S$4.5 billion Marina Bay Sands expansion, including 4th tower, to be delayed further

Construction was supposed to start by Apr. 8, 2023, but MBS's parent company said it cannot start as planned.

Nixon Tan | February 14, 2023, 04:47 PM

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According to an annual report filed by Las Vegas Sands (LVS) on Feb. 3, 2023, the planned expansion of Singapore's Marina Bay Sands (MBS) resort has been delayed, with no firm commencement date.

Extension of deadline to commence construction

In April 2019, MBS and the Singapore Tourism Board (STB) inked an agreement for MBS to construct a new development.

The new development would include a hotel tower with approximately 1,000 rooms and suites, a rooftop attraction, convention and meeting facilities, and a live entertainment arena with approximately 15,000 seats.

The agreement provided for a total cost of S$4.5 billion.

Under the agreement, MBS was to commence construction by Apr. 8, 2022.

However, MBS and STB came to an agreement on Mar. 29, 2022, to extend the construction commencement date by a year, to Apr. 8, 2023.

Unforeseen circumstances

Despite the extension, LVS said it does not expect to be able to start on certain construction projects by the agreed deadline of April 2023.

In a section of the report that outlined risks of its international operations, LVS said construction projects are subject to cost overruns and delays caused by events outside of their control, or even their contractors' control.

These include shortages of material or skilled labor, unforeseen engineering, environmental and/or geological problems, work stoppages, weather interference, unanticipated cost increases, and unavailability of construction materials or equipment.

"We are in discussion with the Singapore government on the duration of the timeline extension for commencement and completion of the expansion of MBS to fulfil our obligations," LVS added.

In response to queries from Mothership, a spokesperson from STB said the Integrated Resorts (IRs) have previously indicated there are potential delays in the completion of their projects.

"They remain committed to their expansion plans," said the spokesperson, saying that "the IRs have and will continue to enrich Singapore’s tourism offerings."

The spokesperson added that STB will continue to monitor the progress of the developments.

Top image via Wikimedia Commons