Caribbean Naval Base Relocation Project
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- Rosalyn Warner
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1 Caribbean Naval Base Relocation Project
2 MAIN GOALS Provide to the Colombian Navy with a modern and improved Naval Base Consolidate Cartagena as the cultural and touristic capital of the Caribbean
3 Agenda 1. Location 2. Procurement Mechanism 3. Timeline 4. Naval Base Features 2.1. Model scheme 2.2. Studies 2.3. Images 4. Real Estate Development 5. The Galleon Museum
4 LOCATION
5 LOCATION COLOMBIA NAVAL BASE Current Base Land Area: 32 Ha CARTAGENA
6 PROCUREMENT MECHANISM
7 Procurement Mechanism The mechanism established to structure the execution of the project resembles the PPP (public-private partnership) scheme of a private initiative, divided in two phases: PHASE 1 (by invitation): includes development of studies and designs of both, the Naval Base and the real estate development project, in order to define: a) The land where the Base is going to be relocated to: must meet all the technical, environmental, social and economic requirements and include the design of the 60% of the new base. b) Land value of the current Base location: must be based on the real estate potential in accordance to the land uses established in the proposal. c) Financial model: allows to establish budget and financial closure of the project. Ensures that the design, construction and purchase of new land can be funded with the value of the current Naval Base land. PHASE 2 (by invitation): Execution of the New Base Project - relocation and real estate development project * Costs of the studies and designs must be assumed by the originator of the proposal (bidder).
8 Selection Criteria Bidders must certify the following enabling requirements : 1. Juridical ability The foreign legal persons must accredit its existence and legal representation with the suitable document issue by the competent authority in the country of its legal domicile not older than three (3) months from the date of filing of the Offer, in which it is evidenced that the legal representative does not have limitations to contract obligations in name of the legal person, or provide the authorization from the Board of Directors or similar competent body that authorizes it. 2. Experience The Bidder must accredit experience fulfilling the totality of the following requirements: 1. Contracts for design of military bases or high security installations for armed forces and national defense. 2. Contracts for urban renewal with cultural and entertainment developments and emphasis in creation of public space. 3. Contracts for design of Cruise ports or terminals. 4. Contracts for management of construction programmes of buildings for military use. 5. At least a contract for design or construction of urban routes. 6. To have obtained at least two (2) environmental licenses approved in projects of marine impact. 7. Contracts aimed to the juridical structuring of infrastructure for port or maritime or real-estate projects. 8. Contracts for the financial structuring in at least three (3) projects that have obtained a successful financial closing.
9 SELECTION CRITERIA 3. Minimum technical team PROJECT MANAGER (20 years of experience) ENVIRONMENTAL DIRECTOR (15 years of experience) TECHNICAL DIRECTOR (15 years of experience) FINANCIAL AND ECONOMIC DIRECTOR (15 years of experience) LEGAL DIRECTOR (15 years of experience) SOCIAL DIRECTOR (15 years of experience) In addition, a professional with postgraduate degree and 8 years of professional experience related to the following activities: - Real Estate - Geology - Oceanography - Military Engineer - Public spaces - Public services - LEED Consulting - Aeronautics - Hydrology - Ports - Electricity - Landscaper - Topography - Risks
