The lingering plan to construct a cargo airport in Makurdi Benue State has continued generated twists and turns.
Documents sighted by Newsdiaryonline show that there is a tug-of-war and the companies involved are threatening to sue Benue State Governor for breach of Concession agreement
Newsdiaryonline reports that the Makurdi Cargopolis project was flagged off by former Governor Samuel Ortom.
In a letter addressed to the Managing Director/CEO, Aerotropolis Development Company, dated 30th August. 2016, the state Government announced the “flag-off for the construction of Makurdi Cargopolis Airport at KM 28 Makurdi-Lafia Road, Benue state”
The letter addressed to the company signed by Engr Alex A. Shaapera “For Honourable Commissioner,” said “I have been directed to inform you that His Excellency, the Executive Governor of Benue State, Samuel Ortom, will on Monday 5th of September, 2016 flag-off the construction of the above named Cargo Airport by 10:00am at km 28, Makurdi-Lafia Road in Guma Local Government.
“You are by this Letter expected to make all necessary barrangement for a hitch free flag-off”, the letter announced.
The reality today however is that Ortom is no longer in power as Governor as he has been succeeded by Governor Hycienth Alia who palpably has inherited the aftermath of the seemingly embattled business deal.
The latest twist is that the contractors are accusing the state government of an alleged breach of concession agreement and are praying for a resolution.Failure to resolve the matter may result in a legal tussle, the cintractors said in a letter
A letter addressed to the Executive Governor of Benue State by the lawyers on behalf of the partners clearly urged the governor tl, “TAKE NOTICE that unless the Benue State Government complies with the Options for Settlement within 21 Days from the receipt of this Letter, we shall have no option but to commence legal and other proceedings against it.” The letter was signed by Barrister Yunusa Ibrahim Egba, esq of Ijato Chambers.
The contractors’ lawyers, outlined the options for avoiding a legal tussle in a
Memorandum of claims which includes: “An Order of Court directing the Benue State Government to pay our Clients the sum of N5,684,700,000 being 15% Equity Contribution of the total Contract Value as well as interest thereon at the rate of 7.65% per annum from Years 2017 to2022 ,and thereafter until final Settlement
” Payment of Special Damages in the sum of N2,500,000,000 being costs expended by our Clients for Construction Commencement involving Aerial Surveys, Boundary / Land Surveys, General Earth Works, Compensation Data Surveys 7 Reports, Environmental Impact Assessment Reports and Intellectual Property Rights.
“Asset Forfeiture and Travel Restrictions for the Benue State Government and the Listed Politically Exposed Persons, PEPs[6] that served under the regime of the regime of Samuel Ortom.
Even more, the governor was presented with what was described as “options for settlement”, including:
“1a) Payment of the 15% Equity Contribution valued at N5,684,700,000 plus interests thereon of 7.65%b per annum from Years 2017 to 2022 until final Settlement.
“1b). Payment of Litigation Costs of N2, 500,000,000
“1c).Payment of Construction Commencement costs of N2, 500,000,000
“2. BENUE STATE GOVERNMENT BUY-OUT OF THE PPP CONCESSION AGREEMENT
“2a). Payment of the 15% Equity Contribution of N5, 684,700,000
“2b). Payment of Intellectual Property Rights of N5, 000,000,000
“2c). Payment of Construction Commencement Costs of N2, 500,000,000
“3. CONSTRUCTION RESUMPTION AND ACTIVATION OF A NEW PPP CONCESSION AGREEMENT
“3a). Payment of the 15% Equity Contribution of N5, 684,700,000 plus interests thereon from Years 2017 to 2022 until final Settlement
“3b). Payment of N5, 000,000,000 Signature Bonus
“3c). Payment of Litigation Costs of N1,500,000,000
“3d). The provision of un-encumbered 5,262.41 Hectares of Land for the Airport Construction and Surveys for the Certificates of Occupancy for the New Airport Location.”
Actually, the letter addressed the governor was titled, RE: THE RESPONSES TO YOUR LETTERS DATED THE 4TH DAY OF MAY, 2020
PRE-ACTION NOTICE, DEMAND FOR THE RELEASE /PAYMENT OF THE 15% EQUITY OF THE TOTAL SUM OF TWO HUNDRED MILLION UNITED STATES DOLLARS(USD$200,000,000) AND WRITTEN MEMORANDUM OF CLAIMS AND OPTIONS FOR SETTLEMENT IN RESPECT OF THE BREACH OF THE PPP CONCESSION AGREEMENT BETWEEN GOVERNMENT OF BENUE STATE AND EAROTROPOLIS DEVELOPMENT COMPANY LIMITED / CARGOPOLIS DEVELOPMENT COMPANY LIMITED[1] / SINOHYDRO CORPORATION LIMITED
In the letter the partners took note of the claims of the state government before debunking them.
They said “We act as Solicitors to Aerotropolis Development Company Limited / Cargopolis Development Company Limited / Sinohydro Corporation Limited [Hereinafter referred to as “Our Clients” ]
“We have been duly briefed by our Clients and on whose consent, permission and authority write as follows:
“That “no PPP Concession[2] Agreement[3] was signed by the Parties” [i.e Benue State Government under the regime of the then Executive Governor of Benue State, His Excellency, Samuel Ortom and Our Clients], the clear implication being that it could not have been in breach of a contract that did not exist [Paragraph 7 page 5 of the Benue State Governments Letter].
Reiterating Government’s Position
“1.That what Benue State Government signed with our Client was only a Memeorandum of Understanding,MoU, which Terms the State Government did not breach on the claim that:
“(i) Although the State Government did not provide its 155 Equity Contribution for the project, it was because:
“a. That No Formal Agreement to mark the commencement of the Concession Period was envisaged by the MoU, which was signed by both parties [Paragraph 3[i][a-b] of its Letter]
“b. Our Client did not furnish evidence or willingness or capacity to pay 85% of the Project Sum [Paragraph 3[i] c of its Benue State Governments Letter]
“c. Our client did not provide the Bill of Quantities,[BOQ] or other yardstick for measuring works to be done on the site [Paragraph 3[i]c OF Benue State Governments Letter].
“(ii) That the Benue State Government had provided and handed physical possession tour client, all the lands measuring 5,262.41 Hectares required to be provided by the State for the Project and “efforts were on-going to secure the documentation for the rest of the land not covered by the Certificate of Occupancy issued our Clients [Paragraph 3[iii] of Benue State Governments Letter]
“(iii) That the land the Benue State Government provided was un-encumbered, and our Clients was not challenged in its use of the Land [Paragraph 3[iv] of Benue State Governments Letter]
“(v) That the Access Roads provided to the Airport sites were provided by the Benue State Government. The State Government in its Letter claims that no standard Access Road was required by the Mou. Ostensibly, even a bush path therefore could suffice as the Access Road to a Major Airport Construction site, and would comply with the requirements [Paragraph 3[v] of Benue State Governments Letter