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The Abia State Government has announced the revocation of the Certificate of Occupancy (C of O) of Abia Hotels, Umuahia, from Investment Guarantee Limited, the lessee and has retaken possession of the facility.
A statement issued on Sunday by the Chief Press Secretary to Governor Alex Otti, Ukoha Njoku Ukoha, said the decision is due to the company’s failure to fulfill the terms and conditions of the Development Lease Agreement signed with the State Government in 2013.
Abia state government stated that in the development lease agreement, Investment Guarantee Limited committed to upgrade and redevelop the Hotel to a 3-Star Protea Standard Hotel and manage it for 25 years.
It further revealed that the company failed to upgrade and redevelop the Hotel to the agreed standards after 12 years and are in breach of other terms and conditions of the development lease agreement with Abia State Government, hence the resolve by the state government to revoke the agreement.
The state government added that in line with its investment-friendly policies, it offered and paid compensation to Investment Guarantee Limited to cover costs incurred in the development of the hotel complex.
It said the gesture was aimed at supporting the investor and to enable the State Government utilize the facility for its intended purpose.
In the statement , the Abia State Government reaffirmed its commitment to creating a conducive environment for businesses to thrive and ensure that the assets of the State are utilized in the best interest of its citizens.
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