Tag: Bi-Courtney

  • FAAN, Bi- Courtney in fresh war of words over billboards

    FAAN, Bi- Courtney in fresh war of words over billboards

    * Trade blame over use of ‘thugs’

    The Federal Airports Authority of Nigeria (FAAN) and Bi- Courtney Aviation Services yesterday launched into a fresh war of words after each side accused the other of employing thugs to perpetrate illegality in and around the Ikeja Airport.

    The bone of contention was the billboards which FAAN accused Bi-Courtney of placing at the airport illegally with the aid of thugs.

    The authority tore down the billboards with Bi-Courtney alleging that FAAN did so with thugs.

    It was their second face off in as many weeks.

    The coordinating spokesman for agencies in the aviation sector, Mr Yakubu Dati, said Bi-Courtney has no right to erect billboards on any property that does not belong to it and this includes the airport.

    Dati, who is also the general manager, Corporate Communications, said Bi- Courtney’s alleged violation of the rules and regulations of government is a serious infraction that will not be allowed to stand.

    He said:” We woke up this Saturday (yesterday) to discover that our property has been invaded by hoodlums, who decided to mount billboards.

    “Thugs and hoodlums hired by Bi-Courtney Aviation Services Limited, operators of the MMA Domestic Terminal 2 (MMA 2) concession, caused a brief breach of the peace around the terminal when they forcefully replaced the advertisement flex removed by the Federal Airports Authority of Nigeria.

    “That is why we mobilised to recover the property and sanitise the whole environment. As you can see now, we have cleaned up the whole place and sanity has been restored.

    “Only two weeks ago, we ordered that nobody should place any advertisement around the airport until, such persons clear with FAAN, the manager of the entire airport.

    “We would not allow this, and security agencies will wake up and do the needful.”

    Dati denied any knowledge of a court injunction that grants ownership of the property to Bi-Courtney.

    “How can a tenant claim to be more powerful than the landlord, this is unacceptable.”

    However, Mr. Steve Omolale-Ajulo, who spoke for Bi-Courtney said it was FAAN that engaged 60 thugs to assault workers of the aviation services company.

    He said: “For the second time in two weeks, officials of the Federal Airports Authority of Nigeria (FAAN) vandalised the advert billboards placed by Bi-Courtney Aviation Services Limited (BASL) on the hotel project at the Murtala Muhammed Airport (MMA2) yesterday.

    “Besides, the agency’s officials with about 60 hired thugs invaded the premises of MMA2, where they assaulted the workers, damaged a video camera and seized many handsets belonging to the workers.

    “They swooped on the billboard barely 15 minutes after it was reinstalled and vandalised it before taking it away in a van.

    “They had earlier vandalised the same advert billboards on the hotel project and another on the pedestrian bridge on Thursday, June 6, this year, despite a subsisting court order by Justice Stephen Adah of the Federal High Court, Ikeja Division, given on November 15, 2011.

    “But yesterday, the FAAN officials stormed the site of the hotel project in several vans, buses and a fire truck and once again pulled down the billboards, causing heavy traffic jam on Airport Road.

    “Angry that the action was being recorded on video camera and mobile phones, FAAN’s officials and their hired thugs pursued BASL’s workers they suspected were doing so into the premises of MMA2 and beat them up while attempting to seize their cameras and phones.

    “In the process, many of our workers were seriously injured, while a video camera belonging to BASL’s Communications Department was seized from the cameraman, damaged and taken away on the excuse that he was recording the vandalism of the billboards.

    “They moved from the gate to the Cargo Shed of MMA2, where they assaulted many of the workers, who trooped out to witness FAAN’s show of shame, injuring them in the process.”

    BASL officials reported the assault to the police yesterday.

    The face off and the tension generated by it caused a gridlock on the airport access road before FAAN security officials dispersed them and order restored.

     

  • Bi-Courtney experience won’t  deter us from PPP—Onolememen

    Bi-Courtney experience won’t deter us from PPP—Onolememen

    Minister of Works, Mike Onolememen, in this interview with our Deputy Editor, Nation’s Capital, Yomi Odunuga, and Correspondent, Dele Anofi, speaks on the remarkable improvement in the road sector among others. Excerpts:

    About a year-and-a-half ago, you were quite positive about your ability to transform the road sector, are you still positive two years into your tenure?

