Dear Hon Minister,
I want to congratulate you on your recent appointment and assumption of office as the Honorable Minister of Aviation of the Federal Republic of Nigeria.
There is no doubt that having served the country twice as a Minister of State,your elevation as a full minister in a strategic ministry such as Aviation is well deserved and your former experience in those former capacities should come to play in your efficient management of the Aviation Ministry.
Knowing fully well that you have barely less than a year to hold forth as Minister, I would like to use this medium to advise you on areas of quick wins where you can easily excel in the aviation industry particularly with reference to our airports especially the flagship which is MURTALA MOHAMMED INTERNATIONAL AIRPORT which subsequently in this write up would be referred to as MMIA.I am using this airport as a reference because i live in Lagos and i want to believe its the most used airport in Nigeria.
I had an intention of writing this piece earlier when i heard of your nomination and before you would have embarked on physical inspection of our airports but the demand on my time prevented me. But before i could say jack,i saw video clips of your visit to the MMIA,Lagos.
As with other visits by past aviation ministers,I am not sure the retinue of eye service civil servants who followed you on that trip and particularly those who took you round the airport showed you the key areas of concern which i would mention shortly.
1.DEPARTURE HALL TOILETS/RESTROOM-MALE
It may interest you to know that the present state of this toilet is awful,highly embarrassing and a disgrace to an international airport of the status of MMIA.This was also the case at Calabar airport when i had to borrow a phone with a torch from a fellow passenger in order to use the popular Calabar airports departure halls toilet.Please kind direct whoever is in charge to quickly make sure all the available toilets have functional water closet system with water running 24 hours daily, with the skilled cleaning personnel on ground to make the toilets usable.Also adequate supply of toiletries like tissues,liquid hand wash and hand dryer should be made available at all times.I have know doubt that you are well traveled and must have had cause to use the restrooms in those airports you might have had cause to travel through,you will bare me witness that one could be tempted to even eat in those toilets due to the state of their cleanliness.Provision of bathrooms too might not be a luxury.
2.DEPARTURE HALL PUBLIC ADDRESS SYSTEM.
It may interest you to know that this is barely audible as a potential passenger might have to strain his or her ear in order to hear his or her boarding/arrival announcement.Kindly ensure the PA system of the entire airport is replaced so that one can from a distance hear clearly any announcement made on the PA from any of the interior part of the airport.
3.ARRIVAL/DEPARTURE/BAGGAGE CLAIM HALL AIR CONDITIONING SYSTEM.
I guess you might not have noticed this since you most likely use the VIP lounge of the airport whenever you have cause to travel out of the country.Each time i arrive this country,i always end up sweating like a xmas goat because of the non availability of functional AC system.Kindly ensure that the replacement or renovation of the AC system in the above mentioned and other affected areas in the airports in Nigeria are given to competent hands to manage.
4.PROVISION OF MORE SEATS IN THE DEPARTURE HALL.
Kindly ensure the provision of more seats in the departure hall as passengers and their genuine relatives have to stand up and of course Nigerai airport is the only airport i have seen in the few places that i have traveled to where relatives or anyone accompaning you is barred from entering the departure hall.
5.EXCELLENT CUSTOMER SERVICE BY AIRPORT PERSONNEL ON DUTY, AIRLINE STAFF AND CONSUMER RIGHTS.
Another area of quick win you might have to work on is in the area of excellent customer service by your various airport personnel.Most of the time,these category of staff are busy looking for one form of gratification or the other instead of carrying out their jobs.An example is the Abdulmutallab case in which non of the personnel on duty could even detect the circumstances surrounding the young boy e.g. no luggage,place and urgency of purchase of ticket,lack of proper security screening as most times security personnel are praising you in order to get some cash from you.All staff at the airports must be trained and retrained on how to provide excellent customer service for passengers and visitors to the airports.A clear example of this is available at Heathtrow T5,UK and Singapore International airports where you staff on ground who are in charge of customer service.
