• Any successful developer must agree to the following terms:
a. The leasee must have a minimum of five years of experience as a developer, owner of hotel or resorts, and/or manager of hotel or resorts.
b. The leasee must have bank proof of 25% equity and 75% loan commitment of the total project cost.
c. Upon the execution of ninety-nine year lease agreement, the leasee will pay three years of advanced rent to PTDC. The next rent payment will be due on the third anniversary of the lease agreement. Rent will be calculated from the value of the land which is mentioned in the feasibility report. For example, if the land value is 10 Million USD, then the yearly rent with a 2% cap will be 200,000 USD.
d. If private land is acquired for a project, the leasee must give 25% ownership of the project to people who’s land is aquired. PTDC will ensure that the land is purchased from the seller(s) at a fair market value.
e. The leasee must follow federal, state, and local laws of Pakistan.
f. The leasee must offer jobs locally to people qualified for the jobs.
g. The leasee must complete the project within three years of the execution of the land lease. A one year extension may be granted only if the experts have certified that the leasee has completed 75% of the project.
h. The leasee must have a guarantee from the government of Pakistan to move their investment/profit anywhere. The leasee will have a 25-year long tax break on real estates tax, sales tax, and import duties on any imports related to the project.
• PTDC will fully cooperate with the hired experts in site selection and feasibility reports preparation process. PTDC will pay compensation to third-party expert individuals or companies directly.
• The hired experts will be responsible for supervising owners/developers, and ensuring that projects are being developed as planned, as per quality specification, and according to the completion timeline.
Vision for Pakistan
• Whereas PTDC will engage experts (architect, designer, developer, owner, managers) of tourism development to select and prepare feasibility reports of 100 sites in 10 years, and will supervise the development process.•Whereas PTDC must include their currently owned projects in this program.
• Whereas PTDC will make arrangements to acquire federal, state, and private land to use as project sites which will be owned by PTDC. PTDC will give a ninety-nine year lease to qualified developers (leasee). PTDC will collect year lease rent from leasee.
• If any owner/developer fails to follow the rules and regulations set forth in the lease, then on the recommendation of the hired experts, PTDC can terminate the ninety-nine year lease agreement and forfeit any advances and development costs. PTDC can then put the project back on the website for a new qualified leasee.
• About 100 sites will be explored and selected throughout Pakistan, especially in the five valleys of the northern area, and the coastal area from Karachi to Gawadar. Each project cost may range between $1 Million to $1 Billion USD
• Feasibility reports for each project site will be prepared. These will a include drone video of the site, survey, preliminary architectural plan, landscaping plan, project cost, five-year projection profit/loss, as-built appraisal report, and the terms and conditions of the land lease for ninety-nine years.
• The site selection process and feasibility report for each project will occur simultaneously and be continuous for 10 years
• Completed feasibility reports will be uploaded on the website of PTDC for potential developers to review and invest.