Inside Asian Gaming

INSIDE ASIAN GAMING | March 2011 12 Macau Infrastructure upcoming regional infrastructure developments. Secretary for Transport and Public Works Lao Si Io stated during a recent Legislative Assembly session that if Macau failed to ramp up its transport infrastructure, it risked losing its position as the regional entertainment and leisure centre. “Macau will pay a high price if further delays occur,”warned Mr Lao Bearing the cost Although Macau got off to a slower start than its regional neighbours in instituting a mass transit railway system, it is likely to face fewer problems in financing it, thanks to its bulging gaming tax receipts. The latest budget for the first phase of the LRT stands at 7.5 billion patacas (including the MOP 4.68 billion Mitsubishi contract billion patacas Mitsubishi contract), representing a sharp rise from the original 4.2 billion patacas budget proposed in 2007. The sharp rise has been largely attributed to inflation in construction materials and labours. Notably, the latest budget does not cover supporting facilities such as car parks, bus interchange stations and other transport infrastructure. The government has hinted the LRT will charge low fares to draw the public and tourists alike—although it has yet to announce whether the future service provider will be publicly or privately held. One indication, though, comes from the government’s recent decision to award the city’s three public bus operators seven-year contracts worth a combined 4.7 billion patacas to run their services, which will effectively be nationalised. The bus fares will go to the government, with no fare increases scheduled and revenue expected to cover only half the cost of the contracts. Construction fallout While widespread consensus has been achieved regarding the overall benefits and need for the LRT, it will obviously also have negative impacts—particularly in the short to medium term, when construction of the systemwill disrupt traffic flows in Macau’s already congested streets and create the assorted pollution associated with such large-scale public works. Construction is expected to commence in mid-2011 in Taipa and Cotai, where 11 of the stations will be located, then later on the Macau Peninsula, where there will be a further 10 stations. Given that the construction on the peninsula will in several places be near or even overlapping the street circuit for the Macau Grand Prix, the annual international racing event could well be disrupted. The government has yet to give clear details about this and other possible fallout from the LRT construction. The LRT will be Macau’s largest andmost expensive infrastructure project since the Macau International Airport, which was built under the former Portuguese administration and suffered multiple delays and budget blowouts, before opening in November 1995. Although the LRT project has started late, the work could still be done to schedule and budget. Mitsubishi Heavy Industries (MHI) appears committed to deliver. Takeo Yamaguchi, the company’s general manager of Transportation Systems and Advanced Technology Division, emphasised Mitsubishi’s previous experience delivering similar projects, including the Taiwan High Speed Rail and the Dubai Metro, which were completed in 2007 and 2009, respectively. He noted: “Of course we have faced difficulties in these projects, but what we can say today is that MHI has completed these projects on time and our clients there are very satisfied with its stable and safe operation.” In winning the bid for Macau’s LRT, MHI beat two rival bids from a partnership between Bombardier and China Road and Bridge Corporation, and a joint venture between Siemens and China Civil Engineering Construction Corporation. Macau’s Light Rail Transit rolling stock will be made up of Mitsubishi Crystal Movers—as used in Singapore (pictured here)—that offer panoramic views.Macau will use four-cabin trains capable of carrying a total of 476 passengers.