    For me it has been one-and-half-year of hard work because I was very optimistic about turning around the Ministry of Works and the road sector in Nigeria for the better. A year-and-a-half back, Nigerian roads were described as death traps and one-and-half-year on, clearly you can no longer describe our roads in those terms. Once again, Nigeria roads are looking like what they should look like. They are now looking like the roads of 20 years ago when they were first built and this is exactly what this administration has achieved in the road sector. For once, Nigerians are beginning to see the possibility these things can be done. We have been able to make tremendous progress in road development. For instance, we have completed 32 road projects. In fact, people have said that the Federal Ministry of Works in the past 15 years has never completed a road project but, in a very short time, we have completed 32 road projects that cut across the six geo-political zones of the country. In the South East, the Onitsha-Owerri road has been completed, as well as work from the Head Bridge that has been fully completed. We have been able to transform what was once a two-lane road at a time to about six lanes with the service line intact and all the erosion ravaged areas in that stretch of 3 kilometres have been fully recovered. In the South West, from Benin to Ore to Sagamu, we have done substantially well there. You will recall that one-and-half- years ago, it used to take people 10, 12 or 13 hours to Lagos from Benin but today in three hours you are in Lagos from Benin. That is much improvement from what it was before and on that alignment particularly from Benin to Ofosu, it is about the best road we have in this country. If you go to the North Central, we have a flagship to showcase, the Vom-Manchok road has been completed and it is a showpiece traversing rocky terrains. Then the Langtang-Shemdan road has also been completed. We have accelerated work on the Abuja-Lokoja road. We started by completing the Giri catchment. Today there is a flyover in Gwagwalada; the Gwagwalada new bridge has been completed as well as section 1 and section 2 that have met and joined at a point to be able to drive substantial kilometres of dual carriage way on that road today. Hopefully, by the first quarter of next year, that road will be fully completed from Abuja to Lokoja. Up North, we have been able to complete quite some project in the North East, the Kano Maiduguri road has recorded progress despite the security challenges in that particular axis. We have about five contractors working there being the singular longest dual carriage way we are embarking on, it is over 510 kilometres from Kano to Maiduguri. Each of the five contractors has lost engineers to the security challenges in that part of the country but we have engaged them continuously and we have been able to ensure that the projects are still very active. The Gombe Bypass, Gombe-Postikum road, the Yola Numan road are all completed. When you come to the North West you will discover that project like the Katsina-Daura road has been fully completed. Indeed we have quite a number of completed projects across the country. Of course, these are major road projects, but beyond the major ones, we have also embarked on aggressive road maintenance across the country. Before, it was difficult to drive from Enugu to Port Harcourt. But, since the last quarter of last year, we moved in maximally and within six weeks we brought back that road to the condition where people can now drive without stress. Other major reconstruction work on that axis is being procured as we speak. In the South-West, the Ife-Sekona road has been completed. In the economic melting down in the country, Lagos, we are not doing badly by completing the replacement of the eight defective joints on Third Mainland Bridge and maintenance of the bridge. We also moved into Lagos-Ibadan dual carriage way to make it motorable for the road users at the end of year and the proper reconstruction for the Lagos-Ibadan expressway will commence shortly.

    So what is delaying the award of contract for the reconstruction of a major road like the Lagos-Ibadan Expressway?

    We opened the bid last year and we have finally analysed the bid and it has gone to the Bureau of Public Procurement for Letter of no Objection. Once we receive Letter of No Objection from Bureau of Public Procurement, the project will be awarded and Nigerians will, once again, see contractors in full swing. One major change on that road is the redesign of that particular axis. For example, we plan to construct a flyover around the area where we have a number of churches which usually lead to bottleneck particularly around the Redeemed Church. We have now introduced a flyover around there to separate the traffic to the church and the thorough traffic that is traversing from Lagos to other states. That is going to solve the problem around the Redemption camp permanently. Beyond Ibadan, we have completed the section 1 from Ibadan to Oyo, that dual carriage way section has been completed and opened to traffic. Then, of course, from Oyo to Ogbomoso where one of our contractors, RCC, is currently working, work has also started there. The Ogbomoso to Ilorin road has been completed. Within the period under review, we were able to also maintain from Ilorin through Jebba-Mokwa up to Kaduna. As we speak, procurement is on-going for the major reconstruction of the Ilorin-Jebba-Mokwa road. All over the country, we have quite a number of success stories to tell in terms of development.

    What about the roads in the South-South?

    In the South-South, we have also done quite a number of roads there. The major economic roads there, for instance, the Refinery Road in Warri, the dualization of the Onne Port road in Rivers State have all been completed. Of course, the East-West road that people always look forward to on that axis is not part of the ministry’s portfolio, We have also been able to maintain the Benin-Ofosu road, Benin-Warri dual carriage way and the Benin-Warri and Benin-Asaba dual carriage ways. Beyond that, we are in collaboration with the Akwa Ibom State Government on the dualization from Ikot Ekpene to Aba and it is ongoing. Some of our other roads are the Calabar-Ugep road, part of the Pan African Highway, the roads from Ogoja to Ikom, Ikom to Ufom that borders the Cameroun are all in the South-South. Only recently, work also commenced on the Vandekeiya-Obudu cattle ranch road and we have quite a number of roads.

    You must have been lucky to access huge funds to carry out all the projects mentioned. How did you do it?

