Exclusive: Warri Industrial Park ‘Megaproject’ Could Be Stalled Indefinitely Over ‘Billions’ Law Suits

The much publicised Warri Industrial Business Park “megaproject” of Delta State Government may become a mirage that would never come to fruition.

BigPen Online can report that if the lawsuits currently before the various court of justice over the requisition of land for the project are anything to go by, then execution of the project would be block for a long time.

The decision of the courts on the ‘big project’ may be a potential “fatal blow” that would nail the coffin of the project which ought to be a star project for the state government.

All the monies pumped into the initial stage of the project for feasibility study and other preliminary starts off stage would have be wasted, and more monies would go down the drain for litigations and settlements, with the project remaining in stalement.

The integrated park which would sits on 300 hectares of land according to agency report, will host a cluster of heavy industries, light industries and terrace factories, warehouses, office complex, commercial retail outlets, hotel, residential apartments and recreational facilities. The first phase of the project was expected to be delivered by December 2014 at an estimated cost of $1.5 million US dollars.

The entire project that was expected to be completed in five years’ time, is being sponsored by Warri Industrial Park Limited, WIPL, a private limited liability company. Delta State Government is the major shareholder while ARCO Petrochemical Ltd is the minority private sector shareholder. WIPL is a special purpose vehicle set up for the purpose of executing the project.

Besides erection of some buildings as part of the first phase of construction at the multibillion dollar project by Palmyra Construction which was awarded contract for the construction of the iconic administrative building which would include a seven-storey building with extended parking lots, no visible construction work is ongoing on the site.

The second contract which was awarded for the construction of 11.9 kilometres road network within the Park to be executed by CCC Construction has also been stalemated.

The project which was conceptualised by immediate past governor of the state, Dr Emmanuel Uduaghan as one of his “megaprojects” is currently embroiled in plethora of lawsuits that may not end soonest except through mechineries of Alternative Dispute Resolution (ADR).

The Warri Industrial Business Park, according to the ruling party, PDP in Delta state has been stalemated by litigations arising from the previous administration’s acquisition of the land for the project.

The information about the stalemate in the execution of the project is coming on the heels of allegations by Delta state chapter of All Progressive Congress (APC),which had accused Governor Ifeanyi Okowa of ‘killing’ the project ostensibly because his interest are not captured in the deals.

The Peoples Democratic Party (PDP) in a lengthy statement issued to counter the APC claims authored by Ifeanyi Michael Osuoza State Publicity Secretary, PDP, Delta State and seen by BigPen Online, said that Governor Okowa was already in talk with the litigants who are blocking the project execution and this may take long to finalise the negotiations which would involve huge sum of money.

BigPen Online can report that by the time Okowa would be done with the supposed negotiations, his first tenure may have elapse, thus anything concerning the project would be carryover to the next dispensation.

The PDP says though Okowa administration is committed to the full implementation of the Warri Industrial Business Park project, the project would have come to reality if it was a Public Private Partnership as per the initial concept.

Here’s the gist on the lawsuits available to BigPen Online:

To acquire the site, the then Executive Governor of Delta State, Dr. Emmanuel Eweta Uduaghan revoked the certificate of occupancies of the under-listed parties;

i. Chevron Nigeria Limited
ii. Remm Oil Services Limited,
iii. Jeph Kebbi International Ltd,
iv. Gramen Petroserve Nig. Ltd,
v. Seiya Transport Ltd,
vii. Hercules Maritime Ltd,
viii. Weafri Well Services,
ix. High Chief Government O. Ekpemupolo,
x. Mr. Bolaji Ishaka and
xi. Otien Family of Edjeba Town

The revocation was done for overriding public interest, which is for the purpose of setting up the Warri Industrial Business Park Project via Gazette No. 15 volume 19 dated April 9, 2009.

However, aggrieved with the way and manner the revocation was done, some of those affected instituted actions in court against the State Government.

There are about six of such matters in Court and listed hereunder are some of the claims.

1. Mr. Bolaji Isiaka

(a) A declaration that the purported revocation by the Defendants of the Claimant’s Right of Occupancy over his land measuring approximately 2.062 hectares at Chevron/Texaco Clinic Road, near Edjeba Juju Shrine is illegal, unlawful, unconstitutional, null and void and of no effect whatsoever.

(b) An order setting aside the purported revocation of the Claimant’s Right of Occupancy over his said land.
(c) In the alternative, the sum of N 200,000,000.00 being special and general damages.

2.  Remm Oil Service Ltd     

(a) An order declaring that as prescribed by the constitution of the Federal Republic of Nigeria and the Land Use Act of 1978, no Government letter of notice was served on the Claimant of intention to revoke the Claimant’s Certificate of Occupancy No. BDSR 6644 dated 11/1/87 registered as No.4, Page 4, Volume D28 Benin City covering the Claimant’s land measuring approximately 9.884 hectare.

(b) An order declaring that the Delta State of Nigeria gazette No. 15 purporting to revoke Claimants land fell short of the Constitutional requirement.

(c) An order of Court declaring no legal due process was followed in the revocation of title of the Claimants C of O.

(d) An order declaring void, illegal and unlawful the purported revocation of the Claimant’s C of O.

(e) An order declaring the letter of notice of revocation as null and void.

(f) An order setting aside the purported revocation.

(g) An order of perpetual injunction restraining the Defendants from illegally revoking the Claimants title to the Land.
(h) The sum of N5,000,000.00 (five Million Naira) as general damages.

3. High Chief Government O. Ekpemupolo

(a) A declaration that the Claimant is the Owner and is entitled to Customary Right of Occupancy over all that expanse of land lying along NPA-EFFURUN EXPRESSWAY, EDJEBA TOWN

(b) An order declaring as null, void and unconstitutional Notice of Revocation of the Claimant’s Customary Right of Occupancy over his said land.

(c) The sum of N 25,000,000.00 being damages for trespass on the Claimant’s land

(d) An order of perpetual injunction

4. WEAFRI WELL SERVICES LIMITED

(a) A declaration that the Defendants invasion of the Claimant’s Premises with the intention of demolishing the Claimant’s Fence/wall is unlawful, wrong, punitive, unconstitutional, null and void.

(b) An order of perpetual injunction restraining the Defendants, from invading the Claimant’s premises.

(c ) The sum N10,000,000,000.00 as damages for trespass

It is important to inform Deltans that the Okowa administration has been in talks with the litigants and other land owners affected with the hope of amicably settling the matters out of court.

As you would imagine, such a process is often long drawn; it involves lengthy negotiations because colossal sums of money are involved.

Suffice it to say that Deltans would have been spared this needless impasse had the right thing been done in the first place.

Once the legal issues are resolved, we assure Deltans, particularly those in Warri and environs, that the Okowa administration is committed to the full implementation of the Warri Industrial Business Park project.

Also, in line with the administration’s drive for private sector investment, it is the noble intention of the Okowa administration to make the Warri Industrial Business Park a project for Public Private Partnership as per the initial concept.

It is certainly not the business of, nor is it within the competence of Government to build, manage and own an industrial park.

The global best practice is Public Private Partnership for such humongous investments and that is the way to go for our people to reap the full benefits. Otherwise, it becomes a conduit pipe for public finances and a cesspool of official corruption”, excerpts of the article read.

Written by Joe Ogbodu

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