Hong Kong-listed companies Melco International Development Ltd. and MelcoLot Ltd., both owned by local casino mogul Lawrence Ho, said in a joint statement that the tender process to run a casino complex in Barcelona, Spain may face certain delays, as the Catalan government has not finalized a master plan for the area where the gambling venue is to be located.
The Urban Planning Master Plan is yet to be approved but no information has been revealed regarding the project yet. The two companies said in a filing to the Hong Kong Stock Exchange that the second-phase of the tender process for a license for the operation of a casino in Barcelona may be put off.
The reason for the expected delays is the fact that the beginning of the tender process is highly dependent on a conclusion on the Urban Planning Master Plan. The two companies said in their statement that the Catalan government seems to be uncertain in announcing its conclusion on the project for the redevelopment and environmental reorganization of the Vila-Seca and Salou tourist recreational center.
Melco International and MelcoLot further explained in their joint filing that the Catalan government introduced the above-mentioned master plan back in the third quarter of 2015. It was to be subjected to public consultation up through December 1, 2015. A definitive master plan was to be completed within three months after the end of the public consultation phase. Applications for the casino license were to be submitted within a month after the said plan was published.
The results from the second phase of the tender process were to be announced sometime in the second quarter of 2016. And as it seems, this may eventually happen a bit later.
Melco International was initially involved in two proposals for the construction of a hotel and casino resort as part of BCN World, a tourism center to be developed near Barcelona, Spain. The company applied for a casino license individually through its subsidiary Melco Property Development.
The other bid was submitted via MelcoLot and was a joint venture with Spanish business Veremonte España S.L. Yet, MelcoLot announced the termination of that partnership in October 2015. The company then inked an agreement with Melco International that it would purchase a 99% stake in Melco Property for the amount of HK$502.92 million, provided that the latter is granted a casino license for BCN World.
