Imperial Pacific International Holdings Ltd (IPI) has announced the signing of a written amendment to its original Casino License Agreement entered into in 2014, reducing the number of development phases for its Imperial Pacific Resort in Saipan from five to two and extending the deadline for full completion for eight years to 13 August 2028.
Under the original agreement, Imperial Pacific Resort was scheduled to open its first phase in 2016, followed by further phases in 2017, 2018, 2019 and 2020.
However, that plan ran into a number of roadblocks, with IPI granted an initial 10-month extension earlier this year for completion of its casino facilities. The extension followed a request from IPI, which attributed construction delays to a range of factors including “severe damage to construction equipment from Typhoon Soudelor that took several months to repair; adverse weather conditions making tower cranes inoperable, unstable soil conditions causing damage to pilings that were driven into the ground; a lack of readily available skilled laborers; an overabundance of water at the construction site delaying the pouring of the concrete foundation; lack of necessary construction materials” and more.
Under the revised Casino License Agreement signed on Monday, IPI has until 31 August 2018 to complete its initial gaming facility, which opened for business last month. The gaming facility incorporates a 329 room luxury hotel; 14,140 square meters of gaming area; 3,870 square meters of food and beverage outlets; 186 square meters of retail space; 930 square meters of meeting space; 15 villas; and 1,500 square meters of spa/fitness area plus associated infrastructure.
Phase One, which must “result in the establishment of a fully functional integrated resort” on a second site, is to be completed by 13 August 2023 and will include an 800 room luxury hotel; a US$100 million themed entertainment facility with amphitheater; 5,372 square meters of food and beverage outlets; 2,500 square meters of meeting space (including indoor seating space for 600 persons); 5,000 square meters of retail shops and a wedding chapel.
Phase Two, to be completed by 13 August 2028 on a third development site, will include an 875 room four or five star luxury hotel; 7,000 square meters of total gaming floor area; 4,290 square meters of food and beverage outlets (at least 23 outlets); 9,814 square meters of retail space; a 600 seat theater; 5,664 square meters of meeting space including ballroom; 185 villas; 800 square meters of fitness area; and 900 square meters of spa facility.
IPI has 60 days within which to provide US$10 million in the form of Commonwealth Utility Company vouchers which shall be distributed in consultation with the Governor.
The company must also pay US$10 million by 1 January 2018 and another US$10 million by 1 June 2018 towards its community benefits programs including education, scholarships, infrastructure, health care, employee retirement benefits, as may be determined in consultation with the Governor.
US$20 million must be contributed annually from 1 October 2019 for similar purposes.
In a filing to the Hong Kong Stock Exchange, IPI said, “The Group shall complete its initial gaming facility Imperial Pacific Resort Hotel Saipan in accordance with the Implementation Schedules and Proposed Requirements, and it shall … complete the development of phase one and phase two integrated resorts under the Casino License Agreements (as amended).”
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