Business Times

No big names for Kalpitiya, Govt. may issue fresh bids

By Duruthu Edirimuni Chandrasekera

The Sri Lankan government may issue fresh bids for Kalpitiya Integrated Tourism Resort Project (KITRP) in the hope of attracting meaty investors, as they are ‘not too happy with those who have been chosen’ to develop 10 islands in Kalpitiya in the Puttalam District, according to government sources.

“There are about 11 investors who applied to invest around US$ 500 million to put up tourist resorts, golf courses, marinas, etc in this zone which was defined as a tourist zone by the Sri Lanka Tourism Authority, but the government is not happy with the bids which have mainly come from Indian parties,” one source told the Business Times.

He said that parties such as Integrated Resorts Ltd, Sunmarina Resorts Ltd and Taprospa Resort are some of the entities that have applied for KITRP but didn’t say from where they are. “There are some local players as well, but they are also not ‘big’ names,” he said, adding that none of the big local conglomerates has applied. He said that one firm has sent the highest bid for as much as US$ 270 million, but declined to comment whether it’s Indian or a local entity.

He added that there were no bids from any western chains. However, sources close to the short-listing process of the bidders say that there’s something dubious going on. “There’s a party which has applied for sending in a bid for US$ 270 million. That is a substantial sum for these islands,” a source from the industry told the Business Times, adding that the industry is raising issues.

He added that this particular party that has applied is a consortium and strong international chains such as Grand Hyatt, Holiday Inn, MGM and Marriott have granted it ‘comfort letters’ (in the bid). ‘Comfort letter’ is a process where one backs the financial soundness of a company.

The source said the industry senses some foul play where ultimately an unsolicited bid (companies that have not sent a bid) may be entertained. But the government sources flatly denied this saying that the entire bidding process and the progression thereafter have been transparent.

The islands which are to be leased for 30 years to the investors comprise of a marine sanctuary with a diversity of habitats ranging from bar reefs, flat coastal plains, saltpans, mangroves swamps, salt marshes and vast sand dune beaches.

There are 17 islands in the Kalpitiya area and work has already begun on tourist resorts on two of them by an Indian and a Maldivian firm. Last July SLTPB said that Qube Lanka Leisure, an Indian firm, is to build 200 beach villas worth US$ 16.8 million and Sun Resorts, a Maldivian firm, is to invest some US$ 1.2 billion to build 150 water bungalows in two islands.

Luxury accommodation units to attract up-market tourists, hotels, chalets, water bungalows, Aurvedic hotels, beach cabanas, sun huts, out door barbeque pits, open air performance areas, low cost accommodation units for budget travelers, domestic airport and travels, theme/amusement parks, underwater amusement park, cable car tours, high speed boat, safaris, water sports, 18 hole golf course, observation towers, etc are on the cards for the islands.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
Dollar seen weakening to Rs 106-108 in 2011
Erroneous New Year lottery incurs heavy loss for NLB
No big names for Kalpitiya, Govt. may issue fresh bids
Seylan Bank’s top three officials resign
Grand Oriental Hotel deal in fizzled out mode
Order reserved in oil hedging arbitration
Comment - Roadmap to prosperity
Feature - US GSP for over 130 countries expires, likely to re-start in next few months
Feature - Crisis in coconut: Long term perspective for development of coconut needed
20,000 MFIs to be regulated under Micro- Finance regulations: CB Governor
Indian experts to share insights at ICASL workshop
Laugfs to offer non Acetylene metal cutting gas
Coca Cola gives permanent jobs to 25 top salesmen
City tour for tourists
Central Bank predicts 8-9% economic growth for Sri Lanka
Budget and the Deemed Dividend Tax
Overseas employment prog. should be pro-active: NWC
Markss Healthcare helps in courses to educate ‘budding’ surgeons
Communications’ specialists to share expertise at Feb. 3 seminar
No control over share price movements : PCH
New MD at Ceylon Tobacco Company
SLASSCOM elects new board for 2011
Efutures provides support services to Wall Street firms
ODEL builds 20 houses to mark 20th anniversary
Pelwatte milk foods to enter the market shortly
East coast - hot destination for heli flights
Aitken Spence Printing at Galle Literary Festival
ICASL to introduce new ICT enabled products to its students and members
20 mln shares on offer in Marawila rights issue
Former Nestle SL MD to head Kotmale
‘SURE’ rewards from Seylan Bank to all customers
Emirates sponsors popular authors to Galle Literary Festival
CB Governor on ITN's "Rupees and Sense"
Colombo bourse half day on Jan. 14
SLIC pays Harry’s DCSL Rs. 6.7 bln as per SC order
HVA set to consolidate HELADIV brand through IPO
Lankan PR firm launches website
Ray of hope for GK depositors under new payment proposals
New port city being built at $450 mln cost
Commercial Bank reaches milestone 400th ATM
Proposed 5-day week for those seeking flexible working hours: EFC
Mobitel reached 3.8 million subscribers by Nov. 2010
Tea prices, production and exports seen strong in 2011: Forbes report
SEC may revisit price band
Lanka Bell may not be sold
Sri Lanka rubber prices seen rising
Oman Air CEO speaks on in-flight entertainment
Sri Lanka is next Asian economic miracle :ex-Pakistan bureaucrat


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2011 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution