Delta concessions Asaba airport to private investors

...invertors to spend N28bn on airport infrastructure

About seven years after the commissioning of the Asaba International Airport, the Delta State government has handed it over to a consortium of private investors under a Public-private Participation (PPP) model.

The consortium, according to the state government, would be expected to invest some N28 billion to develop infrastructure at the airport, and manage for a 30-year concession period.

The government further said that the consortium would be remitting N1 billion to state’s coffers within 15 days of commencement of operations, while another N100 million would be expected from the concessionaire annually and would be escalated every five years.

Also, the government said that Osubi Airport, Warri, would be re-opened to traffic in the next two weeks, as all conditions to make it functional, including the COVID-19 protocols have been met.

Speaking on Tuesday during at the signing of concession agreement with Asaba Airport Company Limited, the new manager of the airport, Ifeanyi Okowa, the Delta State governor, said that the new arrangement would boost economic and social activities in the state.

Okowae explained that the government concessioned the airport to Fidc-menzies Consortium as the preferred bidder to operate as the master concessionaire while others would act as sub-concessionaires for the entire concession years.

The consortium has technical partners like Air Peace as the Anchor Airline and Maintenance, Repair and Overhaul (MRO) operator, Multifreight Cargo and Logistics; for cargo and logistics centre, Arbico Construction Company; to develop the business park, hotel and convention centre, Rainoil Limited and Cybernetics Limited; to develop the tank farm and provide aviation fuel, while Quroum Aviation Limited would develop and manage the private jet and helicopter terminal.

The concession of Asaba Airport made it the first stateowned aerodrome to be concessioned in the country.