Sunday, 20 March 2016

Lagos State government puts Falomo shopping complex up for bidding.


Falomo Shopping Complex 
Seven months after the termination of a concession that granted the redevelopment of Falomo Shopping Complex to Afriland Properties Plc., the Lagos State Government on Sunday threw up the complex for bidding under the public-private partnership arrangement.
Likewise, the state government has asked appropriate business entities to undertake the development and delivery of a wide range of facilities in different parts of the state, also on a PPP arrangement.
These intentions were expressed in a statement the Commissioner for Information & Strategy, Mr. Steve Ayorinde issued on Sunday.
He said it was part of plan of the administration of Governor Akinwunmi Ambode to achieve its aggressive urban development goal in the state.
The state government had on August 18 the termination of the Falomo Shopping Complex concession, which the Lagos State Development and Property Corporation (LSDPC) granted to Afriland Properties, a subsidiary of Heirs Holdings under the chairmanship of Mr. Tony Elumelu.
The state government then argued that the decision to terminate the concession was carried out based on a recent discovery that the concession was grossly detrimental to the interests of the people of the state, noting that the concessionaire only paid N50 million for a 50-year lease of the property belonging to the government.
But the concessionaire disputed the claim of the state government, saying the shopping mall was not leased to it for 50 years for N50 million. Rather, the concessionaire said it paid a sum of N50 million to the state government as an expression of interest in the redevelopment project.
After the controversies subsided, a widow of dialogue was opened between the state government and Afriland Properties Plc to review and possibly renegotiate the terms and conditions of the concession, which the former said, was sealed to the detriment of the state’s interest.

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