Bangladesh Services hands over BICC to PWD after lease expiry
Bangladesh Services Limited — the owner of InterContinental Dhaka hotel — has handed over the Bangabandhu International Conference Centre (BICC) to the Public Works Department (PWD) as its lease contract expired.
After expiry of the lease agreement in June 2022, the Bangladesh Services has been carrying out the same job as per mutual understanding with the PWD on the basis of payment of 80% of net rent earned from BICC venues.
Meanwhile, after expiry of the lease, the PWD floated a tender to lease out the venues.
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In a press release, the Bangladesh Service said owing to the expiry of the lease contract between the company and the PWD for management, maintenance and operation of the BICC has been handed over to the PWD on 21 January.
According to Bangladesh Services annual reports, it mainly engaged in the hospitality business. Its majority revenue comes from its hotel operation.
In addition, revenue is generated by renting out the spaces in the office complex adjacent to the hotel building and from operation and management of the BICC.
In fiscal year 2022-23, the Bangladesh Services earned Tk4.19 crore profit from the BICC, according to its annual reports.
In FY23, its income from the BICC was Tk40 crore. After deduction of its expenses, its net profit stood at Tk16.99 crore, of which Bangladesh Services earned Tk4.19 crore.
The Bangladesh Services took lease of the BICC for 10 years, which expired on 30 June 2022.
However, the company incurred a loss of Tk85.73 crore in FY23, despite a 53% growth in revenue to Tk169 crore.
As it incurred a loss, the company did not pay any dividend to its shareholders.
