Senate Inflates Remodelling Projects Debts By N26bn
The Senate Committee on Aviation, which first announced the debts accruing from the remodelling of airport projects, has inflated such by N26 billion from the actual debts of N148 billion to N174 billion.
Since 2011, the federal government embarked on the rehabilitation, expansion and restructuring of airport terminals, the building of 14 fresh cargo terminals, provision of equipment for the Accident Investigation Bureau and the Nigeria Meteorological Agency (NIMET).
Documents made available to THISDAY from the Federal Airports Authority of Nigeria (FAAN) disclosed that the projects are in three phases and the contract value of phase one is N12.81 billion. Total amount already paid is N11.22 billion, with an outstanding balance of N1.58 billion.
The contract value of phase two of the projects is put at N93.43 billion, while the total amount disbursed to the contractors is N53.97 billion, leaving a balance of N39.50 billion.
The third phase of the projects, which is still at infant stage, has contract value of N63.02 billion, while total amount already paid is N4.21 billion and outstanding payments in this phase is N58.81 billion.
The sub-total of the debts therefore is N99.85 billion, which when added to the debts already approved by the Federal Executive Council (FEC) at N48.37 billion brings the total outstanding debts to N148.23 billion. This amount from FAAN differs from the N174 billion that was declared by the Senate Committee on aviation by about N26 billion.
Meanwhile, former Minister of Aviation, Stella Oduah, in collaboration with the Ministry of Finance, the Central Bank of Nigeria (CBN) and with the consent and endorsement of the Senate and House Committees on Aviation made fiscal provisions for the funding of these projects, which was later abandoned by the Ministry of Aviation, hence the accrual of the debts.
The projects were being funded from three sources: accruals from the Bilateral Air Service Agreement (BASA), appropriations and internally generated revenue and this year there was plan to introduce other sources of funding which include airport development levy and security surcharge.
THISDAY learnt that funding came from approval for presidential priority projects on February 21, 2011 for the utilisation of the sun of $60 million in the BASA fund. This was submitted to the National Assembly for appropriation to be supplemented by a sum of N14.6 billion from the internally generated revenue (IGR) of FAAN.
Since 2011, the federal government embarked on the rehabilitation, expansion and restructuring of airport terminals, the building of 14 fresh cargo terminals, provision of equipment for the Accident Investigation Bureau and the Nigeria Meteorological Agency (NIMET).
Documents made available to THISDAY from the Federal Airports Authority of Nigeria (FAAN) disclosed that the projects are in three phases and the contract value of phase one is N12.81 billion. Total amount already paid is N11.22 billion, with an outstanding balance of N1.58 billion.
The contract value of phase two of the projects is put at N93.43 billion, while the total amount disbursed to the contractors is N53.97 billion, leaving a balance of N39.50 billion.
The third phase of the projects, which is still at infant stage, has contract value of N63.02 billion, while total amount already paid is N4.21 billion and outstanding payments in this phase is N58.81 billion.
The sub-total of the debts therefore is N99.85 billion, which when added to the debts already approved by the Federal Executive Council (FEC) at N48.37 billion brings the total outstanding debts to N148.23 billion. This amount from FAAN differs from the N174 billion that was declared by the Senate Committee on aviation by about N26 billion.
Meanwhile, former Minister of Aviation, Stella Oduah, in collaboration with the Ministry of Finance, the Central Bank of Nigeria (CBN) and with the consent and endorsement of the Senate and House Committees on Aviation made fiscal provisions for the funding of these projects, which was later abandoned by the Ministry of Aviation, hence the accrual of the debts.
The projects were being funded from three sources: accruals from the Bilateral Air Service Agreement (BASA), appropriations and internally generated revenue and this year there was plan to introduce other sources of funding which include airport development levy and security surcharge.
THISDAY learnt that funding came from approval for presidential priority projects on February 21, 2011 for the utilisation of the sun of $60 million in the BASA fund. This was submitted to the National Assembly for appropriation to be supplemented by a sum of N14.6 billion from the internally generated revenue (IGR) of FAAN.
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