DRAFT REQUEST FOR PROPOSALS
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- Anastasia Cummings
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1 DRAFT REQUEST FOR PROPOSALS FOR INVESTMENT ON PROPERTY DEVELOPMENT ON THE LAND BETWEEN BEIRA LAKE AND SHANGRI-LA HOTEL SITE IN COLOMBO, SRI LANKA By the Cabinet Appointed Negotiation Committee (CANC) on behalf of the Government of the Democratic Socialist Republic of Sri Lanka (GOSL) Request for Proposals No. MOD/RPF/01/2016 Issue Date: Response Receipt Location: Ministry of Defence, 15/5, Baladaksha Mawatha, Colombo 03, Sri Lanka Response Location Response Location Facsimile: Responses be submitted by: 2.00 p.m. Sri Lanka Time on Contact Person: The Secretary, Ministry of Defence, 15/5, Baladaksha Mawatha, Colombo 03, Sri Lanka Phone: Fax:
2 CONTENTS 1. Introduction and Background Overview of the Requirement Project Scope Project Site Development Goals and Objectives Enquiries Submission / Response Expectations Submissions of Responses Respondent s Responsibility Arrangement for Site Inspection Respondent Expenses Acceptance of Responses Modification of Terms Statement of Non-Collusion Ownership of Response Confidentiality of Information Due Diligence No Obligations Review Committee Period of Validity Annexure -1 (Proposal Summary Form) Annexure -2 (Site Map-1).14 Annexure-3 (Site Map-2).15 Page 1 of 15
3 1. INTRODUCTION AND BACKGROUND The Government of Sri Lanka is interested in developing the property described below which is located in the heart of Colombo. The property is well suited to a mixed-use development incorporating luxury hotel, office, residential and shopping in an extent of 3- Acres, 3-Rood, 5-Perch land strategically located between Beira Lake and Shangri-La Hotel in Galle Face, Colombo. Galle Face Green is Sri Lanka s iconic landmark urban park situated in the heart of the financial and business district of Colombo, along the seafront and facing the Indian Ocean. Galle Face Green is a magnificent place to witness a marvelous sun set over Sri Lanka. Without a doubt it is one of the best spots to enjoy the wonderful breeze coming off the ocean and an evening sinking the whole city in crimson red. The proposed location is surrounded by several other star class hotels. Also at the end of the green lies the magnificent Galle Face Hotel, an architectural marvel from the colonial era. The property is also within walking distance to major transport routes, shopping and entertainment areas. The site is also close proximity to the upcoming Colombo International Financial City (CIFC) mega project. CIFC is a special financial zone that is expected to become an offshore financial centre, earlier known as Colombo Port City, is to be built on an area of over 250 hectares of reclaimed land adjacent to the Galle Face Green and Colombo harbor (Annexure 2 & 3, for Site Maps). There are also a number of other major projects within close proximity to the site in the pre-development phase including, but not limited to star class hotels. 2. OVERVIEW OF THE REQUIREMENT This opportunity of development requires out of the box thinking and a creative development approach for a vibrant mix of residential, commercial, community and cultural uses located and designed to foster cross functionality. Environmentally sustainable development methods and building practices should be used protecting heritage and cultural resources. The purpose of this Request For Proposal (RFP) is to provide an open and transparent process for interested investors (National/International Firms, Joint Ventures, Builders/Developers/Property Owners) to invest in design, build and fully develop the land in extent of 3-Acres, 3-Rood, 5-Perch between Beira Lake and Shangri-La Hotel in Galle Face, Colombo with the following minimum facilities by year Luxury hotel with minimum of 200 rooms - Apartment (minimum 150) and Office Complex consist of Restaurants, Function Rooms, Shopping Complex (High End Shops) with sufficient parking facilities. - Using Eco-friendly designs and energy conserving methods Page 2 of 15
4 - Attractive landscaping - Solid waste management - Public open space and public access roads Through the RFP process, the GOSL will use the information provided to identify a suitable investor. Responders are encouraged to provide as much detailed information as possible. The Respondent shall analyze this RFP and provide responses in accordance with its requirements. The City of Colombo is experiencing a major transformation as a business, tourism and entertainment destination for both local residents and international visitors, the city recognizes the need for additional hotel rooms in order to draw larger conventions and events to the area and make Colombo more competitive in convention and tourism. 3. PROJECT SCOPE The Cabinet Appointed Negotiation Committee (CANC) on behalf of the Government of the Democratic Socialist Republic of Sri Lanka (GOSL) invites interested and qualified parties / investors with extensive experience in development to submit responses to this Request For Proposal (RFP) in developing the above mentioned property. GOSL hopes to receive proposals that will develop the land to meet its highest and best use. Such use should not only result in revenues to GOSL, but create sustainable jobs for the society to help boost the economy. GOSL invites responders to be innovative and creative in their responses. The intent of this RFP is to allow GOSL to determine the level of interest of respondents in developing the site under a potential long-term ground lease agreement with GOSL. The RFP process will also allow for GOSL to respond to additional questions that prospective