GIDB nod for model concession agreement for toursim on PPP

Posted By: Pti
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Vadodara, Feb 21: The Gujarat Infrastructure Development Board (GIDB) has approved the model concession agreement for tourism sector to be developed in the state on public-private partnership, Gujarat Minister of State for Finance Saurabh Patel said.

Talking at the sidelines of the 7th Mega Industrial exhibition organised by the Vadodara Chamber of Commerce and Industry, Patel said that this model agreement will facilitate the expeditious implementation of tourism projects on PPP format.

"Based on this model agreement, project specific agreements can be prepared by any government or its instrumentality intending to develop tourism projects in the state," he said.

The agreement is developed in accordance to provisions of the Gujarat Infrastructure Development Act, 1999, and as amended by the Gujarat Infrastructure Development (Amendment) Act, 2006.

The salient features of the Concession Agreement include Competitive bidding process of selection, selected bidder/ the Concessionaire to be either a single entity or a group of entities (Consortium); initial concession period thirty-five (35) years and extendable on mutually agreed terms.

It also provides security to both the state government and private entities against non-fulfilment of their respective obligations. In case where the concession agreement is not extended beyond the concession period, the concessionaire shall be paid depreciated historic cost on transfer of the contracted assets.

Gujarat is leveraging on its unique strengths for developing tourism themes covering coastal tourism, business and convention tourism, weekend tourism, eco-tourism, medical, heritage and religious tourism, besides arts and culture.

Gujarat is in the process of upgrading and creating tourism infrastructure, providing training to service providers, sensitising local population, creating integrated themes and strengthening of local institutions. Tourism locations are being developed in an integrated manner by upgrading infrastructure, urban area development and environment improvement so as to provide the tourist an inimitable experience, Patel said.


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