LANGKAWI DEVELOPMENT AUTHORITY (LADA) REQUEST FOR PROPOSAL (RFP) FOR THE DEVELOPMENT OF CHENANG 2 ON LOT 60002, JALAN KUALA MUDA, MUKIM PADANG MATSIRAT, 07000 LANGKAWI, KEDAH DARUL AMAN. SECRETARIAT: INVESTMENT AND BUSINESS FACILITATION DIVISION LANGKAWI DEVELOPMENT AUTHORITY (LADA) 7TH FLOOR, LADA COMPLEX JALAN PERSIARAN PUTRA, KUAH 07000 LANGKAWI, KEDAH DARUL AMAN MALAYSIA TEL: +604 960 0600 FAX: +604 960 0643 EMAIL : [email protected] WEBSITE: www.lada.gov.my CHENANG 2 DEVELOPMENT ON LOT 60002 JALAN KUALA MUDA, MUKIM PADANG MATSIRAT 07000 LANGKAWI, KEDAH TABLE OF CONTENTS NUM. SUBJECT PAGE 1. INTRODUCTION 3-4 2. GUIDANCE FOR PROJECT BIDDERS 4-9 2.1 Objectives of RFP 4 2.2 General Scope 4-6 2.3 Project Site 6-7 2.4 Site Visit 7 2.5 Project Implementation 8-9 DETAILS OF INFORMATION TO BE PREPARED BY PROJECT 3. 9-16 BIDDERS 3.1 General Information 9-10 3.2 Project Development Concept 10-12 3.3 Project Management Concept 12 3.4 Corporate Capability 13 3.5 Technical Capability 13 3.6 Financial Capability 14 3.7 Project Feasibility 14-15 Cost Estimate, Financing Method, and Return on Investment 3.8 15 (ROI) 3.9 Marketing Strategies 15 3.10 Benefits for Langkawi Development Authority and Langkawi 16 4. MAIN TERMS AND CONDITIONS 16-20 5. OTHER TERMS AND CONDITIONS 20-23 APPENDIX Appendix A : Site Plan 24 Appendix B : Map of Location Around Chenang 2 Site 25 Appendix C : List of Technical Departments/Agencies 26-29 Appendix D : LADA Secretariat 30 Appendix E : Background of Bidding Company 31-33 Appendix F : Declaration 34 Appendix G : Integrity Pact 35 Appendix H : Investment Checklist 36 2 ALL RIGHTS RESERVED LADA/2021 CHENANG 2 DEVELOPMENT ON LOT 60002 JALAN KUALA MUDA, MUKIM PADANG MATSIRAT 07000 LANGKAWI, KEDAH 1. INTRODUCTION 1.1. Langkawi has rapidly developed into a renowned resort island in Malaysia and the Southeast Asia region ever since the early 90’s. From being highly dependent on only agricultural and fishery produce, it has transformed into an island whereby the main economic driver is tourism sector. 1.2. To ensure Langkawi stays competitive as a prominent tourism destination in Malaysia as well as at international level, new and international-class facilities and products need to be developed. 1.3. Presently, a few areas have been identified as major tourist spots in Langkawi, among which include Pantai Chenang. In general, however, the development of this area is disorganised with majority of the buildings are not constructed following the conditions determined by the Local Authorities. The area is also affected with traffic congestion and vehicle parking issues as well as dull landscapes, therefore preventing the exhibit of Pantai Chenang’s beauty towards tourists at the desired level. 1.4. Hence, LADA intends to establish a developed area which comprises new iconic attractions. This development must be executed in organised and systematic manners, aside from utilising green technologies, embellished with remarkable landscapes, and offering global beach holiday destination experience. One highly potential and strategic site that has been identified for development is Lot 60002, Jalan Kuala Muda, Mukim Padang Matsirat, 07000 Langkawi, Kedah Darul Aman. This location is situated close to Langkawi International Airport, whereby two apartment areas namely Perdana Service Apartment and The Laguna as well as Ombak Villa Langkawi, a resort hotel, are strategically located about 2.5 kilometres north of the landmark. To the south, two facilities formerly known as Aquabeat and Century Langkasuka Resort are also available. This lot is also positioned between a seashore and a main road known as Jalan Padang Matsirat – Kuala Muda. 3 ALL RIGHTS RESERVED LADA/2021 CHENANG 2 DEVELOPMENT ON LOT 60002 JALAN KUALA MUDA, MUKIM PADANG MATSIRAT 07000 LANGKAWI, KEDAH 1.5. In realising this intention, participation and cooperation from private sectors are crucial to ensure the spur of development and tourism growth in Langkawi by industrial parties. Collaboration between public and private sectors in accomplishing the strategic investment proposal is needed to provide excellent products and services, thereby achieving the goal of making Langkawi as a luxurious holiday and world-class ecotourism destination. 2. GUIDANCE FOR PROJECT BIDDERS 2.1. Objectives of RFP Langkawi Development Authority (LADA) wishes to invite proposals from Bidding Companies to assume and manage Chenang 2 iconic development project. This will be part of LADA’s efforts in maximising its asset strategic values via public-private collaborations. The RFP also aims to provide guidance for Bidding Companies besides welcoming creative and innovative ideas as well as proposals in utilising green technologies from companies involved with the future development of Chenang 2 project. 