Aviation: Nigeria To Raise $185m With Establishment Of Maintenance Repair And Overhaul (MRO) Centre
Aviation: Nigeria To Raise $185m With Establishment Of Maintenance Repair And Overhaul (MRO) Centre
The creation of an MRO facility for the aviation sector has received approval from the Federal Executive Council (FEC).
ALSO, READ High Cost Of Aviation Fuel Major Driver Of July Inflation Rate – LCCI
According to FG, the facility would be the first of its kind in West and Central Africa, serving as a one-stop shop for aircraft overhaul, regular maintenance, and repair. It would be accomplished through a Build, Operate, and Transfer (BOT) Public Private Partnership (PPP) with Messrs. AJW Consortium serving as the concessionaire.
The Infrastructure Concession Regulatory Commission (ICRC) made this information public in a statement on Wednesday in Abuja.
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.
ALSO, READ Health Insurance – Meaning, Types And Cost
“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.”
Aviation: Nigeria To Raise $185m With Establishment Of Maintenance Repair And Overhaul (MRO) Centre
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.
ALSO, READ WTW & University of Cambridge Launch New Airport Risk Index
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 this 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 labor and foreign exchange.
ALSO, READ Everest Insurance Appoints Paul Trueman As Head of Aviation
”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.
AllInsuranceHUB is a blog for everyone who seeks an informative, educative, and knowledge-based online insurance and investment community. We share Biographies, Top-notch investment tips, finance news, insurance policy details and much more. You can read and share thoughts, ideas, and opinions on the finance market and get real-time updates from around the globe.
 Centre The creation of an MRO facility for the aviation sector has received approval from the Federal Executive Council (FEC).){kind=link}