The level of service provided by the various airlines in Nigeria is different from what is available in their different home countries.For example,the quality of service provided by Emirates Airline or British Airways in Nigeria is quite different from what obtains in U.A.E or the United Kingdom.The way customers are treated with impunity calls for concern.Right from ticket purchase,information dissemination and boarding,service to customers is quite poor and most Nigerians are treated in dehumanizing ways that calls for questioning .Please hold a meeting with these airlines telling them to henceforth treat Nigerians well or forget their business in Nigeria.Please also equip your Customer protection unit at the various airports to be able to defend the rights of travelers.A recent example was the case of a first class passenger on a South African Airways flight who was asked to vacate his seat for a white passenger who mustt ravel with his fellow colleagues.He eventually had to leave the said flight in anger after suffering humiliation right on the soil of Nigeria.I heard they have apologized but the deed had already been done and several of this type of cases still abound on a daily basis.
6.CAR PARK
Surfacing/tarring of roads in the car park and provision of functional toilets too are required.
7.AVAILABILITY OF FUNDS TO DO THE ABOVE MENTIONED.
A ready way of not doing all i have mentioned above is for advisers and staff to say there is no fund available or that it was not budgeted for.i would like to advise that you look into the amount of money generated at the Lagos airport toll gate and car park.This amount of money if properly monitored and accounted for would be able to solve most of the problems mentioned above.Please ensure the amount of internally generated fund at the various airports in Nigeria are properly accounted for.
If the MMIA could be this bad,i am afraid of the status of other airports in the country. I'm available for clarification on my email: Kogdapus@yahoo.com
Thanks.
Oladapo Kolawole
Lagos, Nigeria
Showing posts with label MMA2. Show all posts
Showing posts with label MMA2. Show all posts
Wednesday, April 21, 2010
Saturday, October 17, 2009
How Aondoakaa Sold Murtala Muhammed Airport to Bi-Courtney
Fresh court documents obtained by Saharareporters has found out how Nigeria's most corrupt Attorney General, Michael Aondoakaa participated in the controversial handover of the General Aviation Terminal (GAT) of the Murtala Mohammed Airport in Lagos.
Mr. Aondoakaa, our impeccable source revealed, took huge bribe money from Mr. Wale Babalakin, the chairman of Bi -Courtney, the company now reputed for building sub-standard structures. Aondoakaa had worked with Bi-Courtney Aviation Services Limited to grant the company a 36-year concession to run the domestic wing of the Murtala Mohammed Airport after Bi-Courtney presented a carefully manipulated lease agreement that extended its tenure from 12 to 36 years. During the Obasanjo's administration, Babalakin got Femi Fani Kayode to recommend that his lease on the airport be extended from 12 years to 36 years, but that proposal was rejected, but our sources revealed that Femi Fani Kayode did not reverse the lease agreements, leaving Bi-Courtney to use Aondoakaa to legitimize it.
Aondoakaa, after receiving N400 million from Babalakin, got Bi-Courtney to sue his office for breach of contract after claiming that it had the right to manage both the MMA2 and the GAT for 36 years starting from April 2004.
Curiously, Bi-Courtney did not include the Federal Aviation Authority of Nigeria (FAAN) and other agencies involved in airport management as well as affected airlines involved in the lawsuit even though its initial lease agreement was signed between FAAN and Bi-Courtney/ Stabilini Visioni. That strategy was deliberate. FAAN would have contested the lawsuit, but Aondoakaa's refused to diligently defend his office when put on notice about the suit. Aondoakaa sent his aide, a controversial lawyer, Anthony A Malik to pursue the case. But it was so poorly done that Justice Anwukere Chikere reflected his poor performance in the case note on page 22 in her ruling. Noting that the AGF, the sole defendant in the matter, did not contest Bi-Courtney's pleadings and averments.Lack of diligent prosecution was deliberate
Bi-Courtney then obtained a court judgement allowing it to forcefully take over GAT in a secret ceremony that had the airport workers protesting. The worker’s protests temporarily yielded some positive results, as the office of the National Security Adviser intervened and suspended the Bi-Courtney agreement but as soon Yar'adua returned from his sick bed in Saudi Arabia he reversed the decision of the NSA and ordered that Bi-Courtney take over the local wing of the Murtala mohammed airport in Lagos State.
