MMA2 Airport: FG writes off 20 year concession fees of Bi-Courtney
...returns uncompleted hotel as Bi-Courtney writes off N132b damages against FG
The Federal Government of Nigeria and Bi-Courtney Air Services Limited have settled the dispute over the MM2 Airport Lagos concession agreement, which lasted nearly 20 years.
While the Federal Government agreed to write off all the concession fees Bi-Courtney Air Services Limited has not paid since the concession agreement of MM2 was signed nearly 20 years ago due to the dispute, Bi-Courtney also agreed to write off the N132 billion court-assessed damages against the Federal Government.
The Minister of Aviation and Aerospace Development, Festus Keyamo, who disclosed this development, said the Federal Executive Council presided over by Mr. President approved his memo to end the 20-year old dispute between the two parties over MM2 Airport in Lagos.
Festus Keyamo said “for more than one year, we were locked in negotiations on how to get out of the impasse.”
In the compromise, the Federal Government returned the uncompleted hotel and conference centre opposite the airport (which it has previously revoked) to Bi-Courtney to complete and operate within 24 months and from which the FG will have its own share.
Related Posts
The government also agreed to move regional flights to MM2 (which had been approved, but not operational for years now) to the extent of its capacity.
According to Keyamo, the Federal Government further agreed to give Bi-Courtney more land space to expand the apron of MM2 to accommodate more airplanes.
Also on the side of Bi-Courtney, its management handed back MMI Airport (the old local Terminal) which the Supreme Court ordered to be handed over to it.
Bi-Courtney gave up its right to exclusively run any private or domestic airport in and around Lagos State as affirmed by the courts.
Bi-Courtney further agreed to commence the payment of Concession fee due and payable under the Concession Agreement dated 24th April 2003 from when the settlement agreement is executed. Because of the dispute, the Federal Government has also lost its own part of the revenue for nearly 20 years.
