Genting Wins Bid for Sentosa IR

I am so proud to be Malaysian. The great Malaysian gaming operator, Genting has won the bid for the coveted (well, not as coveted as the Marina Bay IR) contract to build the Integrated Resorts(IR) for Sentosa Island seeing off rivals Kerzner International and Eighth Wonder. One of the winning factor of the bid is Genting's focus on creating a family oriented resort which they are good at, looking at how Genting Highlands has developed to be a world-reknowned family resort. They have brought in Universal Studios with an exclusive contract where no other Universal Studios can be built anywhere else in South-East Asia for the next 30 years. There are 16 rides designed just for Singapore, the world's largest oceanarium with over 8 hectares of aquatic animals from the tamest of dolphins to the fiercest of sharks. There is also a Maritime Museum that explores the facsinating Silk Route that engages visitors with their five senses. Last but not least is Genting proposal to build a learning and research center for maritime which will upgrade Singapore's R&D in biomed.

A total of 6 hotels with 1830 rooms will be built. This comes up to an estimated investment of $5.2 billion which one third will be funded by equity and the remaining through project finance term loans from GE and local banks. I can feel the tension felt by the chairman, Lim Kok Thay to raise the money fast enough to fund this whale of a construction. Winning the bid is one thing. Getting the funding for it is another. Even though one would have planned for it beforehand, getting $5.2 billion out of thin air even with their enormous cash reserves is no easy feat. Next is the ability to deliver what they promised with the completion date of early 2010 to help grow Singapore's economy up by $2.7billion and to raise 30,000 jobs by 2015.

So, what brought Genting to its success? Some speculated it was due to the good relationship between Malaysia and Singapore. Some say Genting is a good candidate to win the bid, for they are given more opportunities to be stakeholders in Singapore investments. Of course, this is a speculation but nevertheless, it does give them some leverage in winning the bid. Even if Genting does not win the bid, its partner Star Cruises might still be working with the winner of the Sentosa IR. However, we all know that there is a better synergy between Genting & Star Cruises, thus the wheel does not need to be reinvented.

Singapore has proved yet again that favoritism/nepotism do not play a part in their decision making as both local/GLCs companies who were bidding were not at any advantage to win the bid. Whatever is said, I am glad it is Genting that won and I can't for Singapore to finally have its own Universal Studios. Next, who will be building Disneyland in small little Singapore? ;)