HomeMMBIZ NewsMinistry Revamps State Hotel Privatisation Process

Ministry Revamps State Hotel Privatisation Process

The Ministry of Hotel and Tourism will reform the tender regulations over leasing state-owned hotels to private investors, the ministry said.

The decision follows some tender winners failing to abide by the rules set out in the contracts.

Some of the previous tender winners have failed to submit the full deposits required in the agreements or transferred the right of operation to others or failed to fulfill their liabilities even though the business is flourishing.

The details of the new regulations will be made available soon and the reforms will take every aspect into consideration to ensure fairness for both the public and private stakeholders, the ministry said.

According to the ministry, facts including the profile of the bidding company or personal data of the bidders, the bank statements certifying regular deposits and the guarantee of the underwriting bank will be scrutinised in granting new leases.

“The fact that those with close ties to authorities receive preferential treatment [in tenders] has abetted such cases of reselling the rights of operate,” said a Taw Win Construction official, who asked not to be named.

“Those who really intend to operate have to try very hard to win tenders,” he added.

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