Chandigarh Municipal Corporation Finalizes Private Agency for Rose Club Operation Under PPP Model
After extensive deliberations spanning over a year, the Chandigarh Municipal Corporation (MC) has officially selected a private agency to operate and manage the iconic Rose Club in Sector 16. This decision marks a significant shift as the club will be run under a public-private partnership (PPP) model for a duration of 10 years.
Following approval by the MC general house on Wednesday, the engineering department has commenced the process of awarding the tender. The general house endorsed the highest annual bid, which exceeds Rs 26 lakh, excluding GST, for the operation of the Rose Club.
Bidding Process and Selection Details
Records indicate that two agencies participated in the bidding process for operating and maintaining the club. Amarjit Private Limited, based in Maharashtra, submitted a bid of Rs 23.40 lakh annually. In contrast, Chandigarh-based VTC Estate offered a higher bid of Rs 26.7 lakh per year.
After a thorough financial scrutiny, the engineering department determined that VTC Estate's proposal was the most suitable. Consequently, this recommendation was presented to the general house, which granted its approval.
First-Time Outsourcing and Renovation Plans
This initiative represents the first instance where the MC has outsourced the operation of a club. The selected agency, VTC Estate, will not only be responsible for the day-to-day operation and maintenance of the premises but will also undertake a comprehensive one-time renovation to ensure the club becomes fully functional.
Officials emphasized that the Rose Club, being a heritage building located in the core heritage zone of northern Chandigarh, will undergo only permitted repairs. The concessionaire is authorized to carry out structural repairs and aesthetic refurbishments, provided they do not alter the original architectural design of the building.
PPP Model and Operational Guidelines
Under the PPP framework, the selected agency will bear the entire cost of renovation and ongoing upkeep of the building and other approved structures. Facilities to be provided include:
- A restaurant and café
- Gaming zones
- A library
- A gymnasium
- Event spaces
All developments will be executed while ensuring the cultural and heritage character of the Rose Club is meticulously maintained. Sources confirmed that no permanent construction will be allowed without prior approval, and only non-permanent installations will be permitted.
Revenue Generation and Oversight Mechanisms
The project was awarded through a highest Annual Concession Fee (ACF)-based selection process. Mandatory service components will include:
- Club membership facilities
- Indoor and outdoor games
- Social events, excluding weddings
Revenue generation will be permitted through events, food and beverage services, and membership models. To ensure compliance, the MC will oversee the project via a Project Monitoring Committee, conducting regular inspections to verify adherence to civic, environmental, and heritage norms.
Roles and Responsibilities of the Municipal Corporation
The MC has outlined specific roles and responsibilities in this partnership:
- The club will be handed over to the concessionaire on an as-is-where-is basis.
- The MC may authorize any officer to monitor activities on the premises, with all other space available for the concessionaire's use. The authorized officer can inspect the premises at any time to check for violations.
- The MC will assist the concessionaire in obtaining electrical and water connections for the club. Existing connections will be discontinued, and the contractor must apply for fresh connections within one month from the date of the Letter of Award (LOA).
- A Project Monitoring Committee will be constituted to oversee the performance of the concessionaire.
This strategic move aims to enhance the functionality and appeal of the Rose Club while preserving its historical significance, setting a precedent for future heritage management in Chandigarh.
