KEEPING THE MOMENTUM GOING
4. As usual, I will precede my presentation this morning by acquainting you with some important developments in our State since I was sworn into office for a second term.
The Future of Asaba Airport
5. We achieved another breakthrough with Asaba Airport in August this year with the approval by the State Executive Council for the concessioning of the Airport to a consortium of investors led by Menzes Aviation, a world-renowned aviation company. It is the first full brownfield airport concession in Africa and a hybrid arrangement covering further development and management of the airport.
6. Key highlights of the transaction are as follows:
-Menzies Aviation to manage the Airport and provide airline support services;
-First Investment Development. Company to build Radisson Blu Hotel and Convention Centre at the Airport;
-Air Peace to operate as Anchor Airline and to build and operate a commercial Maintenance, Repair and Overhaul Facility;
-Rainoil to operate the Tank Farm and provide Jet A1 Fuel for Aircraft;
-Cybernatics to develop the Cargo Terminal and Logistics Centre;
-Quorum Aviation to build private jets terminal and operate helicopter services for the oil and gas industry; and
-Arbico Construction company to develop and manage the business park.
7. The concession is, in the first instance, for a period of 30 years with annual concession fee of N100m payable to the Delta State Government, escalating by 10% every five years. There is also annual royalty of 2.5% of Gross Annual Revenue payable to the State. With over N28b expected to be pumped into the airport development by the concessionaire over the next three years, the benefits to the State in terms of employment opportunities, urban renewal and tourism potentials are enormous.
Kwale Industrial Park
8. As you are aware, I just returned from China where we held a Road Show for the proposed Kwale Industrial Park. It afforded the State Government delegation the opportunity to market the Park and our State to the Chinese business and investment community. So far, we have received expression of interest from companies willing to establish a glass factory, ceramics factory and an agro-allied industry for soya beans.
9. In a meeting with another group of investors in Nanjing, Jiangsu Province, a company with a 400-metric tonne capacity methanol plant indicated its readiness to immediately set up a plant at the Park. It was agreed that a team from the State would visit their factory within the next month while officials of the company are to come for a site visit immediately thereafter. The company is hopeful of moving their operations to Kwale Industrial Park within the first half of 2020.
10. To refresh our memories, the Kwale Industrial Park is designed to profit from the competitive advantage of the State in the gas and energy sector. Located along the Ughelli-Asaba road, the Park is envisaged to be one of Nigeria’s biggest location for gas and energy intensive manufacturing, encompassing ceramics, rubber, methanol, pulp and paper. It is a mix-use industrial/business location featuring industrial, commercial, administrative and residential sections in the Park. Heavy and light manufacturing activities will be in the industrial sector while schools, shopping centres, banking halls and recreation facilities will be concentrated in the commercial sector.
11. Once fully operational, the Kwale Industrial Park is expected to be a major driver of this administration’s industrialisation agenda and provide immense employment opportunities for our people.
