The Ministry of Privatization has officially floated tenders for privatization of the Jinnah Convention Center (JCC), as per the official notification circulated by the ministry’s publication arm.
The convention center has existed on the active list of privatization for the better part of a decade, envisaging 100 percent share transfer to potential buyers upon acquisition. Reports suggest that the money generated through its sale will be allocated for potential development projects under the Capital Development Authority (CDA).
As per the official notification, reputed investors, both local and international, have been invited for the purchase of the Convention Center through competitive bidding.
The 2nd Privatisation Commission Board meeting of the year 2021 held today. Privatisation process of Services International Hotel ,Heavy Electrical Complex , Jinnah Convention Center and some other entities will be completed soon. @smmsoomro#Pakistan @MoIb_Official pic.twitter.com/M2A2CT4sZP
— Ministry of Privatisation (@PrivComPakistan) March 11, 2021
In this regard, a statement read, “The government, acting through the Privatization Committee (PC), intends to proceed with the sale of the leasehold rights of JCC Property through competitive bidding. The Privatization Committee has obtained the approval of the federal cabinet and no objection from the Capital Development Authority on the following key features of this Transaction:
- JCC Property shall have a commercial status with a total plot size of 7.59 acres (including built-up structure on 4.13 acres)
- Flexible land use [convention center / hotel (with in-house retail) and/or office space and/or apartments]
The prospective investor(s) will have the choice to retain the existing structure or not. In case of the latter option, the prospective investor(s) shall ensure adequate provision of space for the holding of convention/conferences, etc., while exercising mixed use of development options
- The total footprint of the development shall be up to 70% of the total plot size
- The maximum allowable height limit of 335 feet with Floor Area Ratio (‘FAR’) of 1:10, and vehicle parking based on one car per 1,000 sq. feet of covered area
- The investor(s) would have a right to sell leasehold rights in built-up units”
Upon receipt of the Expression of Interest by the Privatization Committee, the interested parties will receive a Request for Statement of Qualification (RSOQ). Early submission of EOI will allow parties maximum time for completion of their Statement of Qualification (SOQ).
As per the official notification, the SOQ must be submitted, in hard copy and by mail, to the Privatization Commission no later than 4 p.m. (PST), 14th April 2021.
The Jinnah Convention Center has been on the list of privatization for a long time due to its heavy losses estimated at Rs 56 to 60 million per annum when Nawaz Sharif was the Prime Minister.
The land on which the convention center was built is owned by the CDA; for the federal government to initiate the privatization process, it is essential that it has ownership of the land.