The Mistake Of Courting Chinese Investors In Aviation Published on July 11, 2013 by pmnews When it comes to aviation, Nigeria seems to repeat the same mistakes with an appalling consistency and accuracy. The announcement on Tuesday by the Minister of Aviation, Stella Adaeze Oduah, that Nigeria has signed a Memorandum of Understanding with China for the delivery of four new international airport terminals in a record time of 20 months and at a cost of $500 million, seems like deja-vu. The Ministry said China Civil Engineering Construction Corporation, CCECC, would construct the four new international terminals in Abuja, Lagos, Port Harcourt and Kano airports. The commencement of construction work on the terminals had been on hold pending the formal signing of the loan deal, which will be financed by the Chinese EXIM Bank, the Ministry announced. Now that the deal has been signed, authorities said, construction is likely to commence in earnest. Many are already commending the Minister for the new project. The Coordinating Minister for the Economy and Finance Minister, Dr Ngozi Okonjo- Iweala said the Federal Government was elated that the loan deal for the financing of the construction of the terminals has finally been sealed. She said airports, as the country’s gateways are critical not only as drivers of the socio-economic development of Nigeria, but also an outward reflection of the character of any nation. However, while the ministry is seeking loan and investors in China, Nigerian investors remain unmoved. The Federal Airports Authority of Nigeria, FAAN, is at war with virtually all the main local concessionaires at the country’s airports. FAAN last year stormed the Murtala Muhammed International Airport in Lagos and evicted Maevis Nigeria Limited, its revenue concessionaire in Lagos and Abuja airports. Despite a court injunction, FAAN claimed Maevis contract was a backdoor agreement and had to cancel it. The agency also accused Maevis of not respecting the term of the contract, which the latter had repeatedly denied and had even approached a court for arbitration. But FAAN could not wait for the law to take its course and it cancelled the concession agreement all together. FAAN is also battling Bi-Courtney Aviation Services Limited, builders and managers of MMA2 terminal in Lagos. The Federal Government agency is also in court with AIC Limited, its land concessionaire. Many other agreements in the past have been cancelled once a new administration came in. Over the years, FAAN seemed quick at signing deals or contracts but also quick at cancelling them. We do not believe it is right to drive away local investors and bring in foreign investors, most times, for the same projects. It is not the right way to go. Besides, many are wondering if building four new terminals at our four international airports is the right focus for now, especially as it comes shortly after spending billions of naira to upgrade the same terminals. The current administration seems to be trying to do so many things at the same time in the aviation industry at a cost running into billions of naira. Recently, the ministry announced that it intended to buy over 30 planes for struggling Nigerian airlines, even though the airlines had not requested for planes. The ministry also announced that it wanted to buy many planes for a new national carrier, even though most countries in the world have realised that government has no business in aviation business. The authorities have also said they are remodelling eleven airports in the country and are seeking to build 13 perishable cargo terminals at the same time. The ministry has also said that it wants to build airport cities across the country. The latest announcement on building four terminals at the four international airports is only one of these series of announcements. We are wondering if the government is not putting too much on its plate at the same time. We believe that with only 2 percent of Nigerians using our airports, an even greater attention should be paid to other projects such as the construction of roads, efficient fast rail system, schools and hospitals among other things. Spending all our resources on aviation to service only the super rich while the rest of Nigerians are stuck in squalor and hopelessness is not right.
Posted on: Fri, 12 Jul 2013 06:19:31 +0000
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