Visakhapatnam: Infrastructure Corporation of Andhra Pradesh Ltd. (INCAP) just began evaluating bids it received for the Request for Proposal (RFP) document issued for development of a world-class international convention centre at Madhurawada.
The state government has plans to develop a world-class facility in 53 acres at a cost of Rs 380 crore that houses a convention centre, exhibition centre, a five-star hotel with 150 keys and a commercial plaza in an area of 2.6 lakh sft.
INCAP is expected to finalise the successful bidder in 3-4 months after technical evaluation.
In order to promote the growth of the hospitality sector and meetings, incentives, conferencing, exhibitions (MICE), under the tourism industry in the state and to give an impetus to the local economy, the state government envisaged to develop a convention centre in Visakhapatnam.
As per the study by INCAP, at present, major convention, exhibition facilities in the city are in the range of 200–1,500 pax and lack the capacity to hold big events. The only major convention facility of international standard is at Hotel Novotel with a max capacity of 1,200 pax and performance above average at 70 per cent occupancy.
The local market relies heavily on social events, accounting for 60 per cent of total occupancy across available facilities, corporate events coming in the second at 25 per cent followed by association sponsored, conducted events constituting 15 per cent of total occupancy. Though the RFP was issued in September, last year, and bid submission date has been fixed for October, 2015, it has been extended to March 15, 2016.
“About 53 acres of land has been considered for the development of the project facilities. The scope of the international convention centre shall include development, design, financing, construction, marketing, operation, maintenance and management of these project facilities at the site for the concession period of 33 years as per the terms and conditions stipulated in the Concession Agreement,” said the document.
