The Delta State government at the weekend said it didn’t sell Asaba Airport, contrary to criticisms, especially from members of the opposition, the All Progressives Congress (APC) party. The Delta State government said the concession of the facility for a period of 30 years was to make for its adequate upgrade into a world-class airport by the concessionaire.
It said over N80 billion would be realised as revenue in the next 30 years from private investors, First Investment/Menzes Consortium, who won the concession bid of Asaba Airport recently signed an agreement with the state government.
But the main opposition political party in the state, APC through its publicity secretary in the state, Sylvester Imonina, argued that the expected dividends from the concession were too meagre compared to what was invested into the development of the airport.
However, the Commissioner for Information, Mr Charles Aniagwu, at a media briefing in Asaba, said the concession became necessary as the daily operation of the airport would be effectively managed by private investors.
He disclosed that the process leading to the concession was transparently and objectively done in the overall interest of the state, saying that it would impact positively on the state economy.
Also speaking, Senior Policy Adviser to the state governor, Professor Sylvester Monye who faulted the opposition party, said the bidding processes were transparently and openly done for all interested bidders to participate, adding that the eventual winners possess the requisite expertise to operate the airport.
According to him, for a start, the investors would give the state N1 billion as signature bonus, adding that for the 30 years, N43.4 billion would accrue to the state as royalty, which is 2.5 per cent of the annual total earnings of the concessionaire.
“In addition, they will also give us investment in assets, hotels, cargo terminal, private jet terminal, logistics centre as the upgrade of the airport to the tune of N28 billion within this period.
“They will give us N100 million every year for 30 years, escalating by 10 per cent every five years. So on the whole, the state will be getting about N80 billion,” he added.
Monye stated that the figures were arrived at following feasibility study and the projections of the investors.
He explained that before the agreement was signed, the airport was a drain pipe to the state, saying that the revenue was less than 25 per cent of running cost.
Besides, he said the state was indebted to the Nigeria Airspace Management Agency (NAMA) to the tune of over N70 million; Nigeria Meteorological Agency (NiMET) to the tune of N70 million; and the Federal Airport Authority of Nigeria (FAAN) to the tune of about N67 million.
“All these costs and liabilities will be wiped out,” he said.
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