ECC approves settlement agreement of Roosevelt Hotel

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the execution of the settlement agreement of the Roosevelt Hotel, New York with the Hotel Union and the New York City Government, ARY News reported.

The ECC meeting – chaired by Finance Minister Ishaq Dar – discussed a summary submitted by the Ministry of Aviation on Challenges and re-opening of Roosevelt Hotel, New York,

The aviation ministry briefed the meeting on the outcome of negotiations held by the Committee with the New York City Government and the Hotel Union on reaching a suitable agreement for utilization of the Roosevelt Hotel (1,025 rooms) over a period of three years for Immigrant Housing Business by the New York City Government.

The ECC further gave node for withdrawal of pending lawsuits by the Roosevelt Hotel with the Hotel Union and the City of New York pursuant to the terms of the settlement agreement with the Union.

The ECC directed the PIAL to engage and share its business plan with the National Bank Pakistan regarding the rollover of loans, said a press release.

The ECC also approved Technical Supplementary Grants/Supplementary Grants of Rs153 million in favour of the Ministry of Water Resources for payment of court cases fee for the settlement of the dispute with India under the Indus Waters Treaty.

The Technical Supplementary Grant of Rs 4 billion (Equivalent to US$ 20 million) as Rupee cover in favour of the Ministry of Federal Education and Professional Training for the World Bank Program “Actions to Strengthen Performance for inclusive and responsive education was also approved.

Earlier in January, the Privatisation Commission (PC) Board approved the terms of reference for the hiring of a financial advisor for Roosevelt Hotel.

The Board was apprised that the Roosevelt Hotel is not being sold. Rather it will be developed into a mixed-use high-rise tower as a joint venture project through the best-suited mode of privatization as delineated in the Privatization Commission Ordinance, 2000.

READ: PAKISTAN EXPECTED TO SELL SHARES OF ROOSEVELT HOTEL TO QATAR

The Board was briefed about the implementation status of different directions issued by the Board in its previous meetings. The Board showed its appreciation for the status update and directed the management to resolve the pending issues besetting privatization. It also advised that other government divisions should be approached to help Privatization Commission in its work.