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Draft Request for Proposals DRAFT REQUEST FOR PROPOSALS FOR INVESTMENT ON PROPERTY DEVELOPMENT ON THE LAND BETWEEN BEIRA LAKE AND SHANGRI-LA HOTEL SITE IN COLOMBO, SRI LANKA By the Cabinet Appointed Negotiation Committee (CANC) on behalf of the Government of the Democratic Socialist Republic of Sri Lanka (GOSL) Request for Proposals No. MOD/RPF/01/2016 Issue Date: 07-11-2016 Response Receipt Location: Ministry of Defence, 15/5, Baladaksha Mawatha, Colombo 03, Sri Lanka Response Location Email: [email protected] Response Location Facsimile: +94112333928 Responses be submitted by: 2.00 p.m. Sri Lanka Time on 2016-12-19 Contact Person: The Secretary , Ministry of Defence, 15/5, Baladaksha Mawatha, Colombo 03, Sri Lanka Phone: +94 112430860 Fax: +94 112333928 [email protected] CONTENTS 1. Introduction and Background ………………………………………………………….…….…. 2 2. Overview of the Requirement ………………………………………………………………..… . 2 3. Project Scope ……………………………………………………………………………….…………… 3 4. Project Site ………………………………………………………………………….……….……………4 5. Development Goals and Objectives ……………………………………………….…………..4 6. Enquiries ……………………………………………………………………………………….……..……5 7. Submission / Response Expectations ………………………………………………..……. 6 8. Submissions of Responses …………………………………………………………………….… 8 9. Respondent’s Responsibility …………………………………………………………….……..10 10. Arrangement for Site Inspection …………………………..………………………….……10 11. Respondent Expenses ………………………………………………………………………..…… 10 12. Acceptance of Responses …………………………………………………………..……..…… 10 13. Modification of Terms ……………………………………………………………………….…… 11 14. Statement of Non-Collusion ………………………………………………………………….…..11 15. Ownership of Response ……………………………………………………………….….……… 11 16. Confidentiality of Information ……………………………………………………….………. 12 17. Due Diligence ……………………………………………………………………………………..….. 12 18. No Obligations ………………………………………………………………………………..……… 12 19. Review Committee ………………………………………………………………………….……. 12 20. Period of Validity …………………………………………………………………….…………….. 12 Annexure -1 (Proposal Summary Form)………………………………………………..…. 13 Annexure -2 (Site Map-1) ………………………………………………………………………….14 Annexure-3 (Site Map-2) ………………………………………………………………………….15 Page 1 of 15 1. INTRODUCTION AND BACKGROUND The Government of Sri Lanka is interested in developing the property described below which is located in the heart of Colombo. The property is well suited to a mixed-use development incorporating luxury hotel, office, residential and shopping in an extent of 3- Acres, 3-Rood, 5-Perch land strategically located between Beira Lake and Shangri-La Hotel in Galle Face, Colombo. Galle Face Green is Sri Lanka’s iconic landmark urban park situated in the heart of the financial and business district of Colombo, along the seafront and facing the Indian Ocean. Galle Face Green is a magnificent place to witness a marvelous sun set over Sri Lanka. Without a doubt it is one of the best spots to enjoy the wonderful breeze coming off the ocean and an evening sinking the whole city in crimson red. The proposed location is surrounded by several other star class hotels. Also at the end of the green lies the magnificent Galle Face Hotel, an architectural marvel from the colonial era. The property is also within walking distance to major transport routes, shopping and entertainment areas. The site is also close proximity to the upcoming Colombo International Financial City (CIFC) mega project. CIFC is a special financial zone that is expected to become an offshore financial centre, earlier known as Colombo Port City, is to be built on an area of over 250 hectares of reclaimed land adjacent to the Galle Face Green and Colombo harbor (Annexure – 2 & 3, for Site Maps). There are also a number of other major projects within close proximity to the site in the pre-development phase including, but not limited to star class hotels. 2. OVERVIEW OF THE REQUIREMENT This opportunity of development requires “out of the box” thinking and a creative development approach for a vibrant mix of residential, commercial, community and cultural uses located and designed to foster cross functionality. Environmentally sustainable development methods and building practices should be used protecting heritage and cultural resources. The purpose of this Request For Proposal (RFP) is to provide an open and transparent process for interested investors (National/International Firms, Joint Ventures, Builders/Developers/Property Owners) to invest in design, build and fully develop the land in extent of 3-Acres, 3-Rood, 5-Perch between Beira Lake and Shangri-La Hotel in Galle Face, Colombo with the following minimum facilities by year 2019. - Luxury hotel with minimum of 200 rooms - Apartment (minimum 150) and Office Complex consist of Restaurants, Function Rooms, Shopping Complex (High End Shops) with