Cabinet refers privatisation of Services Hotel to CCOP

ISLAMABAD: The federal cabinet has not granted its final approval for privatisation of Services International Hotel Lahore and decided to refer back this issue to the Cabinet Committee on Privatisation (CCOP) for further scrutiny of documents.

For all practical purposes, the federal cabinet has shown its no confidence over the CCOP because the forum had already approved this transaction and forwarded to the cabinet for getting final nod.

Top official sources confirmed to The News that a couple of ministers raised objections over the price of Services International Hotel Lahore. It was also raised that the 250 feet height was allowed in the bidding document while the height was standing around 500 feet. The Privatisation Commission contested all these points and argued during the cabinet meeting that the Aviation Division allowed 250 feet height so 500 feet height was out of question. Two more commercial plots were sold out in recent months adjacent to this Services International Hotel Lahore on Mall Road as one was Summit Bank building and another green plot and both these transactions were done at Rs120 million and Rs80 million per kanal respectively. The Services International Hotel was sold at Rs130 million per kanal price.

So far four attempts have been made to sell out Services International Hotel as the first effort was made in 2005, second in 2007, third in 2020 and now fourth in 2021. A day earlier, the Senate Standing Committee on Privatisation also raised objections over Services International Hotel Lahore.

The Senate panel was briefed in detail regarding privatisation of Services International Hotel, Lahore. Secretary Privatisation Ministry informed the committee members that privatisation of Services International Hotel is in final stages and matter is to be laid before cabinet for final approval. Bidding has taken place through an open auction. Two bidders submitted the bids for the reserved base price of Rs1.94 billion. The commission received one bid higher than the reserved base price amounting to Rs1.95 billion; the other one was below the reserved price and subsequently did not qualify.

The chairman of the committee questioned the officials regarding the process of privatisation as to how a bid is considered successful when a minimum number of bidders were not there for auction to which the ministry officials answered that there is no legal issue with regard to the minimum number of bidders.