Business & Finance

Delta: Asaba Airport concession to generate N100m – Governor

The Governor of Delta state, Ifeanyi Okowa has said that the concession of Asaba Airport will generate N100 million for the state annually.

He stated this while presenting the 2020 appropriation bill of N389 billion to the state House of Assembly, in Asaba.

The Governor commended the Assembly for giving the state approval for the concession of the airport to a consortium of investors, describing the development as a breakthrough.

It is the first full brown-field airport concession in Africa and a hybrid arrangement covering further development and management of the airport.

The concession is for a period of 30 years, with annual concession fee of N100 million payable the state government, escalating by 10 percent every five years.

There is also an annual royalty of 2.5 percent of gross annual revenue payable to the state, with over N28 billion expected to be pumped into the airport development by the concessionaire over the next three years.

The benefit to the state in terms of employment opportunities, urban renewal and tourism potentials are enormous, he said.

According to the governor, government will, in 2020, ensure the functionality of the Kwale Industrial Park, adding that the same investors have given their expression of interest to establish glass, ceramics factories and agro-allied industry for soya beans.

Once fully operational, the Park is expected to be a major driver of this administration’s agenda and provide immense employment opportunities for our people, Okowa said.

He expressed his administration’s commitment to transforming the agricultural sector and ensuring wealth creation to boost the state economy.

Source: Voice of Nigeria