sufficient parking facilities. - Using Eco-friendly designs and energy conserving methods Page 2 of 15 - Attractive landscaping - Solid waste management - Public open space and public access roads Through the RFP process, the GOSL will use the information provided to identify a suitable investor. Responders are encouraged to provide as much detailed information as possible. The Respondent shall analyze this RFP and provide responses in accordance with its requirements. The City of Colombo is experiencing a major transformation as a business, tourism and entertainment destination for both local residents and international visitors, the city recognizes the need for additional hotel rooms in order to draw larger conventions and events to the area and make Colombo more competitive in convention and tourism. 3. PROJECT SCOPE The Cabinet Appointed Negotiation Committee (CANC) on behalf of the Government of the Democratic Socialist Republic of Sri Lanka (GOSL) invites interested and qualified parties / investors with extensive experience in development to submit responses to this Request For Proposal (RFP) in developing the above mentioned property. GOSL hopes to receive proposals that will develop the land to meet its highest and best use. Such use should not only result in revenues to GOSL, but create sustainable jobs for the society to help boost the economy. GOSL invites responders to be innovative and creative in their responses. The intent of this RFP is to allow GOSL to determine the level of interest of respondents in developing the site under a potential long-term ground lease agreement with GOSL. The RFP process will also allow for GOSL to respond to additional questions that prospective developers may have. The land should be fully developed by the year 2019. A minimum of US$ 200 million investment is expected in developing this land. The RFP is called to offer the above land on a 99 year lease to a suitable investor/Joint Venture for a minimum of LKR 6.8 billion on the selection of a suitable proposal. The Target Price is not a minimum bid; however, respondents are advised that the price is a key component of the evaluation. The property value has to be paid up front within thirty (30) days from the date of awarding the contract. The Cabinet Appointed Negotiation Committee (CANC), Ministry of Defence, Sri Lanka and /or any other committee appointed for the purpose at its sole discretion may, or, may not proceed further based on the responses received. The CANC/MOD and/or any Committee may enter direct negotiations with any or all of the respondents. No party will have any formal contractual obligations to the other and either party can withdraw from the process at anytime for any reason whatsoever and the process is not binding on either side. Page 3 of 15 4. PROJECT SITE Environmental Conditions: The potential developer should also conduct an Environmental Impact Assessment (EIA). Additional Testing: It is the responsibility of the selected respondent to investigate all environmental conditions of the site to its own satisfaction, and any studies performed will be solely at the respondent’s cost. The GOSL will grant the selected respondent a right- of-entry for the purpose of conducting geotechnical and environmental tests. The respondent must provide GOSL with an acceptable certificate of insurance and the respondent must agree to provide the GOSL with copies of any and all geotechnical, environmental or other test reports. The target price is based upon a market value appraisal of the property that assumes the property is free and clear of all environmental adversities. 5. DEVELOPMENT GOALS AND OBJECTIVES To develop City of Colombo as the symbol of emerging Sri Lanka with limitless opportunities and a promise to offer unmatched potential for business, leisure & tourism, healthcare, hospitals, exhibition and convention centers and high quality of living, not only for the local inhabitants but also for the countless numbers of the global human family from across the shores. To build a Central Business District as an extension of the existing City of Colombo through sustainable urban development and promoting Sri Lanka as the ultimate business and tourist destination centre for trade, exhibitions and conferences in Asia, enabling the establishment of a Centre/Hub of the marine silk road in Asia and the preferred global tourism destination in Asia. The GOSL is flexible in terms of the specific type of development, though respondents must respect the land-uses and architecture of the surrounding area when submitting proposals. The proposed development should be an innovative design and the environmental impact is an utmost important feature. Successful proposals should also contain the following elements: Environmental
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