Korean firm, sole contender for Chalmers Granary development
View(s):Kolante Corporation of Korea has emerged as the only contender for a mega development project at the 9-acre Chalmers Granary opposite the Fort Railway Station.
Bids were open on March 27 during the request for proposals meeting held at the Ministry of Urban Development, informed sources said. Only Kolante Corporation had made a bid when the deadline ended.
A request by the Multinational Property Developments Ltd (MPDL), entangled in a legal issue over an earlier lease offer of the same property, to suspend the bids until the earlier issue was legally settled, was rejected by the authorities. MPDL Chief Executive Officer Ranjan Arambewela told the Business Times that the company had requested the Chairman of the Cabinet-Appointed Procurement Committee to suspend the bids but that was not accepted. MPDL had made a bid but withdrew it after the bids were open.
Kolante’s bid offer worth Rs. 12.83 billion to lease the disused property including building a global branded 5-star hotel, apartments, food court, conferencing facilities, entertainment and retail space.
Urban Development Authority (UDA) Director General UDA Nihal Fernando told Business Times that there were no legal impediments whatsoever with regard to offering the land to prospective investors, as it was acquired by the state under the Underperforming Enterprises and Underutilized Assets Act.
But Mr. Arambawela said that the company has paid Rs. 72 million being 10 per cent of the lease premium on 12th July 1994 and this money is still with the UDA in a long-standing legal process.
He added that his company is willing to come into a settlement with the UDA on this matter but if there is no redress then they have no alternative other than filing legal action once again.
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