International Public Call for Bids #01/2016

International Public Call for Bids #01/2016

AIM: International Public Call for Bids for:

I- Realization of maintenance and reform works in the building in which is currently located the Argentino Hotel, Piriápolis, structures and surroundings. (Located in the 5th Judicial Section of Maldonado register numbers 3878 and 3879, State Property - Ministry of Tourism).

II - The concession to use the Argentino Hotel in Piriápolis.

The length of the concession will be for 30 (thirty) years, applicable once the contract for concession is signed. Bidders must take note that the Argentino Hotel is currently in use and delivery of said building to the successful bidder will be realized once vacant.

Consideration for the concession of the hotel requires of the successful bidder, over the course of the entire concession, an annual fee consistent with a percentage of the revenue generated through the concession. Said fee will be proposed in the official offer made by the acquirer(s) and will not be less than 1% of revenue generated with the exception to revenue of the Casino.

Amongst other obligations, the successful bidder must also:

A) Realize necessary repairs, remodeling and valuation of the establishment for concession use as a 5-star service establishment. Architectural style may not be changed, as well as historical value and national heritage in and around the building.

B) Furnish and maintain hotel service at 5-star level for the entire duration of the concession.

C) Maintain, preserve, protect and replace all private belongings enumerated in the inventory signed over simultaneously with the concession contract in order to preserve historical value and heritage of the property.

D) Pay corresponding annual fee.

E) Maintain excellent level of services insofar as maintenance, repair, and improvement of any nature the establishment requires in addition to acquisition, repair or replacement of any equipment required for adequate and correct operation of establishment during concession contract.

F) Fulfill fiscal and social security obligations as well as payments of all expenses accrued from concession in addition to property contributions and other national or departmental taxes applicable to the property in concession including taxes mandated by law to be paid by the proprietor.

III- Incorporation of the current Casino del Estado Piriápolis (Piriapolis State Casino) to the Sistema Mixto de Explotación de Complejos Turísticos y/o Comerciales(Mixed System of Use of Tourist Complexes and/or Businesses) under the Dirección General de Casinos del Estado (DGC - State Casino Directorate) in accordance with the rules, regulations and applicable law.

The rental contract between the successful bidder and the Dirección General de Casinos del Estado (DGC, State Casino Directorate) will be valid for 15 (fifteen) years starting on the first day of the month following the date of receipt agreed on by the casino on behalf of the DGC.

Mixed System of Use: After private investment, the DGC will operate the casino and the investor will receive consideration for casino lease contract, moveable property, supplies, equipment, marketing services, promotion, publicity and outreach. Said consideration is bound to the operation of the establishment. Said establishment initially holds a minimum of 180 (one hundred and eighty) and a maximum of (220) spaces for electronic games; 5 roulettes, 2 Black Jacks, 1 Texas Hold’em, 2 hand to hand poker tables, notwithstanding future expansion, that must be authorized by the DGC while contract is in force.

In brief, and notwithstanding the terms and conditions of valid and accepted contracts, the Mixed System of Use consists of:

- The private investor that makes the investment in the tourism industry is legally liable to provide the DGC with:

-an establishment, location, and adequate area in the hotel where the casino will operate;

-all movable property and associated property, installations, and fundamentally, new and renovated gaming equipment required by the DGC from the beginning of activity and throughout the entire period stipulated in the contract;

-services for the following: control, internal and external security, maintenance and cleaning, as designated by the DGC;

-services for the following: publicity, promotion of the casino, advertising and maximizing attendance, especially of tourists, subject to direction and control by the DGC; and

-necessary consumables for DGC staff to undertake operational tasks (miscellaneous).

In return, the state assumes the obligation to pay the private investor a consideration for the lease, and indicated services related to the gaming operations.

The investor must guarantee the casino with a temporary alternative area for continued operation, acceptable for the DGC, while renovation is underway at the expense of the investor. This will be given in commodatum to the Directorate who has the discretion to utilize said location notwithstanding applicable traditional regulations, until the present establishment currently being offered in the contract is legally signed over.

PRESENTATION OF PROPOSALS: Until day and time of opening in the Administration Division.

OPENING OF BIDS: March 30, 2016. Time: 2pm, in the “Horacio Arrendondo” hall. Rambla 25 de Agosto de 1825 (no number) First floor, Montevideo.

BID CONDITIONS: Administrative Division from Monday to Friday from 12 midday to 4pm with prior payment in the Treasury Department (1st floor) - cost U$S 2,000.

Website:

PRIOR CONSULTATIONS: Via written document up to 20 calendar days before the date of opening, in the Administrative Division,

from 10am - 4pm.

APPLICATION OF DEFERRAL: For those purchasers of bid conditions in writing up to 10 work days prior to date of opening in the Administrative Division, from 10am to 4pm.

ADMINISTRATIVE DIVISION: Rambla 25 de agosto de 1825, no number, 1st floor, Montevideo; telephone: 1885. ext. 217/218 fax ext.195; email: