18 September
Selection of preferred bidder
FAAN writes letter to Maevis awarding letter for the PPP agreement
Transport
Lagos
Implementation
Federal Airports Authority of Nigeria
04-04-2018 18:34:47
The project was borne out of the need to have total control over a transparent invoicing system. The revenue collection process will allow for effective monitoring and notification of all payments due to and from the Federal Airports Authority of Nigeria (FAAN), irrespective of type or payment medium, while at the same time ensuring that all funds due to FAAN, from the airlines, ground handling companies, concessionaires, airline agents, and other stakeholders, are collected, cleared, and remitted to the designated FAAN operating accounts promptly and are duly accounted for.
In fulfilling the concession agreement, Maevis designed, procured, financed, built, installed, and successfully operated and maintained to World class standards a fully Automated Airport Operations Management System and carried out the complete redesign, revamp, and rebuilding of critical infrastructure, superstructure, equipment, data center, ICT systems, and items of furniture, fittings, common use terminal equipment, weigh-in scales, airport check-in desks, induction belts, boarding gates infrastructure, passenger information flight management systems, independent power/backup systems, power cables, servers system the fiber optic cables/backbone, VSAT internet links, and so forth in the concessionaire on the airport premises and at the departure halls of the Lagos (MMA) & Abuja (NAIA) airports.
The project will provide and deliver the following: acquisition, installation, operation, and management of a world-class integrated airport operations management system, airport operation database, common use terminal equipment, computer-based departure control system platform, common use self-service kiosk, fully automated airport pricing and billing system, proactive revenue management system, and electronic payment gateway system incorporating a transparent electronic funds transfer and settlement system at the airports.
The build, operate, transfer model was the PPP model adapted for this project. The rationale is to leverage private sector expertise (Maevis) to execute a fully automated airport operations management system, as well as the much needed IT infrastructure. This in partnership with the public sector (FAAN) would bring about much needed efficiency in the operations of the airport as well as provide a pleasant user experience for the end user of the airport services.
Stakeholder engagement sessions were held with key stakeholders, including the FAAN, airport management, Nigerian Aviation Handling Company, passenger airlines, agents, and handling companies.
Project summary document
18 September
FAAN writes letter to Maevis awarding letter for the PPP agreement
31 October
Execution of the Concession Agreement
31 October
Expiry of contract agreement
Redacted PPP Contract
40% : 60%
| Type of risk | Description | Allocation | Mitigation |
|---|---|---|---|
| Pre-construction risk | Risk associated with project preparation/Permit and approval risk | Public Sector | |
| Construction / Completion | Construction and Renovation of Terminal structures | Private Sector | |
| Cost risk | Cost Overrun | Public and Private Sectors | |
| Refinancing risk | Financial Close/Debt servicing/interest repayment | Public and Private Sectors | |
| Risk related to change in law, taxes, scope, technical standards, regulatory framework | Project scope, laws, environment, government policies | Public Sector | |
| Exchange rate risk | Fluctuation in country's exchange rate/devaluation/global impact | Public and Private Sectors | |
| Operating risk | Competition, workers action, etc | Private Sector | |
| Force majeuer | termination | Public and Private Sectors |
| Events of Default | Brief description | Termination Payments | Documents |
|---|---|---|---|
| FAAN shall have the right to terminate the agreement if Maevis becomes insolvent | A notice in writing terminating the agreement be served to the defaulting party | Pay to FAAN any and all actual costs, expenses, charges, and/or liquidated damages sustained by the FAAN as a consequence of such termination | |
| FAAN shall have the right to terminate the agrrement if Maevis fails to perform the project for fourteen consecutive days in a year or sixty non-consecutive days in a year | A notice in writing granting not less than 7days to remedy the event of default. | Pay to FAAN any and all actual costs, expenses, charges, and/or liquidated damages sustained as a result of such termination | |
| Both parties shall terminate agreement as a result of an event of force majeure | If parties are unable to perform the project as a result of an event of force majeure | The parties shall bear their respective costs and neither party shall be required to pay to the other party any cost arising out of an event of force majeure |
| Events of Default | Brief description of events of default | Termination Payments | Documents |
|---|---|---|---|
| Maevis shall have the right to terminate the agreement if FAAN becomes insolvent. | A notice in writing terminating the agreement be served to the defaulting party. | Pay to Maevis any and all actual costs, expenses, charges, and/or penalties incurred or sustained as a consequence of such termination | |
| Both parties shall terminate agreement as a result of an event of force majeure | If parties are unable to perform the project as a result of an event of force majeure | The parties shall bear their respective costs and neither party shall be required to pay to the other party any cost arising out of an event of force majeure |
| Year | 2006 | 2007 | 2008 | 2009 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Target | Achievement | Target | Achievement | Target | Achievement | Target | Achievement | |||||||||
| Aeronautical and Non-Aeronautical generation/collection (Naira) | 0 | 0 | 0 | 0 | 0 | N2,834,197,340.93 | 0 | N10,903,678,375.48 | ||||||||
| Aeronautical and Non-Aeronautical generation/collection (Dollar) | 0 | 0 | 0 | 0 | 0 | 776001.01 | 0 | 3086067.47 | ||||||||
| Year | 2010 | 2011 | 2012 | 2013 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Target | Achievement | Target | Achievement | Target | Achievement | Target | Achievement | |||||||||
| Aeronautical and Non-Aeronautical generation/collection (Naira) | 0 | N9,560,918,707.19 | 0 | 0 | 0 | 0 | 0 | N/A | ||||||||
| Aeronautical and Non-Aeronautical generation/collection (Dollar) | 0 | 6271779.5 | ||||||||||||||
| Year | 2014 | 2015 | ||||||
|---|---|---|---|---|---|---|---|---|
| Target | Achievement | Target | Achievement | |||||
| Aeronautical and Non-Aeronautical generation/collection (Naira) | 0 | N/A | 0 | N/A | ||||
Information will be published as soon as it is available.
Project has been terminated but the case is still in court. ICRC is currently mediating with the parties to reach an amicable solution.
