Government not privatising Kotoka International Airport – Kofi Adda

Joseph Kofi  Adda  Aviation Neew Aviation Minister, Joseph Kofi Adda

Tue, 16 Apr 2019 Source: starrfm.com.gh

Aviation Minister Kofi Adda has denied media reports that the government plans to privatise airports in the country.

TAV Airport Holding Company Limited per a cabinet memo in possession of Starrfm.com.gh will be in charge of the “day to day operations, including facility maintenance and fees collections.”

The aim of the proposal, according to the leaked cabinet document, is “to help bring about physical development of the airport enclave and transform the KIA into a world class airport with improved managerial efficiency.”

The document prepared by the Aviation Minister for Cabinet consideration said under its Concession Agreement clause that: “As payment for their services, the concessionaires receive a percentage of the gross revenues from the operation of the airport but are required to pay the airport owner the greater of this percentage amount or a minimum annual guaranteed amount.”

It added: “The Concessionaires assume most of the risk for potential downturns in the airport revenues but also receive a greater reward if there is an unexpected increase in airline passenger traffic.”

The proposal noted the terminals at the Kotoka International Airport will be managed by “airlines or other airport managers.”

Reacting to the report however, Mr. Adda said even though there are no immediate plans to privatise the facility, he is open to discussions that will help enhance the value of the airports in in order to enable them pay dividend to government.

“I don’t know where it coming from, I don’t know who is putting it out there. I have even heard that it is being put out there that we are selling Ghana and I don’t know who we are selling it to. But the government will always look at kinds of arrangement athat will improve the value of asset that we have in the nation. Bear in mind the president Sworn to protect assets of this nation so any kinds of business plans that will help us improve on the asset we have, we willing to look at it.

“ The only question I will ask those putting this out there is that how many times has the airport paid dividend to the nation? The last five years have we paid dividend to the nation? If there is any arrangement that is going to enhance the value of the airport and enable us pay dividend to the nation we will be happy to look at it,” he said.

Source: starrfm.com.gh
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