The judgement also imply that the Lagos state government could operate airports in the state except Bi-Courtney allows it.
Culled from Saharareporters
Mr. Aondoakaa, our impeccable source revealed, took huge bribe money from Mr. Wale Babalakin, the chairman of Bi -Courtney, the company now reputed for building sub-standard structures. Aondoakaa had worked with Bi-Courtney Aviation Services Limited to grant the company a 36-year concession to run the domestic wing of the Murtala Mohammed Airport after Bi-Courtney presented a carefully manipulated lease agreement that extended its tenure from 12 to 36 years. During the Obasanjo's administration, Babalakin got Femi Fani Kayode to recommend that his lease on the airport be extended from 12 years to 36 years, but that proposal was rejected, but our sources revealed that Femi Fani Kayode did not reverse the lease agreements, leaving Bi-Courtney to use Aondoakaa to legitimize it.
Aondoakaa, after receiving N400 million from Babalakin, got Bi-Courtney to sue his office for breach of contract after claiming that it had the right to manage both the MMA2 and the GAT for 36 years starting from April 2004.
Curiously, Bi-Courtney did not include the Federal Aviation Authority of Nigeria (FAAN) and other agencies involved in airport management as well as affected airlines involved in the lawsuit even though its initial lease agreement was signed between FAAN and Bi-Courtney/ Stabilini Visioni. That strategy was deliberate. FAAN would have contested the lawsuit, but Aondoakaa's refused to diligently defend his office when put on notice about the suit. Aondoakaa sent his aide, a controversial lawyer, Anthony A Malik to pursue the case. But it was so poorly done that Justice Anwukere Chikere reflected his poor performance in the case note on page 22 in her ruling. Noting that the AGF, the sole defendant in the matter, did not contest Bi-Courtney's pleadings and averments.Lack of diligent prosecution was deliberate
Bi-Courtney then obtained a court judgement allowing it to forcefully take over GAT in a secret ceremony that had the airport workers protesting. The worker’s protests temporarily yielded some positive results, as the office of the National Security Adviser intervened and suspended the Bi-Courtney agreement but as soon Yar'adua returned from his sick bed in Saudi Arabia he reversed the decision of the NSA and ordered that Bi-Courtney take over the local wing of the Murtala mohammed airport in Lagos State.
The judgement also imply that the Lagos state government could operate airports in the state except Bi-Courtney allows it.
Culled from Saharareporters
Friday, September 25, 2009
How Aondoakaa sold MMA to Wale Babalakin's Bi-Courtney
In another of the mind-boggling manipulation and corruption stories involving the Attorney General, Saharareporters has found his hand in the controversial handover of the General Aviation Terminal (GAT) of the Murtala Mohammed Airport in Lagos.
Mr. Aondoakaa, our impeccable source revealed, took huge bribe money from Mr. Wale Babalakin, the chairman of Bi -Courtney, the company now reputed for building sub-standard structures. Aondoakaa had worked with Bi-Courtney Aviation Services Limited to grant the company a 36-year concession to run the domestic wing of the Murtala Mohammed Airport".
During the Obasanjo's administration, Babalakin got Femi Fani Kayode to recommend that his lease on the airport be extended from 12 years to 36 years, but that proposal was rejected.
In came Aondoakaa, who, after receiving N400 million from Babalakin, got Bi-Courtney to sue his office for breach of contract after claiming that it had the right to manage both the MMA2 and the GAT for 36 years starting from April 2004. Curiously, Bi-Courtney did not include the Federal Aviation Authority of Nigeria (FAAN) in the lawsuit. That strategy was deliberate. FAAN would have contested the lawsuit, but Aondoakaa's refused to diligently defend his office when put on notice about the suit.
Bi-Courtney then obtained a court judgement allowing it to forcefully take over GAT in a secret ceremony that had the airport workers protesting. The worker’s protests have so far yielded some positive results, as the office of the National Security Adviser has intervened and suspended the Bi-Courtney agreement until Yar'adua returns from his sick bed in Saudi Arabia.
