Okowa targets N100 million annual revenue via Asaba Airport concession

The concession of the Asaba Airport has been regarded as a welcome idea by the Delta State Governor, Ifeanyi Okowa.

The Details: While speaking at the presentation of the N389 billion budget for the 2020 fiscal year to the lawmakers, Okowa noted that the State would benefit the sum of N100 million yearly from the concession.

He was full of praises for the state’s lawmakers for approving the concession of the airport to a consortium of investors.

“It is the first full brown-field airport concession in Africa and a hybrid arrangement covering further development and management of the airport. “The concession is for a period of 30 years, with an annual concession fee of N100 million payable to the state government, escalating by 10% every five years.

“There is also an annual royalty of 2.5% of gross annual revenue payable to the state, with over N28 billion expected to be pumped into the airport development by the concessionaire over the next three years. The benefit to the state in terms of employment opportunities, urban renewal, and tourism potentials are enormous,” he said.

The State Governor also hinted at the completion of the Kwale Industrial Park as he disclosed that the same investors who took the concession offer had also decided to invest heavily in a few sectors in Delta state.

Once fully operational, the Park is expected to be a major driver of this administration’s agenda and provide immense employment opportunities for our people,” Okowa declared.

The Governor restated his desire to boost the state’s revenue through investment in agriculture and wealth creation. He also hinted at a public-private partnership in Ogwashi-Uku which will be devoted to the establishment of an Agro-Industrial park to encourage industrialization and grow the fortune of the state.

Why this matters: According to the Aviation Minister, Senator Hadi Sirika, the concession of airports to private investors is a welcome idea. It is accepted because it helps State-owned airports enjoy better management and good operations.

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