Government Awards Integrated Resort at Marina Bay Project to Las Vegas Sands Corporation

(source: STB May 26, 2006)

Government Awards Integrated Resort at Marina Bay Project to Las Vegas Sands Corporation

Singapore, 26 May 2006 – The Singapore Government announced today that it will award the project to develop the Integrated Resort (IR) at Marina Bay to Las Vegas Sands Corporation (“Sands”).

2 The Ministerial Committee (Tender Approving Authority or TAA) evaluating the four proposals, chaired by Deputy Prime Minister Professor S Jayakumar , announced their decision at a press conference this evening. Prof Jayakumar said, “All four proposers submitted very strong proposals which reflected their commitment to developing a truly outstanding integrated resort in Singapore”. He added that “Sands had submitted the best overall proposal that meets our economic and tourism objectives.”

Successful RFP Process

3 The RFP for the Marina Bay IR was launched on 15 Nov 2005 and closed on 29 Mar 2006. Four proposers responded to the RFP – i.e. Sands; Harrah’s Entertainment and Keppel Land (“Harrah’s”); Genting International and Star Cruises (“Genting”); and MGM Mirage and CapitaLand (“MGM”).

4 Each of the four proposers committed to invest a total of $4 billion to $5 billion in a world-class development that would generate substantial economic benefits for Singapore. This reflects the strong confidence of international investors in Singapore’s tourism sector. All the proposals offered an excellent range of tourism products, ranging from MICE (i.e. Meetings, Incentives, Conventions and Exhibitions) facilities to leisure attractions and entertainment shows. The proposals also all met the stringent social safeguards set by the Singapore Government for the casino component.

Rigorous Evaluation Process

5 The evaluation of the proposals was based on the following four main criteria, with approximate weights as shown:

a. Tourism appeal and contribution (40%);
b. Architectural concept and design (30%);
c. Development investment (20%); and
d. Strength of consortium and partners (10%).

6 The proposals were assessed using the Analytic Hierarchy Process. It is a methodology that provides discipline and objectivity, ensuring that the final outcome is based on an evaluation of both the qualitative and quantitative factors.

7 The evaluation process was conducted in a systematic and rigorous manner. All the proposers had the opportunity to present their proposals to the Ministers in the TAA shortly after the close of the RFP. Assisting the Ministers in the evaluation process were Permanent Secretaries from the same four ministries. The committee also considered the views of a Design Evaluation Panel comprising established local and international architects, as well as the inputs of other international and local experts in areas such as attractions, entertainment, and financial and business models.

8 After a rigorous evaluation process, the Ministerial Committee assessed that Sands had submitted the best overall proposal.

Marina Bay Sands: Best Overall Proposal

Tourism Appeal and Contribution

9 Sands proposed an outstanding IR development (“Marina Bay Sands”) that will boost Singapore’s attractiveness as a premium destination for business and leisure visitors. Leveraging on Sands’ expertise and excellent track record in MICE, the proposal will create a strong MICE cluster in Marina Bay and enhance Singapore’s MICE capabilities and offerings. The Marina Bay Sands will have a combination of exhibition and meeting space amounting to 110,000 sqm in gross floor area, which is 2½ times the size of the convention and exhibition centre at Suntec City.

10 The Marina Bay Sands will offer a wide range of leisure products, such as world-class entertainment in two 2,000-seat theatres, an ArtScience museum, luxury retail outlets, and unique dining venues such as the floating pavilions in the Marina Bay. There will also be attractive public spaces and interesting activity nodes such as an ice-skating rink and indoor canals. Please refer to the attached fact sheet for more details.

Architectural Concept and Design

11 The design of the Marina Bay Sands is unique and will provide a memorable image and destination attraction for Marina Bay. The overall composition fits very well with existing and future developments. The setting back of the hotel towers from the waterfront opens up expansive views to the city and the entire Marina Bay. The low-rise MICE facilities, casino and theatres fronting Marina Bay are crowned by wave-like roof forms.

12 The design also has many distinctive features. The Sky Park above the hotel towers will provide breathtaking 360-degree views of Marina Bay, the city and the future Gardens-by-the-Bay. The ArtScience Museum offers a “welcoming gesture”, inviting people to Marina Bay. Visitors will enjoy attractive public spaces, such as the Event Piazza which can hold up to 10,000 people and the roof-top amphitheatre above the ArtsScience Museum. Please refer to the attached fact sheet for more details.

Track Record

13 Sands has demonstrated its capability in developing and operating large successful IRs from the ground up, such as the Venetian Resort in Las Vegas, which also houses the Sands Expo and Convention Centre. In Asia, Sands played a key role in developing the master plan for the Cotai strip in Macau.

Economic Benefits

14 Sands committed to the highest development investment of $3.85 billion. Together with the land price and other associated capital costs, the total investment by Sands would exceed $5 billion. This is one of the largest investments in the world for a single IR. The Marina Bay Sands is expected to stimulate an additional $2.7 billion (or approximately 0.8%) to Singapore’s annual Gross Domestic Product and generate 30,000 jobs throughout the economy by 2015.

Record of Appreciation

15 The Singapore Government would like to thank all the four proposers for the tremendous efforts and resources that they have put into the RFP.

Date Posted: 26-May-2006