    Well, in a way, funding is still a challenge in the Federal Ministry of Works. However, we have embarked on major reform that will address that particular issue. What we call reform of the road sector. As we speak, we now have a draft bill for the road sector. About two months ago, the National Council on Privatisation approved the Road Sector Reform and the draft bill was also approved. Right now, they have been moved to the Office of the Attorney General of the Federation and Minister of Justice and after that it will be presented to the Federal Executive Council for consideration and approval. Once that approval is granted, it will now go to the National Assembly for enactment. Once that is achieved, we would have succeeded in changing the face of funding our projects. With that reform, we are going to see new institutional framework for road development because the reform will necessarily entail the establishment of a National Road Fund that will solve this funding problem in the road sector because it will close the funding gap for the road sector. This is because we will now have road sector funding and of course it is also going to bring into being the Federal Roads Authority so that road development programme can be fully institutionalised in our nation as it is obtainable in other parts of the world. That is in the offing but while that is going on, we cannot just fold our arms. We have to make the best use of our time. As at today, we have about 195 on-going projects in the road sector and there is no way we will be able to finish all that in the next two years. So we have to prioritise and that is why we are able to make sense out of the chaotic condition of roads in our country. So, to some extent, we have achieved some of the things we set out to achieve considering our portfolio spread around the six geo-political zones of this country. In the North-West for instance, the total road is about N255 billion, in the North Central it is about N262 billion, in the North East, it is about 332 billion, in the South-West, it is about N236 billion, in the South-East, it is about 150 billion and in the South-South it is about N159 billion. We have to strategise by giving priority to the arterial roads that link city to city which are truly inter-state and those roads that provide access to economic centres like seaport, airport, industrial areas and major areas across the country. So, that is the way we are prioritising our road development programmes and it has been yielding results. It is as a result of that prioritisation that we are also focusing on the Apapa-Oshodi Expressway because that provides access to the seaports. We are making sure and steady progress on that road. When we came in 2011, my first operation visit to a project was to that particular road and I met a completely flooded and demarcated road. In fact, those territories where the demarcations were, if you go there you will not believe that it is the same alignment because we have been able to substantially recover them. Today we are working on Ijesha bus stop. They are almost completing the trailer part and dedicated to Tin Can Island port. Once these projects are completed, we will be able to move over 400 trucks and tankers out of that road so that the road can truly become what it used to be.

    Nigerians have expressed the fear that, with all these road projects going on, a time will come when they will be asked to pay toll fares on some roads. How realistic is that fear?

    We do not expect the private partners to bring private sector fund to a road development project and then stop them from recouping their funds. The only way you recoup the investment on a PPP project is through tolling. Even at that, the tolls are reasonable to the extent that the people will be willing to pay because of the service they are enjoying. For private sector project like PPP project, you can’t run away from paying some kind of usual related charges. It is normal and that is the frame work all over the world so Nigeria cannot be an exception. However, what we are doing as a government is that, on government roads, you can attest to it that no tolls are being collected because the government is still trying to recover its roads from the present disrepair. Moreover, it is not fair to collect tolls on a bad road. Even as a Government, you cannot also collect tolls on a road when there is no alternative for people who may chose not to ply the roads. But when PPP is involved, where private funds are mobilised, there is no way tolls will not be collected. It is the right thing to do.

    With the experience the Federal Government had with Bi-Courtney, do you think that is the best way to go?

    All over the world, the PPP vehicle is being used to realise good development projects including the African continent. So, why should Nigerians think that because the PPP transaction with Bi-Courtney went awry, there will never be another PPP project in this country again? That is not right. There is no way the Bi-Courtney experience will affect PPP transactions in Nigeria. We have learnt a lot of lessons from that fiasco and the government has better capacity now to deliver PPP projects. Government has learnt from the past and at the time that particular transaction commenced in 2008/2009, clearly the government did not truly have the comprehensive knowledge and capacity to drive a PPP project because it has never been involved in one. However, since then, in terms of capacity building, the government has done a lot in order to be able to drive PPP projects. Don’t forget that it is for that purpose that the Infrastructure Concessioning Regulatory Commission was established in the first place, and I believe it has come of age. The ICRC has been able to regulate proper PPP transaction in our country today.

    You once vowed to restructure the ministry for effective delivery of set targets. Were you able to make the changes and how effective were the changes on the activities of the ministry?

    In fact, the ministry embarked on restructuring in 2011 and it is responsible for the success story we have today in the road sector. We discovered that having one big Director of Federal Highways who is domiciled in Abuja while directing the over 35,000 kilometres of federal roads in this country from his office can never be effective. This is because most times, being human, he will not be able to go through all those alignments. So, his effectiveness is called to question because he cannot continue to rely on officials who sometimes may not even pay visits to those projects until about three or six months and sometimes a year. What we did was to create a new project management structure by creating six regional Directorates of Federal Highways with the Directors located in each geo-political zone. For instance, the Director of Federal Highway, South-West has his office in Ibadan. From Ibadan, he moves to Lagos easily, he can move up to Ogbomoso, Lagos, Akure and others. So, he is well grounded on what is going on there and can, therefore, not be a stranger. It is the same thing with others and it is the root of the unusual progress we have made at the Ministry of Works in the one-and-half-years we are reviewing today. The changes in the new Department of Material Geo-technic and Quality Control have also helped in ensuring that issues that border on quality of works of contractors are now removed from the hands of those Zonal Directors who are on the field for checks and balances. It is very important for checks and balances. It has also proved very helpful in ensuring that contractors actually carried out our work the way they were designed and scope and the way the specification was put in black and white. That department is like the policing department in the Ministry because they can go to any ongoing work and direct for covered work to be opened. If they find anything unusual in the process, they will ensure that the correct thing is done with the full support of the office of the Minister.