2.2. General Scope Bidders are expected to acquire in-depth understanding on: i. The site plan of Lot 60002, Jalan Kuala Muda, Mukim Padang Matsirat, 07000 Langkawi, Kedah Darul Aman (as per Appendix A); ii. Map of location around the site of Lot 60002, Jalan Kuala Muda, Mukim Padang Matsirat, 07000 Langkawi, Kedah Darul Aman (as per Appendix B); iii. The proposed development components are as follows: 4 ALL RIGHTS RESERVED LADA/2021 CHENANG 2 DEVELOPMENT ON LOT 60002 JALAN KUALA MUDA, MUKIM PADANG MATSIRAT 07000 LANGKAWI, KEDAH North End Zone (Mixed Development Zone) Centre Zone (Family-friendly Zone) South End Zone (Gastronomy Zone) Development Components Zone Proposal North End Zone: a. 3-star and above hotel Mixed Development Zone accommodations (international hotel chains such as Ibis, Bayview, Marriot, and others) b. Esplanade; c. Retail Pods; d. Retail Outlet; e. Anchor Tenant; f. Seafront Park; and g. Parking & Buggy Station Centre Zone: a. Skateboard Park; Family-friendly Zone b. Plaza; c. Cinema; d. Food Court; and e. Info Centre South End Zone: a. 3-star and above hotel Gastronomy Zone accommodations (international hotel chains such as Ibis, Bayview, Marriot, and others) b. Green Spine; and c. Seafood Restaurants. 5 ALL RIGHTS RESERVED LADA/2021 CHENANG 2 DEVELOPMENT ON LOT 60002 JALAN KUALA MUDA, MUKIM PADANG MATSIRAT 07000 LANGKAWI, KEDAH iv.Requirements of Technical Departments/Agencies (list of technical departments/agencies as per Appendix C. 2.3. Project Site 2.3.1. The total land area of PN 6269, Lot 60002, Jalan Kuala Muda, Mukim Padang Matsirat, 07000 is 29.949 acres or equivalent to 121,200 square metres. This lot is situated in the main settlement of Padang Matsirat and is nearby Langkawi International Airport which is only 2.5 kilometres away. 2.3.2. The land use category is industrial whereas the express condition for this land lot is hotel site. The restriction interest for Lot 60002 is “Prohibited from doing any form of arrangements except mortgage within 10 years duration effective from the registration date of ownership letter except with permission from the State Authority” and the zoning allowed under District Local Plan (DLP) is Business Zone or Mixed-Commercial Cluster. 2.3.3. The land is located about 20.7 kilometres away from Kuah town centre or about 2 kilometres to Padang Matsirat town. This lot is situated in front of Jalan Kuala Muda and is facing the view of Pantai Pasir Berdengung. The land lot too, is located in between Aquabeat and Perdana Beach Apartment as seen in the following map:- 6 ALL RIGHTS RESERVED LADA/2021 CHENANG 2 DEVELOPMENT ON LOT 60002 JALAN KUALA MUDA, MUKIM PADANG MATSIRAT 07000 LANGKAWI, KEDAH Perdana Beach Resort Aquabeat 2.4. Site Visit 2.4.1. Bidding Companies are obligated to attend site visit arranged by LADA. If Bidding Companies do not attend the scheduled site visit on 15th July 2021, their proposals will thus not be considered. 2.4.2. Further information regarding the site visit can be obtained from Investment and Business Facilitation Division of Langkawi Development Authority. 7 ALL RIGHTS RESERVED LADA/2021 CHENANG 2 DEVELOPMENT ON LOT 60002 JALAN KUALA MUDA, MUKIM PADANG MATSIRAT 07000 LANGKAWI, KEDAH 2.5. Project Implementation 2.5.1. The proposed implementation schedule is as follows: Estimated Num. Details Date/Duration i. Invitation for RFP 15th April 2021 Proposal preparation by bidding 15th April – 13th July ii. companies 2021 Proposal submission and processing fee iii. 14th July 2021 payment of RM 1,000.00/lot iv. Site visit 15th July 2021 Technical and financial evaluations by 4th August 2021 v. committee 18th August 2021 Tabling to Investment Project Evaluation 4th Week of August vi. Committee 2021 Shortlisted companies are required to pay 1st Week of September vii. Commitment Fee as per paragraph 4.5 2021 Tabling and evaluation by Langkawi viii. Investment and Project Evaluation September 2021 Committee Meeting September/ October ix. Tabling to LADA Board of Directors 2021 September/ October x. Letter of Intent 2021 October/November xi. Letter of Award 2021 Reimbursement of Commitment Fee to October/November unsuccessful bidding companies 2021 October/November xii. Letter of Acceptance (SST) 2021 Development or commercial terms and December 2021 - xiv. conditions agreement to be signed Februari 2022 subject to both parties’ consensus Performance Bond in the form of Bank During signing of xiii. Guarantee (BG) as per paragraph 4.21 Lease Agreement During signing of xv. 1st Lease payment as per paragraph 4.23 Lease Agreement 8 ALL RIGHTS RESERVED LADA/2021 CHENANG 2 DEVELOPMENT ON LOT 60002 JALAN KUALA MUDA, MUKIM PADANG MATSIRAT 07000 LANGKAWI, KEDAH Estimated Num. Details Date/Duration Application for status declaration as Malay After signing of xvi. Company by investor agreement Planning Permission (KM) approval, xvii. 4 Months After SST approvals related to lease, and others xviii. Construction work commencement After Approval of KM Construction completion, Certificate of 2022 – 2027 (subject xix. Completion and Compliance (CCC) to proposed approval, and operation commencement Development Phase) 3. DETAILS OF INFORMATION TO BE PREPARED BY PROJECT BIDDERS Project Bidding Companies are required to submit complete and detailed information regarding development and management proposal of Chenang 2, Lot 60002, Jalan Kuala Muda, Mukim Padang Matsirat, Langkawi, Kedah.