Grand Hyatt Colombo (GHC), marred with corruption and controversies during the previous Rajapaksa regime, is still not completed even after spending a staggering Rs. 21.6 billion, official statistics showed.
The project was earlier estimated to cost around Rs. 9 billion but was readjusted to US$302 million (Rs. 45.3 billion) excluding interest cost, CESS and NBT, owing to cost escalation, purchase of extra land and alleged malpractices.
The physical progress of the project as it stands now is around 61.67 per cent work done but the expected date of completion is uncertain as construction has been halted owing to ongoing legal issues and shortage of funds.
Finance Minister Mangala Samaraweera told parliament on Wednesday that the Hyatt hotel has already eaten into public money to a great extent under the previous regime but still the building cannot be used for any commercial activity.
The cost for the completion of a room at this hotel was Rs. 82 million whereas a similar room at the Shangri-La hotel had been completed at around half the cost, at Rs. 42 million, he said.
Minister Samaraweera made these revelations when he presented the Vote on Account for the first four months of 2020 in Parliament on Wednesday.
Since the Presidential poll is scheduled for November 16, the full budget for 2020 has been postponed to early 2020.
The government had earlier planned to operate the Grand Hyatt project as a five-star hotel with 458 rooms and 100 serviced apartments, once completed. The hotel occupies a land extent of 2.32 acres, a majority of which is leased from Government.
The management contract entered into with the Hyatt Group expires 20 years after the start of operation.
In an attempt to restructure the project ownership of Canwill Holdings Ltd, owner of the project, and divest the Government stake in the company, action has been taken to find a suitable investor by calling Request for Proposals.
(LI)