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RADP / Pulse Ghana  >  BI  >  Strategy

Ghana’s Aviation Ministry plans to hand over management of the terminals at the Kotoka International Airport to a private company

Berlinda Entsie

The Aviation Ministry in Ghana has sent a proposal to Cabinet to hand over the management of the terminals at the Kotoka International Airport to a private company, Tav Airport Holding Company Limited.

Kotoka International Airport
Kotoka International Airport

The terminal handles an average of 4,706 passengers daily.

Recently, the Tav Airport Holding Company proposed to the Aviation Ministry that it (Tav Airport Holding) needed to take over the terminal “to help bring about the physical development of the airport enclave.”

The proposed terminal management contract further said that the terminals within the airport will be managed by the airlines while the ownership of the airport and its operations remain the responsibility of the state.

“The concessionaires assume most of the risk for potential downturns in the airport revenues but also receive a greater reward if there is an unexpected increase in airline passenger traffic,” the proposal stated.

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The ministry was triggered by the proposal from Tav Airport Holding Company Limited hence it furthered the proposal to Cabinet.

It urged Cabinet to “consider and convey policy approval for the ministry to facilitate the engagement of Tav Airports Holding Company Limited as a strategic partner for the management of Kotoka International Airport.”

The proposal cites New Zealand as an example where the private sector was involved in airport management “to release the government of the heavy fiscal load and also to increase the airport industry contribution to the economy by being more efficient.”

“The participation of the private sector will bring about the needed equity investment for the transformation of the sector thereby making the KIA achieve competitive status within the West African Sub-Region and the continent as a whole,” the ministry argued.

Currently, Ghana Airports Company Limited manages the operations of the terminals at the Kotoka International Airport.

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The company is an implementing agency under the Ministry of Aviation and has been operational since 2007.

Berlinda Entsie Berlinda Entsie Berlinda Entsie a reporter at Pulse.com.gh/bi/. She reports on all your business related issues and always ready to promote your business through amazing reportage.

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