Federal Government Set to Unveil Transaction Advisers for National Carrier, Airport Concession

By March 28, 2018 Investment News

The Minister of State, Aviation, Sen. Hadi Sirika, says the Federal government will unveil transaction advisers for the establishment of national carrier, concession of airports and other projects to stakeholders on Thursday.

Nigerian Airways grounded Sirika made this known in a statement by Mr James Odaudu, Deputy Director, Press and Public Affairs, Ministry of Transportation on Wednesday in Abuja.

He said that other projects included the establishment of Maintenance, Repair and Overhaul (MRO) facility, Agro-allied and Cargo Terminals, Development of Aerotropolis (Airport Cities) and Establishment of an Aviation Leasing Company.

Sirika also disclosed that the decision was in pursuance of the government’s resolve to carry along all critical players in the aviation industry in the formulation and execution of its programmes.

The minister is expected to preside over the 4th Aviation Stakeholders Forum later on Thursday to update stakeholders on other developments within the sector He would also use the forum to receive inputs and suggestions from them on the way forward.

The News Agency of Nigeria recalls that the Federal Executive Council (FEC) had in May 2017 given approval for the appointment of transaction advisers to drive the process of establishing a national carrier. Sirika had at different fora stated that most of the projects were going to be Public-Private Partnership driven, which would be guided by the Infrastructure Concession Regulatory Commission’s regulations.

The minister recently announced the removal of Lufthansa Consulting with Airline Management Group from a consortium providing transaction advisory services for the establishment of a national carrier.

He explained that the council felt that since Lufthansa is an appendage of the airline group, allowing it to be an advisor might bring conflict of interests. According to him, the council considered a memo from transportation to substitute a member of the consortium that will provide transaction advisory services for the establishment of national carrier.

Source: Vanguard