Only last week, the Coalition Against Corrupt Leaders (CACOL), an umbrella body made up of 35 organizations fighting corruption in the country, joined the growing nationwide clamour for Aondoakaa to be relieved of his position. In a letter to Yar’Adua, it said CACOL had found the Attorney General “to be roguish, corruptible, insensitive and incompetent either as a Minister in any Ministry or (as) the Attorney-General.”
The letter was copied to the President of the Senate; the Speaker of the House of Representatives; the Minister of Justice and Attorney-General of the Federation (the position Aondoakaa officially occupies); the Chairman of the National Judicial Commission; and the President of the Nigerian Bar Association.
Culled from Saharareporters
Mr. Aondoakaa, our impeccable source revealed, took huge bribe money from Mr. Wale Babalakin, the chairman of Bi -Courtney, the company now reputed for building sub-standard structures. Aondoakaa had worked with Bi-Courtney Aviation Services Limited to grant the company a 36-year concession to run the domestic wing of the Murtala Mohammed Airport".
During the Obasanjo's administration, Babalakin got Femi Fani Kayode to recommend that his lease on the airport be extended from 12 years to 36 years, but that proposal was rejected.
In came Aondoakaa, who, after receiving N400 million from Babalakin, got Bi-Courtney to sue his office for breach of contract after claiming that it had the right to manage both the MMA2 and the GAT for 36 years starting from April 2004. Curiously, Bi-Courtney did not include the Federal Aviation Authority of Nigeria (FAAN) in the lawsuit. That strategy was deliberate. FAAN would have contested the lawsuit, but Aondoakaa's refused to diligently defend his office when put on notice about the suit.
Bi-Courtney then obtained a court judgement allowing it to forcefully take over GAT in a secret ceremony that had the airport workers protesting. The worker’s protests have so far yielded some positive results, as the office of the National Security Adviser has intervened and suspended the Bi-Courtney agreement until Yar'adua returns from his sick bed in Saudi Arabia.
Only last week, the Coalition Against Corrupt Leaders (CACOL), an umbrella body made up of 35 organizations fighting corruption in the country, joined the growing nationwide clamour for Aondoakaa to be relieved of his position. In a letter to Yar’Adua, it said CACOL had found the Attorney General “to be roguish, corruptible, insensitive and incompetent either as a Minister in any Ministry or (as) the Attorney-General.”
The letter was copied to the President of the Senate; the Speaker of the House of Representatives; the Minister of Justice and Attorney-General of the Federation (the position Aondoakaa officially occupies); the Chairman of the National Judicial Commission; and the President of the Nigerian Bar Association.
Culled from Saharareporters
Tuesday, September 22, 2009
FG, Bi-Courtney and the General Aviation Terminal
As we know, in 2003 the Obasanjo regime signed a Build, Operate and Transfer (BOT) Public-Private Partnership (PPP) contract with Bi-Courtney Aviation Services Limited (BASL) for the construction of the second terminal at Murtala Mohammed Airport (MM2). The new airport terminal was opened in 2007. However following the approval of the PPP agreement, the status of the General Aviation Terminal (GAT) – whether or not it’s part of the agreement - has been subject of controversy. But after years of argy bargy and legal fireworks, the FG finally handed over the General Aviation Terminal of the Murtala Mohammed International Airport to BASL.
Stakeholders in the Aviation industry have expressed their concern on the government decision. According to the National Union of Air Transport and Engineers (NUATE), the handover of the terminal by the FG to BASL was undertaken without regard for “rule of law” and “due process”. In protest, the Union threatened to shut down the terminal, noting that the handover will inevitably result in job losses. In the same vein, Arik Air through its Counsel Chief Assam E. Assam, told newsmen that the airline – who operates 50% of domestic flights in Nigeria - might stop operation because it could not operate in any facility that is “under the control and monopolistic management of Bi-Courtney Aviation Services”. FAAN on its part is had held the position that GAT was not part of the property given to Bi-Courtney in the PPP agreement it has with the organization and had sided Arik Air in the struggle to retain GAT as FAAN entity as it has been the major source of revenue to the agency. According to FAAN, the handover of the GAT would result in about 40% shortfall in revenue for FAAN.
