Governor Bassey Otu of Cross River State has terminated the concession agreement granted to CIBA Construction Company Limited for managing the Obudu Cattle Ranch, citing multiple breaches of contract.
The revocation was conveyed in a letter signed by the state’s Attorney General and Commissioner for Justice, Ededem Ani. The letter highlighted CIBA’s failure to meet key development obligations, particularly in renovating the resort’s hotel and other essential facilities, as stipulated in the agreement’s Sections 5.0, 6.0, and 14.0(b).
“In spite of multiple breaches, CIBA continued to fall short, prompting the Cross River Government to terminate the agreement with immediate effect,” Ani stated.
Following the revocation, Governor Otu directed the Special Adviser and Chief Executive Officer of Obudu Ranch Resort, Sunday Michael, and other stakeholders to implement measures for the facility’s revival.
Michael confirmed the termination of the 25-year concession, initially granted to CIBA in 2017 under former Governor Ben Ayade’s administration. The agreement had tasked the company with financing, operating, and upgrading the ranch under a Public-Private Partnership (PPP).
The Obudu Cattle Ranch, originally developed in 1951 by Scottish rancher M. McCaughley, was transformed into a major tourist attraction by the Donald Duke administration between 1999 and 2007. Duke’s government modernized the resort by constructing chalets, an aerial cableway, and improving infrastructure. However, subsequent administrations failed to sustain these developments, leading to a decline in patronage and facility conditions.
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