Burkina Faso strips off French company Meridian of new Ouagadougou international airport contract

Burkina Faso authorities have cancelled a concession deal with French company Meridian AM to design, build, finance, operate and maintain a new International airport in capital Ouagadougou, over several reasons including the taxation regime and duration of the concession (30 years) believed to be exaggerated.

The regime of former and ousted leader Rock March Christian Kabore reached in October 2021 the concession deal worth 220 million euros with the French firm for the future Donsin-Ouagadougou Airport which will replace the current Ouagadougou-Taamse airport built in the 1960s.

Meridian for the deal partnered with Aéroport Marseille-Provence (AMP) as a technical partner under a technical assistance contract. AMP was be a minority shareholder in the special purpose vehicle set up for the project.

The deal however has been revoked by current leaders headed by transitional President Captain Ibrahim Traore who has cut off ties with the former colonial power.

Traore came to power late September removing Paul-Henri Sandaogo Damiba who himself ousted Kabore in January 2022.

The incumbent Burkina Faso authorities spotted several flaws in the deal including the taxation regime, duration of the concession, discrepancy between some of the provisions of contract and the domestic and international legal provisions, Sika Finance reports.

Relations between Burkina Faso and France have dramatically turned sour under Traore who has tilted towards Russia.