Four resorts of tourism dept to be outsourced for better maintenance

Sindh Caretaker Chief Minister Justice (retd) Maqbool Baqar while presiding over the 42nd Public Private Partnership Policy Board meeting on Saturday approved outsourcing of tourist holiday resorts of Keenjhar Lake, Haleji Lake, Hawke's Bay and Ranikot Guesthouse.

The CM directed the public private partnership (PPP) unit of the Sindh government to rehabilitate these resort facilities, tap their true potential as well as provide quality entertainment and recreational options to prospective tourists under the PPP mode.

The meeting was attended by Caretaker provincial ministers Mubeen Jumani, Ishwar Lal and Arshad Wali Mohammad, Chief Secretary Dr Fakhre Alam, Planning and Development Board Chairman Shakil Mangnejo, Board of Revenue Senior Member Zahid Abbasi, NED University Vice Chancellor Dr Sarosh Lodi, Sindh Economic Zone Chief Executive Officer Azeem Uqaili and others.

PPP Unit Director General (DG) Asad Zamin gave a detailed briefing to the interim CM on the PPP framework, including legal, institutional and regulatory setups.

The board appreciated the accomplishments and awards of development projects under the PPP mode. Details of some of the major projects were also shared such as the Ghotki-Kandhkot Bridge project, Malir Expressway project, M9-N5 Link Road project, Karachi Recycling Water project, 5MDG desalination project, and NED Technology Park project.

The board discussed the projects and took several decisions.

Nabisar to Vajihar water supply project: The project aims at supplying 45 cusecs of treated water to independent power producers in Thar Block II through a 65-kilometre-long pipeline and storage capacity of 45 days. This is the first project of its kind under the PPP mode for a water delivery mechanism.

The board was apprised about the provincial cabinet’s approval of the injection of Rs4.6 billion into the project by way of equity/sub-debt to help achieve the financial close of the project. The board acknowledged the cabinet’s decision and appreciated the achievement of the financial close.

Feasibility for Motor Vehicle Inspection project: The project will address the long-pending issue of inadequate inspection facilities for vehicles in Karachi. A private party shall establish 32 state-of-the-art vehicle inspection centres catering to light and heavy vehicles with robust enforcement mechanisms. The project is financially sustainable and the government will not provide any financial support to it.

The board was given a detailed presentation on the salient features of the proposed project. It discussed that such kind of a project was much needed in the province as it would not only address the problem of poor vehicle condition but also environmental issues in the province.

The board decided to hire transaction advisers to carry out a detailed feasibility study to develop the project for bidding.

Marble City Project: The project envisages the development of a dedicated state-of-the-art facility for setting up marble and allied industries which shall not only save the foreign exchange but also contribute towards the overall economy of the country by way of creating job opportunities and exportable goods.

The board was apprised about the background of the project along with the bidding process that was conducted earlier and its outcome. To attract more completion, the board was presented with two revised project structures for consideration and decision.

The first structure was based on conducting the bidding process based on revenue sharing with the provincial government with the demand risk being parked with private parties, which had a way of increasing the prices of the plots. The second option was based on conducting the bidding based on the development cost of the project with the demand risk being parked with the Sindh govt.

Considering that the objective of the government was to attract serious industrialists to set up the marble industry and not the revenue generation, the board approved the second structure and emphasised that international competitive bidding may be conducted to ensure wider competition.

Outsourcing resorts of Sindh Tourism Development Corporation: The project is about outsourcing four resorts — Keenjhar Lake Resort, Haleji Lake Resort, Hawke's Bay Resort and Ranikot Guesthouse under the PPP mode to rehabilitate these facilities, explore their true potential as well as provide quality entertainment and recreational options. The project will promote tourism in Sindh which will also contribute to the economy of the country.

The board was informed that engaging a private partner for this project would not only help improve the existing infrastructure but also address the issue of their operation and maintenance. The board appreciated the idea and approved the hiring of transaction advisers to conduct detailed feasibility to develop and outsource the project by way of a competitive bidding process.