Based on the foregoing, it is evident that all is not well with the MMA2 PPP Agreement. I have always expressed my concerns about how PPP contracts are negotiated in Nigeria. I have specifically queried the purpose of the exclusivity clause in the MMA2 PPP Agreement –which is also been contested by FAAN, - that prohibits development of an airport in Lagos for 36 years. Many have disagreed with my viewpoint on this issue. Some have argued that it is in the “commercial interest” of BASL to have such a clause (i.e protect its investment). Some even insinuated that I have a personal grouse with BASL. Firstly, l will state categorically that I do not have any personal issue with BASL. I respect and appreciate BASL position as a commercial entity that is looking to maximise its opportunities and protect its financial investment. And if I were in their shoes, I would probably be seeking the inclusion of such a clause, if not more. However, my criticism is directed to the government for their ignorance and short-sightedness in agreeing to such a clause. The inclusion of such a clause in contractual agreement does not encourage competition. It only creates a private monopoly, and does not offer consumers “value for money”. The role of the government is to make sure that public interest in protected in signing such contracts. The clause also does not offer any incentive for BASL to be innovative. With guaranteed income for 36 years and no other competing airport, passengers and airline operators can be expected to be at the mercy of BASL.
Also, such a clause makes mockery of the government so-called Vision 2020. How can nation that intends to be one of the world’s top 20 economies prohibit airport development for 36 years? How can an aspiring G20 nation prohibit airport development in a city predicted to emerge as the third largest city in the world with a population over 20 million people by 2015? Whatever anyone thinks, I’m of the view that this sort of arrangement cannot be right.
In terms of the GAT handover and threats from Arik Air and NUATE, there are few questions which need to be answered by the FG. FAAN denied that GAT was part of the PPP contract, and its handover means loss of revenue. My question is, as a major stakeholder, what was the role of FAAN in the contract negotiation? Was the decision to concession GAT as part of the MMA2 contract taken unilaterally by the FG without following due process? Who were the government advisers on the contract? Arik Air also threatened to halt its operations. But since the PPP agreement predates the commencement of Air Arik operations, was Arik Air not advised of the PPP agreement and imminent transfer to BASL? As for NUATE, did the FG consult with the Union during the contract negotiation?
Whatever be the case, there are important lessons to be learnt from the MMA2 Agreement. One of the keys to success of any PPP is “communication”. It is inevitable that more people will be affected by a partnership than just the public officials and the private-sector partner. Affected employees, the portions of the public receiving the service, the press, appropriate labour unions and relevant interest groups will all have opinions, and frequently significant misconceptions about a partnership and its value to all the public. It is therefore important to communicate openly and candidly with these stakeholders to minimize potential resistance to establishing a partnership. If the FG has taken its time to educate all stakeholders, then the reported protest by Union wouldn’t arise. Also, there would not be the need for the threats from Arik Air.
The government should also implement mechanisms that will guarantee transparency at all stages in the tendering process. These mechanisms must include setting procurement specifications, open public hearings for major government contracts, and the final selection of contractors; and Involvement independent agencies to oversee the bidding process. Unfortunately most of the PPP contracts in Nigeria are announced on the front pages of newspapers. The process of awarding these contracts is shrouded in secrecy. A classic example is the Lagos-Ibadan Expressway N89billion concession contract. Up till now, the public is yet to be advised of the process that led to the selection of Bi-Courtney Ltd. Where was the tender for the procurement advertised? How many companies bidded for the contract?
Interestingly, the notion of public-private partnership has been touted in some government circles as a magic formula that will fix the country’s infrastructure blockages. The complexity of PPP contracts and the high costs involved means care should be taken in the way it is approached. PPPs are not a panacea for development. The principles that underlie successful PPPs are affordability, cost effectiveness, value for money, transparency and risk management.
