After awarding work on public private partnership (PPP) model to develop, complete, operate and maintain British-era Amritsar Circuit House as four-star services facility at a cost of more than Rs 23 crore, the Punjab government has initiated the process to develop another British-era government facility — the PWD rest house — in Patiala, the hometown of Chief Minister Amarinder Singh, as heritage hotel in PPP mode.
The Punjab Infrastructure Regulatory Authority (PIRA) would hold a public hearing on March 24 in connection with the proposed project, Punjab Infrastructure Development Board (PIDB) managing director Vijay Zade told The Indian Express.
The estimated project cost as per the term sheet of PIDB is Rs 28.10 crore and the heritage hotel, which is proposed to come on an area of 3.94 acres, would have minimum 50 rooms. The number of rooms could be increased as per the demand and business plan.
The project components include commercial area, food court, fine dining restaurant, gym, activity hall and banquet facility.
The heritage hotel, as per the term sheet, would be a three-star or above category hotel.
The project under PPP is supposed to come up on design, build, finance and operate (DBFOT) basis where the successful bidder would be supposed to complete construction within two years after award of the work.
The project will entail a concession period of 40 years, including construction period. However, unlike the proposed draft request for proposal for two eco-tourism projects around Thein dam in Pathankot district where the selected bidder as per annual concession fee agreement would be required to pay an annual concession fee of Rs 3.56 crore for Palangi project and Rs 2.65 crore for Kulara island project for 60 years to the state government, the PWD Rest House Heritage Hotel project does not define any concession fee amount. As per the draft proposal for the heritage hotel annual concession fee (ACF), it is supposed to be paid “with [an] escalation of 10% after every 3 years payable after 24 months of effective date or on COD (commercial operations date, whichever is earlier to be quoted at FAR (floor area ratio) of 0.75. The Concessionaire has to pay additional 0.6 times the pro-rate ACF as quoted by it for any additional FAR utilised over and above the FAR at which the bid is invited as per the provisions of the RFP (request for proposal)”.
A PIDB official said ACF was “bid variable” in the project proposal to develop PWD rest house in Patiala as heritage hotel.
A heritage building, PWD Rest House is located on Bhupindra Road, Patiala. The site has an old structure of colonial era dating back to 1940s built by the Britishers. At present, the site is owned by the Department of Housing and Urban Development. The site also has servant quarters and garages. Most of the area is green with trees, shrubs and grass. The existing building has eight rooms.