The Abia State Government has revoked the Certificate of Occupancy of Abia Hotels Umuahia and repossessed the facility from Investment Guarantee Limited, citing the company’s failure to fulfill the terms of a Development Lease Agreement signed in 2013.
According to a statement issued on Sunday by the Chief Press Secretary to the Governor, Ctzr. Ukoha Njoku Ukoha, the company had committed in the agreement to upgrade and redevelop the hotel into a 3-Star Protea-standard facility, which it would manage for 25 years but failed to meet the obligations.
“The Abia State Government has revoked the Certificate of Occupancy and retaken possession of Abia Hotels, Umuahia, from Investment Guarantee Limited, the lessee, due to the company’s failure to fulfill the terms and conditions of the Development Lease Agreement signed with the State Government in 2013″, the statement read.
Ukoha explained that 12 years after the signing of the agreement, Investment Guarantee Limited had not upgraded or redeveloped the hotel as agreed.
He added that the company was also in breach of several other terms of the contract which he said, compelled the State Government to terminate the lease.
“In the development lease agreement, Investment Guarantee Limited committed to upgrade and redevelop the Hotel to a 3-Star Protea-standard Hotel and manage it for 25 years.
“However, the company has failed to upgrade and redevelop the Hotel to the agreed standards after 12 years and is in breach of other terms and conditions of the development lease agreement with Abia State Government, prompting the State Government to revoke the agreement”, he added.
The Governor’s Aide explained that despite the revocation, the present administration remains committed to investor-friendly practices, pointing out that compensation was paid to the company to cover costs incurred during the period of its involvement in the project.
Ukoha further noted that the gesture was aimed at supporting the investor and allowing the State to put the hotel to proper use.
“In line with its investment-friendly policies, the Abia State Government offered and paid compensation to Investment Guarantee Limited to cover costs incurred in the development of the hotel complex”, he said.
He reaffirmed the administration’s resolve to ensure that State-owned assets are optimally utilised in the interest of its citizens.
“The Abia State Government remains committed to creating a conducive environment for businesses to thrive while ensuring that the assets of the State are utilised in the best interest of its citizens”, Ukoha stated.
