Government has been in receipt of many proposals since August 2, 2020 with respect to hotel development and is inviting all persons with interest in that regard to submit or resubmit their proposals.
Government said it was prepared to offer generous incentives for the development of the hotel and hospitality sector, including fiscal incentives. Against this backdrop, it is inviting interested persons to submit Requests for Proposals (RFPs).
In the RFPs, investors must identify the project or land proposed for hotel development specifying size, location, and other details including ownership details such as transport, lease, and associated survey plan. They are required to detail all terms if the proposed land is to be obtained from the Government, including basis of valuation and terms of lease, sale, or lease with an option to buy.
For clarity, this RFP will deal with both developers using private land or seeking Government land for development.
Investors must also provide evidence of financial capacity to fund such a project. Only parties providing evidence of financial capacity to undertake a project as principal will be considered. They are also required to provide a concept design for the project showing proposed site layout, number of floors, associated amenities, and a rendering of the proposed project.
According to Guyana Tourism Authority (GTA) Director Carla James, interested individuals must submit background information on the development group, including the investors, contractors, and other parties, and how the project will be organised and executed.
In addition, they must also detail experience in designing, constructing, operating, and owning a hotel and a summary proposal/business plan. The latter should contain a description of the number of rooms and other amenities that will be catered for; type and brand of hotel and any evidence to support same; expected investment and proposed capital structure (debt/equity mix and term sheets for debt).
The summary proposal/business plan should also include summary financial projections for the project including room rate and occupancy level; employment levels during construction and post-construction; expected contractors including general and sub-contractors, relevant experience, and overall supervision; project schedule showing key milestones to start and complete the project; any market studies; details on the level of local content projected during construction and during commercial operations and expected incentives and other support requested from Government.
The Government said it would use the responses to this RFP to rank and select those parties who will be invited to negotiate a Memorandum of Understanding (MoU) including land terms including zoning, development conditions, and other incentives that will be provided. The deadline for the submission of the RFP is November 2, 2020 at 14:00h.
The Government in its Emergency Budget outlined several measures to support tourism, including a special incentive package to attract new investments that will result in four new hotels.
During his maiden Budget presentation last Wednesday, Public Works Minister Juan Edghill noted that in anticipation of both the recovery from the current economic downturn and the expanded economic activity from the growing petroleum sector, it is projected that increased hotel development would bring significant employment opportunities and income.
