With over 30 Expressions of Interest received on Monday by the Ministry of Tourism for the establishment of hotels here, at least two are for the Cheddi Jagan International Airport (CJIA), Minister of Public Works Juan Edghill yesterday said.
“Just a few days ago the expressions of interest and requests for proposals for the building of hotels in Guyana closed. The intent is that we should have at least 2000 first class rooms so that Guyana could become a convention destination,” Edghill yesterday told a meeting where the Board of the Guyana Civil Aviation Authority (GCAA) was installed.
“My office has received two proposals that were submitted to the Ministry of Tourism, Industry and Commerce, where two of those persons have expressed interest in building hotels at the CJIA,” he added.
Contacted yesterday, the Ministry of Tourism’s Public Relations Officer Cordell McClure told this newspaper that information from Minister of Tourism Oneidge Walrond was “that over 30 Expressions of Interest were received” by the ministry.
He explained that he did not at the time have the information on exact number or names of the companies which submitted proposals but would check on it today.
In late September, President Irfaan Ali had told this newspaper that plans are on stream for four new hotel franchises to be established here. Shortly after taking office, according to Ali, a number of business proposals were sent to his government, including expressions to build hotels. It was in light of this he said that expressions of interest would have been publicly advertised, so that all interested hoteliers and investors are given a chance to highlight projects intended.
“All of those projects will generate hundreds of jobs. In the construction phase and then in the permanent phase, when it comes into operation. We, at least, would like to see four new branded hotels here in Guyana. We have already gone out to a public expression of interest. That is out about a week now,” he said.
“What I can say is we went out to that expression of interest because of the level of activism in the first five weeks I came to office. We have been receiving many requests for persons who want to invest in hotels, branded hotels. So we thought it best if we have all these requests to go out to a public process where everyone who is interested gets an opportunity to put in their proposals. Yes, they will be branded hotels of international standards,” he added.
The next week, the Ministry of Tourism put out a Request for Proposals (RFP). Government told interested persons that it will use the responses to the RFP “to rank and select those parties,” who would then “be invited to negotiate an MOU including land terms including zoning, development conditions, and other incentives that will be provided.”
The notice had stated, “The Government of Guyana (GOG) is in receipt of many proposals in respect of hotel development in Guyana received since August 2nd. In the interest of transparency, the GOG invites all persons interested in hotel development to submit or resubmit their proposal in accordance with this RFP. The GOG is prepared to offer generous incentives for the development of the hotel and hospitality sector including fiscal incentives. RFP’s must contain information to allow a full evaluation of the below: I. Identify the project or land proposed for hotel development specifying size, location, and other details including ownership details such as transport, lease, and associated survey plan. Detail all terms if the proposed land is to be obtained from the Government including basis of valuation and terms of lease, sale, or lease with an option to buy. For clarity, this RFP will deal with both developers using private land or seeking Government land for development. ii. Provide evidence of financial capacity to fund such a project. Only parties providing evidence of financial capacity to undertake a project as Principal will be considered.”
Further, it explained that interested parties must, “Provide a concept design for the project showing proposed site layout, number of floors, associated amenities and a rendering of the proposed project. iv. Submit background information on the development group including the investors, contractors, and other parties and how the project will be organized and executed. v. Submit experience in designing, constructing, operating, and owning a hotel. vi. Submit a summary proposal/business plan containing (i) description of number of rooms and other amenities that will be catered for (ii) type and brand of hotel and any evidence to support same (iii) expected investment and proposed capital structure (debt/equity mix and term sheets for debt) (iv) summary financial projections for project including room rate and occupancy level (v) employment levels during construction and post construction (vi) expected contractors including general, subcontractors, relevant experience, and overall supervision (viii) project schedule showing key milestones to start and complete the project (ix) any market studies (x) details on the level of local content projected during construction and during commercial operations (x) expected incentives and other support requested from GoG.”
Attorney General Anil Nandall had said that prospective hoteliers who had received titles under questionable circumstances could have returned the lands to the state and reapplied under the process.
Under Ali’s predecessor, David Granger, a plan for two hotels and an 800-acre ‘City of Ogle’ had been announced less than two weeks before the March 2nd elections. Ali had said that project has to undergo a review and this process has begun with a number of files sent to the police and the Special Organised Crime Unit (SOCU) to investigate.
Producing a list of eight companies that were vested with lands without full payment, five of which have already returned their lots to the State, Nandlall promised that “No actions would be taken against companies that surrender their allotted lands to the state”.
Yesterday, both Crime Chief Wendell Blanhum and Head of SOCU Fazil Karimbaksh told the Stabroek News that the investigations are ongoing.
