AMCON set to take over cash-strapped TINAPA
The Asset Management Corporation of Nigeria (AMCON) is to take over the management of Tinapa Business Resort sequel to a settlement agreement with the Cross River State Government for the transfer of its controlling interest.
The agreement allows AMCON to buy back Tinapa's debts totalling N18.5bn and provide N26bn for the revitalisation and resuscitation of the resort to reposition it as a private sector driven enterprise.
The Speaker of the state House of Assembly, Mr. Larry Odey, who informed members through a letter with reference no SSG/GSA/300VOLXV1/223 and captioned Re-approval for the transfer of controlling interest in Tinapa to AMCON, said the development was a thing of joy to the people of the state.
Odey said, 'The negotiation has been concluded and this is cheery news to members of the Cross River State House of Assembly.'
The Tinapa Business and Leisure Resort was inaugurated in 2007 by President Olusegun Obasanjo with the aim of boosting the socio-economic development of Cross River State.
Unfortunately, the huge edifice, which would have been the 'Dubai of Africa,' had been faced with several challenges which had hampered the achievement of its objective.
Over the years, the state government had explored several avenues to ensure the realisation of the objective for which Tinapa was established.
Following the inability of the resort to meet desired expectations of the state government, core investors, especially banks and some LGAs, it was realised that the most viable option to salvage Tinapa was to seek a private sector equity investment and divestment of significant interest of the state in the project.