Governor Bassey Otu of Cross River State has revoked the concession agreement granted to CIBA Construction Company Limited to manage the Obudu Cattle Ranch.
The termination was communicated through a letter signed by the state’s Attorney General and Commissioner for Justice, Ededem Ani.
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The letter cited by the News Agency of Nigeria (NAN) detailed CIBA’s material breaches and justified the state’s decision.
According to Mr Ani, the company neglected key development obligations, particularly those outlined in Sections 5.0, 6.0, and 14.0(b) of the agreement.
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“These violations include the failure to invest in the renovation of the resort’s hotel and other essential components.
“In spite of multiple breaches, CIBA continued to fall short, prompting the Cross River Government to terminate the agreement with immediate effect,” he said.
In revoking the concession, the governor directed his Special Adviser and CEO of Obudu Ranch Resort, Sunday Michael, alongside other key stakeholders, to implement measures to revamp the facility.
Mr Michael, who also confirmed the termination of the 25-year agreement the state entered into with CIBA in 2017, attributed the company’s failure to fulfil its contractual obligations to the government action.
The concession, granted during then-Governor Ben Ayade’s administration, tasked CIBA with designing, financing, building, operating, maintaining, and ultimately transforming the ranch under a Public-Private Partnership.
The Obudu Cattle Ranch, also known as Obudu Mountain Resort, was developed in 1951 by a Scottish rancher named M. McCaughley.
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The Ranch was remodelled and made a tourist attraction by then-Governor Donald Duke’s administration between 1999 and 2007.
The Ranch was one of Mr Duke’s outstanding tourism projects in Cross River.
He fixed the twining road network all the way to the hilltop, built stunning chalets and aerial tramways (cable cars), and upgraded the ranch’s infrastructure.
However, successive administrations in the state failed to build on Mr Duke’s legacy, leading to a huge decline in patronage and deteriorated facilities.
