Concerns over N19bn Minna 5 star hotel

Construction of Minna Hotel was initially awarded to SOCACIC West African Limited in 2008 but four years later no single block was laid. In 2012, the state government had to enter into new agreement with another company, Access Field Nigeria Limited for the construction of the nine-storey hotel.The 305-room five star hotel has been conceived […]

Construction of Minna Hotel was initially awarded to SOCACIC West African Limited in 2008 but four years later no single block was laid. In 2012, the state government had to enter into new agreement with another company, Access Field Nigeria Limited for the construction of the nine-storey hotel.
The 305-room five star hotel has been conceived to sit on 7.057 hecteres of land provided by the state government in the heart of Minna, the capital of Niger State. The hotel complex comprises basement and ground floor of 2,416 and 7,926sqm respectively expected to house a night club, gymnasium, spar pool and utilities. Bars, restaurant, shops, meeting rooms, exhibition galleries, kitchenette, utilities and reception lobby bars will also form part of the facilities to be made available at the basement and the ground floor.
The first floor of the hotel will comprise 36 standard rooms, exhibition galleries, business center, airline counter, salon and utilities within an area of 2,912sqm. However, the third, fourth, fifth, sixth and seventh floors are all going to be within same area size of the second floor. These floors will house 44 standard rooms convertible into suites as well as two deluxe suites i.e. a suite and a gallery.

The eighth floor is to serve as executive floor within an area of 1,142sqm. It will house four ambassadorial suites that are of two-bedroom suites, six deluxe suites and a roof terrence garden bar with hall whereas the ninth floor is to serve as pent house.
Speaking on behalf of the construction company, a quantity surveyor, Mohammed Kobo Mohammed said the hotel structure is erected on raft foundation of 700mm thickness which is capable of carrying 10 storey building.
He said the construction of the hotel that was started in 2012 has now reached 50 percent level of progress as the construction has already reached a fourth floor adding that at the level construction is going, the project will be completed before the Gov. Mu’azu Babangida Aliyu’s government exits power in May this year.
According to him, the contract for the construction of three-kilometer road on the hotel premises has been sublet to Forest Construction Company saying on completion, the hotel will have provision for 100-car parking lots.
In October 2012, the then Commissioner for Trade and Investment, Yahaya Dansallau said during the signing of a Memorandum of Understanding (MoU) between the state government and Access Field Nigeria Limited in Minna that the construction of the hotel would be completed within a period of 24 months. By this statement, the hotel ought to have been commissioned in October 2014. However, its construction started in October 2012 is at present only half way completion level.
According to him, for the purpose of ensuring that the project was executed within the stipulated time frame and in accordance to the specifications, the state government constituted a seven-man high powered committee to oversee the project. Dansallau explained that the hotel project was awarded under a concession agreement between the state government and the company handling the project, where the project would be executed under Design, Build, Operate and Transfer (DBOT) basis.
He said Access Field Nigeria Limited handling the project would run the hotel for 25 years after which its ownership will be transferred to the state government adding that under the new arrangement the state government was expected to provide N2.4 billion of the total cost of the project.
The commissioner highlighted that the N2.4 billion to be provided by the government would be  translated to 12 percent equity share owned by the state, saying out of the state government’s contribution,  N1.5 billion would be issued as bank guaranteed, N500 million was for the design while the land for the project was valued at N400 million.
Dansallau maintained that within the 25 years of the concession period, the state government would enjoy 12 percent of the total profit realized while the company to operate the hotel under DBOT would enjoy 88 percent. He noted that if before the expiration of the concession period the company realizes the money it invested, the ownership of the hotel would be transferred to the state government.
He said, “The contract for the construction of the hotel was first awarded in 2008 but the project could not continue owing to some obvious reasons. The new company handling the project took over after reaching an agreement with the initial company that was to handle the project, SOCACIC West African Limited.”
In November last year, the now Commissioner for Planning,  Yahaya Dansallau while taking journalists round the project promised that it will be ready for commissioning next year [2015] as the project then had reached 43 percent completion. The commissioner who is also the committee chairman for the actualization of the hotel said, “Before the present administration exits, the project will be ready for commissioning.”
According to him, the state had played its part by providing 12 percent equity contribution for the project under Public Private Partnership (PPP). The commissioner expressed satisfaction with the quality and level of work on site, stressing that when completed the hotel would be managed by a reputable  management to ensure proper maintenance.
He said Access Field Nigeria LTD, had invested triple of what the state government had put into the project, while expressing confidence that the company would complete the work as scheduled.
On why the project failed to meet it’s earlier 24-month dateline of completion period by October last year, a quantity surveyor, Mohammed told Daily Trust that the completion period had to be extended because the company handling the construction of the hard frame of the project, Hardrock Construction Company experienced delays in the importation of some of its machines.
The government of Governor Aliyu came under critism for its failure to make the much-talked-about five-star hotel a reality. The governor while speaking in October 2012 during a town hall meeting organized by Good Governance Tour team in Minna said, “Nobody will frighten us because majority is happy with what we’re doing.”
He said his government is still determined to deliver its promise and that before the expiration of his tenure in May, the project will become a reality.