developers may have. The land should be fully developed by the year A minimum of US$ 200 million investment is expected in developing this land. The RFP is called to offer the above land on a 99 year lease to a suitable investor/joint Venture for a minimum of LKR 6.8 billion on the selection of a suitable proposal. The Target Price is not a minimum bid; however, respondents are advised that the price is a key component of the evaluation. The property value has to be paid up front within thirty (30) days from the date of awarding the contract. The Cabinet Appointed Negotiation Committee (CANC), Ministry of Defence, Sri Lanka and /or any other committee appointed for the purpose at its sole discretion may, or, may not proceed further based on the responses received. The CANC/MOD and/or any Committee may enter direct negotiations with any or all of the respondents. No party will have any formal contractual obligations to the other and either party can withdraw from the process at anytime for any reason whatsoever and the process is not binding on either side. Page 3 of 15
5 4. PROJECT SITE Environmental Conditions: The potential developer should also conduct an Environmental Impact Assessment (EIA). Additional Testing: It is the responsibility of the selected respondent to investigate all environmental conditions of the site to its own satisfaction, and any studies performed will be solely at the respondent s cost. The GOSL will grant the selected respondent a rightof-entry for the purpose of conducting geotechnical and environmental tests. The respondent must provide GOSL with an acceptable certificate of insurance and the respondent must agree to provide the GOSL with copies of any and all geotechnical, environmental or other test reports. The target price is based upon a market value appraisal of the property that assumes the property is free and clear of all environmental adversities. 5. DEVELOPMENT GOALS AND OBJECTIVES To develop City of Colombo as the symbol of emerging Sri Lanka with limitless opportunities and a promise to offer unmatched potential for business, leisure & tourism, healthcare, hospitals, exhibition and convention centers and high quality of living, not only for the local inhabitants but also for the countless numbers of the global human family from across the shores. To build a Central Business District as an extension of the existing City of Colombo through sustainable urban development and promoting Sri Lanka as the ultimate business and tourist destination centre for trade, exhibitions and conferences in Asia, enabling the establishment of a Centre/Hub of the marine silk road in Asia and the preferred global tourism destination in Asia. The GOSL is flexible in terms of the specific type of development, though respondents must respect the land-uses and architecture of the surrounding area when submitting proposals. The proposed development should be an innovative design and the environmental impact is an utmost important feature. Successful proposals should also contain the following elements: Environmental Goals: That all proposals will employ, to the greatest practical extent, techniques that lessen the environmental impact of the project and result in a development that will be efficient to operate and maintain and that will protect the health and well-being of the building s occupants. Identified below are several important techniques for enhancing the environmental benefits of development projects. Proposals that incorporate these strategies will be given favorable consideration: Page 4 of 15
6 Energy Efficiency: The energy efficiency of building products, equipment and appliances, as well as, the overall energy efficiency of all newly constructed buildings. Stormwater Management: The GOSL promotes better management of stormwater runoff to protect the country s water resources. All responses to this RFP are encouraged to exceed the minimum internationally applied best stormwater management practices by employing such features as natural landscaping, permeable paving, drainage swales and naturalized detention basins. Vehicular Use Area Shading: Large expanses of paved surfaces such as parking lots are significant contributors to the urban heat island effect. This effect can be mitigated through landscaped islands and perimeter strips that are planted with shade trees. Parking: The development s parking needs should be accommodated by developing a maximum number of spaces on site. All exterior parking facilities should be appropriately landscaped. Landscape Design: Adequate landscaping should be provided along the edges and interior of the site, where possible. The landscape should feature plants that are either indigenous to the region, or are well-suited to the Colombo climate. The proposed plantings should complement and reinforce the building architecture in addition to enhancing the lush character of outdoor spaces with texture, color, and visual interest. Landscaping (without trees) may be installed within the public right-of-way to provide site vegetation while maximizing the building envelope. On-site street trees are required in order to provide enclosure and shade. Streetscape: The site design should provide for and encourage a range of outdoor activities. The proposal should include both formal and informal spaces that are harmonious with the surrounding and create an exciting streetscape. Proposals that incorporate the preceding environmental strategies to the maximum practical extent will be given favorable consideration. 6. ENQUIRIES In order to gain a better understanding of GOSL s objectives and the development project, all respondents interested in submitting a proposal could make queries. All enquiries related to this RFP are to be directed, in writing, to the contact person at the address on the front cover of this RFP. Enquiries should not be directed to any other. Information obtained from any other source is not official and should not be relied upon. The issue of the RFP Documents is not an offer to enter into a contract. Page 5 of 15
