Six months after Government’s holding company – NICIL – began negotiations for the sale of the Marriott Guyana Hotel to American company, X-LLC, the negotiations are still ongoing, with the company expressing some concern about the length of time it is taking.
Vice President Bharrat Jagdeo made it clear today that Government will not be rushed into finalizing the sale.
X-LLC had submitted a bid of US$90 million for the hotel, but just days ago, the investor – Ramy El- Batrawi told a local newspaper that he was frustrated by the prolonged delay. He said the delay in concluding the transaction was hurting future investments in the country.
But the Vice President believes the negotiation has to take its course.
“In the negotiations we are bound by a confidentiality clause but we are not rushing anything to satisfy [anyone] because there is no desperation for money from this deal. The asset remains 100% government. We went out to tender, we want the agreement concluded but it must be concluded in a manner that would reflect public scrutiny and scrutiny by the audit office,” the Vice President said.
Mr Jagdeo said NICIL and its attorneys are engaging the investor at a technical level, and Government will not intervene unless it is absolutely necessary.
“We want the matter concluded but the executive will not intervene unduly into a technical process unless we believe that something is not being addressed to the satisfaction of the original bid. Now, let me make it clear that this company put in a bid, they have to remain faithful to the bid and our negotiators have to ensure that this country’s interests are protected in those negotiations. That the original concept of the bid is reflective in the signed agreement to conclude the sale,” Jagdeo reasoned.
There were two rounds of bidding for the hotel, which was built largely with state funds in 2014, opening its doors early in the following year.
In the first round of bidding, all of the bids were dismissed because they were deemed to be extremely low by the government. A minimum bid value of US$85 million was then set, resulting in just two companies submitting bids.
It was the same US company, headed by American businessman Ramy El-Batrawi that had the highest bid in that first round.
The Government has defended its decision to sell the hotel, indicating that it was built at a time when there was a need for an international standards hotel to be in Guyana. The Government said with a number of internationally branded hotels set to begin construction soon, the need no longer exists.
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