FAAN moves to ease funding for 156 projects at 19 airports
The Federal Airports Authority of Nigeria (FAAN), as part of its infrastructure expansion and upgrade programme, is targeting 156 projects in 19 airports across the country, Daily Trust can report.
To this end, the authority has put in place modalities to attract local and Foreign Direct investments from individuals, corporate bodies and organisations.
One of the strategies for the actualisation of the expansion programme is to secure a credit guarantee from commercial banks which its contractors can leverage on to deliver on projects.
This emerged yesterday during a collaboration meeting between FAAN contractors and representatives of more than 10 commercial banks.
The forum was targeted at developing a financing mechanism for funding the projects and to enable FAAN optimize its cash flow.
The Managing Director/Chief Executive Officer of FAAN, Engr. Saleh Dunoma, explained that the collaboration with commercial banks would assist Small and Medium Scale Enterprises (SMEs) to have access to credit to deliver projects for the airports authority.
In line with the partnership, commercial banks expressed commitment to provide direct and contingent funding for FAAN contractors.
Engr Dunoma was represented at the forum by the Director of Engineering, Engr Nurudeen Daura.
Daily Trust learnt that the proposed projects would be spread in airports including Lagos, Abuja, Port Harcourt categorized as premium international airports; as well as Category 11 international airports such as Malam Aminu Kano International Airport, Kano and Akanu Ibiam International Airport, Enugu.
Category 111 airports include Sam Mbakwe Airport, Owerri, Imo State; Kaduna Airport, Kaduna; Margaret Ekpo Airport, Calabar and Benin Airport, Edo State.
For the category four airports, there are Ilorin Airport, Kwara State; Yakubu Gowon Airport, Jos, Plateau State; Maiduguri Airport, Borno; Ibadan Airport, Oyo; Sultan Abubakar 111 Airport, Sokoto; Akure Airport, Ondo State; Musa Yar’Adua Airport, Katsina; Minna Airport, Niger State; Makurdi Airport, Benue State; Yola Airport, Adamawa State and Zaria Airport, Kaduna State (Training).
Some of the projects in the upgrade programme are mono-rail transportation system in Lagos, Abuja, Port Harcourt and Owerri.
Other projects spread across all the listed airports are airline offices, multi-storey car park; airport hotel facility; amusement parks; malls; Automated Trolley Management System; MRO/Hangar; petrol stations; aviation fuel farm, housing estate amusement park, in-flight catering complex and cargo complex/ware housing.
Others are surface ground transportation, Independent Power Project (for Calabar); horticulture/flower gardens, amusement park, MRO Hangar, Specialised Training Centre for Aviation Security (AVSEC), fire fighting and other aviation-related programmes in Jos; airport advertisement; and fuel depot shopping malls for Ilorin.
Projects listed for Kaduna include shopping malls, petrol station, airport hotel facilities/resort centres, among others.
The MD said, “The objective of the programme is to develop a financing mechanism, which optimises the cash flow of FAAN and at the same time provides the much-needed support to our contractors, to enable them access opportunities for working capital enhancement.
“The scope involves working with selected financial institutions, in order to provide liquidity to our major FAAN contractors, through direct and contingent funding.”
According to him, the forum aligns with the Federal Government’s innovative step at ensuring and encouraging better access to funding especially for SMEs and others with a view to deepening opportunities to grow the Gross Domestic Product (GDP) and to diversify the nation’s economy.
Also speaking, the Director of Finance and Accounts, FAAN, Mrs. Nike Aboderin, assured commercial banks that FAAN is credit worthy, adding that the agency currently works with thousands of SMEs.
According to her, FAAN is one of the largest value chains in the country with transparent accounts which she said, “are in the open”.