Stakeholders in the Aviation industry have expressed their concern on the government decision. According to the National Union of Air Transport and Engineers (NUATE), the handover of the terminal by the FG to BASL was undertaken without regard for “rule of law” and “due process”. In protest, the Union threatened to shut down the terminal, noting that the handover will inevitably result in job losses. In the same vein, Arik Air through its Counsel Chief Assam E. Assam, told newsmen that the airline – who operates 50% of domestic flights in Nigeria - might stop operation because it could not operate in any facility that is “under the control and monopolistic management of Bi-Courtney Aviation Services”. FAAN on its part is had held the position that GAT was not part of the property given to Bi-Courtney in the PPP agreement it has with the organization and had sided Arik Air in the struggle to retain GAT as FAAN entity as it has been the major source of revenue to the agency. According to FAAN, the handover of the GAT would result in about 40% shortfall in revenue for FAAN.
Based on the foregoing, it is evident that all is not well with the MMA2 PPP Agreement. I have always expressed my concerns about how PPP contracts are negotiated in Nigeria. I have specifically queried the purpose of the exclusivity clause in the MMA2 PPP Agreement –which is also been contested by FAAN, - that prohibits development of an airport in Lagos for 36 years. Many have disagreed with my viewpoint on this issue. Some have argued that it is in the “commercial interest” of BASL to have such a clause (i.e protect its investment). Some even insinuated that I have a personal grouse with BASL. Firstly, l will state categorically that I do not have any personal issue with BASL. I respect and appreciate BASL position as a commercial entity that is looking to maximise its opportunities and protect its financial investment. And if I were in their shoes, I would probably be seeking the inclusion of such a clause, if not more. However, my criticism is directed to the government for their ignorance and short-sightedness in agreeing to such a clause. The inclusion of such a clause in contractual agreement does not encourage competition. It only creates a private monopoly, and does not offer consumers “value for money”. The role of the government is to make sure that public interest in protected in signing such contracts. The clause also does not offer any incentive for BASL to be innovative. With guaranteed income for 36 years and no other competing airport, passengers and airline operators can be expected to be at the mercy of BASL.
Also, such a clause makes mockery of the government so-called Vision 2020. How can nation that intends to be one of the world’s top 20 economies prohibit airport development for 36 years? How can an aspiring G20 nation prohibit airport development in a city predicted to emerge as the third largest city in the world with a population over 20 million people by 2015? Whatever anyone thinks, I’m of the view that this sort of arrangement cannot be right.
In terms of the GAT handover and threats from Arik Air and NUATE, there are few questions which need to be answered by the FG. FAAN denied that GAT was part of the PPP contract, and its handover means loss of revenue. My question is, as a major stakeholder, what was the role of FAAN in the contract negotiation? Was the decision to concession GAT as part of the MMA2 contract taken unilaterally by the FG without following due process? Who were the government advisers on the contract? Arik Air also threatened to halt its operations. But since the PPP agreement predates the commencement of Air Arik operations, was Arik Air not advised of the PPP agreement and imminent transfer to BASL? As for NUATE, did the FG consult with the Union during the contract negotiation?
Whatever be the case, there are important lessons to be learnt from the MMA2 Agreement. One of the keys to success of any PPP is “communication”. It is inevitable that more people will be affected by a partnership than just the public officials and the private-sector partner. Affected employees, the portions of the public receiving the service, the press, appropriate labour unions and relevant interest groups will all have opinions, and frequently significant misconceptions about a partnership and its value to all the public. It is therefore important to communicate openly and candidly with these stakeholders to minimize potential resistance to establishing a partnership. If the FG has taken its time to educate all stakeholders, then the reported protest by Union wouldn’t arise. Also, there would not be the need for the threats from Arik Air.
The government should also implement mechanisms that will guarantee transparency at all stages in the tendering process. These mechanisms must include setting procurement specifications, open public hearings for major government contracts, and the final selection of contractors; and Involvement independent agencies to oversee the bidding process. Unfortunately most of the PPP contracts in Nigeria are announced on the front pages of newspapers. The process of awarding these contracts is shrouded in secrecy. A classic example is the Lagos-Ibadan Expressway N89billion concession contract. Up till now, the public is yet to be advised of the process that led to the selection of Bi-Courtney Ltd. Where was the tender for the procurement advertised? How many companies bidded for the contract?
