Nigerian minister proposes new business model for aviation projects
Friday, 17 August 2012 10:03
All Nigerian airport projects contained in the investment baskets will be executed through the contractor-financed business model, said aviation minister Stella Adaeze Oduah
The minister added that the projects would not be financed through concession or the Public Private Partnership (PPP) business model as was the case in the past.
Joe Obi, special assistant to the minister on media, said the minister had dropped this position during an investors’ forum in Beijing, China.
He said the ministry was looking for investors who were interested in investing in the Nigeria aerotropolis cities and the aviation sector in general and would partner with Nigerian indigenous investors for helping the aviation industry grow.
“What the government is actually looking for are contractor-financed investors who can finance the projects while the government provides the enabling environment. We want investors who can have joint ventures with our local, indigenous companies and can together finance various projects,” the minister said.
She said, under this model, investors would be required to look at the investment baskets where various opportunities will be clearly stated. From the baskets they can pull out those they have appetite for to invest in.
She assured that the government would do everything to ensure that the policy guaranteed returns for all investors through the creation of the necessary environment.
She further added that under this arrangement, the government would work out a revenue sharing formula where revenues would be shared between the government and the investors in a win-win situation.