Yobe leases GAAT hotel to investors for ten years

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In its efforts to improve the revenue base, Yobe State Council yesterday deliberated and approved a recommendation to lease GAAT Hotel, Damaturu to MESSRS Softcloud Solutions Limited for an initial period of ten years on the basis that the leasing partner will inject capital to finance the renovation, remodeling, upgrade and professional management of the hotel.

The lease also provides for a profit-sharing arrangement for 65 per cent for Softcloud Ltd and 35 per cent for the state government for the first five years of the agreement.

During the second five years, the profit-sharing ratio will be 60 per cent for the leasing partner and 40 per cent for the state government.

Abdullahi Bego, Commissioner Ministry of Home Affairs, Information and Culture revealed while briefing Newsmen shortly after the State Executive Council meeting at the Government House, Damaturu.

According to him, MSSRS Softcloud Solutions Limited will inject funds to renovate and upgrade the hotel. “The amount that the two parties agreed to be invested for the hotel upgrade is N250 million. The profit-sharing ratio was agreed in view of the fact that the leasing partner will spend its own money to renovate and upgrade the hotel”.

“It should be noted that the Yobe State Government continues to own GAAT Hotel and, at the end of the ten-year lease period, will determine whether to take back full ownership or extend the lease agreement for another period of time”.

“Second, the State Executive Council also considered and approved an offer by the Federal Inland Revenue Service (FIRS) to purchase a property belonging to the Yobe State Government at Cadastral Zone Abuja at the cost of N850 million”.

“The Council considered all the observations made about the maintenance of the property, the cost of renovating it and putting it to good use if the government were to continue to own it, etc”.

“Under the leadership of His Excellency, Governor Mai Mala Buni, the Council also approved a recommendation to use the proceeds of the sale to build a modern shopping mall in Damaturu metropolis as part of the Mega-City Development Plan of His Excellency the Governor”.

“The State Executive Council reckoned that both the lease of the GAAT Hotel and the sale of the Abuja property and using the proceeds to build the mall will enhance the economic development of the state”.

“As peace continues to return to the state and more people visit the state capital for business and work, these measures will help boost economic activity and improve internally generated revenue”.

On the modern market project, he said that the Council also approved the sum of N800, 072, 510.35 for revised additional works on the Damaturu Modern Market project and another N669, 681, 763.81 for additional electrical works at the Damaturu International Cargo Airport.

“It should be noted that the Damaturu International Cargo Airport is currently at 93 per cent completion stage. The installation of the additional electrical works not previously covered by the initial contract will ensure the timely completion of the airport according to all the standards and guidelines set forth by the Nigeria Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN) and the International Civil Aviation Organization (ICAO)”.

“In addition to the above, the State Executive Council has also ratified the spending of over N10 billion for the provision of various social services. Ratification of N315 million for the provision of 14 SOCOOL 4X4 Diesel Vehicles to the State Roads Traffic Agency (YOROTA)”

“N582, 939, 420.91 for the construction of 2.6 km flexible pavement road and 5.2km rectangular reinforced concrete drainage in Potiskum”

“Council also ratified the sum of N863, 927, 506.76 for the construction of 3.2km and 6.4km rectangular reinforced drainage at Nguru Town”.

“The sum of N593, 098, 473.71 was also ratified for the construction of 2.0km road and 4.0km drainage at Gashu’a”.

“Another N550, 451, 659.07 was approved for a similar project in Gaidam, namely 2.0km flexible pavement road and 4.0km concrete drains”.

“The Council also ratified N930, 766, 924.81 for the construction of 5.3km road to link Potiskum Dual Carriageway to Gujba Dual Carriageway in Damaturu metropolis”.

“To compensate owners of property acquired for the construction of the Nguru Modern Market, the sum of N298, 303, 485.50 was ratified by the Council”.

“Council also ratified the sum of N2, 880, 091, 770.34 for the construction of Phase 1 of the Potiskum Truck Transit Park”.

“Also ratified is the sum of N2, 614, 454, 200.00 for the construction of the Nguru Modern Market; N195, 831, 900.00 for compensation of property owners used for the construction of the Potiskum Modern Market; and N370, 387, 488.00 for the connection of eight MDAs to the State Integrated Financial Management Information System (SIFMIS)”.

“The total amount approved or ratified by the Council stands at N11, 665, 007, 193.27”.

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