₦airaland Forum

When the FG says they’ll concession Lagos, Abuja, Kano and PH airports what does it entail ?

What does it mean?

google it....

A concession is a right granted by an asset owner, usually a government, to a private company or a consortium of companies (the "Concessionaire") to do any combination of the following - design, finance, build, transfer, operate, and maintain an asset for a number of years - usually between 10 and 40 years (the Concession Period) in return for payments to the government.

A Concession can involve any combination of those elements stated above depending on whether it is a greenfield (not yet built) project, or a brownfield (exiting asset) project.

Examples of brownfield projects are the Kano and Abuja airports that are currently being concessioned.

Note that even when taking on an existing asset, a Concessionaire will usually bound by the Concession Agreement to invest large sums of money to improve and further develop the asset during the Concession Period. So, it is not risk-free for the Concessionaire.

At the expiration of the Concession Period, the asset is handed back to the government.

Alternatively, immediately prior to the expiration of the initial Concession period, the government may enter into negotiations with the Concessionaire with a view to extending the Concession period or basically granting a new Concession period.

If the Concession Agreement is done properly, it can be a win - win for the government and the Concessionaire.

DeLaRue:
A concession is a right granted by an asset owner, usually a government, to a private company or a consortium of companies (the "Concessionaire" to do any combination of the following - design, finance, build, transfer, operate, and maintain an asset for a number of years - usually between 10 and 40 years (the Concession Period) in return for payments to the government.

A Concession can involve any combination of those elements stated above depending on whether it is a greenfield (not yet built) project, or a brownfield (exiting asset) project.

Examples of brownfield projects are the Kano and Abuja airports that are currently being concessioned.

Note that even when taking on an existing asset, a Concessionaire will usually bound by the Concession Agreement to invest large sums of money to improve and further develop the asset during the Concession Period. So, it is not risk-free for the Concessionaire.

At the expiration of the Concession Period, the asset is handed back to the government.

Alternatively, immediately prior to the expiration of the initial Concession period, the government may enter into negotiations with the Concessionaire with a view to extending the Concession period or basically granting a new Concession period.

If the Concession Agreement is done properly, it can be a win - win for the government and the Concessionaire.

Alright understood

DeLaRue:
A concession is a right granted by an asset owner, usually a government, to a private company or a consortium of companies (the "Concessionaire" to do any combination of the following - design, finance, build, transfer, operate, and maintain an asset for a number of years - usually between 10 and 40 years (the Concession Period) in return for payments to the government.

A Concession can involve any combination of those elements stated above depending on whether it is a greenfield (not yet built) project, or a brownfield (exiting asset) project.

Examples of brownfield projects are the Kano and Abuja airports that are currently being concessioned.

Note that even when taking on an existing asset, a Concessionaire will usually bound by the Concession Agreement to invest large sums of money to improve and further develop the asset during the Concession Period. So, it is not risk-free for the Concessionaire.

At the expiration of the Concession Period, the asset is handed back to the government.

Alternatively, immediately prior to the expiration of the initial Concession period, the government may enter into negotiations with the Concessionaire with a view to extending the Concession period or basically granting a new Concession period.

If the Concession Agreement is done properly, it can be a win - win for the government and the Concessionaire.

Excellent explanation.

Learned something today.