BrandCrunch Nigeria

Top Menu

  • About BrandCrunch
  • AdCrunch
  • BC Scholars
  • Digital
  • Entrepreneurship
  • Experiential Articles
  • I Am Just Saying
  • Downloads
  • Jobs

Main Menu

  • Home
  • News
    • Top Stories
    • Agency News
    • Brand News
    • Events in Pictures
  • Business
  • Interviews
  • opinions
  • People
  • Brand Talk
  • Promotions
    • Consumerism
  • School4Scetptics
  • Sports Marketing
  • Marketing Et Cetera
  • About BrandCrunch
  • AdCrunch
  • BC Scholars
  • Digital
  • Entrepreneurship
  • Experiential Articles
  • I Am Just Saying
  • Downloads
  • Jobs

logo

Header Banner

BrandCrunch Nigeria

  • Home
  • News
    • Top Stories
    • Agency News
    • Brand News
    • Events in Pictures
  • Business
  • Interviews
  • opinions
  • People
  • Brand Talk
    • managers

      Experimental Advertisement, De- marketing and Matters Arising

      June 1, 2022
      0
    • Innovating on the go ...thinking without the box

      October 10, 2021
      0
    • Ahmed Musa

      Branding & Marketing Lessons from the Unveiling of Ahmed Musa Super Eagles ...

      May 3, 2021
      0
    • radio stations

      Cultural Relevance and Relatability in Advertising

      February 21, 2021
      0
    • AfCFTA , Africa Development and Governance in Africa - By Michael Umogun

      January 2, 2021
      0
    • Corporate governance

      Survival of MSMEs During Uncertain Climes: The Role of Corporate Governance

      July 27, 2020
      0
    • SACHET

      Welcome to the Year of the Sachet

      June 24, 2020
      0
    • partner

      Partner Mobile Unveils EV1 Smartphone, Supports 4G LTE, A I

      February 18, 2020
      0
    • brand success

      Brand Success in 2020

      January 31, 2020
      0
  • Promotions
    • Consumerism
  • School4Scetptics
  • Sports Marketing
  • Marketing Et Cetera
  • Alerzo Foresees Well-Connected Retail Ecosystem Across Nigeria

  • SpecSMART Set to Open Office in Nigeria

  • 2022 Qatar: Coca-Cola Unveils N400million Believe and Win Under-the-Crown Promo

  • Emirates Invests over US$ 2 billion to Enhance On-Board Customer Experience

  • Heritage Bank Supports Nigerian Airforce with Impactful Digital Banking Solutions

  • Christy O And Cyph Evicted As Big Brother Introduces Two New Housemates, Rachel and Chizzy

  • Access Bank to boost small businesses in Nigeria with $280 million DFC financing

  • Y’ello Care: MTN Nigeria Empowers Youth through Vocational Workshop

  • Advantages of Buying Apartments near Shopping Malls – By Dennis Isong

  • The Secret Behind Heineken Premium Brand Initiatives and Phenomenal Growth – Oloche

THE PUBLIC SPHERE
Home›opinions›THE PUBLIC SPHERE›Okowa’s Jinx Breaker with Asaba Airport

Okowa’s Jinx Breaker with Asaba Airport

By CHIDO NWAKANMA
March 9, 2021
1191
0
Share:
Asaba airport

Asaba Airport stepped out of the shadows of neglect and scorn Tuesday, 23 February, to emerge as the second airport in Nigeria to operate as a concession with the promise of brighter days. First Investment Development Company (FIDC)-MENZIES Aviation (MA) Consortium won the brownfield contract to manage the airport for 30 years on terms that will invest over N28billion to build new facilities and upgrade existing ones. It has a bonus; the new classification of the upgraded airport as international.

Delta State Governor Dr Ifeanyi Okowa earns plaudits for pulling through the successful concession deal that the Federal Government has repeatedly failed to secure with the many loss makers that are Nigeria’s airports. Remarkably, Okowa led Delta State to this deal that positions Asaba Airport to replicate the success story of the Murtala Muhammed Airport2 Lagos run by Bi-Courtney Limited. It holds promise.

Asaba is the first brownfield concession as MMA2 is the first greenfield. A brownfield concession involves granting rights to an investor to manage existing assets and facilities as well as to improve them. With a greenfield, the investor builds from the ground up.

By 17 March 2021, Delta State will receive an upfront payment of N1b from the Asaba International Airport Development Consortium to confirm their financial obligations. The concessionaire would commence the execution of several “mandatory capital projects” within the next three years. They include upgrading the Airport/Terminal and building facilities for cargo, maintenance, repair, operations, and tank farm. They will also build an industrial park, offices and a hotel/conference facility.

