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APRIL 23, 2007 VOL. 21. NO 2

A Project of Pains

**President Olusegun Obasanjo**

Using presidential fiat, Bi-Courtney Limited, the contractor handling the Murtala Mohammed Airport Terminal ‘2’ building has continued to inflict pains on stakeholders who point to the manner their facilities are encroached upon
By George Umunnakwe
Like a mixed grill, the construction of the Murtala Mohammed Airport (MMA) Terminal ‘2’ building beside the presidential wing, Ikeja, to some is the best thing to happen in the sector and indeed the West African sub-region. However, to some others, especially aviation stakeholders, the construction of the terminal which is hinged on a Build, Operate and Transfer (BOT) basis, it is a rip-off on the country.
They contend that apart from the “Loose-end agreement’ for the contractor to recoup his expenses after completion, the terminal has continued to eat deep into properties of notable aviation parastatals.
Like the octopus spreads its tentacles in order to grab its prey, Stabilini Visioni, the construction firm handling the project, has continued to eat deep into the landed confines of its neighbours. Top on the list of those that have lost either land or properties, which with ‘executive fiat’ was taken away from them include the Nigeria Airforce Intelligence Service (NAFIS), the Nigerian Airspace Management Agency (NAMA), and the Murtala Muhammed Airport Secondary School. Others are the Federal Airports Authority of Nigeria (FAAN), buildings belonging to some airline operators and of course, Arik Air, which bought over Nigerian Airways properties.
The stakeholders question the rationale behind the recent granting to Bi-Courtney, parent company to Stabilini Visioni, “a loose-end agreement on the BOT.”
The contract was initially awarded to Sanderton Ventures Limited in September 2001 at the cost of N2.7billion and was scheduled for completion in 18 months. Sanderton was to manage the terminal for 10 years to enable it recoup its investment before transferring ownership to the Federal Airports Authority of Nigeria (FAAN).
But following intrigues and interest expressed by a cabal in the presidency, the project was soon enmeshed in controversy. This led to the revocation of the contract by the government on May 23, 2002. The government in taking this decision premised it upon some technical defaults. It was then awarded to Stabilini Visioni with similar terms of implementation in July 2002, but not without an alleged mobilisation fee of about N500million paid. It is strongly speculated that Wale Babalakin, chairman of Stabilini Visioni is a protege of President Olusegun Obasanjo.
The MMA terminal ‘2’ building, The Source’s investigations reveal, was awarded to the Babalakin-led company at a mouth-watering cost of N8.5billion in 2002. This is against the original cost of N2.7billion it was awarded to Sanderton Ventures Limited.
Though the project has witnessed several postponements, as per date of commissioning, it was finally commissioned on April 7, 2007.
Officials of Stabilini Visioni, which is also handling the construction of a four-star hotel opposite the new airport terminal, put the total cost of the project at more than $300million.
The Source gathered that having bought the properties of the Nigerian Airways, the management of Arik Air envisaged using the Nigerian Airways hanger and of course another portion of land beside the hanger for construction of a sub-regional hanger. In fact, the airline's management, The Source was told, had concluded plans with a notable airline maintenance company in South Africa to partner them in their quest to capture the sub-regional airline market. “The company was scheduled to visit the country this April with state-of-the-art equipment, but what we saw was tapping of the area by the construction company. Efforts to make them rescind the move proved abortive as they point to the approval they got from Abuja,” a very reliable source at Arik Air said.
The Source gathered that when Johnson Aruemini, chairman of the airline went to the Minister of State for Air Transportation, Femi Fani-Kayode to complain, what he got in reply shocked him to the bone marrows. “Our chairman was told by the minister that his (the minister) hands were tied.” Though he lauded the initiative of bringing down state-of-the-art airline maintenance equipment to the country, he specifically told my oga that there was nothing he can do to reverse the president’s decision.
Bi-Courtney in its original plan as shown in the terminal modelled after that of South Africa budgeted for six airline fingers. But with plans to make Lagos the hub of the West African airline market, an approval was sought and gotten for the fingers’ to be increased to 12. “This is straight from the presidency. The minister has no hand in this,” a ministerial source stated.
Instructively, while the management of Arik Air was lamenting the loss of its land, the management of NAMA is not keeping quite over moves to convert one of its buildings to a laundry unit to service the yet-to-finish hotel. Construction works at the building which is directly behind the agency’s gate, on the right hand side if one is entering the compound is fast gaining momentum. A visit to the site by The Source indicated that the warehouse- like building is already being partitioned into units.
