The development of the Rs.8 billion ‘Access Tower 3’ is facing delays due to the current political crisis, as the Urban Development Authority (UDA) is yet to award the lease agreement to Access Realties (Pvt) Ltd. despite the approval of the proposal by the Cabinet of Ministers in September.
The Cabinet approved the proposal to award the bid to lease a 114.56 perch land, owned by the UDA to Access Realties (Pvt) Ltd., a fully owned subsidiary of Access Engineering PLC for Rs. 1,117.20 million under a 99-year lease for the development project on September 18.
The technical committee appointed to evaluate the procurement recommended the bid to be awarded to Access Realties, after evaluating development proposals received from all three developers.
Speaking to Mirror Business, Access Engineering PLC Managing Director Christopher Joshua said, due to delays in UDA’s internal approval processes, Access Engineering is still awaiting for the letter of award for the lease agreement.
According to a senior UDA official, the current political turmoil might be delaying the internal approval process of awarding the contract to the UDA.
The UDA Chairman and directors have refrained from visiting the UDA premises due to lack of clarity created by the current political turmoil.
“The situation at UDA is not very clear to us,” an official stressed.
The third Access Tower would have 240,000 square feet of ‘Grade A’ office space with other amenities, adjoining the second Access Tower.
Access Realties is planning to invest around Rs.8 billion in the project, which includes the cost of the land.
The plot is located on Mudalige Mawatha, Union Place, Colombo 2.
“Once we sign the lease agreement, we will complete the construction in three years,” Joshua said.
He noted that Access Engineering may carry out the construction, depending on the capacity. (NF)