Government wants to diversify the economy

New Land Law proposed in Macau

In the new Land Law being debated in Macau, and presently under public consultation, it is being proposed to transfer authority for land supervision and development to the Land, Public Works and Transport Bureau (DSSOPT). Its director, Jaime Carion, is quoted in the Macau Daily Times as saying that the new law would give greater definition to what constitutes ‘public interest’, a vague term under the current Land Law. Apparently no further plots of land will be available for casino projects without a public tender.

In some circumstances the public tender process will be avoidable still but this will not apply to casino projects. Carion commented, “I think everyone knows that we are looking to diversify the economy away from the gaming industry. So this exception will only be used for projects aimed at diversifying our economy.” At the moment family-friendly resorts with no gaming seem to be the order of the day in Macau. However, some in Macau question whether a new law will be followed even if passed and say that it could not come into effect before 2010, thus protecting casino operators that have already requested land grants.

According to the proposed Land Law amendments, all future land concession requests will have to include economic, financial and environmental viability studies. Once granted the land concession can be rescinded or not renewed if the developer uses the plot for non-authorised purposes or fails to commence work on the site. The updated Land Law also will not permit change of usage, thereby eliminating much of the land speculation that has occurred in the past. The length of time permitted for the commencement of construction will be reduced to 15 days from the present 30 days. Fines will be introduced for any divergence from agreed building schedules. (E-12.16.10)

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