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Tag: private investors

  • Asaba Airport Concession To Fetch N80bn, Says Official

    Asaba Airport Concession To Fetch N80bn, Says Official

    Delta Government says the Asaba Airport Concession will fetch more than N80 billion revenue at the end of the 30-year period.

    Prof. Sylvester Monye, Senior Policy Adviser to Gov. Ifeanyi Okowa, said this while briefing journalists on decisions reached at the State Executive Council meeting in Asaba on Thursday.

    He explained that contrary to opinions, the whole process that led to the concessioning of the airport were open and transparent and took almost five years to actualise.

    He said that there was no state in Nigeria that had the capacity to manage airport, saying that the state government had instead sought the help of the Federal Government.

    According to him, the consortium Asaba Airport Company Limited is a Special Purpose Vehicle (SPV) which represents a bigger umbrella that houses many business entities that also won their bids to perform specific transactions to work together for the realisation of a common goal.

    “So, this consortium was registered as a legal entity in Nigeria on Oct. 13, 2020 as an SPV to enable the state government monitor the concessionaire to meet the requirements for the transaction.

    “Let me take you through the process that we are very proud of.

    “Before we started with the issue of concession, as a state we did not have the expertise, so we engaged the services of transaction advisers,’’ Monye said.

    He added that the state government advertised for the financial adviser, saying that this was done in a transparent manner and government finally engaged an adviser of international repute.

    “There was an inception report. That is the feasibility study of the project; the status of Asaba Airport to date.

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    “Nobody will invest into a business if it is not viable and we did not just arrive at 30 years.

    “It was based on detailed financial analysis of investment returns. So every stage of the transaction was done in a transparent way.

    “We had several meetings with various interest groups. We published, we had road shows and we went to China to talk to the Chinese.

    “So, we advertised in three national newspapers where we invited the bidders to an open bid process and the whole process took close to five years,’’ he said.

    According to Monye, the concessionaire will pay N1 billion to the state government in 15 days’ time.

    “Again in this transaction, they will pay annual royalty of 2.5 per cent of their turnover, which according to the feasibility study will amount to about N43.4 billion,” Monye said.

    He said, “In addition, they will give us investment in assets; hotel, cargo terminal, among others, the upgrade of the airport to the tune of N28 billion and in addition pay the state N100 million yearly with 10 per cent escalation.

    “So, on the whole, we expect to get about N80 billion in terms of revenue over the period of concession.

    “Currently, what we are getting from the airport as revenue is less than 25 per cent of the cost of running the airport,’’ he said.

    “Currently, Delta state is owing National Emergency Management Agency (NEMA) N70 million and Nigerian Meteorological Agency (NiMe)t about N70 million as well.

    “We are owing Federal Airports Authority of Nigeria (FAAN) about N67 million but today all these cost and liabilities will be wiped by the concessionaire.’’

    Monye said that at the end, the state would build a giant airport city because at the end, everything that would be invested would be handed over to the state.

     

     

     

  • Bagudu Assures Supports To Private Investors

    Bagudu Assures Supports To Private Investors

    Governor Atiku Bagudu of Kebbi State on Friday assured investors that his administration would continue to welcome entrepreneurs interested in the industrialization of the state.

    Bagudu gave the assurance in Birnin Kebbi at the inauguration of a recreational centre built by a private investor, Mallam Isyaku Abdullahi.

    He said that the centre would serve as a place for social and recreational gathering and also for economic prosperity and employment generation for the people.

    “I am happy with the owner for the modern sporting, educational and entertainment facilities that are installed at this centre.

    ”They will be beneficial to all manner of people, male and female as well as students,” he said.

    Bagudu also assured the citizens of the state that his administration would continue to provide moral and material supports to attract investors into all sectors of the state.

    He said such would help to hasten the industrialization of the state. The governor also said that plans were under way to organise a football match between the Kebbi state-owned Football Club, Kebbi United and one of the professional clubs.

    He said that it would expose the players to soccer professionalism.

    “Already our students are now undergoing courses in Kwara Soccer Academy, Kwara State, in furtherance of our administration’s efforts to develop sports and recreation in the state.

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    “The government will partner the management of just inaugurated recreation centre, named “Azbir Arena” to attract patronage from within and outside the state as well as entrench the virtues of creativity among the people,” he said.

    Bagudu, also said that his administration would continue to develop tourism potential of the state.

    He said this would include the promotion of the Regatta Boat Festival in Yauri, Uhola in Zuru, Huttungo in Gwandu and the Fishing Festival in Argungu emirates.

    Earlier, the chairman of the centre, Abdullahi, said that the centre would provide an opportunity for the people, especially youths, to contribute to the development of the state.

    “The idea is also in consonance with the campaigns by Governor Bagudu, calling on investors to be active partners in the economic development of the state,” he said.

    He pledged his unflinching commitment to the government in taking the state to the “next level.”

    Abdullahi added that the centre had already provided employment to 115 staff to run its affairs.

    “This is also in line with the policy of the incumbent administration on the creation of job opportunities and enhance entrepreneurship,” he said.

  • Fashola tasks power sector private investors

    Fashola tasks power sector private investors

    The Minister of Power, Works and Housing, Mr Babatunde Fashola (SAN), has charged private investors in the energy sector to develop small distribution networks for easier and more efficient solution to the nation’s power problem.

    Fashola gave the charge on Thursday while inspecting the ‘Energising Economy Electrification’ project at Ariaria Market, Aba, the economic hub of Abia.

    The project is being handled by the Rural Electrification Agency.

    He said that small distribution networks initiative was a product of the present administration’s power sector recovery plan.

    “This is why we are telling those providing power using gas and solar to develop smaller solutions as the generator companies are doing,” he said.

    Fashola noted that doing smaller solutions was easier and more efficient than producing thousands of megawatts which would cost so much to transmit from the point of generation to the end users.

    “It is for the private sector to rise to the challenge to make smaller solutions, instead of dealing in 5,000 megawatts and 10,000 megawatts that would be transmitted over 200 kilometers to the consumers.”

    He described the Ariaria Market project as a perfect example of the Federal Government’s approach to tackling the challenges in the power sector.

    The minister further said that the project demonstrated the federal and Abia governments’ commitment to providing service to the people, irrespective of constitutional provisions on jurisdiction.

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    He expressed joy that the initiative had successfully provided regular power to 37,000 shops in the first phase at Ariaria, while 50,000 shops would benefit in the second phase.

    The minister further said that the project had helped to save over N7 million spent daily on generating sets in the market.

    He said that plans were underway to install 150 KVA and 100 KVA transformers for distribution of power in the market.

    He said that when fully harnessed, the project would help the Aba entrepreneurs to go full blast toward the realisation of the government’s agenda on increasing local production of goods.