Their obligation includes ensuring that Delta State indigenes constitute a minimum of 20 per cent of employment, getting an airline to operate out of the Asaba International Airport as its operational hub, and ensuring the continued viability of the airport as their fortunes also depend on it.

The concessionaire will pay Delta State a royalty of 2.5 percent of its annual earnings before interest, taxes, depreciation, and amortisation (EBITDA) in addition to an annual fee of N100m each year.
The revival of Asaba Airport and promotion to an international status is a positive story of intentionality and government continuity. It runs against the grain of our many airports as White Elephant projects. In the essay, “Our airport is newer and bigger than yours though a white elephant”, https://www.thisdaylive.com/index.php/2020/08/16/our-airport-is-newer-and-bigger-than-yours-though-a-white-elephant/ I canvassed the case for stopping the many airport projects in the South East as only the egos and need of the governors are the drivers. Records from the Federal Airports Authority of Nigeria show that only three of Nigeria’s over 20 airports covered their costs between 2017 and 2019.

Former Governor Dr Emmanuel Uduaghan built the Asaba Airport that took off in 2011. Between the first commercial flight to Asaba on 24 March 2011 and October 2013, the airport recorded 6 300 flights conveying over 190 000 passengers. The volume translated to an average of 260 flights and 6 800 passengers per month. It had potential.
However, the airport quickly flew into trouble for low quality and non-compliance despite the N40b cost. Experts raised severe concerns about the undulating nature of the runway/taxiway and the hill beside the airport.
The Nigerian Civil Aviation Authority downgraded it to a Category 3, meaning it could only accommodate small aircraft such as the Q400 and DASH 8.

What has Okowa done? It is to the credit of the former Senator and current governor that he took up the challenge of not abandoning the project. Instead, he recognised that the original impetus and projections made sense only if. He brought the IF.
As the governor recounted during the ceremony to sign the concession agreement, “This administration had to rehabilitate/reconstruct the runway fully, taxiway and other ancillary works, complete the perimeter fence, and evacuate the hill beside the airport for the provision of an obstacle-free zone for the runway as demanded by the regulatory authority. Subsequently, the regulator upgraded the Asaba Airport to Category 6, which enables aircraft as large as the Boeing 737 to land.”

The Okowa administration installed the Instrument Landing and Airfield Ground Lighting System that enabled the airport to now handle night operations. It has operated night flights approved by the NCAA and the Nigeria Airspace Management Agency since the beginning of 2021. “I am happy to report that the airport now has a medical centre. The Firefighting Station has been completed, while the Watchtower for firefighters is 80% ready. Meanwhile, the previously unserviceable Automatic Weather Observation System and the Low-Level Wind Shear Alert System have been repaired and are functioning, improving the overall safety of the airport”, Okowa reported.

Partners in the First Investment Development Company (FIDC)-MENZIES Aviation (MA) Consortium include First Investment Development Company Limited, Menzies Aviation Plc, Air Peace Limited and Cybernetics International Services Limited. Others are Rainoil Limited, Radisson Blu Hotels, Quorum Aviation Limited, Arbico Plc and Sibraxis EEIG of Greece.

Concessions are the route to profitability and sustainability for most airports globally. Nigerian lawyer and investment guru Adebayo Ogunlesi is the majority shareholder and runs the Gatwick Airport in London as a concessionaire. New York’s JFK Airport runs a substantial part of its operations on the concession model. It applies equally to the celebrated Changi Airport in Singapore.
The Public-Private sector participation model has worked in many jurisdictions. There are many lessons from similar concessions, starting with that of the Bi-Courtney team with MMA2 in Lagos. The Delta State Government and its concessionaire must avoid the minefields.

Deloitte says in Balanced Concessions For The Airport Industry: Delivering Win-Win Outcomes For Successful Airport Concession Contracts, one of the main lessons in airport concessions is ensuring that the partners take in the interests of stakeholders beyond the state government and the investors. Stakeholders include critics such as the opposition APC that picked on the N100m fee. It forgot the N1bn, the share of profit before EBITDA as royalty and the projected investment of N28bn. The most significant is the probability that the airport will function optimally in private hands, guaranteeing jobs and spin offs. The partners must listen to them as well.

The Deloitte study suggests four guiding principles for a balanced concession: collaboration, balanced risks and rewards, transparency and information sharing, and mutual interest. May Asaba International Airport succeed.

