Hadi Sirika, minister of state
for aviation, says the Nigeria Air project is not lacking investors.
He said 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.
The minister spoke in Abuja on
Thursday at the fifth Aviation Stakeholders’ Forum.
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.
According to him, 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.”
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