Roosevelt Hotel: ECC approves execution of settlement agreement

The Economic Coordination Committee (ECC) of the Cabinet approved the execution of a settlement agreement with the Hotel Union and the New York City Government (NYCG) for utilisation of the Roosevelt Hotel over a period of three years for immigrant housing business.

The development comes during an ECC meeting held under the chairmanship of Federal Minister for Finance Ishaq Dar on Wednesday, read a statement released by the Finance Division.

Utilising Roosevelt Hotel: ECC forms committee to negotiate with New York City

During the meeting, the Ministry of Aviation submitted a summary on challenges and re-opening of Roosevelt Hotel, New York and briefed the meeting on the outcome of negotiations held by ECC constituted three-member committee with the NYCG and the Hotel Union on reaching a suitable agreement for utilization of the Roosevelt Hotel’s 1,025 rooms over a period of three years for migrant business.

“The ECC also gave a nod for withdrawal of pending lawsuits by the Roosevelt Hotel with the Hotel Union and the City of New York pursuant to the terms of a settlement agreement with the Union,” read the statement.

The ECC further directed the Pakistan International Airline-Investment Ltd (PIA-IL) to engage and share its business plan with the National Bank of Pakistan (NBP) regarding the rollover of the loan.

Last week, the ECC constituted a three-member committee headed by Secretary Aviation Division for a comprehensive settlement with Roosevelt Hotel Union and rent out the hotel to New York City for immigrants.

Sharing the details, sources told Business Recorder back then that on April 28, 2023, Ministry of Aviation informed the ECC that while the process of re-opening of the Hotel was in progress, PIA-IL Management apprised that an opportunity had arisen whereby the New York City had sought utilization of the Roosevelt Hotel for immigrants @ $200 per room per day for a period of 36 months.

Meanwhile, the ECC, on Wednesday, also approved a supplementary grant of Rs153 million in favour of Ministry of Water Resources for payment of court cases fee for the settlement of a dispute with India under the Indus Waters Treaty.

A grant of Rs4 billion was also approved as Rupee cover in favour of the Ministry of Federal Education and Professional Training for the World Bank Programme “Actions to strengthen performance for inclusive and responsive education”.