Macau’s Court of Final Appeal has rejected an appeal by Chief Executive Fernando Chui Sai On against a March ruling from the Court of Second Instance revoking the government’s contract for construction of the Cotai depot of the city’s long-awaited Light Rapid Transit (LRT) system.
Delivering its decision earlier this week, the Court of Final Appeal stated that it was in agreement with the Court of Second Instance’s previous ruling that the government had violated its own guidelines in 2016 when determining which of seven applicants would be awarded the contract for completion of the LRT. The process, which saw the government assign each applicant a “score” based on their proposal, came after a contract with the original contractor was terminated due to lengthy delays.
China Construction and Engineering (Macau) Company Limited was eventually awarded the contract to complete the LRT depot in Cotai for MOP$1.07 billion, including the main building and a parking garage for docking of trains.
However, after the company that finished runner-up in the bidding process, China Road and Bridge Corporation, filed an appeal, the Court of Second Instance ruled that the government may have misinterpreted some of its own criteria in assessing the applications, resulting in the wrong scores being applied. Both courts have now ruled that the government must reassess all seven applications.
In a brief statement issued this week, Macau’s Transportation Infrastructure Office said it “has been informed of the judgment of the Court of Final Appeal on the case of the LRT project” and is “currently studying the content of the judgment and will follow up the relevant work in accordance with the law.”
Chui has repeatedly insisted that the section of the LRT running through Cotai and Taipa will be ready to start operations in 2019.
The LRT is seen as a vital piece of infrastructure for Cotai’s IR operators given the lengthy distances between many of the area’s integrated resorts. The Taipa line will initially boast 11 stops and run directly by Wynn Palace, City of Dreams, MGM Cotai, Studio City, Sands China’s cluster of the Parisian, Sands Cotai Central and the Venetian and finally Galaxy Macau before continuing on to Taipa.
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