Corporates snub GTDC’s PPP offer

No takers for development of prime properties; Cabral says excessive opposition to development is reason for low response

PANJIM: Goa Tourism Development Corporation’s plans of developing seven of its properties on Public Private Partnership (PPP) basis appears to have met a dead end with not many companies putting in bids.
GTDC had invited global tenders for six such properties initially including Anjuna, Colva, Britonna, Mayem, Farmagudi and Kesarval, but no decision was taken on developing the Miramar property.
However, GTDC sources reveal that the properties at Mayem, Farmagudi and Kesarval have received no bids even after being tendered twice.
While Anjuna has two bidders after two tenders, Colvale has four bidders from as many attempts while Britonna had two bidders from tenders floated twice.
Sources further disclosed that many corporates initially showed interest in the properties and purchased the document at a cost of Rs 1 lakh but none applied in the first round of tenders for the properties.
Disappointed by the snub, GTDC revised the criteria and at many places where the 5-star property was downgraded to 3-star and tenders were re-floated. However, this time too, the response was lukewarm. The highest bid for the Anjuna property is Rs 21 cr, for Colva it is Rs 11 cr and for Britonna it is Rs 10 cr.
GTDC chairman Nilesh Cabral says this has been the result of excessive opposition to development in Goa. “We are tendering these proposals for the third time now but still no bidders. This is the state of affairs, even for prime properties like Anjuna and Colvale we are unable to find a partner,” he said.
He added, “This is due to the opposition for each and every project that is coming up in the state and hence the corporates are also apprehensive on investments.”
Cabral says that people’s opposition also exists for these particular properties “and we do not know why”.
Clarifying GTDC’s stand, Cabral said the development is a win-win situation for GTDC. “The promoter will have to arrange his own funds and develop the property and cannot mortgage the property besides after developing it the property will be transferred back to the GTDC,” he said.
Cabral added further, “So we will get a fully developed hotel at zero cost after 60 years besides we will get annual revenue of 5 per cent on total turnover besides the upfront fee cost for the plot they will utilise, which runs into crores of rupees.”
On why GTDC cannot develop the properties itself, Cabral said, “Right now the salaries of employees is eating into the profits of GTDC and hence we cannot afford to get into any more hotels. Can you imagine, even a room boy is drawing more than Rs 25,000 per month so how can the GTDC run, we do not take any financial aid from the government.”