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Sunday <strong>04</strong> <strong>Feb</strong>ruary <strong>2018</strong> C002D5556<br />

BD SUNDAY<br />

43<br />

Travel<br />

MMA2: Babalakin laments ‘misconceptions’ sold to Nigerians by FAAN<br />

Stories by IFEOMA OKEKE<br />

The recent intervention<br />

by the Infrastructure<br />

Concession Regulatory<br />

Commission (ICRC) has<br />

raised the hope of an<br />

early resolution of the controversial<br />

issues surrounding the first<br />

successful, privately-funded Design,<br />

Build, Operate and Transfer<br />

(DBOT) airport terminal in Nigeria,<br />

the Murtala Muhammed Airport<br />

Terminal Two, popularly called<br />

MMA2, operated by Bi-Courtney<br />

Aviation Services Limited (BASL),<br />

a member of the Resort Group.<br />

The intervention, led by Chidi<br />

Izuwah,the Acting Director-General<br />

of ICRC, brought the managements<br />

of the Federal Airports<br />

Authority of Nigeria (FAAN) and<br />

BASL together under the same<br />

roof, where both listed the areas<br />

of disagreements in the MMA2<br />

concession agreement inked by<br />

both parties in 2003.<br />

Wale Babalakin , Chairman of<br />

the Resort Group, who led a strong<br />

team of BASL directors and management<br />

to the meeting first made<br />

his presentation.<br />

Babalakin expressed regrets<br />

that certain misconceptions had<br />

been “sold, bought and distributed<br />

to Nigerians about the MMA2 concession”<br />

by FAAN, adding that one<br />

of the misconceptions was that the<br />

concession agreement was drawn<br />

by BASL for the agency to sign.<br />

This, he dismissed as untrue, as,<br />

according to him, the agreement<br />

was drafted by one Professor<br />

Akanle, a consultant engaged by<br />

the Ministry of Aviation.<br />

Besides, he also dispelled the<br />

misconception that the concession<br />

did not follow due process, arguing<br />

Babalakin<br />

that Royal Sanderton Limited won<br />

the bid for the reconstruction of<br />

the burnt domestic terminal building<br />

and could not do anything on<br />

the site for one year following<br />

which BASL was invited as a reserved<br />

bidder.<br />

He said FAAN had “sold” these<br />

misconceptions to Nigerians to<br />

justify the flouting of the agreement<br />

its officials read and signed<br />

and as a way of discouraging<br />

private investors from helping<br />

the Federal Government to lift the<br />

aviation sector from his current<br />

terrible state.<br />

Babalakin lamented that from<br />

day one that BASL inked the<br />

MMA2 concession agreement<br />

with FAAN, the agency had serially<br />

flouted it with reckless<br />

abandon. Besides, he said all the<br />

arbitral decisions and various<br />

court judgements, even up to<br />

the Supreme Court, which were<br />

in favour of BASL, were never<br />

obeyed by FAAN. This, to him, is<br />

discouraging to the private sector,<br />

“which is the only sector with the<br />

energy to provide infrastructure<br />

in the country”.<br />

He further complained to the<br />

ICRC that although part of the<br />

agreement states that all domestic<br />

flight operations in Lagos State<br />

must originate from MMA2 or any<br />

other terminal to be managed by<br />

BASL, the then Minister of Aviation,<br />

Princess Stella Oduah, went<br />

ahead to redevelop the General<br />

Aviation Terminal (GAT) and encouraged<br />

Arik Air to continue<br />

operating from there, thereby<br />

earning all the revenues due to<br />

BASL illegally. He therefore urged<br />

the commission to “study all the<br />

available documents on this and<br />

ask FAAN to hand over GAT to<br />

us and account, in arrears, for all<br />

the revenues received so far from<br />

the facility.”<br />

Babalakin lamented the monumental<br />

investments his firm had<br />

lost in the process of executing<br />

the MMA2 concession and listed<br />

them as a 50 per cent reduction<br />

in revenue due to BASL but being<br />

