

Existing concessions within the terminals, however, would be inherited by the concessionaire and would be allowed to run their course before any review, Sirika said, adding that tariffs would be regulated in accordance with the procedures set out in the concession agreement.

As regards the Passenger Service and Security Charges, the concessionaires and FAAN would share the charges which would be paid directly to FAAN by IATA, the minister said, while the airport authority would be required to provide manpower, through AVSEC, for the security of both the airside and landside.

The concessionaire would similarly be expected to provide and maintain landside equipment which would allow FAAN continue to provide and maintain airside security equipment, the minister said.

Sirika noted that airports in the country were currently operating in a suboptimal environment and thus they needed improvements that would be provided by the participation of the private sector, especially in infrastructure investments, runway maintenance, navigation aids as well as investment in terminal facilities.

He added that with the increasing population, a private operator of the four main airports would run them based on international standards and expand the facilities, in accordance with traffic demands at each of the airports.