Interestingly, the notion of public-private partnership has been touted in some government circles as a magic formula that will fix the country’s infrastructure blockages. The complexity of PPP contracts and the high costs involved means care should be taken in the way it is approached. PPPs are not a panacea for development. The principles that underlie successful PPPs are affordability, cost effectiveness, value for money, transparency and risk management.
Sunday, May 17, 2009
Bi-Courtney and MMA2 Terminal - What a Mess!
Recent revelations about the details of the MMA 2 Terminal Private-Public Partnership (PPP) agreement between the Federal Government and Bi-Courtney Aviation Services are disheartening – to say the least. Following my observation of the PPP contracts signed to date, I have come to a conclusion that the Nigerian PPP framework has been designed to legitimise state corruption. In this current climate of overwhelming infrastructure need, the government is using PPP to enrich few individuals at the expense of the general public. I’m now beginning to ask myself where public interest lies in all this.
As some of you maybe aware, in 2000 the Obasanjo regime signed a Build, Operate and Transfer (BOT) contract with Bi-Courtney Aviation Services for the construction of the second terminal at Murtala Mohammed Airport (MM2). The new airport terminal was opened in 2007. However, the PPP contract is now subject of controversy.
There is an ongoing row between the FG and Bi-Courtney on the duration of the PPP concession. While Bi-Courtney is insisting that it has 36 years to run the terminal, the FG through the Federal Aviation Authority Nigeria (FAAN) noted that the concession is only for 12 years. Whether it is 12yrs or 36yrs, there are other details in the contract which I find really disturbing.
According to media, the PPP contract contains an ‘exclusivity’ clause which “forbids the FG from improving or expanding the old terminal at the Murtala Muhammed Airport. And that that all scheduled domestic flights in and out of Airport in Lagos State shall during the Concession Period operate from MM2 and that no new domestic terminal shall be built in Lagos State”. The question is what is the intent of this clause?
The single most important public interest concern with PPP transactions is the inherent tension that is created when governments view t leasing of assets as a potential income source. If such PPP are properly structured, they can provide large public benefits. However, PPP contracts in Nigeria are structured to grant concessionaires substantial monopoly power, ultimately at the cost to the users of the system. The MMA2 agreement, Lekki-Epe Expressway and Lagos-Ibadan Expressway PPP contracts are no exceptions in this regard. When I raised the same issue on the Lagos-Ibadan Expressway PPP contract, some thought I had a personal ‘beef’ with Bi-Courtney Ltd. For your information, I do not have anything personal against Bi-Courtney, but I believe the right thing should be done. The exclusivity clause agreement that forbids the FG from improving or expanding the old terminal at the Murtala Muhammed Airport and prohibits construction of a new domestic terminal in Lagos State limits the prospect of competition and runs counter to the public interest.
Thank goodness that President Yar’Adua is currently reviewing the terms of the agreement. How can we be sure that corrupt individuals have not been involved in the deal? Let even assume that the concession is for 36 years. Does that mean that the govt cannot build any domestic airport in Lagos for a period of 36 years because of Bi-Courtney? Come on! So where are the public benefits? How does the govt intend to encourage competition? How can a company hold the monopoly on where local flights depart or arrive for a period of 36 years? Whoever must have advised the government to accept such a clause needs to have his head examined by a Psychiatrist.
In any public-private contractual arrangement, there is always a risk of corruption. For agreement like these and many other where large of amount of money or lengthy concession period are involved, such risk must be well managed. The govt has however failed to run open and transparent processes, when it comes to PPP deals. PPP agreements are signed without any regard for competitive tendering or proper tender evaluation process. To put it bluntly, our PPP framework is a sham. The govt does not seek input from third parties before entering into such contracts. Legislators do not hold the executive accountable on these agreements. Most of the agreement offers little or no public benefits. Most of the PPP agreement undermine competition and lack consumer protection provisions. The agreements are only successful at mortgaging our future away to few privileged individuals.
