The Cross River State Government has officially terminated its concession agreement with CIBA Construction Company Limited over the management of the Obudu Cattle Ranch, citing a series of breaches in the contractual terms.
The ranch, now more commonly known as the Obudu Mountain Resort, was initially concessioned to CIBA in 2017 under the leadership of former Governor Ben Ayade. The agreement, set to last for 25 years, was intended to rejuvenate the resort by entrusting CIBA with responsibilities including renovation, maintenance, and operation of the facility.
However, only eight years into the deal, the government has opted to revoke the agreement, citing several significant failures on the part of the construction company.
In a letter signed by the state’s Commissioner for Justice and Attorney-General, Ededem Ani, the state government outlined multiple material breaches by CIBA. These breaches primarily concern the company’s failure to fulfill key obligations under Sections 5.0, 6.0, and 14.0(b) of the agreement.
According to the government, CIBA neglected to invest in the renovation of the hotel and other essential facilities, which were crucial to the development of the resort. The letter further stated that the company’s overall performance in meeting the terms of the agreement had been subpar, prompting the termination of the contract.
The Obudu Cattle Ranch, originally developed in 1951 by Scottish rancher M. McCaughey, was reimagined as a premier tourist destination under Governor Donald Duke’s leadership in the early 2000s.
However, under successive administrations, the resort fell into a state of disrepair, leading to a decline in visitor numbers. The decision to concession the resort to CIBA in 2017 was seen as a strategic move to restore the facility’s former glory.
However, the failure to meet agreed-upon development milestones has now led to the termination of the deal.
Governor of Cross River state, Prince Bassey Edet Otu has tasked Sunday Michael, the state’s Special Adviser and Chief Executive Officer of Obudu Ranch Resort, with overseeing the immediate revamping of the resort.
The government has expressed a renewed commitment to transforming the facility into a major tourism hub for both local and international visitors.
This development comes as the Cross River State Government continues to explore new avenues for economic growth.
In a separate initiative, the state has recently signed a concession deal with the Jampur Group, an Indian business conglomerate, to manage a state-owned garment factory, a fertilizer plant, and other assets. The deal is projected to span two decades and facilitate the state’s economic development.
