The Federal Executive Council (FEC) has approved the establishment of a Maintenance Repair and Overhaul (MRO) center for the aviation industry.
FG stated that the center would be first in West and Central Africa; it would be a one-stop-shop for the overhaul, routine maintenance, and service of aircraft. It would be done through a Public Private Partnership (PPP) with Messrs. AJW Consortium as the concessionaire using the Build, Operate, and Transfer (BOT) PPP model.
This was disclosed in a statement by the Infrastructure Concession Regulatory Commission (ICRC) in Abuja on Wednesday.
What they said:
They noted that the Centre is approved for a concession period of 30 years and is expected to generate about 185 million dollars within the period.
ICRC added the approval was given following the issuance of a Full Business Case (FBC) Compliance Certificate by the ICRC to the Federal Ministry of Aviation and would be a first in West Africa.
“The Centre is established as a Public Private Partnership (PPP) with Messrs. AJW Consortium as the concessionaire and using the Build Operate and Transfer (BOT) PPP model.
” The Centre is approved for a concession period of 30 years and is expected to generate about 185 million dollars within the period.”
ICRC noted that MRO is part of the key elements in the aviation sector roadmap of the current administration of President Muhammadu Buhari, stating that “It is aimed at addressing the challenges of the sector, filling the identified gaps and creating the needed environment for active private sector participation in the development of the nation’s aviation sector.”
They added that the establishment of a private sector-driven MRO center was critical for the diversification and repositioning of the aviation industry as it would provide a platform for aircraft repairs, overhaul, and maintenance and would also address the demand for aircraft maintenance in Nigeria, West, and Central Africa.
“Currently, the regions do not have an international standard MRO and therefore, urgently require one to ease business, facilitate growth and contribute to their Gross Domestic Product” they noted.
Minister of Aviation, Sen. Hadi Sirika stated that FEC approved the award of contracts for the establishment of a fire truck maintenance and refurbishment center in Katsina State and this is a very critical procurement for us.
” It is to attend to all the issues we are having with fire tenders all over the country”, he stated
“Past governments used to shift these firefighting equipment back to Europe where they were manufactured, just to get them refurbished and brought back at a cost and time; thus exporting our labour and foreign exchange.
”But the Buhari government decided that we should establish one of such centers.
” The approval was for N7, 913, 949, 964, inclusive of 6.5 percent Value Added Tax”, he added.
This is a welcome call to the Nigerian youths security as well as employment will be tackled