Macau Legend Development (MLD) has accused the Cape Verdean government of committing an “offensive act” by unilaterally terminating contracts for a gaming and tourism project in Praia. The decision, announced in the Official Gazette last month, came without prior notice, according to the Hong Kong-listed company.
The project, a multi-million-euro development first unveiled a decade ago, remains incomplete. An eight-story hotel-casino sits empty, and a fenced-off area has obstructed public access to Praia da Gamboa’s waterfront.
Cape Verde’s Council of Ministers justified the termination, claiming MLD “flagrantly and repeatedly violated its obligations,” including missing deadlines despite multiple extensions. The government also rejected the company’s assertion that delays were caused by the COVID-19 pandemic, adding that MLD had been given “every opportunity” to resume construction.
MLD disputed these claims, arguing it had consistently informed the government of its efforts to secure investors and requested clarification on key aspects to protect public interests. “These administrative acts of contract termination and reversion of assets to the State were decreed without Macau Legend Development being previously notified,” the company said in a statement, as reported by Expresso das IIhas.
MLD announced it would take legal action to defend its investor rights. The company emphasized that it had fulfilled its financial obligations, including the most recent payment for gaming license renewals on November 18—the same day the government published the termination decision in the Official Gazette.
“MLD will immediately take legal action to defend its rights and trusts that, until the matters concerning these contracts are resolved, the Cape Verdean State will refrain from committing any further offensive acts against its rights as an investor,” the company stated.
Initially announced in 2015 with a projected investment of €250 million ($264.13 million) the project’s value has since plummeted. In a recent filing to the Hong Kong Stock Exchange, MLD disclosed that the project is now valued at just HK$47 million ($6.04 million).
The dispute highlights ongoing challenges in foreign investment and project execution in Cape Verde. For Praia, the fallout raises concerns about stalled development and public access to a key waterfront area.
While MLD seeks to resolve the issue through legal means, the Cape Verdean government maintains that its actions were necessary to address prolonged inaction and protect the nation’s interests.
Original article: https://www.yogonet.com/international/news/2024/12/06/87713-macau-legend-accuses-cape-verde-of-unilateral-contract-termination-in-casino-project
