Government opens bidding for new integrated resort development
THE Ministry of Finance and Public Service (MOFPS) has issued a new request for applications (RFA) for the award of integrated resort development (IRD) orders. The RFA opens today.
The granting of IRD is a precursor to the granting of casino gaming licences, much coveted for an entry to the billion-dollar industry. Under the Casino Gaming Act (CGA), the minister responsible for finance may make an order declaring an Integrated Resort Development to be an approved IRD.
This will enable the developer to then make an application to the Casino Gaming Commission for a licence to be issued, under the Act, to operate a casino within that resort development.
Jamaica has been attempting for well over a decade to develop casino gaming as part of the integrated resort development concept. The Casino Gaming Act 2010 was brought into force in June 2010 to facilitate Jamaica’s entry into and subsequent regulation of the casino gaming sector. However, previous applicants have been stymied by the financing requirements.
Earlier in 2021, however, the MOFPS piloted an amendment to the Casino Gaming Act. The Casino Gaming (Amendment) Act, 2021, was approved in the House of Representatives on June 29.
The Act was later approved by the Senate in July with senators then noting that at least four companies were interested in IRD.
Amendments reduced the room requirements for an approved integrated resort development and allowed for rooms already under construction prior to the making of the application to be included in the projected number of rooms to be available. Also, a certain number of the total rooms available are to be designated and constructed as luxury hotel rooms.
The MOFPS indicates that it has appointed a 10-member enterprise team, chaired by Dr Dana Dixon, who will receive and evaluate applications from interested investors for IRDS.
Minister of Finance and the Public Service Dr Nigel Clarke said in a release on the new RFA, “To ensure transparency and the best returns for Jamaica, the application process and selection of Approved Integrated Resort Developments will be managed by an enterprise team which includes persons with a diversity of skills and experience, including knowledge of our anti-money laundering and counter-terrorism framework and other notable competencies.”
Other members of the enterprise team are: Roxanne Miller, Hugh Morris, Maureen Simms, Jhanelle-rae Bowie, Shullette Cox, Denise Arana, Madge Ramsay, Tiva Russell-forbes, and Audrey Robinson.
The MOFP amended the Casino Gaming Act which changes the requirements for the designation for IRD include a reduction in the overall number of hotel rooms to be constructed from 2,000 to 1,000 rooms; and the requirement that 500 of the constructed rooms are to be designed and implemented as luxury rooms.
It also stipulates the requirement for a minimum capital investment of US$500 million; all the elements of the approved IRD are to be constructed and operational within three years of the commencement of the operation of any casino activity on the development; and that failure to comply will result in a penalty.
Dr Clarke said “the amendments which the Government has made to the requirements to be fulfilled by a prospective developer of an approved integrated resort development are meant to enhance the regime and to strengthen its appeal to potential investors and by so doing, to attract and increase foreign direct investment to Jamaica”.
It is forecast that the global casino gaming market will expand at a compound annual growth rate of nine and 11 per cent during the forecast period of 2017 to 2030.
Previous bidders for IRD under the old Act were Casino Royale, backed by Robert Salm’s Drax Hall Limited, in partnership with American investor Phillip Reynolds; Amaterra Jamaica Limited, proposed by Jamaican developer Keith Russell and American partner Charles Murphy III of Arkansas; Celebration Jamaica Development Limited; and the Government’s own bidder Harmony Cove Limited, which was a partnership between Harmonisation (a partnership of the Development Bank of Jamaica Limited and the National Housing Trust) and Tavistock International Investment Group.
The MOFP said Tuesday that further details including the guideline for application will be made public via daily newspapers and the MOFP’S (www. mof.gov.jm) and JAMPRO’S (www.dobusinessjamaica.com) websites.