SERVICES INTERNATIONAL HOTEL LAND RECEIVES RS.850 MILLION OFFER
Islamabad, December 27, 2006

The Privatisation Commission received the highest offer of Rs. 850 million for the sale of land of "Services International Hotel (SIH)" on Shahrah-e-Quaid-e-Azam, Lahore in the open bidding round held here today under the chairmanship of Mr. Zahid Hamid Federal Minister for Privatisation & Investment and the representatives of the print and electronic media.

Three parties 1. M/s Hashwani Hotels Ltd, 2. M/s S.A Builders and 3. M/s Tri-Star Group became eligible to participate in the bidding after depositing the earnest money of Rupees one hundred million each by due date. Mr. Javaid Ali Khan Secretary Privatisation Commission briefed the parties about the bidding process prior to the bidding.

During the first round of the bidding the authorised representatives of the eligible parties dropped their sealed bids in the bid box, which were later opened and read out by the representatives of the print and electronic media. According to the first round results M/s S.A Builders offered Rs. 655 million while M/s Hashwani Hotels Ltd remained second with bid of Rs. 450 million and M/s Tri-Star Group were the lowest with an offer of Rs. 400 million. In the second open bidding round the bidders were invited to raise the bid starting from Rs. 655 million. M/s Tri-Star Group remained highest in the final round with an offer of Rs. 850 million while M/s Hashwani Hotels Ltd and M/s S.A Builders respectively offered Rs. 845 million and Rs. 800 million. The representatives of the respective departments were also present during the bidding.

Finally the bidders were asked to match the minimum acceptable price of Rs.1.53 billion but no party turned up to avail this opportunity. While talking to the media representatives Mr. Zahid Hamid Federal Minister for Privatisation & Investment said that the bidding results would be considered in the upcoming Privatisation Commission Board meeting to form recommendations for a decision to accept or reject by the Cabinet Committee on Privatisation (CCOP).

The PC had invited Expression of Interest (EOIs) in March 2006 and received nine (9) Expression of Interest (EOIs) from parties/ Groups to own and run a five star hotel on prime land on Shahrah-e-Quaid-e-Azam, Lahore, which is presently titled as "Services International Hotel (SIH)" with an approximate area of fifteen (15) Kanals and four (4) Marlas.

The parties submitting EOIs include 1. Associated Group, Lahore, 2. Bahria Town (Pvt) Ltd, Rawalpindi, 3. Hashwani Hotels Ltd, 4. Marwat Enterprises (Pvt) Ltd, Lahore 5. Regent Plaza, Karachi, 6. SA Builders, Lahore, 7.Tri Star Group, Islamabad, 8. Noor Financial Investment Company, Kuwait and 9. Consortium of Sapphire Textile Mills Limited, Lahore. A pre-bid meeting was held in October this year to create better understanding of the process and to respond to the queries of the interested parties.

The available clear title of the land is in the name of Punjab Cooperatives Board for Liquidation (PCBL) to operate a hotel. The bidders for the land shall undertake to commence construction and operate a high-rise state of the art five star hotel in an agreed time frame.