In my opinion, all PPP agreements have so far failed. The govt needs to go back to the drawing board. In fact, we need a moratorium of PPP agreement until the govt introduces a ‘consumer and competition’ legislation. Some may argue that PPP has helped delivered some key infrastructure like the new Airport Terminal, I will note that the devil is in the detail. By the time people wake up to the reality of this daylight robbery, it might be too late.
Anyway, my advice is that in cases where a contract or concession was inappropriately awarded, members of the public needs to push for provisions that will allow for contract termination.
As some of you maybe aware, in 2000 the Obasanjo regime signed a Build, Operate and Transfer (BOT) contract with Bi-Courtney Aviation Services for the construction of the second terminal at Murtala Mohammed Airport (MM2). The new airport terminal was opened in 2007. However, the PPP contract is now subject of controversy.
There is an ongoing row between the FG and Bi-Courtney on the duration of the PPP concession. While Bi-Courtney is insisting that it has 36 years to run the terminal, the FG through the Federal Aviation Authority Nigeria (FAAN) noted that the concession is only for 12 years. Whether it is 12yrs or 36yrs, there are other details in the contract which I find really disturbing.
According to media, the PPP contract contains an ‘exclusivity’ clause which “forbids the FG from improving or expanding the old terminal at the Murtala Muhammed Airport. And that that all scheduled domestic flights in and out of Airport in Lagos State shall during the Concession Period operate from MM2 and that no new domestic terminal shall be built in Lagos State”. The question is what is the intent of this clause?
The single most important public interest concern with PPP transactions is the inherent tension that is created when governments view t leasing of assets as a potential income source. If such PPP are properly structured, they can provide large public benefits. However, PPP contracts in Nigeria are structured to grant concessionaires substantial monopoly power, ultimately at the cost to the users of the system. The MMA2 agreement, Lekki-Epe Expressway and Lagos-Ibadan Expressway PPP contracts are no exceptions in this regard. When I raised the same issue on the Lagos-Ibadan Expressway PPP contract, some thought I had a personal ‘beef’ with Bi-Courtney Ltd. For your information, I do not have anything personal against Bi-Courtney, but I believe the right thing should be done. The exclusivity clause agreement that forbids the FG from improving or expanding the old terminal at the Murtala Muhammed Airport and prohibits construction of a new domestic terminal in Lagos State limits the prospect of competition and runs counter to the public interest.
Thank goodness that President Yar’Adua is currently reviewing the terms of the agreement. How can we be sure that corrupt individuals have not been involved in the deal? Let even assume that the concession is for 36 years. Does that mean that the govt cannot build any domestic airport in Lagos for a period of 36 years because of Bi-Courtney? Come on! So where are the public benefits? How does the govt intend to encourage competition? How can a company hold the monopoly on where local flights depart or arrive for a period of 36 years? Whoever must have advised the government to accept such a clause needs to have his head examined by a Psychiatrist.
In any public-private contractual arrangement, there is always a risk of corruption. For agreement like these and many other where large of amount of money or lengthy concession period are involved, such risk must be well managed. The govt has however failed to run open and transparent processes, when it comes to PPP deals. PPP agreements are signed without any regard for competitive tendering or proper tender evaluation process. To put it bluntly, our PPP framework is a sham. The govt does not seek input from third parties before entering into such contracts. Legislators do not hold the executive accountable on these agreements. Most of the agreement offers little or no public benefits. Most of the PPP agreement undermine competition and lack consumer protection provisions. The agreements are only successful at mortgaging our future away to few privileged individuals.
In my opinion, all PPP agreements have so far failed. The govt needs to go back to the drawing board. In fact, we need a moratorium of PPP agreement until the govt introduces a ‘consumer and competition’ legislation. Some may argue that PPP has helped delivered some key infrastructure like the new Airport Terminal, I will note that the devil is in the detail. By the time people wake up to the reality of this daylight robbery, it might be too late.
Anyway, my advice is that in cases where a contract or concession was inappropriately awarded, members of the public needs to push for provisions that will allow for contract termination.
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