Facebook Comments

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
TagsAirportAsaba
Previous Article

Why Apple could Sell over 500million iPads ...

Next Article

Osinbajo Turns 64: Things You Should Know ...

0
Shares
  • 0
  • +
  • 0

Related articles More from author

  • Turkish Airlines
    BrandNews

    Turkish Airlines’ Nigerian Passengers, Others to Enjoy Limitless Comfort

    March 17, 2017
    By BrandCrunchNG
  • LEKKI-EPE_AIRPORT_real-Estate
    Real Estate

    All You Need to Know About New Lekki-Epe International Airport – By Dennis Isong

    December 20, 2021
    By Dennis Isong
  • Public-Sphere_Chido_Plagued
    THE PUBLIC SPHERE

    Reset for our Plagued Supreme Court – By Chido Nwakanma

    July 1, 2022
    By CHIDO NWAKANMA
  • Isa Pantami_Directive
    Marketing ArticlesTHE PUBLIC SPHERE

    That Zombie Order on NIN-SIM Integration – By Chido Nwakanma 

    December 17, 2020
    By BrandCrunchNG
  • Chido_Rotimi-Olaniyan_Scholar
    THE PUBLIC SPHERE

    The Waters Run Deep with Renaissance Scholar Rotimi Olaniyan – By Chido Nwakanma

    June 18, 2021
    By CHIDO NWAKANMA
  • Chido-nwakanma_pursue innovation
    opinionsTHE PUBLIC SPHERE

    30 May joyfully Remembered more Abroad than at Home – Chido Nwakanma

    June 7, 2021
    By CHIDO NWAKANMA

Recent Stories

  • August 12, 2022

    Alerzo Foresees Well-Connected Retail Ecosystem Across Nigeria

  • August 12, 2022

    SpecSMART Set to Open Office in Nigeria

  • August 12, 2022

    2022 Qatar: Coca-Cola Unveils N400million Believe and Win Under-the-Crown Promo

  • August 12, 2022

    Emirates Invests over US$ 2 billion to Enhance On-Board Customer Experience

  • August 10, 2022

    Heritage Bank Supports Nigerian Airforce with Impactful Digital Banking Solutions

  • August 10, 2022

    Christy O And Cyph Evicted As Big Brother Introduces Two New Housemates, Rachel and Chizzy

  • August 10, 2022

    Access Bank to boost small businesses in Nigeria with $280 million DFC financing

 

 

 

Sponsored Ad

http://www.consumersvalueawards.com

logo

BrandCrunch.com.ng is a revolution in reporting and analyzing brands & marketing, marketing communications’ activities, issues and allied subjects and the industry generally.

It is a solely web based platform that offers you news, features and up-to-date happenings in the industry real time, on-line, as they unfold.

Our Contact Details

14, Seriki Aro Avenue
Off Obafemi Awolowo Way,
Ikeja, Lagos, Nigeria
Tel: 234-1-803-348-7815
Inquiries: info@brandcrunch.com.ng
  • Recent

  • Popular

  • alerzo_well connected

    Alerzo Foresees Well-Connected Retail Ecosystem Across Nigeria

    By Adesunloye Grace
    August 12, 2022
  • specsmart_Eye-Care

    SpecSMART Set to Open Office in Nigeria

    By BrandCrunchNG
    August 12, 2022
  • Coke_2022-Qatar_UTC_Promo

    2022 Qatar: Coca-Cola Unveils N400million Believe and Win Under-the-Crown Promo

    By BrandCrunchNG
    August 12, 2022
  • Emirates Invests over US$ 2 billion to Enhance On-Board Customer Experience

    By BrandCrunchNG
    August 12, 2022
  • The Roadmap: How to Start and Plan a Digital Marketing Strategy

    By O'Lekan Babatunde
    September 27, 2017
  • 5Alive

    Coca-Cola Unveils Additional Variants to the 5Alive Family In Nigeria

    By Lekan Ajayi
    December 7, 2017
  • Heineken_phenomenal

    Heineken Ad Flops, Brand Accepts It Misses the Mark

    By O'Lekan Babatunde
    March 27, 2018
  • Etihad Aviation Group Names Tony Douglas as New CEO

    By Lekan Ajayi
    September 28, 2017

Follow us


Our investigations of different brands led us to a site called casinoexpressindia.com. This website has positioned itself as a solid and helpful platform for those interested in online casino India entertainment. They have created solid, and helpful content, intended to help out newcomers and experienced gamblers alike.

  • Home
© Copyright 2017 BrandCrunch.com.ng. All rights reserved.