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THE
envisioned Las Vegas-like Bagong Nayong Pilipino-Manila
Bay Integrated City has moved another step closer to
reality after
Japan’s
Aruze Corp., Genting Berhad of Malaysia, SM Investments
Corp. and Australia’s Bloombery Investments Ltd. were
given the go-ahead to put up their respective
multibillion-dollar projects at the 90-hectare resort
complex.
The
project proposals of the four groups, with total
investments of about $10 billion spread over three to
five years, have been approved by the Philippine
Amusement and Gaming Corp. (Pagcor).
Efraim
C. Genuino, Pagcor chairman and CEO, said the four firms
will hold their ceremonial groundbreaking ceremonies
Thursday in conjunction with the ongoing 2008 Asia’s
Gaming and Entertainment plus Leisure Expo (Asia’s Gem).
Genuino
said they expect actual development to start in the
third quarter of the year.
“But
they [investors] would still need to comply with all our
stringent requirements, including the capital that they
have to infuse. We must make sure that their money will
come in,” Genuino told reporters at the sidelines of the
Asia’s Gem events at the Hyatt Hotel and Casino Manila
Wednesday.
Under
the terms of reference released by Pagcor, companies
with approved proposals must invest at least $1 billion
for their projects, with the initial $400 million coming
in the first two years.
Genuino
said seven groups originally submitted their project
proposals, but only the four firms qualified.
Azure
Corp., a major stockholder of Wynn Resorts and reputed
manufacturer of gaming machines, proposed the
development of the Okada Resort Manila Bay.
It will
be an integrated casino resort with 2,000 standard rooms
and 300 VIP suites. Its main features would be an
oceanarium targeted to be the world’s largest, theaters
and a giant Ferris wheel similar to the London Eye and
to be called the “Manila Eye.”
Genting
Berhard, with its partners Star Cruises and Alliance
Global Group Inc., (AGI) plans to build several hotels
with a minimum room capacity of 2,000 rooms and a
world-class theme park. The company owns and operates
the Genting Highlands Resort in
Malaysia.
Publicly
traded Alliance Global is in talks with Star Cruises
Ltd. for a joint venture to develop a $1-billion
integrated leisure and resort within the Bagong Nayong
Pilipino Manila Bay Integrated City Project.
Star
Cruises, the world’s third-largest cruise operator and
an affiliate of the Malaysian conglomerate Genting
Group, is interested to acquire up to 40 percent of
Travellers International Hotel Group Inc., a wholly
owned subsidiary of AGI.
Travellers International will serve as the vehicle for
participating in the government’s ambitious plan to put
up the multibillion-dollar integrated tourism zone.
The
negotiations between AGI and Star Cruises are expected
to be finalized in three months.
“Our
proposal comes at an opportune time when there is
increasing awareness of the Philippines as a tourist
destination, with the country achieving a milestone in
2007 with a record 3 million tourist arrivals for the
first time in its history,” said AGI chairman Andrew
Tan.
Part of
the plan is to build hotels with a minimum of 1,000
rooms spread out over several phases of development.
“Star
Cruises’ interest in the project is a strong testament
of foreign-investment interest in the underlying
attraction of the Philippines as the hub for leisure and
entertainment and a vote of confidence in the country’s
economy and tourism industry,” Tan said.
Meanwhile, SM Investments Corp. proposed to put up a
gaming facility in partnership with Asia- Pacific Gaming
of Australia, and a major luxury hotel to be managed by
Radisson Hotels & Resorts at the Mall of Asia Complex
side of the Manila Bay Integrated City.
Bloombery Investments Ltd., on the other hand, is
planning to build three luxury hotels with a total
capacity of 1,500 rooms, with high-end retail shops,
celebrity-themed dining, and a major entertainment and
sports center.
Genuino
said the proposed projects of the four companies, with
average cost of $2 billion to $3 billion, are enough to
fill up the entire 90-hectare area.
Once
fully operational—the earliest by 2010—the integrated
resort facility is seen to increase the country’s gaming
revenues by at least 30 percent.
It is
also expected to boost foreign tourist arrivals by up to
3 million individuals annually, and generate over
250,000 fresh jobs.
Pagcor
aims to use the Bagong Nayong Pilipino as a catalyst to
sustain the growth of the country’s tourism industry. It
hopes to attract at least $4 billion in investments. |