10 SELECTION CRITERIA INDICATOR FORMULA REQUESTED RESULT 3. Financial Capability Will define whether the proposal is ENABLED or NOT ENABLED. Equity Liquidity Official Budget (PO) / Total Equity (PtT) Current Asset (ACC) / Current Liabilities (PaC) >=50%PO ENABLED / NOT ENABLED >= 1,0 ENABLED / NOT ENABLED Won t receive any score or points The participant must present his Financial Statements (as of December 31 st of 2016), duly certified, through which the following indicators will be verified: -Balance sheet -Income Statement Indebtedness Working Capital Total Liabilities (PaT) / Total Assets (TDA) Official Budget (PO) / (Current Asset (ACC) - Current Liabilities (PaC)) <70% ENABLED / NOT ENABLED =40%PO ENABLED / NOT ENABLED
11 PHASE 1 FORMULATION AND STRUCTURING PHASE 2 EXECUTION Identify and value potential real estate development Establish residual value of real estate development (in the land where the Base is currently located) CURRENT LOCATION Identify and value land for relocation GOAL Elaborate relocation feasibility studies. EXECUTION RIGHT OF PREFERENCE TO IMPROVE THE PROPOSAL Requirements to locate the New Naval Base Preliminary project designs (60% advance) Minimum specifications of the New Naval Base NEW NAVAL BASE EVALUATION COSTS PAYMENT Closed invitation: Firms with experience in construction of naval bases. + Firms with experience in real estate developments (convention centers, amusement parks, casinos, aquariums, marinas, etc). Agency s TRUST $ NAVAL BASE LOT Bidding documents establish technical and financial capability requirements to participate, as well as the evaluation criteria. Vo.Bo. EVALUATION (THIRD)
12 AGREEMENT INTERINSTITUTIONAL AGREEMENT SIGNED BETWEEN THE NATIONAL MINISTRY OF DEFENSE NATIONAL NAVY (MND) AND THE NATIONAL REAL ESTATE AGENCY VIRGILIO BARCO VARGAS (ANIM), FOR THE IMPLEMENTATION OF THE INTERADMINISTRATIVE AGREEMENT 17 of 2017 PHASE 1 AGREEMENT MND - ANIM PROCESS OPPENING (CLOSED BIDDING) SELECTION PROCESS 1ST PHASE TECHNICAL -OCEANOGRAPHICS -PRELIMINARY PROJECT DESIGN -BUDGET FINANCIAL CLOSURE TECHNICAL AND FINANCIAL VIABILITY CONCEPT Pledge of land transfer Agreements Government to Government (MND ) Feasibility, Technical, Financial and Legal FINANCIAL LAND VALUATION REAL ESTATE POTENTIAL END NO VIABILITY YES
13 AGREEMENT PHASE 2 END NO VIABILITY YES CONSTRUCTION AWARD CONTRACTOR SELECTION PROCESS PUBLISHING OF VIABILITY ASSESSMENT COMPLIED TERMS LOT TRANSFER TECHNICAL ASSESSMENT Responsible of structuring: Preferential right option If the preference right is rejected: studies must be paid by the developer Agreements (signed March 2, 2017): MND, District of Cartagena and ANIM: Naval Base relocation, as well as formulation, structuring and development of a real estate project in Bocagrande. District of Cartagena, ANI and ANIM: Technical support in viability of infrastructure and real estate management projects related to transport and urban development.
14 TIMELINE Budget Closure Agreement Conditions to transfer land ownership to Agency s Trust land ownership transfer to trust Proposal Handover Award June July August Sept October Nov. Dic. Jan Feb March April May June July CONPES Studies and Design, Technical and Financial Feasibility Phase 2 Invitation to participate Phase 1: Studies and Designs
15 NAVAL BASE
16 MODEL SCHEME Identify Colombian Navy (Naval Base ARC Bolívar) needs New Base location and design High Level Requirements Must be located in the center zone of the Caribbean coast. Design conceived from the needs of the army fleet Infrastructure capacities tailored to army's forces structure Logistics services platform must be thought as a cost reduction-oriented asset management process. Should represent an improvement of the conditions and quality of life of officers, crew and officials Minimization of environmental impact.
17 NAVAL BASE Urban approach overview New Naval Base Approximate land Area. 134 Ha
18 STUDIES PHASE 1 pre-feasibility Goal: 3 location options + Preliminary coastal and oceanic study of the zone + Navigation and maneuverability assessment + Terrestrial conditions assessment PHASE 3 Goal: design and formulation + Design the Technical, Architecture and Urban Project for the New Caribbean Naval Base PHASE 2 feasibility Goal: choose 1 location Zoning and asses site conditions: PHASE 4 Goal: structuring + Estimated budget + Environmental + Social + Land regulation and use (normative) + Economic - strategic + Risks assessment
19 NAVAL BASE ACCOMMODATION FOR SUBOFFICIALS View from the courts
20 NAVAL BASE - TRAINING SCHOOL View to the swimming pools
21 NAVAL BASE ACCOMMODATIONS FOR SENIOR NAVAL OFFICERS
22 NAVAL BASE SERVICES View to the Shopping Center
23 NAVAL BASE - SERVICES School View
24 NAVAL BASE HOUSING FOR JUNIOR NAVAL OFFICERS Aerial view
25 NAVAL BASE HOUSING Housing view
26 NAVAL BASE HOUSING ADMIRALS AND BASE COMMANDER 3D view
27 REAL STATE DEVELOPMENT
28 Potential Development Proposal HOTEL Meters DOCK Meters AMUSEMENT PARK Meters Public space: m2 44% of the property + Free area: m2 20% - 41 % of the property MUSEUM GALLEON meters built HOTEL, OFFICES, CASINO Metres CRUISE PORT Meters CONVENTION CENTER Meters ARENA (events) Meters AQUARIUM Meters
29 Potential Development Proposal PROYECTO BASE NAVAL DE CARTAGENA
30 Potential Development Proposal
31 Potential Development Proposal
32 LAND REGULATORY AMENDMENTS TREATMENT AND LAND USE Consolidation Treatment with Institutional Use (Naval Base) Development Treatment: incorporating allowed uses in the zone where the Base is located Cartographic imprecision It is amended through Urbanization License which establishes the development treatment of the lot (land). According to the Cartagena s POT (Territorial Ordering Plan), naval base footprint 5/5 Urban ground USE: Institutional TRADE ACTIVITY: 2 AND 3 SECTOR: historical and urban and architectural preservation ARTICLE 252 OF THE POT: INSTITUTIONAL NAVAL BASE 3. NAVAL BASE : It is located within the institutional activity number 3: great environmental and urbanistic impact. Requires large-scale specialized buildings, special public services infrastructure and covers the entire territory of the district, including neighboring municipalities. MINIMUM DEVELOPMENT TREATMENT: 40% CESSION OVER THE LOT (LAND) Source: National Real State Agency Virgilio Barco TOTAL LOT AREA ,45 100% CESSION 40% ,98 40% 60% green and public zones 74,368,02 24% 20% communal equipment 24,789,34 8% 20% roads 24,789,34 8% NET URBAN AREA 185,920,04 60%
33 Goals - Expected Impacts The annual number of international tourists in Cartagena could exceed 2.4 million Could generates about direct jobs and more than 50 thousand indirect jobs (1.7 times the number of unemployed in the city) Project s investment is been estimated around USD $2,700 million More than 650 new annual cruisers could be arriving to the city of Cartagena. Around 1'300,000 passengers embarking from project s dock Could generates demand for more than 800 hotel rooms in the sector of Boca Grande. Could generates about 9,700 new additional hotel rooms demand all over Cartagena New hotel offer could generates about 39,000 jobs (equivalent to the current number of unemployed in Cartagena) Investment in new hotel offer, outside the project, is been estimated around US $ 1.2 billion Cartagena s could generates around the third part of the foreign currency coming in to the country s economy (USD $ 1.5 billion per year) Current account deficit could be reduced by 12% (full operation project) Foreign currency coming in to into the country as exports (personal travel), could increase by 32%
34 THE GALLEON MUSEUM
35 TRIPARTITE AGREEMENT: THE GALLEON MUSEUM (ANIM-MDF-MINCULTURA) GOAL TO JOIN EFFORTS TO LOCATE THE GALLEON MUSEUM IN THE AREA OF THE REAL ESTATE PROJECT THAT WILL BE DEVELOPED IN THE AREA CURRENTLY OCCUPIED BY THE NAVAL BASE ARCO BOLIVAR. Agreement state: signing process
36 IMAGE OF THE GALEON MUSEUM
37
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