collected illegally by FAAN at<br />

GAT; millions of dollars invested in<br />

regional flight operations, which<br />

was approved by the Ministry of<br />

Aviation, but which FAAN and<br />

the Nigerian Civil Aviation Authority<br />

(NCAA) frustrated from<br />

taking off; over N500million used<br />

in clearing the GAT and building<br />

a dumpsite for disused aircraft<br />

which littered the then derelict<br />

terminal building; millions of naira<br />

used in building fire hydrant and<br />

underground fuel tank and the<br />

over N4.7billion used in building<br />

a link road between MMA2 and<br />

GAT, among others.<br />

He also told the ICRC that as<br />

far back as 2009, a Federal High<br />

Court had awarded a judgement<br />

debt of N132billion against the<br />

Federal Government/FAAN for<br />

consistently flouting the MMA2<br />

concession agreement, which has<br />

been accruing interest and had not<br />

been paid till date.<br />

“Apart from this, in 2007, we<br />

wrote to the Federal Government<br />

and FAAN that we were ready to<br />

provide electricity to the airports,<br />

including the International Wing,<br />

the Air force base and others so<br />

that there would be 24/7 power<br />

supply, but they refused to approve<br />

this,” he further lamented,<br />

saying the environment in the<br />

country is very hostile to the private<br />

investors.<br />

On the Four-Star Hotel and<br />

Conference Centre projects, Babalakin<br />

said, “we are ready to finish<br />

the two projects but we are completely<br />

scared of FAAN because<br />

of its antecedents. For example,<br />

we spent $2million dollars to buy<br />

tiles and another $1. 2million to<br />

airlift them for the projects, only<br />

for FAAN to frustrate us.<br />

“What is more painful is that<br />

an international company that<br />

we signed agreements with on the<br />

two projects pulled out of Nigeria<br />

because of the harsh business<br />

environment,” while describing<br />

the situation of the Hotel and Conference<br />

Centre as a “monumental<br />

embarrassment”.<br />

Asked to react to Babalakin’s<br />

submissions Monica Alphonse,<br />

the Deputy General Manager,<br />

Public Private Partnership, who<br />

spoke on behalf of FAAN, said on<br />

the various judgments in favour of<br />

BASL, only the Attorney-General<br />

of the Federation (AGF) was sued<br />

but not FAAN, adding that the<br />

agency was also not represented<br />

at the Arbitration Committee set<br />

up by the AGF, who is the Chief<br />

Law Officer of the Federation, to<br />

resolve all the contentious issues.<br />

Although she agreed that the<br />

concession agreement gave BASL<br />

exclusivity over domestic flight<br />

operations in all airports in Lagos<br />

State, despite this, she still insisted<br />

that GAT where Arik and Air<br />

Peace airlines currently operate<br />

domestic flights from was never<br />

part of the MMA2 concession,<br />

saying “what is contained in the<br />

agreement is only where MMA2<br />

was built”.<br />

Etihad Airways expand services to Nigeria<br />

Etihad Airways today reaffirmed<br />

its commitment<br />

to Nigeria with the announcement<br />

of two additional<br />

weekly flights on the<br />

popular Abu Dhabi–Lagos route,<br />

taking it to a daily service.<br />

The new Tuesday and Thursday<br />

services will start on 1 May<br />

<strong>2018</strong>. The route will continue to<br />

be operated by a two-class Airbus<br />

A330, with 22 Business Class seats<br />

and 240 in Economy.<br />

George Mawadri, Etihad Airways<br />

general manager, Nigeria,<br />

said: “Nigeria is an important<br />

market for Etihad and our home of<br />

Abu Dhabi. The airline is committed<br />

to offering attractive schedules<br />

and choice to our guests travelling<br />

between Lagos and the UAE capital<br />

as well as convenient connections<br />

to destinations including the<br />

GCC, India and Asia.<br />

“Since launching the Lagos<br />

