Monday, August 08, 2022

Wynn concerned about Cotai delays, warns of penalties

Wynn Macau has sent a letter to the contractor developing its $4.1 billion Wynn Palace on Cotai warning of penalty payments should construction milestones fail to be met.

The opening of the resort has already been delayed by three months to June 25th from an original launch plan in March.

“We are concerned that with your current levels of progress in the execution of the work, you will fail to achieve the Third Interim Milestone,” it said in the letter to Leighton Contractors (Asia) Ltd.

As a result, it may be liable to pay $200,000 per each day of delay, potentially resulting in liabilities of between $8 million to $10 million by the end of February.

Wynn says it will be deducting $1 million from the amount it was billed for December 2015, given the failure to meet the First Interim Milestone.

The company has said that the total potential liability for delay damages may be as much as $200 million should the contractor fail to achieve “substantial” completion by the June deadline.

It has already forfeited the right to a $38 million payment that it could have received in the event of early completion.

The floral-themed Wynn Palace is scheduled to be 28 storeys high, with 1,700 luxury hotel rooms. Guests are to be transported into the resort through air-conditioned “sky cabs” that will cross an 8-acre performance lake.

The property is the first of several new offerings that are due to open this year, with Las Vegas Sands set to debut its French-themed Parisian resort in the fourth quarter, complete with a scaled-down replica of the Eiffel Tower.

MGM China is also expected to open its $3.1 billion MGM Cotai late in the fourth quarter, with 1,500 rooms.

Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.

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