Nigeria Air Project Waiting For Investors, FEC Approval – Sirika

Sirika Reveals Companies Waiting To Invest In Nigeria Air Project.

Hadi Sirika, minister of state for aviation, says the Nigeria Air project is not lacking investors.

The minister who spoke in Abuja yesterday, at the fifth Aviation Stakeholders’ Forum disclosed that  institutions and airlines such as the African Development Bank (AfDB), AFREXIM, US-EXIM, Standard Chartered Bank, Boeing, Airbus and China-Exim Bank are some of the interested partners.

The minister said the project followed due process and is currently at procurement stage awaiting approval of the federal executive council (FEC).

Sirika also discredited claims that the government spent $600,000 on the design of the logo after the carrier was unveiled at the Farnborough Airshow in London in July.

He said: “In recent months, misinformation, factual errors, insinuations and fabrications have been peddled in both social and print media on the Nigeria Air project.

“These include desirability, inadequate planning, non-consultation with stakeholders, lack of transparency and publications of fictitious amounts allegedly spent by the government on the project, amongst others.”

He explained that the current effort to establish the national carrier predated the composition of the present FEC and his appointment as a minister.

Sirika said: “Mr President directed the then ministry of aviation to commence the process for the establishment of a national carrier during the ministerial briefing on the aviation sector.

“The ministry set up a committee which came up with the modalities for the establishment of a national carrier.

“The committee in its report submitted in September 2015 recommended a private sector-led national carrier with 10 percent government ownership and non-involvement of government in the management of the airline, but the provision of enabling environment for its operation.”

The minister said that following approval by the FEC, a consortium of transaction advisers (TAs), comprising Airline Management Group Ltd., Avia Solutions Ltd and Tianaero FZE, were appointed in line with best practices.

He said the TAs completed the outline business case (OBC) report, which was reviewed by the Infrastructure Concession Regulatory Commission (ICRC), which subsequently issued the OBC certificate of compliance.

According to him, the report has been presented to FEC for consideration to move to the procurement phase and then full business case (FBC), where it will be opened for bidding by investors including ordinary Nigerians.

The minister explained that the estimated funding requirement for the establishment of the project was $300 million up to 2020.

He added that the expected initial start-up capital of $55 million was made up of $25 million for deposit for new aircraft and $30 million for working capital from June to December 2018.

Sirika pointed out that the estimated working capital for 2019 is $100 million and $145 million for 2020 to be provided by the strategic equity partners who are expected to manage the project.

“Certain media publications that $8.8 million was expended at the Farnborough air show are unfounded, malicious, misleading, mischievous and baseless,” He said.

“The TAs for national carrier coordinated the campaign and provided the additional services that included the development of the brand strategy and the media activities relating to the unveiling of the airline.

“Due process was followed in the branding, which included obtaining ‘No Objection’ certificate with Ref. No. BPP/RPT/18/VOL.1/075 from the Bureau of Public Procurement for payment of N50.8 million for these services is yet to be made.

“No foreign company was paid $600,000 for the design of the logo as speculated.“