Airport, Aviation

Concession of four airports: Unions want clarification on status of four terminals financed with $500m Chinese loan

Sirika approves promotion of senior management staff in FAAN
Minister of Aviation, Sen. Hadi Sirika when he was having it good with the aviation unions

…May embark on nationwide strike

 

Minister of Aviation, Senator Hadi Sirika may be navigating  into  a very turbulent weather as unions in the aviation industry in Nigeria, are warming for a shutdown with him over his plan to concession four airports in the country.

First, the unions, the National Union of Air Transport Employees (NUATE), Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) and Association of Nigeria Aviation Professional (ANAP), want the Minister to clarify the status of the ongoing terminal building projects being financed with a $500 million loan  facility collected from Chinese government since 2013.

They are also accusing the Minister of contravening FAAN Establishment Act, 2004 as well as the Civil Aviation Act, 2005 to serve his personal purposes.

The unions are equally pointing accusing finger at the Minister and members of the Infrastructure Concession Regulatory Commission (ICRC) for what they regarded as the failure to follow due diligence at handling the proposed concession which they claimed are not transparent.

When the credit facility was obtained in 2013, the four terminals were supposed to be completed within 20 months; but it is unfortunate that only two of the terminals have since been completed and put to use while the remaining two are under different stages of completion.

The construction of the four terminals are handled by China Civil Engineering Construction Corporation (CCECC).

The unions noted that the facility for funding status of the four terminal projects have not been taken into consideration by the Minister who insisted on concessioning an existing concession.

The union in a statement signed by General Secretary NUATE, Comrade Ocheme Aba, Deputy General Secretary Comrade Frances Akinjole and Secretary General ANAP, Comrade Abdul Rasaq Saidu, read in part, “There remains no clarity on the question of the semi-concession that already exists through the Chinese loan facility being utilised for ongoing new terminal buildings at the same four airports, including remodelling of the old terminals. There is yet to be any explanation on that.

“Equally important is the loud silence over the issue of primacy of national security, especially at this time and the foreseeable future. The rejoinder failed to situate, within the national security architecture, the potential fact of the four foremost international gateways being held in private (most likely foreign) hands.

“We hasten, though, to let it be known that we are unambiguously strewn to the national cause and the genuine interest of the workers of FAAN. We are completely extricated from any narrow, or selfish motives. Therefore, we shall remain unwavering in our stated commitment to deny this clandestine PPP the benefit of daylight.”

The unions in their statements also flayed Sirika for usurping of the responsibilities of Federal Airports Authority of Nigeria (FAAN) in the concession by the Minister of Aviation stating that the mode of operation of the ICRC is to deal directly with the concessioner Ministry, or Department, or Agency (MDA); which has not been the case.

“The mode of operation of the ICRC is to deal directly with the concessioner Ministry, or Department, or Agency (MDA); in this instance, the FAAN.

“But, as we all well know, FAAN has not even as much as do any project identification, or prioritization, or concept note to the ICRC on the concession of any airport in Nigeria to the ICRC as required by the publicly stated ICRC procedures. And the only role FAAN has played so far is that of a representative member on the Project Delivery Team and the Steering Committee as appointed by the Minister.

“Therefore, the ICRC and the Ministry, by carrying on with the airports’ concession project outside the purview of FAAN is indicative of an unwholesome agenda. Such action is, in fact, unlawful as it contravenes Part II, 3(g) of the FAAN Establishment Act, 2004 as well as the Civil Aviation Act, 2005.

“As a matter of fact, for a PPP project by an Agency as in this case, the only role prescribed for a Minister by the ICRC is that the Agency “would submit the FBC (Full Business Case) through the line Minister for approval”, by FEC, ostensibly.

“According to the National PPP processes of the ICRC, the Transaction Advisor (TA) is to be appointed through a “competitive bidding process”. We all know that the only way to assure a truly competitive bidding process is through open bidding. But in the case of this airports concession project, there was no such bidding exercise known to the public. As a matter of fact, we are aware that the Project Delivery Team were at a meeting discussing the issue of TA when they learnt that the FEC had just then announced the approval of the appointment of a TA. Magic.

“While we agree that the project delivery Team (PDT) is not an approving authority, we must nevertheless state that the PDT is a vital organ of the PPP process with definite functions and mandates. Its functions form the foundation upon which the success of the entire PPP project rests. Therefore, by circumventing the functions of the PDT as the ICRC and the Ministry have done, particularly by the clandestine appointment of Transitional Advisor (TA), there is a clear case of violation of the process as well as a travesty against the Nigerian people.

The unions further accused both Minister and the ICRC of colluding to share the common patrimony of Nigerians under the pretence of a concession exercise that is orchestrated against the nation.

“On the strength of that, we shall stand firm against any attempt to share our common patrimony in the guise of a phony concession exercise. And we enjoin all Nigerians who love the fatherland to join us as we prepare for nationwide public protests to be kicked off shortly in order to compel a rethink in a positive direction. There is no going back.

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