The Nigerian PPP Framework
MMA2 Airport Concession
CONCESSION
INFRASTR
REGULATORY
ICRC
MISSION
BOT contract agreement between the Federal Airports Authority of Nigeria (FAAN) and Bi-Courtney Limited (BCL)
Original agreement signed in April 2003 (mainly granting concession to BCL)
A supplementary agreement signed in June 2004 (mainly increasing construction period from 18months to
33months)
An addendum Agreement signed in February 2007 (mainly extending concession period from 12 to 36 years)
Main areas of Dispute:
•
Operation of the GAT by FAAN
.
The Tenure of the Concession (36 Years)
•
The Exclusivity Clause in the agreement
Lessons
Inadequate Experience in Public and Private sectors
Political Involvement at the implementation level.
Asymmetry of knowledge between concessionaire and Government; No financial model and traffic risks not properly
evaluated
Not enough due diligence by contracting authority
Project Development not thorough
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