the Federal Executive Council (FEC) approved the establishment of a Maintenance Repair and Overhaul (MRO) center for the aviation industry.
FG stated that the center is the first in West and Central Africa; it is a one-stop-shop for overhaul, routine maintenance, and aircraft service. This will be done through Public Private Partnership (PPP) with Messrs. AJW Consortium as concessionaire using the Build, Operate, and Transfer (BOT) PPP model.
This is exposed in a statement by the Infrastructure Concession Regulatory Commission (ICRC) in Abuja on Wednesday.
What they say:
They noted that the Center has been approved for a concession period of 30 years and is expected to generate about 185 million dollars within the period.
The ICRC added that the approval was granted after the issuance of a Full Business Case (FBC) Compliance Certificate by the ICRC to the Federal Ministry of Aviation and would be the first in West Africa.
“The Center was established as a Public Private Partnership (PPP) with Messrs. AJW Consortium as the concessionaire and uses the Build Operate and Transfer (BOT) PPP model.
“The Center has been approved for a concession period of 30 years and is expected to generate about 185 million dollars during that period.”
The ICRC noted that the MRO is part of the key elements of the aviation sector roadmap of the current administration of President Muhammadu Buhari, saying that “It is aimed at solving the challenges of the sector, filling the identified gaps and creating the necessary environment for the active participation of the private sector in the development of the aviation sector in the country.”
They added that the establishment of an MRO center run by the private sector is important for diversifying and revitalizing the aviation industry as it will provide a platform for aircraft repair, overhaul, and maintenance. and also meet the need for aircraft maintenance in Nigeria, West, and Central Africa.
“Currently, the regions do not have an international standard MRO and therefore, urgently need one that will facilitate business, accelerate growth and contribute to their Gross Domestic Product” they noticed.
The Minister of Aviation, Sen. Hadi Sirika stated that the FEC approved the award of contracts for the construction of a fire truck maintenance and refurbishment center in Katsina State and this is a critical purchase for us.
“This is to take care of all the issues we are experiencing with fire tenders across the country”he declared
“Previous governments used to transfer this fire fighting equipment back to Europe where it was manufactured, only to have it repaired and brought back at a cost and time; thus exporting our labor and foreign exchange.
“But the Buhari government has decided that we need to build one such centre.
“The approval is for N7, 913, 949, 964, including 6.5 percent Value Added Tax”, he added.