Kia Terminal 1 rent agreement to generate over US$ 5.3m

The Ghana Airports Company Limited has rented out the ground floor of Terminal 1 to a private company, McDan Aviation for use as a Logistics Operations Centre for a period of fifteen years from January, 2019 and expected to generate some US$5.3 million.

The agreement is such that the rent of every year is US$ 354,480 subject to renewal every two years.

Aviation Minister, Joseph Kofi Adda disclosed this on the Floor of Parliament when he was invited to answer a question posed by MP for Adaklu,Kwame Governs Agboza, about the current status of Kotoka Airport Terminal 1.

According to the Minister, the decision to sign the agreement forms part of the government’s efforts to put in place measures to make Ghana an aviation hub in the sub-region.

“The aviation sector has embarked on n initiative dubbed: ‘Aviation Driven Development’ in line with the version to make Ghana an Aviation Hub within the Sub-Region and beyond. The initiative seeks to use aviation as a catalyst for growth and development by developing the aeronautical and non-aeronautical side of aviation to ensure revenue generation and sustainability of the airports whilst enhancing safety and security.

The initiative is also to make the KIA highly competitive within the sub-region and the global community and Ghana as the preferred destination of choice for travelers for tourism, business and related activities,” he said.

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Pursuant to the Ghana Government Agreement with the United States, McDan has also signed a management agreement with the United States Military, and provides logistics and handling services to the US Military through Terminal 1 (Fixed Based Operations).

Prior to the agreement, terminal 1 is a two-storey building, which until October, 2018 was used for domestic airline operations. It also housed Airlines and Offices of the Ghana Airports Company Limited (GACL).

Following the relocation of International airline operations to Terminal 3 in October, 2018 as well as the increase in domestic passengers, GACL relocated the domestic airline operations from Terminal 1 to Terminal 2.

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