    How far have you gone in the drive to convince contractors to adopt modern technology in road construction especially in dropping the use of kerosene in mixing bitumen?

    On that issue of cut back bitumen, it is no longer allowed with effect from January 2013. It is no longer acceptable on our projects in line with the decision made at National Council of Works in Lagos in April 2012. We are enforcing it. We are now using bitumen emulsion in place of cut back bitumen mixed with kerosene. This is because it is not environmentally-friendly. So we have no issue with that. We are implementing it right now. Beyond that, one of the new innovations we have put in place in our project management is to ensure that only permanent works now qualify for interim valuation in the Federal Ministry of Works. People may not understand the import of that particular policy. In the past, when a road contract is given to a contractor, he goes to site, clears it, bulldozes the place, he unearths a lot of earth work because as they say there is a lot of money in earth work and they get paid. After that they disappear. Then rain comes and washes away the earth work the contractors would have done. Then, after two or three years when the government has money and they want to go back to that project, they now find out they have to go all over again doing the earth work because the contractors could really claim that at the time they left the site it was intact. Now that it has been washed out by rain, the government will now have to pay for it again. Now what we do is, if it is only the earth work you do, we will no longer pay. You have to stabilise it and you have to do permanent work. In other words, after earth work you must have a firm base. After the earth work, you must have the soft base, that is, do the earthwork, then stone base then the soft base which people also call the base course. It is only at that point that we will now value and pay and that is saving the Government a lot of money. When I say a lot of money, if you realise that most of the augmentations that have been implemented in most projects, more than 40% of the augmented sum usually arise from wash out on projects and they run into billions of naira, then you will appreciate the effect of this policy. It will help the government to save a lot of money in the system and we have started implementing that. With effect from January this year, most certificates, if the work is not up to permanent nature that can go through my table here, the approval of payment is impossible. The initiative is also making contractors to be responsible because we are in an era of performance management. It is only in that way that we can truly track our progress.

  • Money laundering: Court to hear Babalakin’s applications June 5

    Money laundering: Court to hear Babalakin’s applications June 5

    Justice Adeniyi Onigbanjo of a Lagos High Court, Ikeja, has fixed June 5 for hearing of the applications filed by the Chairman of the Bi-Courtney Limited, Dr. Wale Babalakin (SAN) and co-defendant, Alex Okoh asking the court to quash the N4.7 billion money laundering charge preferred against them by the Economic and Financial Crimes Commission.

    The court also dismissed a pending application filed by Bi-Courtney Services Limited, seeking to quash the charge instituted against it by the EFCC.

    Babalakin, his companies – Stabilini Visioni Limited, Bi-Courtney Limited, Renix Nigeria Limited and Alex Okoh are facing a 27-court bordering on criminal conspiracy and money laundering to the tune of N4.7 billion.

    The EFCC had alleged that they laundered the money on behalf of the former Delta State governor, Chief James Ibori.

    Ruling on Bi-Courtney’s application on Tuesday, Justice Onigbanjo dismissed the submission of the defendant that the continuation of the trial was an abuse of court process because of an application pending at the appeal court on the matter.

    The trial judge held that continuing with the trial does not in anyway constitute an abuse of court process as argued by the applicant.

    He said mere filing of an application of appeal at the Court of Appeal is not enough ground to strike out or discontinue a charge before a lower court.

    The judge also held that it would amount to irreparable loss if he allowed the application to quash the charges and the appeal fails.

    “I think the balance of convenience tilts towards refusing this application. The application failed and is hereby refused,” he said.

     

  • FAAN, Bi-Courtney bicker over N1.2b debt

    The Federal Airports Authority of Nigeria (FAAN) has asked Bi-Courtney Aviation Services Limited (BASL) to pay it N1.9billion for services it rendered to Bi-Courtney at the domestic terminal of the Murtala Muhammed International Airport, Lagos.

    Bi-Courtney described the alleged debt as a figment of FAAN’s imagination.

    It insisted that it is the authority that owes it N132 billion in judgment debt.

    BASL is operating the domestic terminal under the Build, Operate and Transfer (BOT) concession agreement.

    FAAN’s General Manager, Corporate Communications, Yakubu Dati said the figure represents the total amount owed FAAN for the services it rendered the company as spelt out in the concession agreement since September 8, 2007, when Bi-Courtney began operating the terminal.

    It alleged that Bi-Courtney has rebuffed every attempt to recover the debt, including debt reconciliation meetings between officials of the two organisations.

