By Patrick Cull

Sun International‘s bid for the renewal of its casino licence at the boardwalk in Port Elizabeth is believed to involve investment of a further R1-billion, an international conference centre and a five-star hotel.

This was revealed by Mandela Bay Development Agency chief executive Pierre Voges when he addressed the council‘s economic development, agriculture and tourism committee on Thursday.

Voges said he was “speaking under correction” but had been led to believe the new investment would involve the building of an international conference centre and a five-star hotel near the casino in addition to its upgrading.

Sun International declined to provide details of its proposed investment, saying bidders were under instructions not to release any news about their bids.

There are two bids for the licence, expected to be awarded in the final quarter of this year.

The other bidder, a local business consortium, has proposed a R1,8-billion entertainment centre next to the harbour.

Briefing the committee on plans for an international conference centre, Voges said the municipality did not have the estimated R900-million required and the options open were to exchange land for the capital required or to link the centre to the casino bid.

With regard to the exchange of land option, he said mayor Nondumiso Maphazi had authorised a “testing of the market” and a proposal request had been issued for a 99-year lease on Telkom Park and a large portion of surrounding land.

The deadline is February 16.

Telkom Park, he added, would be demolished late this year or early next year.

The principle, he said, was “in exchange for land, you build the ICC or you give us the money for it”.

On linking the conference to the casino bid, Voges said the closing date for licence applications had been January 13 and these would be evaluated by the Eastern Cape Gambling and Betting Board over the next eight months.

The licence would now be awarded for 15 years rather than 10.

Construction would start as soon as the board awarded the license in order for the casino to be in operation early in 2010 when the current license expired.

“We will not commence with anything (at Telkom Park) until the casino process is finalised”.

Source: The Herald