Studio City casino still uncertain: Gov’t

The introduction of a gaming space at the Macao Studio City project has not yet been approved, the secretary for Transport and Public Works told lawmakers yesterday.
In response to an enquiry made by Au Kam San, Lau Si Io said: “The approval is not completed. We can still require that the project goes according to the 2008 plan.”
The official also repeatedly rejected the existence of any ‘secret deal’ with gaming operator Melco Crown Entertainment.
“There is no secret agreement between the government and the operator. Changes that were made to the initial project were aimed at putting the project in line with urban planning.”
Melco said, in August last year, that it was confident the Cotai project would receive the necessary government approvals to include a casino.
In June, Melco completed the acquisition of a 60 percent share in Macao Studio City. The gaming operator said the project would include 300 to 400 tables and 1,200 gaming machines when it opens.
However, the Land, Public Works and Transport Bureau reiterated at the time that the project primarily contains hotels and a film production project, as stated in the 2008 development plan.
But yesterday Au recalled that the 2008 revision was never made public and the last plan published in the Official Gazette dates to 2001. Back then, the land concession contract set that the Cotai project included film production studios, restaurants and residential units, but no gaming amenities.
In addition, several lawmakers claimed the land premium was too low. Lau said that the calculation method was adequate but vowed to continue adjusting it in the future.
The new calculation formula has been in effect since last November. The land premium had remained unchanged since 2004.
The new rules place the biggest increase, 93 percent, on plots earmarked for the construction of residential towers with more than seven floors. For smaller residential buildings the land premium will grow by 50 percent.
The increase will be smaller for other usages, with land premium for commercial buildings and office towers increasing by 35 and 34 percent, respectively, from the previous formula updated in 2007.               

A.L.