Singapore Likely To Miss Casino Tender Deadline -Sources - Monday 12th of September 2005
Singapore is likely to miss an end-September deadline to issue tender documents for a casino resort on Marina Bay, people involved in the process say, frustrating potential bidders, which have already invested significant time and money in the project.
Despite its reputation as a place that gets things done quickly and on time, Singapore has already extended the target date for the issue of the formal request for proposals once before - from sometime in the second quarter to before the end of the third quarter.
And a further delay in issuing the tender documents for the casino resorts appears likely, as authorities are still discussing specifications with potential bidders, which include well-known names such as Las Vegas operators Las Vegas Sands Corp. (LVS) and Wynn Resorts Ltd. (WYNN), said sources involved in the bidding.
The sources added that the government hasnt yet come out with draft laws to legalize casino operations here.
Another source said the Singapore Tourism Board, the lead government agency for the casino project, is likely to call a press briefing this week to give an update on casino resorts and to explain some of the issues involved.
"They cant let this (deadline) pass and pretend nothing happened," the source said.
The source, however, added that the briefing will likely be a "damage control exercise" as authorities dont appear to be a position to give a definitive timeline, which was what potential investors wanted.
An STB spokeswoman said "more details will be given soon," while the Ministry of Home Affairs, which is working on the draft casinos control act, hasnt replied to queries from Dow Jones Newswires.
Singapore reversed a decades-old ban on casino gaming in April this year to allow the building of two casino resorts to help boost tourism and make the city-state a more lively place to work and live.
The first casino will be located at Marina Bay, which is the site of Singapores new downtown, and the second will be built on the resort island of Sentosa.
The run-up to the request for proposals has, however, been bogged down by planned government restrictions aimed at getting casino operators to build other attractions while minimizing the social problems that may arise.
Casino operators have also expressed concern about the cost of land after a piece of land adjoining the Marina Bay casino site was sold for S$1.8 billion during a recent tender.
According to earlier media reports, operators that had submitted detailed proposals during an earlier request for concepts would prefer a "beauty contest" where the licenses are awarded based on the most attractive proposals, rather than a tender that takes into consideration the price offered for the site.
Several bidders have also based senior executives in Singapore since April in anticipation of the tenders and are getting impatient about the lack of progress, a source said.
According to local media reports, Singapore has already backed away from an earlier proposal to cap casino revenues at 50% of the resorts turnover, and will replace the requirement with a limit on the built-up area that can be used to house a casino.
Apart from Las Vegas Sands and Wynn, companies in the running to build Singapores first casino resorts include Australias Tabcorp Holdings Ltd. (TAB.AU) and Publishing & Broadcasting Ltd. (PBL.AU); Kerzner International Ltd. (KZL), which operates the Atlantis resort in the Bahamas; South Africas Sun International Ltd. (SUI.JO) and Peermont Global Ltd. (PTG.JO); Malaysias Genting Group; and Las Vegas giants Harrahs Entertainment Inc. (HET) and MGM Mirage (MGM).
Singapore companies that have formally tied up with international casino operators for the projects include Keppel Land Ltd. (K17.SG) and CapitaLand Ltd. (C31.SG).
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