    These debts include aviation security (N45,604,085.74); fire/safety cost (N36,649,223.96); marshalling (N2,125,065.54); electricity cost (N252,038,510.006) ; maintenance band, (N200,000,000.00); (concession fees (N726,900,069.00); Hotel (N97,200,000.00); Hotel, (N9,720,000.00); Conference Hall (N73,860,219.00); Conference Hall (N7,386,021.00), totalling N1,968,634,455.95.

    FAAN alleged that the Federal High Court in Lagos dismissed an application filed by Bi-Courtney, seeking to restrain FAAN and its agents from taking possession of the four-star hotel and conference centre at the airport.

    Dati said: “It is important to state that since Bi-Courtney started operating the BOT terminal in 2007, it has refused to make its audited account available to FAAN, despite several reminder letters.

    “Bi-Courtney made that application without notifying FAAN, in its traditional style of getting court injunctions behind the Authority, in virtually all the cases involving the two organisations.”

    But Bi-Courtney’s spokesman Steve Omolale- Ajulo said: “FAAN claims that an action of ours seeking to restrain it from interfering with our hotel and conference centre projects has been dismissed.

    “It made the statement without showing a copy of the court ruling, the title of the case, or even the date it was delivered.

    “This is a figment of FAAN’s imagination and it is consistent with its desire to misinform the public.

    “Our natural inclination is to ignore the ranting of FAAN.

    “We are only constrained to respond because some unsuspecting members of the public can be misled by the statement.

    “For the avoidance of doubt, we are not in any way indebted to FAAN.

    “On the contrary, FAAN is indebted to us. The Federal Government and its agencies, including FAAN, owe us over N132 billion in judgment debt.

    “Our position has been confirmed by the arbitral proceedings and court judgments.

    “FAAN appealed against the court judgment and the appeal was dismissed.

    “There is no court judgment or order against us.

    “All the judgments and orders are against FAAN that believes that it is above the law.”

  • We’ll sanitise cargo operations at MMA2, says Bi-Courtney

    Operator of the Murtala Muhammed Airport Terminal Two (MMA2), Bi-Courtney Aviation Services Limited (BASL), has promised to sanitise operations at the terminal “for security reasons”.

    The organisation said there is need to ensure sanity in cargo operations in and around the airport terminal, adding that this was the reason it asked genuine cargo agents to pay N150,000 annual registration fee to reorganise its cargo shed.

    In a statement by its spokesman Steve Omolale-Ajulo, BASL noted that though a few of the agents kicked against the fee, majority, who appreciated the need for sanity in cargo operations at the terminal, have paid up.

    The statement added: “In fact, we have held series of meetings with genuine cargo agents during which we highlighted the benefits of registering them. One of these is to provide conducive offices for them at a highly subsidised rate, among others…”

     

     

     

  • Bi-Courtney: we deserve kudos on Lagos-Ibadan road

    NEARLY three months after the Federal Government (FG) revoked the concession agreement of the Lagos-Ibadan Expressway, the concessionaire, Bi-Courtney Limited (BCL), yesterday said it deserves praise for “saving the highway from total collapse”.

    It said various groups were working against the success of the project.

    Minister of Works Mike Onolememen, who announced the termination of the concession agreement last November, said two firms would fix the road before Christmas, but not much has been done.

    Reacting to insinuations that the firm failed on the project, BCL spokesman, Mr. Dipo Kehinde, said the firm left the road in a better condition than it was in 2009, when it won the concession for its reconstruction under a Design, Build, Operate and Transfer (DBOT) agreement with the Federal Government.

    Kehinde said: “The situation must be reassessed because the problem is in the system and not the concessionaire. At some point, our efforts were commended by road users, the minister and top officials of the ministry, who were supervising the project.”

    He faulted the claim by the ministry that BCL did not carry out palliative work on the road before the agreement was terminated and cited an interview Onolememen granted Saturday Punch on September 17, 2011, in which he was quoted as follows: “I saw the concessionaire handling the road and he briefed me about some problems, which according to him, are being resolved. I instructed him that in 60 days, I wanted all potholes on the road fixed so that motorists can use the road without hardship and I am happy to say that to a very large extent, the concessionaire has complied.

    “I am saying this because a few days ago, the Vice-Chancellor of the University of Agriculture, Abeokuta, called me while driving through that road at about 8pm and said ‘congratulations, your ultimatum is working. For the first time I am seeing a Nigerian contractor working with floodlights in the night, filling potholes and all that’. I think that is a very good development.”

    Kehinde said BCL cannot be blamed for accidents on the road because statistics by the Federal Road Safety Commission (FRSC) actually show that accidents reduced when the firm took over the road’s maintenance from the Ministry of Works.

    He said some sections of the Ibadan end of the road, especially around ARAMED Hospital, were in deplorable condition before they were reconstructed by BCL.

    Kehinde said: “The expressway would have become impassable, if we failed to maintain it since 2009. It was for this purpose that we procured a 6.5 million dollars asphalt plant, which was confiscated by the Ogun State government and has not been released till date.

