Lagos — All airport projects contained in the investment baskets currently being marketed through the investors' roadshows in some parts of the world would be executed under the contractor-financed business model, the Minister Aviation has said.
Stella Adaeze Oduah, who was on a roadshow in the United States, Canada and China, told the Chinese business community that the projects would not be financed through concessioning or the Public Private Partnership (PPP) business model as obtained in the past.
Joe Obi, Special Assistant to the minister on Media, said the minister dropped this position during the investors' forum in Beijing, China.
He said the ministry was looking for investors who are interested in investing in the Nigeria aerotropolis cities and the aviation sector in general and who will partner with Nigerian indigenous investors in growing the aviation industry.
"What the government is actually looking for is contractor-financed investors who can finance the projects while the government provides the enabling environment; we are looking for investors that can have joint ventures with our local, indigenous companies where together, they can contractor-finance the various projects," the minister said.
She said under this model, investors would be required to look at the investment baskets where the various investment opportunities are domiciled and clearly stated, from which they can pull out those they have appetite for to invest in, assuring that what the government would do is to ensure that the policy guarantees all investors return on their investment through the creation of the necessary enabling environment.
She further explained that under this arrangement, government will work out a revenue sharing formula where revenues would be shared between it and the investors in a win-win situation that will serve the best interest of both parties.
She said government's share of the revenue will serve as its collateral benefit for not only creating the necessary enabling environment, but also for providing the investors a ready market.
The minister's aide said several Chinese companies have indicated interest to invest in the Nigerian aviation sector.
Among the projects exciting the Chinese include the construction of new airport terminals, aerotropolis cities as well as airport IT infrastructure.
One of the first companies to indicate interest in Nigeria is the China's state-owned construction company, China State Construction Engineering Corporation Ltd (CSCEC).