Airport concession: Minister inaugurates committee, says concession not privatisation

The Federal Government has made good its resolve to go ahead with the concessioning of the nation’s major airports despite opposition from stakeholders as Hadi Sirika, minister of state for Aviation, on Friday inaugurated two committees; a project steering committee, and a project delivery committee to kick-start the process of concession.

Various unions in the aviation sector had protested over the decision by the government to concession airports arguing that interested concessionaires should be negotiating on the nation’s non viable airports as according to them, the viable ones have supported the non- viable over the years.

However, the minister while performing the ceremony, reiterated that the driving force behind the Federal Government’s resolve to concession the airports was the over-riding national interest in ensuring the establishment and sustenance of world class standards in both infrastructural development and service delivery.

According to the minister, the project steering committee with him as chairman, is to provide the general direction, and steer the course of public private partnership project (PPPP) concessions in the aviation sector.

He explained that the misgivings some people have expressed concerning the exercise was borne out of misconception that concession is synonymous with privatization, adding that the institutions being concessioned remained the properties of the federal government and that more jobs will be generated at the end of the day.

The committee is expected amongst its term of reference, to get the approval of technical, financial and legal framework for the successful preparation and execution of the concession; provide policy guidelines and general direction on all matters relating to PPP and concession of projects and programmes in the aviation sector.

It is also expected to consider and facilitate necessary permits, clearances and carrying relevant stakeholders along in the processing of PPP / Concession matters; approve action plans, budgets and financial requests submitted by the Project Delivery Committee; and serve as the final decision-making body on PPP/Concession matters on air transport generally.

Other members of the committee include: The ministry’s Permanent Secretary, relevant Chief Executive Officers, Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Director of Planning of the Ministry of Transportation, representatives of the Ministries of Justice, Budget and National Planning, the Ministry of Finance, and the Deputy Director of the PPP Unit in the Ministry who will serve as the Secretary.

Similarly, the minister inaugurated the Project Delivery Committee with a charge on members to be diligent and patriotic in the implementation of the decisions and policy guidelines as approved by the Steering Committee, as their success or failure would determine the fate of the whole process.

According to him, the members should see themselves as the foot soldiers of the concession process which has no room for lapse, and to ensure that all their activities are in compliance with the guidelines of the Infrastructure Concession and Regulatory Commission (ICRC), as well as recommend the terms of engagements and disengagement of concessionaires.

The Committee which has the Ministry’s Director of Planning as Chairman, is also mandated to monitor and evaluate, as well as carry out impact assessment of PPP/Concession to ascertain value for money on investment; make recommendations to the Steering Committee on matters of policy reappraisal, review or changes, as may be necessary.

Responding on behalf of the two committees, Sabiu Zakari, Permanent Secretary in the ministry, pledged their commitment to the assignment, considering the importance attached to it by the federal government.