The Treasury Department is renewing the invitation process today for interested companies to again bid to renovate and manage Bangpra International Golf Club in Chon Buri province in eastern Thailand.
This is the second time the state agency offered the invitation, with the bid conditions revised this time to make them more attractive to prospective bidders, said Yuttana Yimgarund, director-general of the department.
The golf course occupies more than 633 rai in Bang Phra sub-district in Chon Buri.
He said bid documents go on sale today and the bid submission date is in late August.
The bid winner is awarded the right to manage and utilise the project for 30 years.
While the pandemic is affecting the Thai economy, especially the tourism sector, Mr Yuttana believes the outbreak will soon be contained.
Given the difficulty wooing investors to manage the golf course during the first bid invitation, the department made the conditions more attractive by removing the original condition that the winner would have to build a new hotel worth 200 million baht at the venue. The bid winner is now required to renovate the existing hotel and buildings instead.
Other conditions include the winner making an initial payment of at least 283 million baht. The bid winner can pay the full amount upfront or split it into five instalment rounds.
If the winner opts for the instalment payments, the interest rate is 3% per instalment.
The winner is also required to pay the annual golf course rental fee of 12.82 million baht for the first year, with the rate increasing 9% every three years. The winner shares revenue with the department at a rate of 3% of revenue before expenses.
The bid winner is required to invest at least 160 million baht on golf course renovations and at least 150 million on the renovation of a hotel, a golf club building and other buildings. Another rule is investment of at least 4.76 million baht to construct a golf academy building.