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US$20 billion Manila Bay gaming complex underway!
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The government's Philippine Amusement and Gaming Corp. (Pagcor) has announced the start of development of an ambitious gaming complex -- to be patterned after Las Vegas -- that will rise on reclaimed land along Manila Bay.
Pagcor chair and CEO Ephraim Genuino said that as much as $20 billion-- equivalent to 16%of the country's total economic output in 2006 -- would be spent in putting up the " Entertainment City."
This marks a 33-percent hike over the initial $15-billion cost that was announced when the |
project was unveiled in 2001. Under the original plan, the investments and project cost would be spread out over a 10-year period. |
"The project is a shift [for Pagcor] from gaming into entertainment," Genuino told reporters at the Asian Gaming and Entertainment Plus Leisure Expo Manila. "We will form a Las Vegas in the Philippines."
The complex, also called Pagcor City, will be built in three phases on 800 hectares of reclaimed land. The first phase will host a hotel-resort and theme park. The next two phases will have retirement villages and entertainment centers.
Separately, however, Pagcor officials said that only "$10 billion to $15 billion" would be spent on the first phase of the project, which would cover between 45 to 65 hectares of the total proposed area.
Genuino said that only 25 percent of the total land area has so far been reclaimed, with the rest to be added as the project gets underway.
Genuino also expressed confidence that the Pagcor City project will not encounter opposition, even from the Catholic Church.
"For us to hurdle opposition to gaming, we will follow Las Vegas," he said. "I think the Church will understand. We are the biggest income generator for the government, and I think the Church will be mature enough to understand."
The gaming firm said that it made P25 billion in revenue from casino operations in 2006, almost 10 percent higher than the P23 billion profit it posted in 2005.
The head of the state gaming monopoly revealed that they are already in talks with Greek casino and resort operator Loutraki-a major player in the European gaming industry-for the development of Entertainment City's first phase.
"We have also spoken with Ceasar's Palace and Genting," he said, referring to the US- and Malaysia-based casino operators.
Genuino said 90 percent of the funds for the project will come from foreign investors. Other funders from Japan, Europe, the US and South Korea have also signified interest in financing the project.
Japanese investors, he said, are interested in developing a retirement village within the area for the expanding Japanese retiree market.
He added that Pagcor was working on the technical requirements of the project, with preparatory work scheduled to begin this year. Construction would be completed by 2009.
"The thrust now is not casino gaming but total entertainment," Genuino said. "In the global arena, only 25 percent of the revenues of gaming destinations such as Las Vegas come from actual gambling."
He said the Philippines stands to gain substantial tourism revenues by taking an active role in the global gaming industry. He noted that even a conservative country such as Singapore has opened its door to casinos as it realizes the benefits to be derived from the industry.
"With Pagcor City, we will quadruple our tourists to 10 million in five years," he said. "We hope we can catch up with Singapore and Macau."
Genuino also said foreign investments in the project will be finalized once Pagcor's charter is amended to allow the state-owned company to enter into joint ventures with foreign investors.
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