Players in the Nigerian aviation industry say for the purpose of security of Nigeria, the Federal Government should consider first, homegrown companies ahead of foreign bidders in its planned concession of some airports,
The Israeli army on July 4, 1976 tactically overnight raided the Entebbe Airport in Uganda after aircraft hijackers from Germany and some Arab countries with the support of Ugandan Government held hostage over 100 Israelis and Jews in a 36 minutes battle at the airport.
No fewer than seven terrorists (two Germans and five Arabs) were killed, about 20 Ugandan soldiers fighting alongside the terrorists were also killed, and between six and 10 Soviet-manufactured MiG fighters destroyed.
The Israelis in the evening of the previous day were sighted at Kenya’s busy international airport with its C131 military aircraft.
But, around midnight of the same day, three aircraft carrying Israeli troops, members of a counter-terrorist unit, took off for an hour flight to Entebbe. Precisely how the three planes with their Israeli troops managed to land at the airport remains something of a mystery since the aircraft certainly would have required the service of runway lights to land, but which was not available as at the time.
A week earlier, on June 27, 1976 to be precise, an Air France Airbus A300 jet airliner with 248 passengers, which departed Tel Aviv in Israel for Paris had been hijacked by two members of the Popular Front for the Liberation of Palestine – External Operations (PFLP-EO) a few minutes after takeoff.
However, it would be recalled that Israeli firms had been involved in construction projects in Africa during the 1960s and 1970s. While preparing the raid, the Israeli army consulted with Solel Boneh; the oldest and one of the largest construction and civil engineering companies in Israel that had built the terminal where the hostages were held.
While planning the military operation, the Israeli Defence Forces (IDF) also erected a partial replica of the airport terminal with the assistance of civilians who had helped build the original.
The above shows the risk in a sovereign government relinquishing the construction, maintenance, privatisation and concession of its critical infrastructure to foreign countries or firms.
Though, several organisations, associations and unions in the Nigerian aviation industry have continued to show reservation towards the plan of the Federal Government to concession Lagos, Kano, Abuja and Port Harcourt Airports in the first phase of the exercise, but feelers emanating from the government, indicate that Sen. Hadi Sirika, the Minister of Aviation is bent in going ahead with the government’s policy on airport concession.
However, information gathered by our correspondent revealed that the government had already made up its mind to concession some of the airports to foreign companies, especially to a particular firm from Turkey.
The plan to concession some of the airports to Arab firms is already causing unrests in the sector as analysts reminded the government of the Entebbe Airport attack by Israel in the wake of aircraft hijack of 1976 and several terrorism acts in recent times, allegedly caused by a few Arab nations.
Players in the Nigerian aviation industry said that while every firm with pedigree and competence is free to bid for assets and infrastructure, it is necessary for indigenous companies with technical know-how to be considered ahead of foreign companies.
Some of them said that delivering such infrastructure to indigenous companies would curb capital flight, while more jobs would also be created to the local people.
Mr. Idu Fortune, the Chief Executive Officer (CEO), FCI International Limited, said that airport development all over the world was not just only an essential and critical infrastructure, but a very sensitive and dynamic one.
Fortune said that from the planning stage through development to operations and management, airport development must continue to evolve and adjust itself to global economic and travel dynamics, which allows airport owners to continue to update their business models and review their master plan.
He explained that the proponent of Nigeria’s airport concession felt that the country’s airports development had stagnated over the years, stressing that most of the country’s airports sprang up without a master plan, sustainability and operational efficiency.
He emphasised that indigenization of the airports slated for concession would create jobs for the Nigerian people, stressing that airports create huge jobs for any country.
“So, an airport located in any place must offer more jobs to the locals (this may be for lower and middle level workforce). However, on the question of operations and management, every airport owner must sort out the best hands otherwise you will not be able to create those jobs for the majority of the people. That is what concession offers,” he said.
Also, Grp. John Ojikutu, the CEO, Centurion Securities Limited, in an interview with our correspondent said that airport concession would improve the earning of the Federal Government in the sector.
Ojikutu further opined that the government should consider the highest bidder with competence and pedigree in handing over any of the concessioned airports.
But, Ojikutu, canvassed that Bi-Courtney Aviation Services Limited (BASL), operators of the Murtala Muhammed Airport Two (MMA2), Lagos, the only Nigerian company with experience in terminal management should be considered first before any other bidder.
He said: “Outside Bi-Courtney, which has been in service at MMA2 for over 10 years, there is no other Nigerian company that has exhibited experience in airport terminal management. We therefore have to consider Bi-Courtney along with any interested foreign company.
“Whichever of the local or foreign companies we are going to consider must meet our expectations in revenue earnings, operations sustenance, repairs and periodic maintenance and above all, periodic development that must meet the air and passengers traffic growths.”
Besides, he advised BASL to activate the right of first refusal in its agreement with the Federal Government in the construction of MMA2.
But, he warned that the government should not concession the aeronautical aspect of aviation like the runways, taxiways and their associated lightning, urging it to comply with the advice of the International Civil Aviation Organisation (ICAO), which a few years ago recommended that Africa was not ripe for concession of aeronautical features of its aviation industry.
The aviation analyst suggested that the government could concession non-aeronautic areas of the airport, stressing that some of the domestic airports could also be concessioned alongside the international airports for more efficiency.
He insisted that the concession of the non-aeronautical services of the nation’s airports was inevitable, describing it as today’s global practices.
“The reason for the concession must not however be lost in poor earnings from the services, poor maintenance and repairs of the services infrastructure and facilities. The questions to ask therefore must include; what is the worth of the services given to air and passenger traffic annually and the costs of repairs and periodic maintenance? What is the earning as against the expected earnings? What are the challenges for not meeting the expected revenues or more earnings for the sustenance of operations in the over 20 federal airports?
“While we are planning for the concessions of the international airports, we should not leave the domestic airports out of the concession. Therefore, for each of the international airports, four of the domestic ones should go along,” he said.
Besides, Mr. Charles Amokwu, aviation analyst, insisted that if the government would still go ahead with its planned concession programme, indigenous firms should be considered.
He explained that some of the foreign companies being touted lack the required records, noting that BASL had proved to be the best private terminal manager in the last 14 years and so should be supported by the government because of its antecedent in terminal management.
According to him, the ongoing tussle between BASL and FAAN had prevented the terminal operator from linking the international airport in Lagos with the domestic terminal, but maintained that the crisis could be resolved by both parties through the Coordinating Committee, comprising BASL, FAAN and an independent body to address any challenge that may arise from the concession agreement on MMA2 at inception.
Besides, Amokwu pointed out that BASL has the facilities for regional flights as spelt out in its agreement with the Federal Government, stressing that this would on the long run prevent burning of fuel by indigenous airlines caused by taxiing of their aircraft to the international terminal for airlift of regional travellers.
“BASL is a complete indigenous organisation without a foreigner on its payroll. The empowerment of Bi-Courtney is an empowerment for indigenous organisations,” he added.
Concession period
The Federal Government is proposing a 20 to 30 years period for the concession of the airports.
Sirika told journalists recently that infrastructure concessions of this nature come with a significant financial obligation, stressing that in order for the concessionaires to recoup their investments; the concession period would be between 20 to 30 years tenure and may be extended in a Build, Operate and Transfer (BOT) model.
He also elucidated that apart from the passenger terminals of these airports, the government would concession the cargo terminals in the four airports, adding that the government was already looking for partners with the financial, technical and operational capabilities to manage these assets profitably and responsibly.
Source: independent.ng