Marina Bay Sands Development Agreement: A Look at the Landmark Deal
The Marina Bay Sands, located in the heart of Singapore, is one of the most iconic structures in the world. This integrated resort has become a hub for entertainment, tourism, and business, attracting millions of visitors every year. However, behind its stunning facade lies an interesting story of how it came into existence. In this article, we take a closer look at the Marina Bay Sands Development Agreement, the landmark deal that made it possible.
The Marina Bay Sands Development Agreement (MBSDA) is a 99-year lease agreement between the Singapore government and Las Vegas Sands Corp (LVS). The agreement was signed in 2005, and it paved the way for the construction of the Marina Bay Sands. The MBSDA is a unique agreement that outlines various terms and conditions that govern the development, operation, and ownership of the Marina Bay Sands.
Under the MBSDA, LVS was granted the right to develop a massive integrated resort in Singapore with a gross floor area of 581,400 square meters. The resort would include a casino, a hotel, a convention center, a shopping mall, and numerous other amenities. In exchange, LVS committed to investing at least SGD 3.85 billion (approximately USD 2.7 billion) in the project.
One of the most significant aspects of the MBSDA is the revenue-sharing arrangement between LVS and the Singapore government. Under this arrangement, LVS is required to pay a percentage of its gaming and non-gaming revenue to the government. In the first ten years of operation, LVS paid 15.5% of its gaming revenue and 7% of its non-gaming revenue to the government. The revenue-sharing percentage increased to 22% of gaming revenue and 9% of non-gaming revenue from the eleventh year onwards.
The MBSDA also includes several provisions related to employment, social responsibility, and sustainability. LVS committed to hiring and training a significant number of local employees and to contribute to various social causes. The agreement also requires LVS to comply with environmental standards and adopt sustainable practices in its operations.
The Marina Bay Sands has been a significant success for Singapore and LVS, generating billions of dollars in revenue and attracting tourists from around the world. The MBSDA has played a crucial role in ensuring that the resort operates in a responsible and sustainable manner while contributing to the growth and development of Singapore`s economy.
In conclusion, the Marina Bay Sands Development Agreement is a landmark deal that has transformed the tourism and entertainment landscape of Singapore. The agreement is a model for public-private partnerships, where the government and the private sector work together to achieve common goals. The MBSDA has been instrumental in making the Marina Bay Sands a world-class destination while ensuring that it operates in a socially responsible and sustainable manner.