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N18.5bn debt: AMCON to take over TINAPA

By on October 17, 2013

The Asset Management Corporation of Nigeria is to take over the management of Tinapa Business Resort following a settlement agreement with the Cross River State Government for the transfer of its controlling interest.

By the agreement, AMCON is to buy back Tinapa’s debts totalling N18.5bn and provide N26bn for the revitalisation and resuscitation of the resort to reposition it as a private sector driven enterprise.

Speaker of the state House of Assembly, Mr. Larry Odey, who informed members through a letter with reference no SSG/GSA/300VOLXV1/223 and captioned Re-approval for the transfer of controlling interest in Tinapa to AMCON, said the development was a thing of joy to the people of the state.

The circular was obtained by our correspondent in Calabar on Tuesday.

Odey said, “The negotiation has been concluded and this is cheery news to members of the Cross River State House of Assembly.”

The Tinapa Business and Leisure Resort was inaugurated in 2007 by President Olusegun Obasanjo with the aim of boosting the socio-economic development of Cross River State.

Unfortunately, the huge edifice, which would have been the ‘Dubai of Africa,’ had been faced with several challenges which had hampered the achievement of its objective.

Over the years, the state government had explored several avenues to ensure the realisation of the objective for which Tinapa was established.

Following the inability of the resort to meet desired expectations of the state government, core investors, especially banks and some LGAs, it was realised that the most viable option to salvage Tinapa was to seek a private sector equity investment and divestment of significant interest of the state in the project.

The matter, which has been presented to the Cross River State Executive Council, is being given express consideration.

A member representing Ikom 1 Constituency in the assembly, Mr. Agbiji Agbiji, however, observed that the content of the letter did not mention the contributions of local government areas in the state.

He said, “The LGAs have invested, so the state government and they want to know the cost of ceding ownership to AMCON and other details of the Memorandum of Understanding.”

Another member, Mr. Jake Enyia, commended the wisdom of the state government, but added that the LGAs’ interest must be taken into consideration.

He noted that the idea behind the establishment of Tinapa was elitist, even though the intention was to transform the Cross River State economy and improve its revenue profile.

“We should not just pass it because it will amount to legislative rascality; we need to put things straight because when I was chairman of council, I contributed N180m, so also other council areas.”

 

 

[Punch]