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Losses pile up at Parjatan units

Sayeda Akter
Units of Bangladesh Parjatan Corporation, which were leased out to private operators for better management and efficiency, continue to incur losses.
Several units are yet to pay back long due lease money to the troubled state-owned tourism agency in line with the terms of contract.
In a bid to regain efficiency, the corporation has moved to collect dues and overcome the losses.
The handover of the BPC units to private opera tors began with the lease of Sakura Restaurant and Bar in 2002.
Following the first lease in 2002, three more were leased in 2003. four in 2004. one in 2006, nine in 2008 and the latest in January' this year.
Currently, among the 19 leased units, at lest seven are yet to pay back the lease money to the government, even though they have already taken overoperations.
In line with management contracts, a company that is awarded a deal for a period of 15 years will have to pay the lease money to the government, with the amount increasing at a 5 percent rate a year.
Sylhet Shishu Park Ltd. the managing company of Parjatan Motel Sylhet and Children's Amusement Park Sylhet. is the biggest defaulter of lease money, with outstanding figures standing at Tk 2.17 crore.
The Children's Amusement Park Sylhet was leased out in 2003 and Parjatan Motel Sylhet was leased out in 2004.
Mubin Khan, managing director of Sylhet Shishu Park Ltd, said the company had paid the dues for the first three years.
“We faced hassles in operations, including a writ petition filed by our opponent company that prevented us from undertaking any major development work at the motel. The major flood of 2004 also hindered our ability to deposit the lease money
to the government,” he said.
"Moreover, we have been incurring losses from day one and we are yet to overcome the situation."
But, according to BPC statistics, Parjatan Motel Sylhet made an operating profit ofTk 18.30 lakh in the last fiscal year.
Khan said the government had permitted them to pay back die dues in four installments, while the deadline for paying the first payment of Tk 35 lakh was on January 1 this year.
However, the deadline was later extended to January 31. "We will pay back the due in time from
now,” said Khan.
Motel Labony at Cox's Bazar is another defaulter with Tk 61 lakh in unpaid lease money. The motel was leased out to Best Eastern Company in 2004.
Aminul Islam, general manager of the motel, said his company had paid dues that accrued over the last five years, in line with the contract.
"We have dues for a year. There are many others who have not paid their dues over several years,” he said. “Even so, we have taken steps to pay back the money in installments in time.”
Islam said the government has arranged an
installment system for them too, where they would be allowed to pay back in four installments.
This motel made the highest operating profit of Tk 60 lakh in the last fiscal year.
Shafique Alam Mehedi, chairman of Parjatan, said a move was underway to collect the dues in installments. "If a unit makes all due payments at a time, it will get a waiver," he said.
"Collecting dues is essential for effectively running the corporation," Mehedi said. The corporation is set to take stronger measures if any company fails to pay back.
"If anybody docs not pay the dues in time, the corporation will fine the company first and finally, cancel their contract,” he added.
Of the 19 units run by private operators, 11 are incurring losses, Parjatan statistics show.
Most of the units have failed to make a difference in overcoming losses that have piled up over a long time. Moreover, such losses accelerate the corporation's total losses that stood at Tk 1.55 crore in the last fiscal year.
However, the primary reason behind leasing out the units to private management was to put a stop to prolonged losses. The government s unwillingness to run the units speeds up the process, said industry people.
Industry insiders estimate that the loss-making companies lack management expertise and skilled people.
Parjatan Motel Benapole incurred the highest loss over the last fiscal year, amounting toTk 25 lakh.
“The place is not that attractive and we don't attract enough guests. This pushes us deeper into losses," said Mohammad Abu Naser, manager of the motel.
He said the government should take necessary measures to make different tourists spots more attractive and only then can these units profit.
sayeda@thedailystar.net