In a significant boost to its infrastructure development plans, the Goa government has received a promising response from private players for two major public-private partnership (PPP) projects with a combined estimated cost of Rs 700 crore. This comes after previous attempts to award these projects ended in failure.
Renewed Hope for Long-Delayed Projects
The state has invited fresh bids for the redevelopment of the ageing Sanjivani Sahakari Sakhar Karkhana Limited (SSSK) sugar factory in Dharbandora and the construction of a 5,000-seat international convention centre at Dona Paula. Around eight companies have shown interest, with four eyeing the sugar factory and five expressing interest in the convention centre project. All these bidders actively participated in the pre-bid meetings, signalling serious intent.
This development marks a crucial step forward for projects that have faced multiple setbacks. The government is now hopeful that the third time will be the charm for the convention centre, and the renewed attempt for the sugar factory will finally yield a successful partnership.
The Dona Paula International Convention Centre: A Rs 570 Crore Vision
The proposed convention centre at Dona Paula, valued at Rs 570 crore, is the larger of the two ventures. It is designed to be a premier Meetings, Incentives, Conferences, and Exhibitions (MICE) destination. The facility, planned on a 34,000 square meter plot, will include a four-screen multiplex with a total seating capacity of at least 800 and a convention hotel with a minimum of 300 rooms.
The project's conceptualisation was based on an assessment by transaction advisor Knight Frank in November 2020. However, its journey has been fraught with challenges. The state first floated a Request for Proposal (RFP) in December 2020, received two bids, and even issued a Letter of Award (LoA). This was terminated in January 2021 because the winning bidder failed to furnish a valid performance security of Rs 16.2 crore. A police complaint was filed against the bidder for allegedly submitting a fake bank guarantee.
In a second attempt in May 2022, five bids were received and an LoA was issued. This too was terminated in July 2023 after the selected bidder failed to meet conditions, including forming a special purpose vehicle (SPV) and submitting performance security. The government has now re-floated the tender nearly two years after the project was last scrapped.
Sanjivani Sugar Factory: A Rs 130 Crore Redevelopment Plan
The other project on the block is the revival and redevelopment of Goa's only sugar factory, the over five-decade-old Sanjivani Sahakari Sakhar Karkhana. The estimated cost for this transformation is Rs 130 crore. The plan involves modernising the factory and setting up an ethanol plant through the PPP model.
The state's earlier attempts to find a partner did not succeed. RFPs were floated in October 2022 and January 2024. In the first attempt, two companies showed interest, but their bids were rejected for not meeting technical criteria. The second attempt received no bids at all.
The push for redevelopment gained momentum in May 2022 when the government formed a 21-member committee headed by NRI Commissioner and former MP Narendra Sawaikar. The committee's recommendations form the blueprint for the project, focusing on boosting sugarcane production, modernising the factory infrastructure, shifting focus to ethanol production, and promoting local jaggery units.
Path Forward for Goa's Infrastructure
The strong response from bidders in this latest round is a positive sign for the Goa administration. It indicates sustained private sector interest in the state's infrastructure potential despite past hiccups. The successful execution of these two projects is expected to significantly enhance Goa's industrial landscape and its capacity to host large-scale international events, providing a substantial boost to the local economy and creating employment opportunities.
All eyes will now be on the bidding process to see if these projects can finally move from the drawing board to reality, marking a new chapter in Goa's development through collaborative public-private efforts.
