Source : The Straits Times, Nov 6, 2007
GENTING International said on Tuesday the estimated cost of building its casino resort on Singapore's Sentosa Island has soared by S$800 million due partly to higher construction expenses.
Genting International, a unit of Malaysian casino operator Genting Bhd, now expects to spend as much as S$6 billion to build the Sentosa casino, up 15 per cent from an earlier estimate of S$5.2 billion.
The new budget for the casino, which includes a contingency provision of S$250 million, also covers the cost of six new attractions as well as improvements to transportation and access infrastructure, Genting International said in a statement.
The higher cost of construction accounted for about half the increase in budgeted expenses, Genting International Managing Director Justin Tan said during a telephone conference.
The company will cover the additional expenses through project financing at the resort level. 'We do not have any plans to go to shareholders for money,' he said.
Genting International earlier this year raised S$2.17 billion from shareholders via a rights share issue. On Tuesday, it reported a loss of S$393.4 million for the three months ended Sept 30, reversing from a net profit of S$86.9 million a year earlier.
The loss was mainly due to an impairment loss on intangible assets of S$454.6 million.
Boom
Singapore is currently undergoing a construction boom due to the award of several large projects such as a new financial centre, the two casino resorts and several shopping malls.
Many apartments complexes in the city-centre are also being torn down to make way for taller and more densely built developments.
Genting International and sister company Star Cruises won in December last year the right to build and operate Singapore's second casino resort.
Called Resorts World at Sentosa, the 49-hectare project will include a Universal Studios theme park, a giant oceanarium with 700,000 aquatic creatures, and six hotels with more than 1,800 rooms.
The resort is scheduled to be completed in 2010.
Singapore's first casino site, a 20.6-hectare piece of waterfront land at Marina Bay near the financial district, was awarded to Las Vegas Sands in May 2006.
Singapore legalised casino gaming in 2005 as part of ambitious plans to double visitor arrivals to 17 million by 2015. -- REUTERS
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