On Monday, the casino license agreement was amended for the fifth time by the Lottery Commission to provide an extension for the Garapan project of Imperial Pacific International (1076.HK) in regards to Phase One as well as an extension for a Marpi hotel plan in Phase Two of completion. The amendment also secured a yearly payment of $20m to be placed in the Community Benefit Fund.
The Commission met with the Attorney General and Imperial Pacific International, all in agreement that the time frame for Imperial Pacific International to complete the project in Garapan would be set for August 13th, 2023. Phase Two of the Marpi hotel would be set for the same date but in 2028.
In 2018, Imperial Pacific International will pay a $20 million advance. The first portion of that amount is set to be paid by January 1st of next year, in the amount of $10m. The second half of the payment must be made by June 1st, 2018. After that, the company must make their annual payment each year of the license agreement beginning on the 1st of October 2019. The money will be placed in the Community Benefit Fund which provides money to community programs, scholarships, infrastructure, education, retirement benefits for employees and healthcare.
According to MVariety.com, on Tuesday, Governor Ralph Torres stated that the fund is important to the requirements of the development-proposal for the licensee. Torres stated further that the extension of the deadline by the Lottery Commission goes along with the goal of sustainable development set by his administration. With the extension, the government will be able to properly as well as efficiently create the infrastructure needed to accommodate new amenities as well as resources for tourists and the local community.
With the deadlines extended, Imperial Pacific International will be able to properly complete the permitting process. According to the Governor, the process needs to be completed correctly to ensure the Imperial Pacific International is successful so the economy can grow sustainably. And so it can create a market where new businesses can be realized and new industries will be able to add to the economic success of the community.
So far, the Fund has provided vouchers from the Commonwealth Utility Corp. totaling $10 million to help keep the rates low for ratepayers. Torres stated further that the amendments were needed in order to ensure the element of the Fund was included. With the money provided annually, the longstanding obligations of the government can be addressed with funds provided for infrastructure projects, utility needs, optimal healthcare services, educational resources for local institutions and pay retirees benefits.
The $20m annual payment will be an additional guarantee of revenue for the Commonwealth along with the license fee paid by the casino of $15 million as well as the casino BGRT.