Correct MMA2 concession anomalies, FAAN tells ICRC
The Federal Airports Authority of Nigeria has urged the Infrastructure Concession Regulatory Commission to correct the anomalies associated with the Build, Operate and Transfer agreement between the agency and Bi-Courtney Aviation Services Limited, operators of the Murtala Muhammed Airport 2.
FAAN made the call following a mediatory visit by the ICRC led by its Acting Director-General, Mr. Chidi Iwuzah, on Monday, to discuss problematic areas in the contractual agreement in the interest of the nation.
The General Manager, Corporate Affairs of FAAN, Henrietta Yakubu, on Tuesday said the BOT agreement granted Messrs Bi Courtney Limited was for the design, financing, construction and management of a domestic terminal building at the Murtala Muhammed Airport, adding that the concession was limited to the domestic terminal, as clearly delineated by beacon numbers contained in the survey plan.
She said, “For the purpose of emphasis, the General Aviation Terminal does not and could not have formed a part of the concession. Even before the terminal presently developed and occupied by BASL got burnt, GAT had existed and operated independently on its own, BASL is only trying to reap where it has not sown.
“We, therefore, want to reiterate our position that GAT is not part of the concession granted Messrs Bi Courtney, neither had FAAN admitted to that assertion at any time. It is imperative to state that certain provisions in the concession agreement are negatively skewed against the overall interest of Nigeria and Nigerians and it hampers the growth and development of the industry. Any contract whose provisions are contrary to overriding public interest should not be allowed as no single individual or corporation is bigger than the nation Nigeria.”
According to Yakubu, FAAN is open to a progressive review and collaboration that puts the interest of the over 180 million Nigerians as well as the growth and development of the country first.
She added that FAAN was willing to collaborate with its partners and investors in this regard.
Yakubu noted that the Four Star hotel and conference centre were separate projects executed in 2007 and distinct from the terminal building.
She said, “It is also a clear case of breach of contract. Messrs Bi Courtney exhausted the construction and the extension period granted it in the lease. However, in the interest of fostering our business relationship, FAAN showed magnanimity by granting a further construction completion period of 24 months by an addendum executed by the parties in 2015. The addendum clearly stated that no further extension shall be granted Bi Courtney.
“Two days before the expiry of the construction completion period, Messrs Bi Courtney went to court and obtained an injunction restraining FAAN from terminating or interfering with their possession and occupation of the two premises, having flagrantly breached the provisions of the agreement by failing to deliver the projects, thereby causing monumental embarrassment to the aviation sector with these two structures that are strategically located.”
She said the agency hoped that the ICRC, in the interest of the nation and for the overall growth and development of the aviation industry, would fairly and justly mediate in the matter.