Invites bids under revived business plan
With its proposal to engage a private agency for managing and operating the recently launched CIAL Golf & Country Club (CGCC) having failed to work out, Cochin International Airport Limited (CIAL) is now planning to take up its operations on a temporary basis.
Official sources say that a meeting of the company's director board held in Thiruvananthapuram last month decided to take up the operations of the golf course for a brief period. The club will start functioning soon after the southwest monsoon and subsequently CIAL will pass on the responsibility to a new agency.
CIAL commissioned the first phase of its all-weather nine-hole golf course in May this year and allotted about 1,350 individual and 20 corporate memberships under an early bird scheme.
However, the golf course has not yet started its operations even after two months, as the proposal to appoint a private agency for its operation met with a rather lukewarm response, the sources said.
The company originally planned to select an agency for a licence period of five years, and this was extendable to another five years on the basis of competitive financial bidding.
CIAL has now revived the proposal and invited bids from management agencies, builders and agencies having experience in developing or operating golf courses to manage and operate the CGCC on a revenue-sharing basis. The business plan envisages the licensee to bid for a share of the gross revenue for the first five years which should not be less than 5 per cent in any year.
The scope of service of the agency will vary from the operation of golfing and club activities and marketing and commercial activities to maintaining the CGCC's infrastructure. CIAL will have a representative in the club with veto power.
While the one-time membership fee will get accrued to the developer, the operating agency is proposed to make use of all other revenue sources ranging from annual subscription charges to sale of food & beverage to advertising.
CIAL is scheduled to complete the work on the second phase covering the remaining nine holes along with a permanent practice range and a full-fledged club house by 2013-14.