3 foreign investors interested in RP's 'mini-Las Vegas' complex

MANILA, Philippines - Three investors from South Korea, Europe, and the United States have expressed interest in helping build an entertainment complex on top of reclaimed land along Manila Bay, an official said. All three companies have submitted their respective proposals to help construct a “total entertainment complex" called Bagong Nayong Pilipino-Manila Bay Integrated City, Efraim C. Genuino, Chair and chief executive officer of the state-run Philippine Amusement and Gaming Corp. (Pagcor). The project will be located on a 120 hectare property along Manila Bay. Genuino declined to reveal the identities of the prospective investors, as the agency is still “investigating" them, a process that will last six months, he said. Minimum cost of the project – to be considered as the Philippines’ Las Vegas – will reach $1 billion, consisting of both equity and debt. Of this total project cost, at least 40 percent of the total project cost must be invested within a period of two years from site delivery for Pagcor-owned land or from the date of signing of the provisional license. Investors are required to submit a concept for their investment, Genuino said, declining to identify the kind of businesses the three investors will engage in. “Only three percent of the entire development is in gaming," Genuino said at the sidelines of the 4th Asia's Gaming and Entertainment + Lesiure Expo Manila (Asia's GEM) 2009 which opened in Manila on Wednesday. “There will be lots of tourist attractions including sports arenas and a museum. All of [prospective investors] are global operators." Investors will be announced within the year since the agency is already putting finishing touches in terms of concept and design, he said. Based on the terms of reference, applicants must have the financial capability and a well-established experience in the hotel and gaming business. Applicants who are principally financial investors are also welcome but will be required to engage qualified hotel and gaming operations entities whether organizations or individuals, who have the track record in organizing and operating world-class hotel and gaming projects. Japan-based Aruze Corp., Malaysia’s Genting Berhad Group, and Sy-led SM Investments Corp., which secured approval to join the project, will develop at least 100 hectares of the reclaimed land. Next: Project to employ more than 40,000, triple Pagcor’s income Project to employ more than 40,000, triple Pagcor’s income Through the project, Pagcor aims to boost tourism and increase influx of tourists by more than a million annually. The agency, which regulates all games of chance, among others, also expects to employ more than 40,000 Filipinos once the complex is in full swing. Based on the terms of reference, income levels will be at par with other hotel casino complexes in the region, and salaries will be dollar-denominated. Besides direct employment, the project could also provide 150,000 indirect jobs through support operations. Upon full implementation, the project could also generate gross revenues of several billion dollars per year and triple Pagcor’s current annual to $1.5 billion from $500 million, hiking the national government’s earnings. In a separate interview, Philippine Chamber of Commerce and Industry (PCCI) Vice-Chairman and Biztours committee chairman Samie Lim said the Philippines is very strong in leisure and resort. "Other places like Singapore and Taiwan don't have the land, facility and people. This is a business tailor-fit for the Philippines," he said. “The world economic crisis is going to work to our advantage. People still need to have fun and to relax. They want to do it somewhere less expensive and new. We are the new kid on the block," he said. - GMANews.TV