Cape Verde’s government has issued a final ultimatum to Macau Legend, the developer behind a long-delayed hotel and casino project in the capital city of Praia, warning the company that failure to submit a revised plan could result in the loss of its development rights.
The warning was delivered by the Minister of Internal Affairs, Paulo Rocha, who announced that Macau Legend has been granted 60 days to present an alternative proposal for the unfinished project. However, he admitted uncertainty about when the countdown began. If no proposal is submitted within the timeframe, the government has already finalised a reversion process and will open the site to new investors.
“We want to resolve it, either with the current promoter or with someone else.“
-Paulo Rocha, Minister of Internal Affairs, Cape Verde
The stalled development covers an area of approximately 160,000 square meters and includes land on both Santa Maria Islet and the Gamboa seafront — prime coastal locations in the heart of Praia. Once seen as a flagship project to boost tourism and economic growth in Cape Verde, the site has remained inactive for several years, prompting the government to take firm action.
“This is a strategic project for Praia and the country. It has been paralysed for too long,” Rocha stated. “We want to resolve it, either with the current promoter or with someone else.”
Over five years of delay
For the unaware, Macau Legend, founded by David Chow Kam Fai, originally committed to investing $294.3 million (€273 million) in the project when it was first announced in 2015. The first phase was due to be completed by 2021. However, the timeline was repeatedly missed, and work at the site ground to a halt.
The developer’s financial woes have worsened the situation. Macau Legend recently announced a significant loss of HK$667.23 million (about US$85.78 million or €79 million) for 2024. The company is also facing increasing debt and operational issues. To reassure investors, Macau Legend said it has negotiated debt restructuring agreements with lenders. A company spokesperson explained that this restructuring is aimed at resolving auditor concerns and ensuring the company’s ongoing operations.
Macau Legend faces stability concerns
Doubts persist regarding the company’s long-term stability. Besides the stalled Cape Verde project, Macau Legend is expected to lose its satellite casino operations in Macau by year’s end due to changes in the SJM concession. These operations are a major source of revenue, and their discontinuation could reduce profits by over 30 percent.
Although the company may consider legal action against the government’s decision, Cape Verde officials appear firm in their stance. If a suitable proposal isn’t presented soon, the government intends to seek other investors to revive the Praia project.
