FG Hands Over Enugu Airport to Aero Alliance in 20-Year PPP Deal
FG Hands Over Enugu Airport to Aero Alliance in PPP Deal

Federal Government Transfers Enugu Airport to Private Operator

The federal government has formally handed over Akanu Ibiam International Airport, Enugu, to Aero Alliance Limited under a Public-Private Partnership (PPP) arrangement. The deal, signed for a 20-year period, tasks Aero Alliance with financing, rehabilitating, expanding, and operating the airport to international standards.

At a ceremony held at the international terminal in Enugu, the Minister of Aviation and Aerospace Development, Festus Keyamo, described the concession as a landmark achievement in the government's efforts to attract private investment into aviation infrastructure. He noted that previous administrations had attempted to concession airports but failed to secure interest for Enugu and Port Harcourt, with investors preferring Lagos, Abuja, and Kano due to commercial viability.

Keyamo stated: "For 20 years, every government was interested in conceding airports. Most concessions that we had, we have done so for many years. There was a lot of competition for concession of airports in Lagos, Abuja, Kano, but none for Enugu and Port Harcourt." He added that under President Bola Tinubu's administration, the situation has reversed: "Look at what we have now - we have no bidder presently for Lagos, Abuja, and Kano. But Enugu and Port Harcourt are gone."

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Job Security and Efficiency Promised

The minister assured airport workers that their jobs are secure, emphasizing that private sector management will bring greater efficiency and better services. "Aviation workers are our children; they will not suffer during our time. The process that led to this moment would see many changes, a more professional management and a more efficient service delivery because private companies will always aim to do more and deliver better for consumers," Keyamo said. He noted that aviation labour unions were engaged at all levels to ensure the process did not disadvantage any party.

Keyamo also praised Enugu State Governor Peter Mbah for his proactive role, stating that Mbah presented a development plan for the airport within two weeks of taking office, which helped attract private investors. "In fact, the success of Enugu Air we all celebrated last week also speaks volumes about the economic potential and investment prospects we are unlocking in Enugu," the minister added.

ICRC Describes Deal as Historic

The Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Dr. Jobson Ewalefor, called the deal historical, reflecting the governor's tenacity and credibility in attracting and managing private investment to boost the region. He said the increased confidence of the international community, the launch of Enugu Air, and expanding partnerships underscore the growing influence of the state in aviation and logistics globally.

The concession agreement requires Aero Alliance Limited to finance, construct, rehabilitate existing structures, expand, and operationalize the airport to meet international benchmarks. The handover marks a significant shift in investor confidence, positioning Enugu as a key aviation and investment hub.

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