Philippines' Duterte to call off Landing's $1.5 bln casino project (updated)

Shin Hwa World

07/08/2018 08:09

* Plan to cancel announced minutes after Landing breaks
ground
    * Lease contract has put the govt at a disadvantage
-spokesman
    * Hong Kong-listed Landing's shares up about 4 percent

 (Adds spokesman's comment, other details)
    MANILA, Aug 7 (Reuters) - Philippines President Rodrigo
Duterte will cancel Landing International Development Ltd's
 0582.HK  $1.5 billion integrated casino project in the capital,
his spokesman said minutes after the Hong Kong-listed firm broke
ground on Tuesday.  
    Presidential spokesman Harry Roque said the lease contract
that Landing signed with a state-owned foundation in March has
significantly put the government at a disadvantage because the
rental payment was "unconscionable".
    "Sorry to burst your bubble, people, but the president said
that is grossly disadvantageous to the government," Roque told a
media briefing, few minutes after Landing broke ground for what
could have been the fifth casino project in the country's
smaller version of the Las Vegas strip.
    The Philippine Amusement and Gaming Corp, a government-owned
and controlled firm under the Office of the President, granted
Landing the license to build the project in July.
    The project, which will include hotels, a convention centre,
water parks and gambling areas composed of 155 tables and 239
slot machines and electronic table games, was slated to start
commercial operations in 2022. 
    Landing officials were not immediately available for
comment. Shares of the firm were up 4 percent as of 0707 GMT,
outstripping the broader index  .HSI  that was up 1.6 percent.
    In April, the government also shelved a plan by Macau's
Galaxy Entertainment Group Ltd  0027.HK  to build a $500 million
integrated casino-resort on the holiday island of Boracay, just
a month after the gaming regulator approved the project.

 (Reporting by Neil Jerome Morales; Editing by Himani Sarkar)
 ((neiljerome.morales@thomsonreuters.com; +632 8418914; Reuters
Messaging: neiljerome.morales.thomsonreuters.com@reuters.net))