General News of Tuesday, 16 April 2019
The Minister of Aviation, Joseph Kofi Adda, says his outfit is yet to make any substantial move towards possible privatization of the management of the Kotoka International Airport.
He told Citi News “many have come around” but he added that he had not “had any serious discussion with any on that matter.”
According to a draft memo to Cabinet sighted by Citi News, a Turkish company, Tav Airport Holding Company limited, is being considered for a terminal management contract or a concession agreement for the airport.
The proposal urged Cabinet to “consider and convey policy approval for the Ministry of Aviation to facilitate the engagement of Tav Airports Holding Company Limited as a strategic partner for the management of Kotoka International Airport.”
But Mr. Adda maintained so far, there are no plans for the privatisation of the airport.
“At this stage, nobody has come talking to me about what we need to do is to privatise. I don’t know where the word privatization comes from.”
He also assured that any move he makes will be towards enhancing the value of the airport.
“For me coming from a consulting background and looking at my duty in terms of enhancing the value of Ghanaian assets, any partnership arrangement that will enhance the value at any point in time anywhere will, I will engage such a party.”
Arguments in proposal
The proposal cites New Zealand as an example where the private sector was involved in airport management.
It said the move in that country served “to release the government of the heavy fiscal load and also to increase the airport industry contribution to the economy by being more efficient.”
The ministry also argued that “the participation of the private sector will bring about the needed equity investment for the transformation of the sector thereby making the KIA achieve competitive status within the West African Sub-Region and the continent as a whole.”
Ghana Airports Company Limited is the current manager of the airport and it was established as a result of the decoupling of the existing Ghana Civil Aviation Authority (GCAA).
The company was registered in January 2006 with specific responsibility for planning, developing, managing and maintaining all airports and aerodromes in Ghana including Kotoka International Airport (KIA), Kumasi Airport, Tamale Airport, Sunyani Airport, Ho Airport, WA Airstrip as well as various Airstrips.
Ghana Airports Company Limited is an implementing agency under the Ministry of Aviation and has been operational since 2007.