ISLAMABAD: The Federal Government has decided to lease out properties of Pakistan Tourism Development Corporation (PTDC) in Gilgit-Balistan (GB) and Azad Jammu and Kashmir (AJ&K) on the basis of competitive bidding, official sources told Business Recorder.
Sharing the details, sources said, the Federal Cabinet had directed Cabinet Division to work out a mechanism, in consultation with the provinces/ regions, for handing over assets of PTDC along with related HR and liabilities to respective provinces and regions. The Cabinet Division, keeping in view the corporate status of the PTDC, proposed that the matter may be placed before the PTDC Board of Directors (BoDs) for finalizing the requisite mechanism of transfer.
The mechanism for transfer of properties to the provinces had been finalized and approved by the PTDC Board of Directors, and the same would be separately placed before the Federal Cabinet for consideration after developing consensus with the respective provinces.
Apropos of PTDC properties located in Azad Jammu & Kashmir and Gilgit-Baltistan, two meetings were held with AJK and GB on October 07, 2019 and February 13, 2020 under the chairmanship of SAPM on Overseas Pakistanis/ Chairman PTDC and the Federal Minister for Kashmir Affairs and GB. The special status of AJK and GB in the Federation of Pakistan was discussed.
The regions proposed that properties located in AJK and GB may not be transferred to them, instead they may be leased out by PTDC to well-established hospitality chains on long term basis in a transparent and competitive manner as per the rules in vogue. Subsequently, the Government of AJK and Government of Gilgit-Baltistan conveyed their consent to lease out PTDC properties in the two regions through open competitive bidding as per the agreed arrangements.
Considering the proposal of the governments of AJK and GB, the PTDC Board of Directors, in its 89th meeting on July 02, 2020, resolved to retain the PTDC properties located in AJK and GB and decided to lease them out to reputable companies/ firms related to hospitality sector on long lease basis (20 year lease extendable for a similar term on satisfactory performance). The revenue proceeds from these properties should first be used for clearing liabilities related to these properties, human resources, etc., and, thereafter, 50 per cent of net revenue/ profit proceeds would be transferred to AJK and GB on annual basis, to be utilized for promotion of tourism in AJK and GB. The remaining 50 per cent of net proceeds of lease should be retained and utilized by PTDC for promotion of tourism sector in Pakistan.
A consultancy firm (consortium) was engaged by the PTDC to carry out business advisory study of the properties and prepare the lease documents. The consultant has already completed the assignment and submitted lease advertisement/ pre-qualification/ Request for Proposal (RFP) document and concession agreement in respect of the PTDC properties located in AJ&K & GB. The matter was placed before the PTDC Board of Directors in its 93rd meeting held on August 23, 2021. The Board approved the advertisement/ prequalification/RFP documents and authorized the management to publish the advertisement for leasing out the PTDC properties located in AJ&K and GB in print media/ PPRA and PTDC websites for inviting expressions of interest from interested firms. However, the proposals of interested parties would be considered/ finalized after obtaining approval of the Federal Cabinet to lease out these properties. The advertisement for pre-qualification of firms/companies had been published in daily newspapers on September 12, 2021.
In the light of recommendations of the PTDC BoDs and consent of the governments of AJK and GB, it was proposed that the PTDC properties located in AJK and GB may be leased out to private sector through open competitive bidding in a transparent manner. The PTDC Board of Directors would finalize the leasing process. The Federal Cabinet, in its previous meeting approved the proposal submitted by the Cabinet Division.
Copyright Business Recorder, 2021
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