GACL suffocating with Terminal 3 debt … denies sales allegation

Adnan Adams Mohammed
The management of Ghana Airport Company Limited (GACL) has
been caught in a web of huge debt which is affecting its plans to expand and
improve the standards of the airports to higher international pedigree but has
denied false news making rounds that Kotoka International Airport was to be
sold to a Turkish firm as alleged by some workers.
The debt, it said is as a result of the Terminal 3 loan
repayment which is denying the Company extra revenue to undertake other
investments. According information made available by GACL, the total debt
stands about US$300 million after being reduced from US$400 million.
At a press briefing last week, the GACL said it was shocked
by the decision of the workers to protest over an alleged sale of the company
saying there is no such plan to sell the company to the Turkish firm as being
alleged by the workers. However, the Company noted that it has just received a
proposal which is yet to be considered in a partnership deal, and not one
putting the outfit up for sale.
“President Nana Akufo-Addo’s approval to the Ministry of
Aviation to engage TAV-Summa Consortium from Turkey as a strategic partner for
the management of the GACL is one that is being fashioned in a manner that
would see substantial investment into Ghana’s aviation sector and ensure a very
viable and liquid GACL which would further enhance the international standard
of the sector,” Minister of Aviation, Hon. Joseph Kofi Adda has said at the
press briefing last week.
He added that, “The fact of the matter is, the Ghana Airport
Company is chocked with this Terminal 3 debt which it has been paying for a
long time. Because of that, they are not able to get any extra revenue to
undertake other investments.
“There is no privatization of the Ghana Airports Company
Limited in any way. There is no management take-over of GACL. There is no
planned lay-offs or retrenchment or redundancies of any sort in respect of the
GACL personnel.”
The aviation minister also noted how COVID-19 has stalled
developments in the aviation sector of the country.
“But for COVID-19 and its adverse impact on the Aviation
Sector, there would have been more recruitment needed as the expansion works at
Kumasi, Tamale and Sunyani are on-going and possible new airports in the
Western and Upper East Regions.”
On his part as the managing director of the Ghana Airports
Company Limited, Yaw Kwakwa said the protest by the workers union was staged
out of malice.
The President has also made it very clear that “we should
find a way and make Ghana an aviation hub of the sub-region. We cannot do this
unless we expand the infrastructure. With this debt on the back of the Ghana
Airport Company, you have to find resources from elsewhere,” Mr. Adda said.
He further outlined the concept note that has been shared
with TAV-Summa Consortium to guide them in shaping an offer for government
consideration. The concept note begun by looking at the initiation process
which concentrates on the scope of work that needs to be done to make Ghana an
aviation hub.
The notes, Mr. Adda added go further to talk about the
financial, the value for money, component of their proposal and also looks at
the strength of the company, accessing their ability to recapitalize the GACL,
reshape its current debt status and give the GACL more financial freedom.
“The Key Performance Indicators (KPI) that government would
want to commit TAV-Summa Consortium to include, strategic ways to structure
communication flow and ensure that all players are aligned to the course,” he
said.
“It has been 30 years since Ghana refurbished its runway and
it would cost some US$39 million to embark on such an initiative and the Ghana
Airport Company does not have that money to do that. With this debt, we cannot
even do that. If this company comes, is it something we can push them to do? We
are not sure, so we need to negotiate. These are part of the reasons why we
need a partnership,” Mr. Kofi Adda said.
He added: “Let me emphasize that airport company management
would not be touched, the new ventures that we are going to set up are separate
companies; that is if we agree, those are the ones that would now look to
manage affairs, perhaps get our own personnel from Airport Company to be part
of that. These are things that the union even does not want to listen to and
engage us to understand.”
The minister said, the agreement is at its teething stage
and nothing concrete has been arrived at and therefore the union of the GACL
should be rest assured that their interest and the interest of the country
would be paramount.
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