Concession to leave $ 1 billion repayment loan to FAAN


FAAN

Concession to Leave $ 1 Billion Repayment Loan to FAAN – Aviation Workers

Nigeria’s Federal Airport Authority would be at a disadvantage from supporting a $ 1 billion repayment loan if the federal government continued its concession policy, airport workers’ unions said Tuesday.

The union which includes the National Union of Air Transport Employees, the Association of Senior Air Transport Services Officers of Nigeria, the Association of Aviation Professionals of Nigeria and the Nigerian Union of Retirees, FAAN branch, said that the economics of the concession did not match at all.

Economic Confidential reported that some union members noted that there were a lot of responsibilities and work issues that had not been addressed by the government.

As they addressed reporters at a press conference in Lagos on Tuesday, union leaders, which included representatives from NUATE, ATSSSAN, ANAP and NUP-FAAN, revealed that the policy to be adopted by the federal government would be unfavorable to them.

NUATE General Secretary Ocheme Aba, who spoke on behalf of the union, said: “While the split ratio is proposed to be 60:40 in favor of the concessionaire, the disadvantaged FAAN must assume the repayment of the billion dollars. loan used to build some terminals, continue to pay the emoluments of its staff retirees, return 25 percent of its internally generated revenue to the government under the Fiscal Responsibility Act, and maintain the remaining 18 airports in Nigeria.

According to the union, there is no possibility that FAAN will fulfill even a quarter of the obligations.

Aba noted that the base for granting the concessionaire the lion’s share of 60 percent of the profits remained dense.

He said the government’s concession model could be summed up as Take, Operate and Transfer and translated into reaping without sowing.

He noted that FAAN’s unresolved concession dispute was in the public domain.

Aba said: “No case has been made for the concession of an airport terminal in Nigeria in the first place.

“The terminals for the concession are brand new 21st century terminals that have absolutely no need for significant investment other than maintenance over the next 25 years.

He said the fact was confirmed by the business case itself.

“A quick look at the CBO shows that developers are not sure what concept to adopt between BOT and remediation, operation and transfer. This apparent confusion for us stems from a fact established in these particular terminals that there is nothing to build or rehabilitate, ”he added.

The workers’ spokesperson said if there were to be a need for expansion in the terminals, which the unions said was not being considered in 25 years, then the Green Fields concession option would apply. .

He added that all airport workers, aviation workers should stand up for their rights by lending their voice to say no to the concession model proposed by the federal government.


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