One year after the completion of the construction works, which transformed the site of the Old GSP Stadium into a modern multifunctional park in the heart of Nicosia, the Municipality of Nicosia has proceeded with the announcement of a tender for the utilisation by a single entity of the premises that have been created.
As the Mayor of Nicosia, Charalambos Prountzos, had mentioned in previous statements to InBusinessNews, there is increased interest from large groups and companies in utilising the catering and commercial spaces in Old GSP Square.
It is worth mentioning that the new jewel of the capital, which is gradually being integrated into the daily life of Nicosia residents, already hosts various events and aspires to establish itself as the city's new hot spot.
The competition
According to the tender documents, as published within the Electronic Procurement System (e-Procurement), the subject of the contract to be signed with the selected Contractor is the granting of a license to use five premises to a single entity, which will undertake at its own expense the internal integration and configuration of the premises, their configuration and full equipment and their operation and management with the provision of catering, entertainment and/or commercial services.
The operation of the premises aims mainly to:
- Attract and serve families, young people and children.
- Create conditions for safe and quality hospitality.
- Promote activities that enhance the social and recreational character of the project.
Additionally, the Contractor will ensure the adequate and successful provision of diverse and quality services, namely a multi-purpose space that will combine dining, recreational and/or commercial uses, with provision for flexibility in cases of reduced traffic, ensuring full respect for the architectural project.
As the documents specifically point out, "the latter is very important for the Municipality, because this project is an ornament for the city of Nicosia and must remain at the high level achieved with its construction, attracting visitors and becoming a magnet for families and young visitors."
It is noted that the aim of the Municipality of Nicosia is not for this project to become a temporary place of interest, but to ensure its visitor numbers over time, through actions and events that will promote it and keep the public's interest alive.
Therefore, the goal of the contract is to upgrade the Old GSP as a reference point for the city, making it a perennial attraction for visitors of all age groups, but especially for families and young people.
The available spaces
It is worth mentioning that the available spaces are part of the GSP Redevelopment project, which includes commercial units, common areas and public spaces. The premises will be delivered with a complete external shell.
It is noted that the Contractor who will be selected must be aware of and take into account - among other things - that:
He must complete, configure and equip the premises and is solely responsible for the quality of the works and materials to be used.
No intervention is permitted in the load-bearing structure of the buildings and that all interventions in the areas, with all necessary relevant studies and technical descriptions, will be carried out after approval by the Contracting Authority and/or the Competent Services/Committees.
All interventions in the outdoor areas must respect the character of the project and will be carried out after approval by the Contracting Authority and/or the Competent Services/Committees.
The Project has an information area (Info Kiosk) which is located on the ground floor level on Evagorou Street, and consists of a single space of 15 sq m., which will be under the management of the Municipality of Nicosia and will be used to provide information on the city's activities.
The Project will construct a Citizen Service Center (CSC) in an area of 510 sq m along the Stoa in Basement A (not relevant to this tender). The CSC will extend from the Multi-purpose Hall to the Auxiliary Areas of the Outdoor Amphitheater and is expected to be operational in 2026.
The Project will create an Exhibition Hall & Open GSP Museum (not relevant to this competition) in the First Basement, west of the Stoa between the Citizen Service Center and the Multi-purpose Hall.
Expected results
As expected results, the following are set out in the documents:
1. The completion and operation of the premises with modern facilities and equipment, in accordance with safety, hygiene and aesthetic standards.
2. The development and maintenance of dining, entertainment and/or commercial spaces that offer quality services with a focus on serving families and visitors of all ages.
3. Strengthening the social life of the region.
4. Ensuring safe conditions for stay and entertainment for visitors with provision for accessibility for people with disabilities.
5. Safe and organised space for families and children, with the provision of appropriate activities and services.
6. Ensuring the smooth and sustainable operation of the premises with the aim of their maintenance and utilisation for the benefit of both the Contractor and the Contracting Authority.
