Airport concession model splits stakeholders

By Kelvin Osa-OkunborExperts and unions in the aviation sector have disagreed on what model government should adopt in the proposed concession of Lagos, Abuja, Port Harcourt and Kano airports.The Ministry of Aviation is pursuing full concession of the four airports to private entities utilising parameters endorsed by the Infrastructure Concession Regulatory Commission (ICRC).The Ministry of Aviation has received a certificate of compliance from the ICRC for the project.But, industry experts and unions have picked holes in the process leading to the transfer of the airports to private sector players canvassing models should adopt to make the terminals more efficient and commercially viable.Three unions, National Union of Air Transport Employees (NUATE), Air Transport Senior Staff Association of Nigeria (ATSSSAN) and Association of Nigerian Aviation Professionals (ANAP), have, however, proposed three optionsgreen field concession, corporatisation and full autonomy for the airport authority as alternatives to make the airports viable and efficient.Read Also:Aviation unions kick against planned concession of airportsIn an interview, representatives of the unions, Comrade Ocheme Aba urged the Ministry to have a rethink and embrace the green field option, which will empower new investors to consider fresh ventures such as construction of terminal buildings, runways and other facilities, such as stand alone airport, to compete with the facilities.He said if such option was not viable enough, the government could explore the latitude of corporatising the Federal Airports Authority of Nigeria (FAAN) with 45 per cent equity, while the balance should be segmented for public acquisition as practised in other parts of the world.If the earlier models were not realisable, Aba said the government should grant FAAN full autonomy to ascertain its capacity to manage terminals profitably.An industry expert and Chief Executive Officer, Centurion Securities, Group Capt John Ojikutu (rtd), said he would support any form of concession negotiated as Public Private Partnership (PPP) initiative that will not lead to transfer of public assets to private hands.According to Ojikutu, the government should consider the airportsprivatisation that will secure private investment, management and operational expertise.He said: The government needs to assure stakeholders that the planned concession will not involve the sale or transfer of ownership of physical assets, but only the right to use the assets and operate the enterprise.That such agreements are for a limited period of time, up to or less than 30 years depending on the context, content. And that the government, the owner of the assets must retain oversight in the concession through regulatory agencies.It is expected that whatever the government would give out for concession would be well-defined along these lines to avoid the pitfalls of past attempts.Ojikutu cautioned that the government should be very clear in its plan as to what assets or infrastructure it would give for concession without disrupting agreements with private operators and joint-users of the affected airports, such as the military.He said: The plan for airport concession now should not include those aeronautical infrastructures, facilities, and systems that are necessary and critical for the conduct of flight operations, rescue operations, emergency management services, airport security systems, and national security.
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