AsoRock
Topic Author
Posts: 146
Joined: Wed May 31, 2006 4:00 pm

Abuja Gateway Consortium To Invest US$ 371 Million

Wed Nov 15, 2006 12:55 am

Abuja Gateway Consortium (AGC), yesterday emerged the investor in the Abuja International Airport with a price offer of $101. 1 million and an upfront revenue payment offer of $10 million. The group was sole bidder for the airport’s facilities.

The other two (short-listed) contenders (Airports Company of South Africa and Airport Consortium of Vienna) were not able to meet up with the transaction payment schedule. The concession is for a period of 25 years after which ownership of the airport will revert to the federal government. The $101.1 million is to be paid as revenue during the leased period.

Mr. Richard Akerele, the chief executive officer of Airline Services Ltd, a representative of the consortium, who spoke at the bid opening, stated that $371 million is to be invested in the development of the Abuja airport throughout the 25 years of the concession.

It was learnt that $50 million of the amount is to be deployed in the first five years in the development of airport hotel; development of private car park; shopping centre malls and bonded warehouse.

Akerele said the long term development plan is to make the Abuja airport the hub of West Africa destinations and to develop a one-roof terminal abrogating the dichotomy between the international terminals from the local to make it convenient for international travelers to land and board again without the current hassles of landing and looking for airport transportation to another terminal.

Both the Bureau of Public Enterprises (BPE) and the International Finance Corporation (IFC) of the World Bank Group, which acted as the financial adviser, described the offer as good.

Full Article:
http://www.financialstandardnews.com/news.asp?url_news=37



The concessionaires are Gitto Construzioni Generali Nigeria Limited, an Italian firm based in Abuja. It has the largest equity of 49.5 per cent; Net Technologies Limited , a Nigerian company registered in 2003 which specialises in the provision of Information Technology (IT) solutions, property development and various infrastructure turnkey projects has a 20 percentage holding in the group.

Also in the group are Airline Services Limited (ASL), another Nigerian firm said to be the premier provider of catering and hospitality services to the aviation industry; British Airways; South African Airways; Lufthansa German Airlines; KLM Royal Dutch; Air France; and Virgin Nigeria.

Another company in the group is A.G. Ferrero, a Nigerian construction company based in Kaduna. It has a 10 per cent share in the group while Airport Consulting Vienna GmbH will serve as the technical partner. The Airports Authority of India will act as the airport operator for the consortium. It has no equity holding.

Some photos of the airport:

International Terminal




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Photo © Sean Mendis


[Edited 2006-11-14 17:01:27]
 
KL577
Posts: 533
Joined: Mon Oct 30, 2006 12:21 am

RE: Abuja Gateway Consortium To Invest US$ 371 Million

Wed Nov 15, 2006 5:04 am

This is good news, although AGC still need to make their first payment within the next 20 days. I read in another paper that they are planning to integrate the domestic and international terminal at ABV, that is a good plan (and something they need to think of in LOS). Hopefully it works out (and the FG gives landing rights to other airlines to serve Abuja).
 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: Abuja Gateway Consortium To Invest US$ 371 Million

Wed Nov 15, 2006 6:11 am

Quoting KL577 (Reply 1):
Hopefully it works out (and the FG gives landing rights to other airlines to serve Abuja).

Therein lies the problem. Abuja's international terminal is woefully under capacity. FAAN is desperately trying to attract new airlines while NCAA spends their time throwing obstacles in the way.

I hope that the deal goes through, and if anyone has both the financial and political capital and savvy in Abuja to push it through, Richard Akerele is the guy.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
EurostarVA
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Joined: Thu May 16, 2002 12:24 am

RE: Abuja Gateway Consortium To Invest US$ 371 Million

Wed Nov 15, 2006 3:15 pm

The press is suggesting that the Bureau of Public Enterprises (BPE) plans to concession LOS, KAN, and PHC as well. It will be a great relief if LOS is given priority, for obvious reasons. However any deal for LOS is unlikely to happen before 2008.
If there is a will, there is a way
 
AsoRock
Topic Author
Posts: 146
Joined: Wed May 31, 2006 4:00 pm

RE: Abuja Gateway Consortium To Invest US$ 371 Million

Wed Nov 15, 2006 5:20 pm

Quoting EurostarVA (Reply 3):
The press is suggesting that the Bureau of Public Enterprises (BPE) plans to concession LOS, KAN, and PHC as well. It will be a great relief if LOS is given priority, for obvious reasons. However any deal for LOS is unlikely to happen before 2008.

It would be worth mentioning that the new Lagos Domestic Terminal (currently under construction and slated to open during Q1 of 2007), has been developed on a Build, Operate and Transfer (BOT) arrangement signed with Stabilini Visinoni.

Therefore, the Lagos concession would probably cover the international terminal and ancillary facilities only.
 
EurostarVA
Posts: 1205
Joined: Thu May 16, 2002 12:24 am

RE: Abuja Gateway Consortium To Invest US$ 371 Million

Wed Nov 15, 2006 5:56 pm

Quoting AsoRock (Reply 4):
It would be worth mentioning that the new Lagos Domestic Terminal (currently under construction and slated to open during Q1 of 2007), has been developed on a Build, Operate and Transfer (BOT) arrangement signed with Stabilini Visinoni.

Therefore, the Lagos concession would probably cover the international terminal and ancillary facilities only.

This is of course unless the government sees a merit in allowing two domestic terminals (and owners) to compete with one another for business. There might have been a clause in the Stabilini contract to prevent this from happening, though.
If there is a will, there is a way

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