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FAAN Seeks Rectification Of Anomalies In MMA 2 Concession

The Federal Airports Authority of Nigeria has urged the Infrastructure Concession Regulatory Commission (ICRC) to correct the anomalies associated with the BOT agreement between it and Bi-Courtney Aviation Services Limited, operators of the Murtala Muhammed Airport 2 (MMA 2).

A statement issued by the Authority’s General Manager, Corporate Affairs, Mrs. Henrietta Yakubu, today indicated the call was made following a mediatory visit by Mr. Chidi Iwuzah, the Acting Director General of ICRC to both parties recently to iron out grey areas in the contractual agreement in the interest of the nation.

Specifically, she stated that 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 premises is limited to the domestic terminal, as clearly demarcated and delineated by beacon Nos as contained in the survey plan.

The FAAN’s spokesperson pointed out that for the purpose of emphasis, the General Aviation Terminal does not and could not have formed a part of the concession.

She stated:”Even before the terminal presently developed and occupied by BASL got burnt, the 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”, Yakubu added.

While restating that FAAN is open to a progressive review/collaboration that puts the interest of the over 180 million Nigerians as well as the growth and development of Nigeria first.. she also stated that the Authority is also willing and ready to collaborate with its partners and investors in this regard.

“As for the Four Star hotel and conference center, which are separate projects executed in 2007 and distinct from the terminal building,  it was 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 expiration 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.

“FAAN hopes and requests that the ICRC, in the interest of the nation and for the overall growth and development of the Nigerian aviation industry should fairly and justly mediate in this matter”, Yakubu added.


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