After 5-years of non-payment of dividend, Ghana Airport Company needs shake-up – Adda

Minister for Aviation, Kofi Adda

In the heat of claims that the Kotoka International Airport (KIA) is to be given to a private foreign entity to operate, Ghana’s Minister for Aviation, Kofi Adda while claiming on one hand that he is unaware of any such plan has on the other hand made the case that given the airport company has not paid dividend to the state in the last five years, he is open to an arrangement which can enhance the airport’s value enabling it pay dividend.

At the 3rd Aviation Ghana Breakfast Meeting in Accra bringing together aviation industry stakeholders, Hon. Adda submitted:

“I haven’t seen anything credible on that. I’d like to get something credible from whoever is putting this out and they have to explain to me what they mean by privatisation or selling. I don’t know where it’s come from; I don’t know who is out there. I have even heard that it’s been said that they are selling Ghana Airport, I don’t know who you’re going to sell it to, who’s going to buy, for how much, I’m surprised at them.”

He assured government would do the needful to make the Airports Company which runs KIA a viable business outfit that contributes to the development of the country in terms of revenue mobilisation and payments of appropriate dividends.

Reports that a cabinet memo had leaked showing TAV Airport Holding Company Limited being pinned down by the government to run the “day-to-day operations, including facility maintenance and fees collection,” gained extensive circulation online especially when the memo is alleged to be prepared by the Aviation Minister for Cabinet’s consideration.

Among others, the Concession Agreement clause holds: “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.”

Terminals at the Kotoka International Airport will also be managed by airlines or other airport managers should the plan see the light of day.

By Michael Eli Dokosi/goldstreetbusiness.com