7 7. SUBMISSION / RESPONSE EXPECTATIONS The submission should provide sufficient information to conduct a full review of the proposal for consideration. The following list outlines suggested information to enclose in the response to this RFP. The submittal must be organized so that each of the following is included in the report in order and identified by tabs. All of the items described below must be provided: a) Cover Letter and Proposal Summary Form: this section must include a letter that briefly describes the proposed development project, indicates the offer price, identifies the benefits that the project will create for the Sri Lankan society and describes the respondent s experience in similar development efforts. The letter must be signed by an authorized representative of the responding entity and be followed immediately by the Proposal Summary Form, (see Annexure-1 for a specimen) b) Contact information: for all future communications - Include contact person s name, title, organization, address, telephone number and address. c) Organization profile: complete details of your organization. If you are planning to participate in this project as a consortium or a joint venture please provide details of each of your partner. d) Project Narrative: this section must provide a detailed description of the project and the ways in which it satisfies the goals and objectives of this RFP, please include: A statement of the objectives of the project and the approach the respondent will take in implementing the project, including the project components and compliance with the development program and design guidelines. A description of the respondent s understanding of the property development of this nature and its patterns of use and how the proposed project will be consistent with the surrounding developments and the Sri Lanka s economic goals and objectives. Describe how the project will benefit Sri Lanka and its society both now and into the future. A detailed description of the proposed project. A description of how the project fulfills the goals and objectives of this RFP, including design and environmental features. A description of intended users of the development and identification of proposed tenants or end-users, if known. e) Plans and Drawings: in this section, provide scaled drawings that illustrate the overall character and planning of the development. f) Development timing: Developer must include a written narrative and a graphic timeline showing all major milestones of project development until final completion. Page 6 of 15
8 This should include the due diligence, planning, designing, permitting, and construction period. g) Qualifications: Describe qualifications and capabilities to develop, build, operate and manage a complex project, associated operations including supporting documentation. h) Project Experience: Details of three (03) past relevant projects of similar magnitude: i) Business Plan: The Business Plan should address as a minimum, the following items: i. Philosophy Overall viewpoint for operating a Property Development Project ii. Objectives and Goals The goals and objectives to be achieved over the term of the lease. iii. Organizational Structure The structure and hierarchy of the organization. iv. Communications and Public Relations Explanation of the process that will be put in place to ensure continued positive relations with customers, authorities and the society. v. Budget - Estimated project budget vi. Evidence of developer s financial ability. Provide Audited Financial Statements for the past three (03) years. vii. Copies of any financial rating reports or other documents indicating the financial condition of the respondent. j) Economic Impact: The respondent must provide a discussion of the economic impact of the proposed project including fiscal impacts, construction and permanent employment and potential economic impact on Sri Lanka. The respondent must provide an estimate of any new or retained permanent jobs that will be generated by the project with income ranges and include an analysis in support of these claims. An estimate of the number of temporary construction jobs expected to be generated by the project must also be provided. k) Financial : Outline the proposed financial investment including a description of the long-term financial viability and sustainability. Details of the ability to finance or to secure financing to support the business plan. A justification of any external financial assistance to be obtained to fund the project. Prior to signing the contract, the GOSL shall require written evidence that the Developer has procured a firm and irrevocable commitment that all the necessary funds to develop the property as proposed herein have been secured. If development does not begin within an agreed-upon time frame, the GOSL will have the option to acquire the property at a price decided by CANC considering the losses incurred by GOSL. l) Bid Security: Bid Security Guarantee of 2.00% (two percent) of the Project value in the prescribed format and issued in favour of Secretary Ministry of Defence, which Page 7 of 15
