The proposed M. K. O Abiola International Airport in Ido-Osun, Osun, would cost N69 billion under concession arrangement with AWOL International company, a state government official said on Thursday.
Mr Nurudeen Adeagbo, the Permanent Secretary, Ministry of Works, said at a meeting with members of the state House of Assembly in Osogbo, that the concession agreement would be to the advantage of the state government.
Adeagbo said the concession agreement was not in any way detrimental to the economy of the state, saying that it would be on ‘Build-Operate-Transfer” basis.
He said he was optimistic that the company would deliver a perfect job at the end of the day.
Mr Niyi Ogundiran, 2nd chief resident architect to the project, said at the meeting with the lawmakers in Osogbo that the project would now cost the company N69 billion.
Ogundiran said the concession agreement would last for 30 years before the permanent transfer of ownership to the Osun government.
He recalled that the contract was first awarded on Oct. 14, 2012 at the cost of N4.5 billion, and was to be completed within eight months.
Ogundiran further explained that the contract was later reviewed to N11billion to accommodate new features in the airport, but could not be completed due to paucity of fund.
However, he said that the state government had spent a total of N3.6 billion on the project till date.
In his remarks, the Deputy Speaker of the Assembly, Mr Adegboye Akintunde, said those in charge of the project must ensure that it does not fail.
Akintunde said the people of the State are watching with a keen interest on what would be the outcome of the project.
He said those in charge must ensure that concessionaire deliver the best to the people of the state.
Another lawmaker, Mr Tunde, House Committee Chairman on Commerce, Co-operative and Industries, said the airport project was a huge investment which must not be handled carelessly.
Olatunji said that there was no doubt that the airport would fast tract economic development in the state, if well executed.