Osun State Government is not part of the partnership agreement between All Works of Life Development Organisation (AWOL International Limited) and Turkish Biray Group.
I want to clarify that Osun State Government signed a concession agreement with AWOL.The partnership agreement between All Works of Life Development Organisation (AWOL International Limited) and Turkish Biray Group for the completion of Moshood Kashimawo Olawale (M. K. O) Abiola International Airport at Ido-Osun under a build, operate and transfer (BOT) arrangement has failed and could not pass Turkish concessions law on privatization and hence funds were not released by Exim Bank of Turkey for the project. AWOL has violated the terms of the agreement and Osun State Government got a court order to terminate the agreement which makes it unfeasible for AWOL to continue with the project. The problem about Osun Airport Concession is between AWOL and Turkish Biray Group. Osun State Government is only implementing the concession agreement.
The partnership agreement between All Works of Life Development Organisation (AWOL International Limited) and Turkish Biray Group which defines partner relations to each other and the business in addition to the rights of each partner collapsed. The partnership agreement which stipulates the limitations of authority of each partner and includes an overview of the powers between AWOL and Biray Group failed. The agreement on day-to-day operations of the business, and the partnership agreement which also specify the standards for daily management routines failed. There is a conflict of interest between AWOL and Biray Group. There is a conflict of interest about the project which both AWOL and Biray Group could not resolve.
Osun State Government has terminated the concession agreement it signed with a concessionaire, All Works of Life (AWOL) International Limited for the completion of MKO Abiola International Airport in October, 2017 citing breach of contract agreement. The company was in fundamental breach of terms of the agreement mutually signed with the State Government and hence the Concession Agreement was legally terminated in consonance with the stipulation of the contract. The letter of termination was dated 5th March, 2018. The action of Awol International Limited is constituting a security risk to the project and has the potential of occasioning a huge economic loss to the state because Osun State followed due and legal process to terminate the agreement.
One of the breaches of the contract was the non compliance with the agreement which the Chairman of AWOL International Limited, Ambassador Nurudeený James Ogunlade signed that the company would shoulder 100 per cent funding of the project. The company chief said the project will begin on November 9, 2017 while the first phase will be completed within eight months. Due to the non-compliance with agreement, the contract was terminated; the project has depreciated from the original state which it was when government handed it over to the concessionaire. The project was a development agreement.
Governor Aregbesola is a man of great knowledge and expertise. I am ready to enter into a public debate on this matter. Aregbesola’s reputation and his work speak for him. I have comment on this. Additionally, I am making this matter a matter of public debate and I expected that the agreement will be honoured. It’s disgraceful to be exposing what technocrats and experts are making of Osun Airport. “It’s rather unbecoming and disgraceful to continue along this line.
Osun Airport is one concession that has remained clear to all till date. In October, 2017, the Osun State government entered into an agreement with All Works of Life Development Organisation (AWOL International Limited) for the completion of Moshood Kashimawo Olawale (M. K. O) Abiola International Airport at Ido-Osun under a build, operate and transfer (BOT) arrangement. The signing of the concession agreement on the completion of the airport was to hasten the take-off of its operation in the next eight months.
The Managing Director of Biray Construction Nigeria Limited Mr Kartal Arikan said the company firmed up the agreement with the Turkish EximBank on the provision of funding for the project through the Turkish Ambassador to Nigeria. He said 85 per cent of materials and services will come from Turkey Construction Company to boost the quality of work during the construction work. Arikan said: “During the last visit of Governor Rauf Aregbesola to Turkish Ambassador Hakan Cakil, the ambassador promised to facilitate $350 million for the project’s development from Turkey Investment Group and effort for that is ongoing. “Let me assure the good people of Osun and government that Biray Group will support the project, bring to bear the best international professional standard in airport construction and development.”
Speaking after signing the agreement, the Chairman of AWOL International Limited, Ambassador Nurudeený James Ogunlade said the company would shoulder 100 per cent funding of the project. The company chief said the project will begin on November 9, while the first phase will be completed within eight months. Ogunlade said the airport would serve local and international passengers as well as cargo services. He said: “ýWe are entering into an agreement with the Osun State government to fast-track the completion of the MKO Abiola International Airport, having realised the zeal and effort being put into it by Governor Rauf Aregbesola.
“AWOL International Limited will fund the project 100 per cent through our financial partner, like Turkish Exim Bank and Biray Group of Companies from Turkey. We will Build, Operate and Transfer the first phase of the airport with an ultra-modern commercial complex (terminal building, control tower, among others), standard infrastructure (offices, duty-free shops, among others), construction of maintenance building and power house, workers’ training centre, fire fighter station, security infrastructure and services, apron and taxiway parking, dual carriage road from Oba Adesoji Aderemi to the airport and completion of the fence and surveillance road within the perimeter of the airport and completion of 3.5-kilometre of standard runway.
The first phase of the Airport will be completed within eight months and it will take off with five aircraft, three passenger plane (B767-200ER, MD73 Helicopter (1) and B727 (1) cargo by AWOL International Limited. “Also, the completion will be done within two years. By then, we must have had in place the establishment of the airport with five star hotels, including amenities, such as a cultural centre, water park, recreation centre and garden, butterfly museum, casinos, among others. Enumerating facilities to be expected at the Corporate Airport, Amb. Ogunlade who heads the concessionaire held that aside the first phase to be completed before the last quarter of 2018, other amenities that befits the location and geographical area of an airport will be facilitated within 2 years.
His words “On the completion of the construction of First Phase of the Airport within the period of 8months, it will take off with five aircraft, three passengers helicopter and one cargo by AWOL International Company. To complete the entire establishment of the Airport with 5 Star Hotels including all amenities like Cultural center, Water Park Recreation Center and Garden, Butterfly Museum and Casinos, it will take the period of 2 years.”
The signing of the concession agreement which is to annex the infrastructural development of the state was held at the State secretariat, Abere. AWOL International Limited in partnership with a Turkish company, Biray Group are expected to complete the project within the span of 8 months. “According to the airport’s design, it will facilitate the smooth movement of the people and goods from one point to other and serve as a channel way for tourism, hanger and cargo.” He noted that the concession agreement was not in any way detrimental to the economy of the State as it will run for 30 years before it will be fully handed over to the State government commending the Governor for his efforts in giving the state enviable legacies for the future.
The concession agreement of Osun Airport is very clear. Osun State Government signed and honoured its agreement with AWOL. AWOL on its part had partnership agreement with a Turkish Biray Group that will finance the project through Exim Bank of Turkey. AWOL has problem with Biray Group due to partnership disagreement. The disagreement between AWOL and Biray Group has negatively affected the concession of Osun Airport project.
