BIDDING FOR SERVICES INTERNATIONAL HOTEL LAND ON THURSDAY July 26

Islamabad, July 4, 2007

The Privatisation Commission is all set to hold bidding for the sale of Services International Hotel land on July 26, 2007 Thursday at 11 am at Privatisation Commission Conference Room at Islamabad with commitment from successful bidder to build, own and run a five star hotel on a prime piece of land on Shahrah-e-Quaid-e-Azam, Lahore, presently titled “Services International Hotel (SIH)” with an area of fifteen (15) Kanals, three (03) Marlas and one-hundred thirteen (113) square feet (68,288 square feet approximately). Mr. Zahid Hamid Federal Minister for Privatisation & Investment will supervise the bidding process in the presence of the representatives of the print and electronic media.

The Privatisation Commission had invited fresh Expression of Interest (EOIs) from financially sound international organizations with operating experience, and individual / consortium of investors in this regard. The PC had received seven EOIs which include 1. ASSOCIATED GROUP, LAHORE, 2. THE CITY GROUP, ISLAMABAD, 3. HASHWANI HOTELS LTD, ISLAMABAD, 4. RUPALI POLYESTER LIMITED, LAHORE, 5. ABRAAJ CAPITAL LIMITED, DUBAI, UNITED ARAB EMIRATES, 6. AL SABAIEA NATIONAL GENERAL TRADING & CONTRACTING COMPANY, KUWAIT. 7. MARWAT ENTERPRISES, LAHORE.

The interested parties have already sent EOIs alongwith non-refundable processing fee of US $ 5,000 or equivalent Pak Rupees. They were further asked to submit earnest money amounting to Rupees one hundred million latest by July 23, 2007 (Monday).

The successful bidder shall have to construct a five-star hotel including basements in accordance with the Building Regulations of Lahore Development Authority (LDA). The permissible height of the hotel building shall be 400 feet. The allowable floor area ratio shall be 1:12. The coverage at ground floor shall be permissible after leaving 50 feet house line towards Shahrah-e-Quaid-e-Azam, 13 feet wide space at three sides including the rear side of the building. Upto 20% of the total covered area would be commercial area with the condition that only 5% of this area would be used for shops while the remaining 15% would be dedicated for offices.

The successful bidder shall have to construct a five-star hotel within a three-year time frame. The Successful Bidder shall submit a Performance Bank Guarantee equivalent to fifteen percent of the bid price. The Privatisation Commission shall have the legal right to encash the Bank Guarantee if the Successful Bidder fails to achieve the agreed construction milestones.