Aviation Ministry offers juicy PPP opportunities for investors
Aviation Ministry offers juicy PPP opportunities for investors
The Federal Ministry of Aviation and Aerospace Development has invited investors and developers to indicate their interest in a range of Public Private Partnership opportunities (see box for full details). Top of the items in terms of profitability is the concessioning of the five (Lagos, Abuja, Kano, Port Harcourt & Enugu) international airport terminals which service about 90% of the international passenger traffic in and out of Nigeria. According to Nairametrics.com, “Out of the over 16 million travelers that were airlifted into and out of the country in 2022, five airports in the country were conspicuous and responsible for the airlift of 89.7% of the total travelers.” Airport terminals generate a consistent revenue stream through parking, retail, dining, and advertising and there is a golden opportunity for the successful concessionaire to handle what are easily the most lucrative real estate assets in the country.
Landside, there are regular real estate PPP opportunities like the FAAN Office Headquarters in lucrative Abuja, development of an aerotropolis and NAMA Land PPP Housing Projects, Kano.
Nigeria’s aviation industry requires public private partnerships (PPPs) to drive innovation and efficiency. Shared risks and rewards between the government and private investors guarantee that projects come in on time and within the budget. It gives access to ready infrastructure and a steady revenue stream for investors and political benefits such as access to the technical know-how and financial backing to improve services. In addition, these partnerships create competition which results in more customer experience focused airports. With 90% of Nigeria’s current economic activity being centred around the aviation sector, PPP must be engaged to attain long term growth of the sector as well as operational excellence against global standards.
The Notice of General Procurement document did not give a closing date for submission, but it is expected that the Ministry will be swamped with offers and may close the window of opportunity in a few weeks.
| The Federal Republic of Nigeria
Federal Ministry of Aviation and Aerospace Development ANNEX 3, FEDERAL SECRETARIAT COMPLEX, SHEHU SHAGARI WAY, MAITAMA, ABUJA.
NOTICE OF GENERAL PROCUREMENT OF THE FEDERAL MINISTRY OF AVIATION AND AEROSPACE DEVELOPMENT’S PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS
1) Introduction The Federal Ministry of Aviation and Aerospace Development intends to procure some of the Ministry’s projects through the Public-Private Partnership arrangement, to actualize the Ministry’s mandate and improve the quality of services being rendered by the Ministry. To this end, experienced and reputable Contractors and Consultant/Service Providers are hereby invited to show interest in the execution of these viable projects by forwarding the firms’ profiles, the lot(s) in which the company is interested in, and contact details like companies’ names, phone numbers, email addresses, and previous relevant jobs done to completion, details of the company(s)’ proposal for the intended Lot(s), to these email addresses: director_procurement@aviation.gov.ng and usman.olalekan@aviation.gov.ng. This would enable the Ministry to narrow down the search for the most suitable candidates for the projects.
2) The Catalogue of the Public-Private Partnerships Projects of the Federal Ministry of Aviation & Aerospace Development is as follows:
1. Concession of Five International Airport Terminals (Lagos, Abuja, Kano, Port Harcourt & Enugu) 2. Niger State Airport Concession 3. Jigawa State Cargo Airport Concession 4. Cross River State Airport Concession 5. Development of an Aerotropolis 6. Light Rail Connection at MMIA, Lagos 7. Establishment of MRO Facilities 8. Concession of Cargo/Agro-Allied Terminal Airport Facilities 9. Power Solutions at Some Airports 10. FAAN Office Headquarters PPP 11. NAMA Land PPP Housing Projects, Kano 12. ICT Digitization Solutions 13. Darca – Disassembly Aircraft Recycling Centre & Aerospace Maintenance 14. Flight Simulator Centre of Excellence 15. Wi-Fi Broad Band at Selected Airports 16. Digital Weather Solution 17. Biometric Contactless and E-Gate Solution 18. Aircraft Manufacturing Facilities 19. Baggage Handling Systems
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