Kola Karim’s Mota Engil Wins Abuja Airport Concession

The federal government says concession of the Nnamdi Azikiwe International Airport (NAIA) Abuja and Mallam Aminu Kano International Airport (MAKIA) Kano has been  approved by the Federal Executive Council.

Personal assistant to the minister of Aviation, Dr James Odaudu, said in a statement that Corporacion American Airport Consortium has emerged the preferred bidder for the Nnamdi Azikiwe International Airport (NAIA).

The consortium, composed of The Corporation American Airports, Mota Engil Africa and Mota Engil Nigeria and is globally recognized for its superior technical expertise in the design, construction, management and operation of infrastructure.

Mota Engil Nigeria is a joint venture between Mota-Engil, a public-listed Portuguese contractor and Shoreline Group, an energy and infrastructure conglomerate owned by Kola Karim.

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Karim, 54, is one of Nigeria’s wealthiest men and owns Shoreline Group, which has interests in power, energy, infrastructure, engineering, agriculture, and telecom.

Recall that in 2018 Shoreline Group, a Nigerian energy and industrial conglomerate founded by Karim, partnered with Mota-Engil, a publicly listed Portuguese contractor, to establish Mota Engil Nigeria. Mota Engil partnered with Shoreline Group to leverage the latter’s clout in Nigerian business and political circles to access target large-ticket infrastructure construction projects in Nigeria.

Mota-Engil holds 51 percent of Mota-Engil Nigeria, while Shoreline owns 49 per cent.

Mota-Engil is active in civil construction, public works, port operations, waste, water, and logistics.

The statement further added that “following a thorough and comprehensive evaluation process that commenced with the Request for Qualification (RFQ) advertised in local and international media on 16th August 2021, and subsequent rigorous evaluation of technical and financial bids, coupled with due diligence visits conducted from 27th – 29th December 2022 and 9th – 10th January 2023, the Corporacion American Airport Consortium has emerged as the preferred bidder.

“The consortium, composed of The Corporation American Airports, Mota Engil Africa, and Mota Engil Nigeria, is globally recognized for its superior technical expertise in the design, construction, management, and operation of infrastructure.

“The Corporation American Airports, a New York Stock Exchange (NYSE) listed airport operator, has presence across three continents, managing 53 airports in six countries and serving approximately 82.4 million passengers in 2019.”

The statement added; “The concession of NAIA and MAKIA will considerably enhance the operational efficiency and profitability of these airports, repositioning them to operate optimally and competitively.

“This agreement, under a Public-Private Partnership arrangement, will be effective for 20 years for NAIA and 30 years for MAKIA.

“In addition, the Corporacion American Airport Consortium is committed to making upfront payments of USD 7 million for NAIA and USD 1.5 million for MAKIA. During the concession period, total projected nominal revenues accruable from the combined Concession of NAIA and MAKIA exceed $4 billion United States Dollars. Over 70 per cent of these projected revenues will be payable to the Federal Airports Authority of Nigeria (FAAN), thereby generating additional revenue sources for the federal government.”