ECC okays execution of settlement agreement with HU, NYCG for Roosevelt Hotel utilisation

ISLAMABAD-The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the execution of a settlement agreement with the Hotel Union (HU) and the New York City Government (NYCG) for utilisation of the Roosevelt Hotel over a period of three years.
The ECC meeting was chaired by Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar. It considered the issues related to Roosevelt Hotel, New York. Ministry of Aviation submitted a summary on challenges and re-opening of Roosevelt Hotel, New York and briefed the meeting on the outcome of negotiations held by the Committee with the New York City Government and the Hotel Union on reaching an 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 after detailed discussion approved the execution of settlement agreement with the Hotel Union and the New York City Government. The ECC further gave node for withdrawal of pending law suits by the Roosevelt Hotel with the Hotel Union and City of New York pursuant to the terms of settlement agreement with the Union. The ECC further directed the PIAL to engage and share its business plan with the NBP regarding rollover of loan.
Under the plan, the New York City offered to utilize the building’s 1,025 rooms for three years to house immigrants at the rate of $200 per day for 36 months. The offer envisaged a 14-month guaranteed period along with a four-month termination notice period (minimum of 18 months). The contract is to commence on May 15 and entails a per-night rent of $200 for the first year, $205 for the second year and $210 for the third year. New York City will cover the taxes etc and make a payment of $1.74m monthly rent on the first of each month in advance. Pakistan International Airline-Investment Ltd (PIA-IL) has to hand over about 500 rooms to New York City immediately i.e. on the commencement of the contract on May 15, followed by 400 more rooms within 30 days and the remaining 125 rooms later. This required $1.145m for re-opening works and was already available with PIA-IL as a government grant.
The ECC also approved following technical supplementary grants/supplementary grants: i. Rs. 153 million in favour of Ministry of Water Resources for payment of court cases fee for the settlement of dispute with India under the Indus Waters Treaty. ii. Rs. 4 billion (Equivalent to US$ 20 million) as rupee cover in favour of Ministry of Federal Education and Professional Training for the World Bank Programme “Actions to Strengthen performance for inclusive and responsive education”. Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Syed Murtaza Mahmud, Federal Minister for Climate Change Senator Sherry Rehman, Federal Minister for Aviation/Railways Khawaja Saad Rafiq, Shahid Khaqan Abbasi, MNA/Ex-PM, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, federal secretaries and other senior officers attended the meeting.

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