N174BN DEBT: WE SHALL PRIORITIZE AVIATION PROJECTS SAYS MINISTER

       

      The Supervising Minister of Aviation, Dr. Samuel Ortom has said that the huge debt incurred in providing infrastructural facilities for the 22 Airports across the country may compel the Federal government to prioritize projects implementation in the aviation sector.  The Minister said this when he received visiting members of the House of representative committee on Aviation in Abuja yesterday on an oversight visit to the Ministry.

       Ortom said that the ministry has decided to suspend some projects”we are going to prioritize”, Ortom said.

Already the Federal Ministry of Aviation is owing about N174bn for aviation infrastructure development.  The Ministry also secured a $500,000 Chinese-loan apart from the N18.23 million loans from the Debt Management Office (DMO).

        

     According to the Ministry’s presentation to the House Committee, the loans are being utilized for international airport and four perishable cargo terminals.

The possible sources of loan and debt repayment the Minister said include setting up inter-ministerial committee to review the releases from appropriation; setting up of a sinking fund Account/Airport Development Levy; Bilateral Air Services Account (BASA); security change account, as well as to request for special intervention fund.

       The Supervising Minister also told the House Committee that award of contract has be foreclosed for now because of the staggering indebtedness of the Ministry.  He said all projects on ground have to be completed before award of new ones.

       The Chairman, House Committee on Aviation Hon. Nkiruka Onyejeocha said  the projects conceived are very important and critical to President Goodluck Jonathan’s Transformation Agenda and that they will find a way jointly if for budgetary reason the projects are not moving. “We will through constructive partnership create a solution to solving the problem and Nigerians at large will benefit from it”, Nkiruka said.

       The Committee however, advised the ministry to also direct its energy towards safety and security of the aviation sector describing it as “critical” to the growth of the sector.

The Minister while assuring the House that the projects will be completed said joint efforts with the Ministry of Finance and Budget office will yield positive result because there is a roadmap which has to be completed.

       “We have set up a committee that is going to look at that not just setting up a committee on those indebtedness but also finding a source of funding these projects.  We assure you that these projects will be completed.

       He emphasized the need for the co-operation and support of the lawmakers in order to realize the set goal for the sector.  He also lauded the cooperation enjoyed with the relevant stakeholders to ensure completion of the aviation sector development programme.