    “These clarifications became necessary following the misinformation and misconception being promoted in the public by persons with personal interests in the expressway, other than the overall interest of the citizenry and the nation at large.”

  • Our predicament over GAT, by Bi-Courtney

    Our predicament over GAT, by Bi-Courtney

    In the past few weeks, opinions have been sharply divided over the ownership status of the General Aviation Terminal (GAT) of the Murtala Muhammed Airport, Ikeja, Lagos between Bi-Courtney Aviation Services Limited and the Federal Government.The firm’s spokesperson, Steve Omolale-Ajulo, examines the contending issues.

    The newly inaugurated General Aviation Terminal (GAT) remodelled and redeveloped by the Ministry of Aviation, has been a subject of controversy between the Federal Airports Authority of Nigeria (FAAN) and Bi-Courtney Aviation Services Limited (BASL), concessionaire of the Murtala Muhammed Airport Terminal Two (MMA2), Lagos.

    By consistently claiming that the GAT belongs to it, the Ministry of Aviation has clearly breached parts of the simple agreement willingly inked by its officials with BASL.

    Many Nigerians know that when you signed an agreement, it behoves you to obey that agreement. However, in the case of the ministry and FAAN, they signed an agreement, they reneged on certain aspects of it, we went to court and judgments were entered in our favour. Unfortunately, all the court judgments have been disobeyed.

    Two major issues are in contention over the agreement they signed with BASL on the GAT and MMA2. One is the ownership of GAT and the second is the tenure of our concession, which is 36 years. Without mincing words, GAT belongs to Bi-Courtney by virtue of the agreement the ministry and FAAN signed with us.

    The Coordinating Committee, set up to resolve all the disputes arising from the agreement, had long ago resolved the dispute over GAT in favour of Bi-Courtney after series of meetings attended by all the representatives of FAAN and Bi-Courtney thus: “The Committee unanimously resolves the issue in favour of the Concessionaire (BASL) and directs the Grantor (FAAN) to immediately deliver possession of the General Aviation Terminal at its Murtala Muhammed Airport, Lagos, to the Concessionaire for the purpose of extending operations at MMA2.”

    The resolution of the Coordinating Committee of the GAT dispute is in tandem with what Justice Anwuli Chikere of the Federal High Court resolved in our favour as far back as March 3, 2009, in a matter brought before her by BASL, in which she said: “It is my considered view that if any right has been granted either in principle or otherwise, such is in breach of provisions of Article 2.2 (c) and 3.2 (c) of the Agreement.

    This judgment was reaffirmed by Justice G. K. Olotu, also of the Federal High Court, on July 3, 2012, and the Court of Appeal, Abuja Division, on June 13, 2012, in which the panel of justices, led by Justice Jimi Olukayode Bada dismissed FAAN’s appeal of the judgment of the Federal High Court for lack of merit.

    “Consequent upon the foregoing, it is my view that the Applicant has not been able to establish any superior legally recognisable interest that would enable this Court exercise its discretion in the Applicant’s favour.”

    The court also faulted FAAN’s reasons for failure to appeal or seek leave to appeal within the time stated in paragraph 3(i) of the affidavit in support of the Application that it was not aware of the existence of the Suit No: FHC/ABJ/CS/50/2009 before the lower court and as a result, it could not participate at the hearing.

    The appellate court added: “It looks absurd that after the authorisation to appeal, the Applicant did not file this application until 29/6/2010. The affidavit in support of the application did not explain the reason for the delay till 29/6/2010 in bringing this application, despite the fact that authorisation was given to the Applicant to proceed and appeal since 23rd March, 2010.”

    On the duration of our concession, which was Issue Number 4 resolved by the Coordinating Committee, we make bold to say that the agency and the ministry’s insistence on 12 years is absurd, as the concession tenure has long been settled at 36 years.

    On October 12, 2006, FAAN through a letter to BASL, dated October 12, 2006 and signed by Dr. Jaiye Oyedotun, Director of Commercial and Business Development on behalf of the Managing Director of the authority, entitled: “Re: Tenure of new MMA Domestic Terminal By Messrs Bi-Courtney On BOT Business Arrangement” wrote: “On the basis of the KPMG report, which recommends thirty-six years as the tenure for the concession, FAAN is offering BCC Limited a concession period of thirty-six (36) years on the New MMA Domestic Terminal, being developed by Messrs BCC Limited on Build, Operate and Transfer (BOT) business arrangement.”

    Based on FAAN’s letter, Bi-Courtney accepted the offer via a letter dated October 13, 2006, and signed by Dr. Adeniyi Odunlami. In the letter, Bi-Courtney wrote: “We acknowledged receipt of your letter dated October 12, 2006, offering us a concession period of 36 years on the new Murtala Muhammed Airport Domestic Terminal that is being developed by us under a BOT arrangement. We write to formally accept your offer of a concession tenure of 36 years on the new Murtala Muhammed Airport Domestic Terminal.”