Though Supo Atobatele, head of the Public Relations unit of NAMA refused to comment on the issue, investigations reveal that the in-house unions are spoiling for a fight with the construction firm.
This is against the backdrop that the nation's airspace managers might be requested to relocate their headquarter to a yet-to-be determined location. “We hear that there are plans to convert the building as a laundry unit for the yet-to-be-finished four-star hotel.
“At first we saw it as an impossible task, as it will be a security risk to site a laundry service company inside an agency’s headquarter. But when we started seeing construction work taking place, we knew then that the news was no fluke,” a union member said.
Notedly, while the management of NAMA appear helpless in arresting the situation, the Parents Teachers Association (PTA) and indeed management of the Murtala Muhammed Airport Secondary School did not find it funny when a site earmarked for the School’s Science Laboratory was pegged in readiness for the building of a conference hall that will be an arm of the hotel.
And so to the minister in charge of air transportation they went, in company of members of the Air Transport Service Senior Staff Association of Nigeria (ATSSSAN),
The meeting held on March 20,2007, with the minister in charge of air transportation in attendance, saw the union leaders lambasting the octopus inclinations of the Babalakin-led construction company.
They requested the speechless minister to call the company to order or hell will be let loose on the sector.
Apparently afraid of the threat of the union members, the minister was said to have promised to insist that the construction company constructs the science laboratory for the school at any other site provided by the school authority, before going ahead with its own conference hall project.
“Let's not beat about the bush on this. I can’t promise you that Stabilini will stop work on the site. But what I promise you is that they will build the laboratory first for you people, before embarking on the conference hall project,” Fani-Kayode reportedly told the gathering.
On other encroachment by the construction company, the minister said, “nothing should stand in the way of the terminal building being completed. The president does not want to hear anything of such. The project must be completed, as it is the thrust of this administration and the first of its kind in the sub-region.”
Meanwhile Wale Babakakin, the man at the centre of the storm on Saturday, April 7, 2007, denied that any mobilisation fee was given to him by the Federal Government. He made this disclosure at the commissioning of the project, which he said had gulped more than $300million. “There is no penny of government money involved in this project. It is pure loan from some consortium of banks which had believed in the project and had stood with us to this end,” he said.
The chairman of Bi-Courtney in confirming that some portion of lands belonging to other stakeholders were converted, said, “when I got to Mr. President couple of months ago, he asked, 'Wale, how many fingers were approved', and I said six, he (the president) said no, increase it to 12. Anything standing on its way should give way."
Speaking further Wale, son of a former Supreme Court judge narrated that approvals were also gotten from Mr. President for the construction of the conference hall and the laundry that are to serve the hotel billed for commissioning soon.
Meanwhile, following confirmation from the chairman of Bi-Courtney that his company intend to manage the project for a very long time before handing it over to FAAN, the authority, The Source gathered, will not get any revenue from the project.
Though FAAN at the initial signing of the memorandum of understand (MOU) guiding the BOT was told that a certain percentage of money acruing from the terminal will be paid into FAAN’s account. This agreement, The Source gathered, was later to be jettisoned as a new understanding was reached on how to allow the construction company recoup its financial outlay in the project.
When a confirmation was sought from the Managing Director of the Authority, Mohammad Yusufu, he declined to comment, saying the issue is a no-go area.
However, a very reliable source at the authoirty told The Source that airlines using the facility will be charged twice the amount they are currently being charged by FAAN. These are in the areas of parking fee, usage of the complex and its facilities to mention but a few.
Notedly, the Minister of State in charge of Air Transportation, at the commissioning hinted that airline operators have no choice but to use the facilities at the complex. “They have to come here, how they will do it, we don’t know, but they have to come here, because the General Aviation Terminal (GAT) which they are currently using has been converted for the usage of those citizens that have private jets.”
While this sounded like a sweet-song to the private jet owners, to the operators it is a bitter pill being forced down their throats as they point to the high charges that they will have to pay for using the new terminal. “Last week a circular was sent to us detailing the amount we are to pay for facilities at the complex and even parking fees. My brother, they are on the high side. We are told we have no choice. Even the ground handling charges, are high,” an operator lamented. Would a hike in air fares follow?