9 is valid for sixty (60) days more than the validity of the proposal should be submitted with the proposal. m) Operational Plan: The Operational Plan should address at a minimum, the following items: i. Use provide a full description of the property usage; include design/conceptual drawings, diagrams, illustrations and related technical documents. ii. Services/Facilities Outline the proposed services/facilities to be provided, how they will be provided and when. iii. Equipment - Include a list of intended equipment that will be on site and how it is proposed that the equipment will be provided and maintained. iv. Staffing Outline staffing requirements to support the services offered. v. Innovations Provide details on any innovations to be implemented in the operations, include design/conceptual drawings, diagrams, illustrations and related technical documents to support the explanations. vi. Alignment Outline how the proposed use aligns with the County s Infrastructure Development Plan, and the County s Economic &Tourism strategies. n) References: any special references highlighting capabilities of the organization. o) Any additional information for a better understanding of the proposal. p) The respondents warrant that: i. all information it submits is complete and accurate in all material respects and is not misleading whether by omission or otherwise; ii. iii. iv. none of the information it submits breaches any third party s rights, including intellectual property rights, and the use of the information in relation to this RFP will not breach such rights; it has not withheld any information potentially relevant to GOSL consideration of its response, including any actual or potential controversies, disputes or claims involving the respondent; and the foregoing warranties will remain true and correct during the period of any negotiations between the participant and GOSL. 8. SUBMISSIONS OF RESPONSES Prospective respondents willing to participate in this Request For Proposal (RFP) are requested to submit their proposals in two copies enclosed in two separate sealed envelopes or package. Both copies (in separate envelopes or packages) to be included in a sealed single envelope or package. Clearly identify who the submission is from on the outside of the envelope/package. All envelopes / packages should be marked: Page 8 of 15
10 Request For Proposal Submission Investment on property development on the land between Beira Lake and Shangri-La Hotel site. and delivered: (a) either by registered post, (b) or by handing it (by messenger or courier)to the following address: The Secretary, Ministry of Defence, 15/5, Baladaksha Mawatha, Colombo 3, Sri Lanka Before p.m. on or before Fax or responses for this Request for Proposal will NOT be accepted. Delivery of Request For Proposal by a courier service shall be the responsibility of the Respondent and will be rejected if the envelope/package is delivered to a location other than which is stated in the document and the envelope/package fails to be delivered to the above address prior to the closing date and time. Proposals lodged or received (if sent by post) after the closing time are late proposals and CANC and/or any other Committee may, in its absolute discretion, consider or refuse any late proposal and execute or not execute an Agreement for Lease with a Respondent that lodged a late proposal. The proposal must be submitted in the legal name of the firm, Joint Venture or corporation and the corporate seal must be embossed on the original proposal. An authorized representative of the applicant organization who has legal authority to bind the organization in contract with the GOSL must sign the proposal. Be signed by the person(s) authorized to bind the organization to all commitments made in the proposal and, if applicable, be accompanied by a copy of the Board Resolution authorizing the person(s) to submit the proposal. If a Board Resolution cannot be obtained prior to proposal submission, it may be submitted no later than three (3) calendar weeks after the proposal submission deadline. Identify the individual or firm which prepared or assisted in preparing the proposal. If that individual or firm will not participate in the implementation of the project, describe how the transfer of responsibility will occur to ensure timely implementation. Proposals must be submitted in English language. Numerical data must be in the English measurement system. Page 9 of 15
11 Each page of the proposal, including exhibits, must be numbered sequentially at the bottom of the page to indicate Page - of -. All submissions for this RFP shall become the property of GOSL. 9. RESPONDENT S RESPONSIBILITY Each respondent shall be responsible for visiting the property as depicted in Annexure- 2 and 3 and shall inspect and become fully acquainted with the conditions of the site. Failure to do so will not relieve the respondent of his/her obligations to comply with all terms and conditions necessary to carry out the provisions of the Lease Agreement and/or Property Development Contract. The GOSL makes no representation of any kind concerning condition of the property, including the environmental condition of the property. Respondent at its own expense shall be permitted to have the property inspected prior to submission of proposal. If respondent fails to cause such inspection to be made or submits a proposal subsequent to such inspection, respondent agrees it will bring no action of suits against the GOSL for or as a result of any adverse condition of the property. When used the term property shall include all aspects of the property, such as, but not limited to, the soils and groundwater beneath it. 10. ARRANGEMENT FOR SITE INSPECTION Ministry of Defence, Sri Lanka will make arrangements to have site inspections for prospective respondents at their request on a mutually convenient date and time. For appointments the respondents are required to communicate with the Contact Person mentioned in the cover page. 11. RESPONDENT EXPENSES Respondents are solely responsible for their own expenses in preparing a response and for subsequent negotiations with CANC and/or any other committee, if any. The GOSL and/or any other Institution and/or Committee will not be liable to any respondent for any claims, whether for costs or damages incurred by the respondent in preparing the response, loss of anticipated profit in connection with any final contract, or any other matter whatsoever. 