In 2009, the Niger state government conceived the idea of building a five-star hotel in Minna, the state capital. The government is said to have spent N500 million on the project so far. The hotel according to the government? was to be sited in Minna because of its closeness to the seat of power in Abuja.
The facility was conceived to provide alternative relaxation for those who may like to stay in Minna to do business in Abuja and also meant to provide the avenue to open up the tourism potentials of the state.
The government is executing the said project on a Public Private Partnership (PPP) arrangement with the design already provided and the site located along IBB road in the capital city.
In its efforts to make the project a reality, Leadership on Sunday learnt that the state government had, in October, entered into a fresh Memorandum of Understanding (MoU) with Access Field Nig. Ltd for the construction of the five-star hotel at the cost of N19.6 billion.
The state commissioner of Commerce and Investment, Malam Yahaya Dansalawu told journalists after the signing of the MoU that the new MoU followed the revocation of the earlier one signed with a private firm that reneged on the terms.
He said that in the new Memorandum, there was an agreement which stipulates that the 305 rooms five-star hotel would be completed within 24 Months.
He explained that the terms would be on Design, Build, Operate and Transfer (DBOT)? basis which will cover 25 years before the state government takes full control of the hotel.
Dansalawu said there was however, a provision in the agreement which stated that if the N19.6 billion was realised before the expiration of the 25 years, the government will take over the operation of the hotel.
The commissioner said that the state government’s interest in the operation of the hotel within the period would be represented through the appointment of some government officials into the board of directors of the hotel with equity representation.
He said that the state government would issue a bank guarantee of N1.4 billion, land of N400 million, and N500 million earlier paid to the first firm for design by bringing the entire expenditure of the government? to N2.3 billion, representing 12 per cent equity. The commissioner said that the new firm has agreed to indemnify the earlier N500 million of the other firm representing the amount for designing the proposed hotel.
Dansalawu said that the equity would enable the state government to have a representative in the board of management of the hotel when it becomes operational, pending the time the hotel will be transferred to the state government.
He added, “Because the Chief Servant is passionate about the project, a high power committee comprising seven commissioners has been set up to monitor the progress of work at the hotel and make sure it is delivered within 24 months as stipulated”.
The commissioners were those of Finance, Tourism, works, Justice, planning, and that of land while he will serve as the chairman to ensure that the project was delivered at the stipulated time of twenty four month.
“I am telling you that the people can start counting from now by the same day in 2014 I’m assuring you that the project will be completed”, he said.
On whether the new arrangement would not go like the earlier one when the government met her own parts of their agreement and the firm allegedly absconded with state fund, Dansalawu said “Public Private Partnership is like a marriage you can not claim to know your partner until when you start living with the partner”.
He said by the commitment shown by the firm so far, the government was hopeful that the firm will deliver saying that they have started mobilizing to site.
The managing director of the construction Firm, Mr. Saad Saddigui disclosed that they have decided to take responsibility of the engagements of the previous firm saying that his firm was ready to swing into action and complete the project as scheduled.
He boasted that “There is no five star hotel in Nigeria, this is the first Five star hotel in Nigeria, we will deliver”, claiming that his firm was not new in PPP arrangement as his firm was a co-partner in various projects in Nigeria.
