Home Business FEC Approves Concession of Abuja, Kano Airports

FEC Approves Concession of Abuja, Kano Airports

- Approves change of name of aviation ministrya

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The Federal Executive Council presided over by President Muhammadu Buhari considered 30 memos and approved the concession of the Nnamdi Azikiwe International Airport, Abuja, and the Mallam Aminu Kano international airport in Kano.

Minister of Aviation, Hadi Sirika who briefed newsmen at the end of the meeting said the Abuja airport would be concessioned for 20 years while that of Kano would be concessioned for 30 years.

The aviation minister further said that the council also approved the ministry’s change of name from the Federal Ministry of Aviation to the Ministry of Aviation and Aerospace of Nigeria.

Sirika said Council also approved the draft National Civil Aviation policy, which he said was geared towards the strengthening of civil aviation.

Minister of State, Transportation, Ademola Adegoroye said the council approved the Development of Ondo Multipurpose Port in Ilaje, Ondo State, the Expansion and Development of Snake Island Sea Port, Lagos and the Expansion and Development of Burutu Sea Port, Delta State, through a Public Private Partnership agreement worth $4,713,841,477.

Adegoroye explained that the Ondo port would cost the private developers the sum of $1,480,465,253 and would be concessioned for a period of 50 years with the accruals to the concessionaire and the federal government expected to be $50 billion and $2.6billion, respectively.

He said the Burutu port would cost $1,285,005,818; concessioned for 40 years with the concessionaire and the federal government expected to reap $ 125 billion and $9 billion, respectively.

The Snake Island Port will gulp $974,185,203 and be concessioned for 45 years with the concessionaire and the federal government receiving $ 18 billion and $ 5.23 billion respectively in accruals within the period.

Minister of State Power, Jerry Agba, on his part, said, Council approved two memos for his ministry, the first one being an approval for the award of a contract for the procurement of 25 numbers 33 KV circuit breakers and 120 numbers of surge arrestors for systems used for Transition Company of Nigeria.

The contract value is in the neighborhood of N140 million as augmentation for that.

“The contract has been awarded before they are ongoing, but we asked for approval for revaluation due to price escalation and additional works. We’re building new substations in one of the places,” he said.

Council also approved the variation due to price escalation on the construction of the Dukanbo Shonga 132 KV double circuit transmission line.

Agba said: “Shonga is in Kwara State and that line has been down for several years. So with this procurement, we should be able to revamp the station and you know is an agro-based area that’s the area which services the Bacita farm. The shunga farms are limited and the whole of that area has been in darkness for a long time. With this procurement, we hope that in two months, we should have a full power supply to those areas and restore farming and processing activities in that area. The cost is N1.5 billion.”

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