7. The operation of the premises should ensure a variety of uses in such a way that one activity complements the other, creating an integrated network of services.
8. Flexibility in the management and utilisation of spaces, so that in the event of reduced traffic to a specific premises, it is possible to adapt or rearrange uses for the benefit of the overall operation.
9. Strengthening local economic activity through attracting visitors and improving quality of life as the new infrastructure will cover entertainment and socialisation needs.
10. Possibility of hosting events, festivals, educational and entertainment activities.
11. To exploit possible synergies with involved entities operating in fields related to the subject of the contract (catering, entertainment, retail, etc.), as well as with entities related to the operation of playgrounds and educational centers, in order to achieve the operation and management of a large-scale and interesting multi-purpose space.
12. Maintenance and repair of premises so as to ensure a good image. It is important that any damage within the premises is repaired immediately so that no elements of disorder and negative image are observed in the project.
13. Cleanliness of premises, both internally and externally, so that the space presents a very positive image worthy of the level of the project, which is in no way inferior to the cleanliness of similar multi-purpose venues abroad.
14. Creation of a stable attraction that enhances the long-term development of the region.
Conditions and risks
However, in order to achieve the above, the necessary conditions are:
1. Coordination and maintaining a close relationship with the Contracting Authority (Nicosia Municipality), so that the cooperation of the two ensures the expected quality.
2. The Contractor's organisation and experience must be sound so that it is able to deal with critical and unforeseen situations and maintain the project at all times at exceptional levels.
3. The timely securing of all required permits.
4. For the execution of the subject matter of the contract, the Contractor must have the necessary resources both in terms of human resources (experts and workers) and technical support to be able to respond to the challenges and difficulties of the project.
5. The effective functioning of the Contractor's Project Team.
6. Adherence to the planned construction, equipment and operation schedules.
7. The existence of sufficient funding on behalf of the Contractor for the completion and equipment of the premises.
At the same time, the Municipality of Nicosia also recognises a series of risks, related both to the delay in the subject of the contract and in particular to the delay in the commencement of operation of the premises, as well as to the failure in the successful operation and management of the premises resulting in the non-attendance of visitors, consequently disrupting the balance between income and expenses to the detriment of the Contractor and the Contracting Authority.
Also, there is an investment risk for the Contractor, since he himself will bear the cost of completion and equipment, which may lead to financial difficulty and abandonment of the contract.
Other risks include breach of contract terms by the sub-licensees who will operate the premises, non-compliance with permits (urban/construction/health approvals), exposing the Contracting Authority to liability, and insufficient traffic which may affect the sustainability of the activities, requiring adaptation of uses and services.
In addition to the above, there is also a risk of poor-quality work. For this reason and in order to reduce costs, the Contractor may choose low-quality materials/constructions with implications for the long-term use of the space.
Based on what is stated in the tender documents, other potential risks are:
- Inability to maintain the premises, since if the maintenance obligations of the basic shell are not explicitly implemented, there is a risk that the buildings will become depreciated during the contract.
- Unsuccessful selection of partners resulting in no response to requests
- challenges that will be observed daily.
- Failure to ensure the cleanliness of the indoor and outdoor dining area, a key element of the overall image of the project.
- Intervention outside the premises resulting in affecting the structure of the space and the facilities.
- Risk of legal disputes between the Contracting Authority and the Contractor.
- Financial risk since if the project does not ultimately operate, the Contracting Authority will not collect license fees and will have increased administrative costs for the preparation of new revised tender documents.
Contract duration
Furthermore, based on the tender documents, the concession contract will be for ten years, with the Contracting Authority entitled to further renewals of the contract for three more periods of 5 years each time, until a period of 25 years is completed.
The license fee payable will be adjusted every five years, with an increase of five percent (5%) every five years, starting from the completion of the first five years from the entry into force of the contract, regardless of the fact that its initial duration is set at ten years.
It is noted that offers from interested economic operators will be accepted until Monday, 4 May, 2026 at 1:00 p.m.
(Source: InBusinessNews)
