Murtala Muhammed Terminal Two

Distressed

On 23 May 2002 the Nigerian government, through aviation minister Kema Chike, awarded a Build, Own and Transfer (BOT) contract for terminal one at the Murtala Muhammed terminal to local company Stabilini Vision Limited (SVL). The BOT was necessary to replace the old terminal building at the airport, which was destroyed by fire in March 2000. In October 2001 a first attempt at rebuilding the terminal was made with a 10 year BOT contract was awarded to Nigerian-Canadian consortium Royal Sanderton Ventures. On 24 April 2003 a concession agreement was signed between the Nigerian Government and the Federal Airports Authority on one side and Stabilini Visinon Litd (as sponsor) and Bi-Courtney Ltd (as concessionaire) from the other side. The BOT concession was originally signed for 12 years with construction taking 18 months. Following a supplementary agreement the construction period was extended to 33 months. Bi-Courtney Aviation Services Limited (BASL) was established to manage the MMA2 terminal. The estimated cost of the project was $200 million. The project was partionally financed with a loan of $150 million from a consortium of 6 banks —Oceanic Bank International Plc, Zenith Bank Plc, GT Bank Plc, First Bank Plc, First City Monument Bank Plc and Access Bank Plc. Debt to equity ratio is 60:40. As per the agreement, the Bi-Courtney should pay a concession fee in the amount of 5% of the annual turnover. On 7 April 2007, the terminal was inaugurated by the then president of Nigeria Olusegun Obasanjo and flight operations began on 7 May 2007. On 25 August 2017 Bi-Courtney obtained ministerial approval for extension of the contract for 36 years, which is being contested by the Federal Airports Authority of Nigeria (FAAN). http://niqs.org.ng/wp-content/uploads/2017/07/PAPER-1-NIQS-WORKSHOP-JULY-2017-APPENDIX-I-CASE-STUDIES.pdf https://www.mma2.com.ng/corporate-information/our-history/ http://ppp.icrc.gov.ng/project/128) debt:equity ratio taken from http://ppp.icrc.gov.ng/project/128)