Osaka Prefecture fears that with only one contender, it may have lost the ability to negotiate terms in its IR development plans.
Japan.- As the race for IR development in Japan continues, Osaka is processing the potential challenges of a one-horse race as MGM-Orix remains the only contender to become its private partner despite an extension of the deadline for submissions.
According to local media, Osaka’s authorities now fear they won’t be able to control the conditions for the IR development plans for risk of MGM pulling out of the tender.
The Osaka government had asked potential contenders to assume the costs of extending the Osaka Metro line to the site. However, authorities are now afraid MGM-Orix could renegotiate conditions.
The same concerns are harboured over the planned meetings, incentives, conferences and exhibitions (MICE) facilities as Osaka wanted its operators to add MICE facilities beyond the requirements of national legislation.
According to the Nihon Keizai Shinbun newspaper, Osaka is also worried about the Covid-19 pandemic and the impact it could have as there are nearly twenty local companies related to the MGM-Orix consortium that are considering their position due to economic difficulties.
So far, Nagasaki seems to be the city with the best chance of gaining one of Japan’s planned three licences to develop integrated resorts. The prefecture has selected three operators as potential partners for its bid. A final candidate is likely to be selected in August.