Thursday, October 24, 2013

Minister Of Aviation Writes An Executive Summary On The Procurement Of NCAA Operational Vehicles


Jonathan had asked the aviation minister to give explanation on the purchase of the cars. Princess Stella Oduah, explained In a letter to President Goodluck Jonathan, entitled “Executive Summary on the Procurement of NCAA Operational Vehicles,” dated October 21, 2013 explained the process of acquisition of the vehicles.
Minister of Aviation, Princess Stella Oduah,  Oduah, in the letter, first explained the position of the NCAA as the statutory regulator of the civil aviation industry:
The agency is charged with oversight responsibilities over all civil aviation operations in the country, including safety, security and strict compliance with ICAO Standards and Recommended Practices (SARPS) and Nigerian Civil Aviation Regulations (NCARs)  
 To ensure that it carries out its statutory responsibilities effectively, it became imperative that the NCAA is fully equipped with highly specialised tools and facilities, including adequate operational vehicles to cover all 22 national airports and over 400 airstrips.  
In keeping with standard practice, provision is therefore, made annually for the replacement of obsolete, inadequate and unreliable monitoring equipment.  
The purchase of the vehicles were well captured in the 2013 budgetary appropriation alongside other specialised equipment 
They were, in the first place, meant to carry dignitaries of aviation regulatory agencies, who are on visit to the country.”


Furthermore, the fact that NCAA, as the regulator of the industry, often plays host to dignitaries from ICAO, IATA, US FAA, AFRAA, AFCAC, BAGASO, CANSO, ACI and host of others make it necessary to have specialised operational vehicles.
Detailing the step-by-step processes employed for the procurement of the vehicles, which started with a letter dated April 15, 2013,  
The NCAA officially requested authorisation from the Ministry of Aviation to procure 56 operational vehicles through lease financing, this option was proposed to the ministry to enable the NCAA make 36 monthly payments based on receipts granted approval. 
Based on the ministry’s approval:  
The NCAA invited expression of interests from all banks in Nigeria for the financing of the said vehicles.  EOI was adopted because the procurement is two-sided. First, the financiers would have to be selected before the supplier is determined.  This is in-line with procurement best practices.  
On May 24, 2013, the responses received from various banks to the EOI request was opened publicly and minutes of the exercise was duly documented. 
 During the EOI opening exercise, NCAA got commendation from one of the civil society organisations approved by BPP, who were invited for the opening exercise.

On May 31, 2013, First Bank Plc, Union Bank Plc and Stanbic IBTC emerged most responsive, adding that 10 days after the three banks were invited to submit financial proposals. At the end of the exercise, First Bank emerged the highest rated response bidder.  

Between July 8, and June 12, 2013, various meetings were held with First Bank, where contract agreement was signed and necessary documentation executed.
One, the budgetary appropriation, the minister stated: “Provision was made for the procurement of specialised equipment (including operational vehicles) to complement and in some cases, replace obsolete ones.  
Please your Excellency my continued loyally and esteemed regards.
Princess Stella Adaeze Oduah, OON, Honourable Minister.

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