Vijayawada: The Lulu International Shopping Mall Pvt. Ltd. was termed as the ‘Qualified Bidder’ by the Infrastructure Corporation of AP (INCAP), for the development of the International Convention Centre (ICC) at APIIC ground, Harbour Park Land, Visakhapatnam on a Public Private Partnership (PPP) mode. This Abu Dhabi based shopping mall was given the land at a throwaway price, on an annual lease and there was no revenue sharing mentioned in the GO.
The scope of the project includes development, design, financing, construction, marketing, operation and maintenance of the project assets at the project site for a lease period of 33 years. If the developer complied with all the terms and conditions of the lease-cum-development agreement and the lease deed, the developer would be eligible for an automatic extension for another 33 years. In a GO issued by the Energy, Infrastructure and Investment (Airports) department, it was stated that the Government had decided to boost the tourism sector in the State of A.P., and accordingly Visakhapatnam, which is the largest city in the State, has been selected for the development of a Mega Convention Centre in the city due to its importance in all aspects.
The Government constituted the Negotiation Committee, with the District Collector, Visakhapatnam as Chairman and other members concerned, to negotiate with the private enterprise for swapping/exchange of their land. It was also ordered that the APIIC would proceed with the development of the land through private players. Infrastructure Corpo-ration of AP (INCAP) will act as the Transaction Advisor on behalf of APIIC for project development, structuring and selection of a private partner through a transparent bidding process with the assistance of In House retainer consultants.
The development of the International Convention Centre at Visakhapatnam City with exhibition halls, meeting halls, parking places, star hotel, retail mall, etc., is at a site of around Ac.9.12 cents on Harbour Park Road of R.K. Beach Road in Visakhapatnam City.
The Qualified Bidder offered and agreed to pay Rs 4,51,00,000 as the annual land lease rent commencing from the date of possession of the land which is more than the Upset Price of Rs 3,97,26,720.
