Amaravati: With an objective to promote Amaravati as ‘a preferred destination’ for Meetings, Incentives, Conferences and Exhibitions (MICE) in Asia Pacific region, the AP Capital Region Development Authority (APCRDA) is taking steps for the development of necessary infrastructure in the capital region.
Facilities such as a ‘mega’ convention centre, an exhibition centre, a five star hotel, and allied amenities would be developed in the sprawling 42 acres at the Central Business District proposed in the capital.
In August last year, the CRDA had invited Request For Quotation (RFQ) from private players of national and international repute for the creation of MICE infrastructure, but it has recently cancelled it.
Sources said that the authority decided to cancel the RFQ applications after it found only one applicant to be eligible for the next round of selection. “When we invited RFQ, we received four applications out of which only one was found eligible. Since we couldn’t award the project without any competition, we cancelled it on July 4 this year. Now we will invite Request For Proposal on August 1,” an official told.
Since many of the Public Private Partnership (PPP) projects are receiving lukewarm response from the investors, the CRDA, which has roped in IL & FS Urban Infrastructure as the consultant for the said project, has decided to incentivise private participation by earmarking 20 of the 42 acres for commercial development.
“To make the project financially viable, we have decided to give 20 acres of land on which the investor can develop commercial and residential components,” he said.
“However, the land will be given only after the developer creates the minimum infrastructure mandated by the CRDA. The MICE facilities will be developed on the other 22 acres, which will be given on lease basis with a 66 year concession period,” the official added. The estimated cost of project is around `300 crore. The officials are expecting to conclude the tendering process by the end of September.
However, it depends on the participation of private players. “Once the developer is identified, we expect the MICE infrastructure to be developed in two years,” the official observed.