    And in resolving the dispute engineered by FAAN over the 36-year tenure and based on the facts before it, the Coordinating Committee said: “Decision: Accordingly, the Committee hereby unanimously resolves this issue in favour of the Concessionaire. The Committee affirms that the length of the concession period granted to the Concessionaire by the Grantor is 36 (Thirty Six) years from the anniversary of the Start Date as defined in the Concession Agreement.”

    The Ministry of Aviation and FAAN have also always argued that “most of the cases and attempts at arbitration were conducted without the full incorporation and participation of FAAN…” But, they know that this is not true, as they were fully represented by senior lawyers, who are still alive today, at every attempt at arbitration and in all court cases.

    They also say we parade fake documents to argue our case. Nigerians should tell them to bring out their own genuine documents signed by their representatives at all the meetings and court cases in which both parties were present.

    Then, another common language they speak regularly is that the GAT was developed in “public interest”. The question is which public interest in a matter already decided by the courts?

    Those in the know can attest to the fact that Bi-Courtney was not the preferred bidder for rebuilding the then burnt local airport, but the reserved bidder. It was a year after the bid was won by Sanders Ventures Limited without anything concrete on ground that Bi-Courtney was invited to take over the project.

    And today, Bi-Courtney has succeeded in making MMA2 the first and most successful Public-Private Partnership (PPP) project in Nigeria and we are aware that many Nigerians are proud of this unique achievement.

  • Bi-Courtney to contest  contract cancellation

    Bi-Courtney to contest contract cancellation

    Fresh facts emerged yesterday on why the Federal Government cancelled the N89.53billion concession of the Lagos-Ibadan Expressway to Bi-Courtney Consortium. The action was based on nine factors, it was learnt.

    The Consortium, it was gathered, may head for court to seek a refund of what it had spent on the project.

    A source, who pleaded not to be named, told our correspondent that the government wielded the big stick after some meetings with representatives of Bi-Courtney at the Presidential Villa.

    The source said: “Since 2009, the government has tolerated Bi-Courtney Consortium, but it has become obvious that it can not source funds from banks and other financial institutions to execute the project.

    “I think the reforms of the banking industry by the Central Bank of Nigeria (CBN) since 2008 made banks and other lenders to be careful in investing in the PPP project.

    “Secondly, while the project was dragging, many people were dying on the Lagos-Ibadan Expressway. This development created an image challenge for the Federal Government, with most people erroneously assuming that the administration was deliberately discriminating against the Southwest. So, Nigerians were suffering and the project was suffering.

    “Thirdly, the firm is also technically handicapped. The government discovered that the company does not have a history of road construction; it is quite good in building construction.

    “We realised that it has been sourcing for foreign technical partners. The last of such expertise was from Borni Prono, which specialises in bridge construction. Borni Prono was part of those that built the Third Mainland Bridge and the Jebba Bridge.

    Bi-Courtney Consortium also allegedly committed about six breaches. Some of the notable conditions breached by the company in the agreement with the Federal Government over the Lagos-Ibadan expressway concession includes: failure to submit: duly completed performance bond as contained in the agreement; •copies of the construction contract as required by the agreement; • copies of the financial Agreement as provided in the agreement; •copies of the Operations and Maintenance (O.M) Contract as stated in the agreement; •Carry out construction work despite access to the site since September 2009, and •abandonment of the reconstruction and rehabilitation of the site, among others.

    Asked whether the government discussed the allaeged laoses with Bi-Courtney, the source said: “We had several meetings at the Villa. One of them was about two months ago. If you ask Bi-Courtney management, it would admit that the Minister of Works, Mr. Mike Onolememen, did a lot to make sure the contract succeeded to prove that a Nigerian firm could handle such a big project.

    “Initially, the company alleged that some states in the Southwest were against the project. The government tried to intervene but later became impatient when it was obvious that it might take a long time to execute the 25-year contract of Design, Build, Operate and Transfer (DBOT).”

    On the likelihood of refunding over “the N3billion” spent on the project by Bi-Courtney, the source added: “There is no such plan because the firm did not keep to the terms of the agreement.

    “Even the design of the road brought to the government was not too appealing.”

    Bi-Courtney Consortium maygo to court over the termination of the concession.

    A source said: “If a project is supposedly not being well-executed, the appropriate thing is for the government to go to an arbitration panel and take up issues with the erring firm.

    “What they have done now is to use executive fiat without consultations with Bi-Courtney Consortium to cancel the concession. This is never done anywhere in the world. This kind of attitude might scare away foreign investors.

    “Surely, Bi-Courtney will go to court to recover what it spent on the road. The termination of the concession was faulty and illegal.

    “To say that there will be no compensation is just unfortunate.”

    Responding to a question, the source added: “The decision might not be far-fetched from politics because the concession businesses of a member of the consortium are being targeted for review.

    “I think some people might want to settle political scores. Bi-Courtney has just paid huge sums to Borni Prono and suddenly the contract was terminated.”

