Aviation Ministry re-opens bidding process for Port Harcourt Airport – Source

Despite the crisis that engulfed the concession of three airports in the country by the former administration, the Ministry of Aviation is going ahead with its plan to concession Port Harcourt International Airport (PHIA), Omegwa.

A source close to the ministry confided in our correspondent, yesterday, that the Permanent Secretary of the Ministry of Aviation, Dr Emmanuel Meribole, is going ahead with one of the roadmaps of the former administration for the aviation sector.

More details about the new bidding process

According to the source, the ministry had commenced a selective bidding process for the PHIA, stressing that no bids were received during the initial round of the bidding.

The source further hinted that the ministry was already engaging with the Infrastructure Concession Regulatory Commission (ICRC) to seek its approval for a second round of bidding, thereby “demonstrating its commitment to a fair and competitive process that maximises the benefits for Nigerians.”

The source hinted that the ministry intended to provide potential investors with better incentives and more robust guarantees in the new process.

Reaction to legal challenge by Sifax Group

Meanwhile, the source said the ministry was aware of the legal case brought against it by Sifax Group, challenging the bidding process for Lagos Airport. It promised that it would follow the due legal process and maintain transparency throughout the resolution of the disputes.

The source further disclosed that the ministry has engaged the services of legal advisors, while it was also actively involved in the court proceedings to ensure a fair outcome, maintaining that it would not allow the interest of a few to derail the government. The source said:

“As the primary stakeholder and sponsor of this initiative, we are very much aware that the vast majority of Nigerians support the concession programme. They want to experience world-class travel from airports with top-notch infrastructure, services, and security.

“We are fully committed to addressing ongoing legal disputes transparently and promptly. The case brought forward by Sfax Group, alleging a breach of the Request for Qualification by the preferred bidder is being taken seriously.

“If the allegations are substantiated, the Ministry of Aviation will re-evaluate the concession award for Lagos, in accordance with due legal processes.”
Meribole could not be reached for comments by our correspondent. However, another source in the ministry confirmed the new bidding to our correspondent.

What you should know

Sifax Group of Companies Limited had in November 2022, asked the Federal High Court sitting in Lagos to disqualify Tav Airports Holding Company and GMR Airport Limited from the bidding, claiming that both firms were owned by the same company, Airport De Paris (ADP), but submitted separate bids for Lagos Airport.

In its submission, SIFAX claimed that this breached the “specific precept of the RFQ,” which states that no applicant was entitled to bid for any of the specific assets twice under any guise or form.

The plaintiff sued the Attorney-General and Minister of Justice of Nigeria, the Federal Government of Nigeria and the Minister of Aviation, NAHCO Aviance Plc, ICRC, Tav Airports Holding and GMR Airport as the 1st to 7th defendants.

The Federal Government had in October 2022, announced the preferred and reserved bidders for the concession of Lagos, Abuja and Kano airports, but said Port Harcourt Airport did not receive any form of bidding.

He said the Request for Proposals (RFP) phase of the Nigeria Airports Concession Programme (NACP), which came to a close on September 19, 2022, had seen the emergence of preferred and reserve bidders for three out of four airports and cargo terminals as approved for concession under the programme.

He had said that his ministry was in consultation with the ICRC and other key stakeholders to discuss the way forward for the fourth airport asset that failed to meet the deadline.

Sirika had mentioned the preferred bidder for the Abuja Airport as Corporation America Airports Consortium, while ENL Consortium was selected as the reserve bidder for the airport.

Sirika also said that the TAV/NAHCO/Project Plant Limited (PPL) Consortium was the preferred bidder for the Murtala Muhammed International Airport (MMIA), Lagos, while the Sifax/Changi Consortium has also been chosen as the reserve bidder.

He added that Corporacion America Airports Consortium was also the preferred bidder for the Mallam Aminu Kano International Airport (MAKIA), Kano and that there are currently no reserve bidders.