Marina Bay Sands facing further delays to S$4.5 billion expansion plans

SINGAPORE’S Marina Bay Sands (MBS) looks set to experience further delays to its S$4.5 billion expansion plan, according to a filing with the United States Securities and Exchange Commission.

MBS, which is owned and operated by US-listed Las Vegas Sands (LVS), announced back in April 2019 that it would be adding a 1,000-room hotel tower and a live entertainment arena seating 15,000, among other facilities.

Construction of the new facilities has been pushed back more than once due to the onset of the pandemic.

The latest update by LVS in its 10-K, a required annual report, states that LVS is required to “commence certain construction projects” by April 2023.

LVS will not, however, be able to “timely commence” construction, and is “in discussions with the Singapore government on the duration of the timeline extension”.

The timeline is part of LVS’ obligations under a development agreement signed with the government. If an extension is not obtained, the integrated resort operator will be in breach of its obligations under the agreement.

As part of the agreement, MBS was granted approval to convert one floor of a hotel tower into a casino area. It was also granted an option to purchase another 2,000 square metres of casino gaming area at a price to be determined by the relevant Singapore government authority.

Genting Singapore , operator of Resorts World Sentosa, had also pledged in 2019 to invest S$4.5 billion in an expansion of its integrated resort.

As part of the agreement with both resort operators at the time, the government also committed that it would not give out any more casino licences for a fixed period and that casino taxes would not exceed specified rates.

The casino entry levy was revised upwards at the time, with a commitment that it would remain fixed for a five-year period.

According to Genting Singapore’s quarterly business overview, released in November last year, its expansion projects are “proceeding expeditiously”. The company expects to report its full-year results on Feb 20, after trading hours.

The Singapore Tourism Board (STB) told The Business Times in a statement: “While the IRs (integrated resorts) have previously indicated there are potential delays in the completion of their projects, they remain committed to their expansion plans. The IRs have and will continue to enrich Singapore’s tourism offerings. STB will continue to monitor the progress of the developments.”

MBS declined to comment on the delay.