    In an advertorial, the Bi-Courtney Highway Services Limited said it had not been formally intimated of the cancellation of the contract and the process, that led to it. It however added: “We have no doubt that the issues would be resolved in a manner that would rekindle the Nigeria spirit of enterprises, scholar arrange and constituency.

     

  • Bi- Courtney laments operational challenges

    Bi- Courtney Aviation Services Limited (BASL) has said it has been sinking money in providing services and maintaining the Murtala Muhammed International Airport, Lagos Domestic Terminal (MAA2), which it built under the Build, Operate and Transfer (BOT) arrangement.

    The company said the terminal had not generated enough money for its maintenance since it became operational five years ago; rather, it had to source money from other businesses to fund its operations.

    The spokesman of the company, Steve Omalale-Ajulo, said for the five years the terminal had been in operation, it had not recorded total black out as witnessed in other airport terminals in the country because the company had continued to provide reliable and modern alternative power source, which it is upgrading.

    “We spend a lot to keep this place going and what we spend is enormous. That is one of the challenges we are facing. The second challenge is that people owe us. Airlines owe us; some clients; some tenants here owe us; then the debt the Federal Airports Authority of Nigeria (FAAN) and Arik are fighting over what belongs to us going by the concession agreement we had; that GAT (General Aviation Terminal) belongs to us.”

    He said it had been tough managing the terminal because of the high cost of maintaining the facility and its inability to generate enough revenue for its maintenance.

    “It has been very tough to manage this place because it is a terminal of international standards and there are certain things you must do because of its standard to make sure that you meet certain conditions and those conditions must be met; no excuses. So it has been very, very challenging.

    On the supply of electricity to the terminal, Omalale-Ajulo said the BASL was pre-emptively upgrading its power systems to ensure that electricity supply was adequately maintained at the facility.

    “Today, we have four giant generators. Those generators are five years old. We didn’t wait for them to break down but we are already upgrading the power system. The upgrade is to enhance the alternate source of power supply. It is going to be in phases. We have brought in two brand new generators and we will provide another two in the second phase.

    “We are investing a lot in power supply. We are also investing a lot in maintenance. There are aspects of maintenance we carry out every day. This is whether it is only one airline operating. You must carry out maintenance of certain things.”

    He said the terminal had been recognised as the cleanest in the country and the management of BASL intends to maintain that reputation by making sure that the terminal is adequately maintained and all necessary amenities sustained.

  • ‘GAT does not belong to Bi-Courtney’

    ‘GAT does not belong to Bi-Courtney’

    • Fed Govt assures on air safety

    The remodelled General Aviation Terminal (GAT) in the old domestic wing of Murtala Muhammed Airport (MMA) does not belong to Bi-Courtney, the Aviation Minister, Princess Stella Oduah, has said.

    Princess Oduah,who spoke yesterday through her Special Assistant on Media, Joe Obi, explained that the location of GAT has never been concessioned to Bi-Courtney, adding that the agreement with Bi-courtney has a survey plan clearly marked in square metres.

    Oduah said: “Information at our disposal indicates that Bi-Courtney Aviation Services Limited, the Concessionaire to MM2, apparently threatened by the imminent opening of the newly reconstructed and remodelled GAT, Lagos, is mounting a media campaign in an attempt to blur, or diminish the unprecedented achievement of the Aviation Minister, in giving Nigerian airports a major face-lift and dignified ambience.

    “To be sure, the area where GAT is located has never been part of the area concessioned to Bi-Courtney Limited.

    “The agreement with Bi-courtney has a Survey Plan clearly marked in Square metres and the area of the GAT was never contemplated to be part of the area leased to Bi-Courtney.

    “Nigerians can vividly recall the dilapidated and decrepit state of the nation’s airports, including GAT prior to the assumption of office of the current Minister. Today, 11 airports, including the GAT are an elegant testimony of the desire and determination of the Minister to give Nigerians what they truly deserve – airports of their dreams that compares to any such facility anywhere around the world,” the statement said.

    “It is inconceivable that anyone would not only contemplate, but also hold fast to the jaundiced belief that a nation as big and great as Nigeria ought not to progress beyond having a terminal like MM2,” it added.

    On allegations that there are court orders restraining anybody, including FAAN, the agency in charge of federal airports from developing GAT, the minister said the court cases were still on-going.

    Meanwhile, Secretary to the Government of the Federation , Senator Anyim Pius Anyim said in Lagos yesterday that the Federal Government will continue to place high priority on the safety, security and comfort of travelling public across the nation’s airports as part of it’s transformation agenda.

    Anyim said this while inaugurating the remodelled General Aviation Terminal(GAT) at the Murtala Muhammed Airport built at a cost of N648 million.

    He assured passengers that the Federal Government is not only interested in remodelling the nation’s airports, but also in building new ones across the country, adding that the safety and comfort of the passengers are “uppermost in our minds.”

    Anyim said the business of aviation is an international one and we would like to follow international best practices in Nigeria. He implored the private sector to collaborate with Federal Government so that they can replicate in other airports what has been done here in Lagos.