Outsourcing Properties of Sindh Tourism Development Corporation
Sindh Tourism Development Department – Government of Sindh
PROJECT BRIEF
The Sindh Tourism Development Corporation (STDC), established in 1991, aims to enhance tourism in the province of Sindh. In a strategic move, the Culture, Tourism, Antiquities & Archives Department, along with STDC, is exploring outsourcing opportunities for four properties under Public Private Partnership (PPP) mode. This approach seeks to leverage private sector investment, expertise, and management skills to optimize performance, boost operational efficiency, and increase tourism-related revenue for STDC. The four properties identified for outsourcing presented below:
| Properties | Huts / Rooms | Total Area | Ownership Title |
|---|---|---|---|
| Keenjhar Lake Resort | 34 Huts | 31,460 sq. yd. (6.5 acres) | Property obtained from PTDC. Agreement was executed b/w Irrigation Dept & PTDC in 1976 for 30 yrs |
| Haleji Lake Resort | 04 resorts | 972 sq.yd. | Property transferred from Wild Life Department, GoS |
| Hawksbay Resort | 14 rooms | 4,840 sq. yd (08 Kanal) | PTDC Hawksbay Resort transferred to STDC |
| Ranikot Guesthouse | 08 rooms | 359 sq. yd. | Transferred from PDMI Cell, GoS. |
The decision to engage private partners will lead to the improvement and rehabilitation of existing facilities and infrastructure. The envisioned enhancements include water sports, recreational facilities, food courts, parking, event halls, gardens, camping areas, transportation services, museums, tour guides, and an integrated billing mechanism. These improvements aim to attract visitors from various parts of the country, fostering economic activities in the region.
Transaction structure and process
The proposed transaction structure involves hiring transaction advisors for a detailed feasibility study. These advisors will play a key role in structuring the project, formulating a revenue-sharing mechanism, and evaluating financial, economic, legal, and technical aspects. The objective is to maximize the resorts’ potential for economic growth and tourism development in Sindh.
Cancellation of current development activities
To facilitate the outsourcing process, ongoing or planned development activities for these resorts under the Annual Development Program will be suspended. This step is crucial to avoid legal complications and ensure a smooth transition to private management.
Current Status
The PPP Policy Board in its 42nd meeting held on 16th December 2023 approved initiating the process for hiring of quality consultants for conducting detailed feasibility studies as well as PDF funding.
Next Step
Formation of Consultant Selection Committee (CSC) & Complaint Redressal Committee (CRC) along with issuance of Request for Proposal (RFP) for onboarding the transaction advisors.