The State Government of Osun in Nigeria has signed a concession agreement with All Works of Life (AWOL) International to complete the MKO Abiola International Airport in Ido-Osun.
In partnership with Turkey-based Biray Group, AWOL is expected to complete the project within the span of eight months.
AWOL chief executive officer Ambassador Nurudeen Ogunlade said the agreement is of great significance to both the concession and concessionaire.
According to Ogunlade, when completed, the airport will help expand trade and investment among neighbouring states in the south-west, as well as add to the state’s global economic value.
Osun Governor Ogbeni Rauf Aregbesola said: “On the completion of the construction of First Phase of the Airport within the period of eight months, it will take off with five aircraft, three passengers helicopter and one cargo by AWOL International Company.
“To complete the entire establishment of the Airport with Five Star Hotels, including all amenities like Cultural Center, Water Park Recreation Center and Garden, Butterfly Museum and Casinos, it will take a period of two years.
“According to the airport’s design, it will facilitate the smooth movement of the people and goods from one point to another and serve as a channel way for tourism, hanger and cargo.”
According to Aregbesola, the concession agreement was not in any way detrimental to the economy of the state as it will run for 30 years before being fully handed over to the state government.
He further noted that the government had wished to embark on the project and deliver at the appropriate time but was hampered by the financial situation of the country.
Aregbesola noted that the project at inception was financed through ‘flexible funding’ with an appreciable level of the payment to the tune of N3.6bn ($9.9m).
As part of the deal, the concessionaire is expected to take 100% financing of the project.
Aregbesola said: “We are doing something that is really extraordinary to make this state a light bearer of Nigeria. When I began the entire project; the airport, roads, the schools and other social infrastructures, I was so sure that if there is no problem with the scheme of income all these projects will be completed.
“The arrangements we put on ground is to ensure effective completion of those projects, after all, we did not use the conventional method of financing our project, rather we brought to bear what we called ‘flexible funding’, which we pay the contractor as at when due through bank.”