MMA2 concession: Parties urged to end court cases 14 years after
Fourteen years after the Build, Operate and Transfer (BOT) concession between the Federal Airports Authority of Nigeria (FAAN) and Bi-Courtney Aviation Services Limited (BASL), operator of the Murtala Muhammad Airport two (MMA2), the issues raised by the concession are yet to be resolved. To boost confidence in the current concession process of four airport terminals, […]
Fourteen years after the Build, Operate and Transfer (BOT) concession between the Federal Airports Authority of Nigeria (FAAN) and Bi-Courtney Aviation Services Limited (BASL), operator of the Murtala Muhammad Airport two (MMA2), the issues raised by the concession are yet to be resolved.
To boost confidence in the current concession process of four airport terminals, experts insist the government has an obligation to resolve the lingering issues dogging the MMA2 concession.
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The concession of MMA2 to Bi-Courtney has for a decade had several court cases on the terms and scope of the concession with the General Aviation Terminal (GAT) of the MMA2 terminal.
The GAT known as the old terminal where Arik Air, Air Peace, Green Africa and Overland operate from, according to Bi-Courtney, forms part of the concession agreement which it is entitled to manage and collect all accruable revenues, but FAAN has continued to manage the GAT, violating the contract.
Chairman of BASL, Dr Wale Babalakin who spoke with newsmen recently to commemorate the 14-year anniversary of the MMA2 however said the company is ready for out-of-court settlement as long as it is fair.
This is just as he expressed interest in the ongoing concession of international terminals by the federal government.
Babalakin also said that three African countries have approached BASL to help in developing their airport terminals, saying in a normal climate, Bi-Courtney would be given the right of first refusal with the ongoing process of airport concession.
He explained that there was no controversy over the 36 years of concession of the terminal, saying the entire General Aviation Terminal (GAT) belongs to BASL by law.
But stakeholders said it is high time the issue was resolved out-of-court to totally close the case with MMA2 concession.
Mr Olumide Ohunayo, an aviation analyst and member of the Aviation Roundtable said, “There needs to be mutual arbitration. Both sides need to yield, yield from their stronghold position. If anybody says that the agreement was perfect from the beginning, I do not subscribe to that.
“I think I am happy to hear that from Bi-Courtney and I hope that FAAN will take that Olive branch and work on it.”
Group Capt. John Ojikutu, an aviation expert said, “Bi-Courtney has the right to bid without anyone denying it the right irrespective of the court case in court that has no bearing with the new concession. Settling an outstanding case on MMA2 out of court is not necessary for the concession except for bargaining for alternative terminals.”
But former General Secretary of the National Union of Air Transport Employees (NUATE), Comrade Olayinka Abioye, insisted the “contents and contexts” of the agreement with Bi-Courtney are “too skewed against the Nigerian people and require a review.”
He however agreed that it is not out of place for the parties to sit down with a view to resolving the matter.
“Should there arise a situation where there is a lacuna in any agreement which may create disputes in future, parties must sit round the table to talk.”
FAAN is yet to speak on Bi-Courtney’s olive branch as of the time of filing this report.