12. ACCEPTANCE OF RESPONSES After the evaluation of the RFP responses, the top ranked respondents may be invited to make a formal presentation to GOSL at a mutually agreeable place and time. GOSL may decide to enter into negotiations with the shortlisted proposers if required. Page 10 of 15
12 GOSL reserves the right to request clarification of information submitted in the RFP, to request additional information and to seek consulting services to assist in evaluating the RFPs and negotiating an agreement. GOSL also reserves the right to reject all proposals. This RFP is not an agreement to purchase goods or services. GOSL or the Ministry of Defence (MOD), Sri Lanka, is not bound to enter into a contract with any respondent. GOSL or MOD will be under no obligation to receive further information, whether written or oral, from any respondent. 13. MODIFICATION OF TERMS The CANC/MOD/GOSL reserves the right to modify the terms of this RFP at any time in its sole discretion. This includes the right to cancel this RFP at any time for any reason whatsoever without entering into a contract. GOSL also reserves the following rights: Cancel or withdraw the RFP prior to or after the submission deadline Modify or issue clarifications to the RFP prior to the submission deadline Reject any submission it deems incomplete or unresponsive to the submission requirements Reject all submissions that are submitted under the RFP Modify the deadline for submissions or other actions Enter into negotiations or discussions with one or more RFP respondents, Issue RFQs or RFPs targeted at all or a portion of the property development Reissue the RFP, a modified RFP, a new RFP, or RFQ, whether or not any submissions have been received in response to the initial RFP issuance. 14. STATEMENT OF NON-COLLUSION Respondents shall complete and return with the proposal, an affidavit of non-collusion signed by a person(s) authorized to bind the respondent which states that: i. The proposal is genuine, not a sham or collusive; ii. The proposal is not made in the interest of or on behalf of any person not named in the proposal; iii. The respondent has not directly or indirectly induced or solicited any person to submit a false or sham proposal or to refrain from proposing; and iv. The respondent has not in any manner sought by collusion to secure an advantage over any other respondent. 15. OWNERSHIP OF RESPONSES All documents, including responses, submitted to the CANC become the property of MOD. They will be received and held in confidence by MOD. Page 11 of 15
13 16. CONFIDENTIALITY OF INFORMATION Information pertaining to the development of this project obtained by the respondent as a result of participation in this RFP is confidential and must not be disclosed without written authorization from Ministry of Defence, Sri Lanka. 17. DUE DILIGENCE As part of the RFP process, GOSL, MOD Sri Lanka, its advisors and/or the Administrator may carry out due diligence investigations of any that submits an RFP. Each agrees to fully co-operate with any due diligence activities (including providing all information which may be requested). 18. NO OBLIGATIONS No legal or other obligations will arise in relation to the conduct or outcome of this RFP process. For the avoidance of doubt, no process contract will apply to this RFP. No legal or other obligations will arise in relation to provision of the goods and/or services unless and until a formal written agreement for the provision of those goods and/or services is signed by GOSL and the relevant party. GOSL and its agents or advisors will not be liable in contract, tort or in any other way for any direct or indirect damage, loss or cost incurred by any or other person in respect of the RFP process, its conduct or outcome. 19. REVIEW COMMITTEE Review of responses will be by the CANC and/or any other Committee appointed for the purpose at its sole discretion. 20. PERIOD OF VALIDITY All submitted material in response to this RFP shall remain valid for a period of one year from the date of submission unless a party withdraw from the process giving advance notice in writing. Page 12 of 15
14 Annexure - 1 Requset for Proposals Proposal Summary Form Respondents: Complete this Form and place in the first section of the response, immediately following the cover letter. Project Address: As identified in the RFP Respondent: Name of responding entity Principals: Names of principal owners of responding entity Development Team: Identify architect, attorney, consultants and general contractors if known Purchase price: Bid price Total project cost: Total development cost Expected date of completion: Include date Proposed use: Identify proposed use of the property Proposed project: Briefly describe the project including number and type of units, exterior building materials, number of stories, floor area, amenities, parking spaces etc. Public benefits: Identify public benefits if any Page 13 of 15
15 Annexure 2, Site Map-1 Page 14 of 15
16 Annexure 3, Site Map-2 Page 15 of 15
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