route in July 2012, Etihad has carried<br />

almost 600,000 passengers<br />

between our hub at Abu Dhabi<br />

International Airport and the<br />

commercial heart of Nigeria. It<br />

is pleased to be able to support<br />

the high demand for our service<br />

by soon operating the route on a<br />

daily basis.”<br />

Guests travelling to Lagos on<br />

Etihad Airways will experience<br />

the airline’s award-winning<br />

service by multinational cabin<br />

crew and onboard nannies, extensive<br />

inflight entertainment<br />

selections, and a choice of complimentary<br />

international meals<br />

and beverages. Depending on<br />

the class of travel, passengers<br />

can enjoy a generous baggage<br />

allowance of two bags of up to<br />

23kg each in Economy Class and<br />

up to 32kg each in Business Class.<br />

As the trading centre of<br />

Africa and home to 21 million<br />

people, Lagos is a regional hub<br />

for many multinational companies.<br />

The additional flights will<br />

support trade links between<br />

Nigeria, the UAE and beyond,<br />

with cargo capacity set to grow<br />

from 54 tonnes to 75 tonnes per<br />

week in each direction. Key<br />

exports from Nigeria include<br />

leather goods and food items,<br />

while imports comprise consumer<br />

and fashion goods from<br />

the Middle East and Far East.<br />

The daily Abu Dhabi–Lagos<br />

schedules, effective 1 May <strong>2018</strong><br />

(all timings are local)<br />

Arik Air wins double at Africa Security Watch Awards<br />

Arik Air, Nigeria’s largest<br />

commercial airline<br />

has been named<br />

winner of the Best<br />

Security and Safety Conscious<br />

Airline in West and Central<br />

Africa award at the 14th Africa<br />

Security Watch Awards to be<br />

held in Kigali, Rwanda in <strong>Feb</strong>ruary<br />

<strong>2018</strong>. The CEO of the airline,<br />

Captain Roy Ilegbodu has also<br />

been named the Most Outstanding<br />

Aviation Personality in West<br />

and Central Africa.<br />

The award of Best Security<br />

and Safety Conscious Airline<br />

in West and Central Africa was<br />

bestowed on Arik Air in recognition<br />

of the airline’s strict compli-<br />

ance to international security<br />

and safety standards and the use<br />

of modern security tools in its<br />

operations. Arik Air won same<br />

award in 2011, 2012, 2013, 2014<br />

and 2015.<br />

Similarly, the airline’s Chief<br />

Executive Officer, Captain Roy<br />

Ilegbodu was conferred with<br />

the Most Outstanding Aviation<br />

Personality in West and Central<br />

Africa because of his pragmatic<br />

leadership in bringing back Arik<br />

Air to life and commitment to<br />

international best practice on security<br />

and safety for passengers<br />

and luggage.<br />

Arik Air CEO said of the<br />

awards: “We are pleased to<br />

again be a recipient of the Africa<br />

Security Watch Awards.<br />

Safety and security have been<br />

at the core of our operations<br />

and we will never compromise<br />

the safety of our customers. We<br />

took over this airline under very<br />

challenging circumstances and<br />

we are proud of the entire staff<br />

and management who with the<br />

support of Assets Management<br />

Corporation of Nigeria (AMCON)<br />

have rejuvenated the fortunes of<br />

the airline.”<br />

Arik Air adheres strictly to<br />

international safety standards<br />

as stipulated by global civil<br />

aviation bodies such as Nigerian<br />

Civil Aviation Authority<br />

(NCAA), US Federal Aviation<br />

Administration (FAA) and<br />

Department of Transport, the<br />

UK CAA, the European Aviation<br />

Safety Agency (EASA) and<br />

International Civil Aviation<br />

Organization (ICAO).<br />

The Security Watch Award<br />

conferment ceremony will<br />

be held at Radisson Blu Hotel<br />

and Convention Centre, Kigali,<br />

Rwanda on <strong>Feb</strong>ruary 8, <strong>2018</strong>.

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