The Board of investment (BOI) has called for Request for Proposals (RFPs) to develop land belonging to the former Bogambara Prison and two plots in Katunayake Export Processing Zone as tourism projects.
The BOI is seeking a foreign or local investor to develop the 4.2 acre land plot of the historic Bogambara Prison complex to a four or five-star hotel on design, build, finance, operate model by offering a lease
up to 50 years.
The chosen investor is anticipated to create a landmark and vibrant destination in the heart of Kandy which includes city’s heritage
on centre stage.
“The BOI is flexible in terms of the specific type of development; however, the proposers shall take into consideration the land-use pattern and architectural view of the surrounding area when submitting proposals.
“The proposed development should be an innovative design and the environmental impact is an utmost important feature,” the BOI said in the RFP document.
The developer/Investor is also required to conduct relevant environmental studies such as Environmental Impact Assessments (EIAs)/Initial Environment Examinations (IEEs).
Bogambara Prison land area has been declared as a licensed zone under the provision of the BOI Act No. 04 of 1978 from 19th July 2017.
Meanwhile, the BOI has also called for RFPs to develop two vacated land plots in Katunayake Export Processing Zone potentially as two transit hotels with a minimum investment of US$ 74 million.
The two land plots are located in close proximity to the Katunayake
The minimum investment requirement for the first land plot which has an extent of 2.58 acres is US $31 million while the investment requirement for second plot of 3.57 acres of land is US$ 43 million.
The selected investors are required to furnish a refundable deposit or bank guarantee of 10 percent of the proposed investment value of the project when entering in to the agreement with the BOI.
The BOI offers a maximum lease period up to 50 years for potential investors.
The BOI has scheduled a pre-proposal conference on June 21 for potential investors for the Bogambara tourism project at the site, and interest parties are required to submit proposals on or before July 1.
For the two projects at Katunayake Export Processing Zone, the BOI has scheduled a pre-proposal conference on June 18, and interested parties are required to submit proposals on or before July 4.
The selected investors for the projects will have to pay an upfront one-time payment (lease premium) plus an annual ground rental payable throughout lease period.