Large projects are up and down - Euroslot - the independent voice of the amusement and gambling industry

Large projects are up and down

Published: 09 March, 2009

Spain has always been a country of contrasts. At the present time there are two large projects to prove this - ‘Gran Scala' and ‘El Mundo de Don Quixote' (The World of Don Quixote). Whilst the first is going ahead with its initial investments, the second is suffering the consequences of the financial crisis and is announcing measures to withdraw.

As regards the ‘Gran Scala', the most senior people at ILD, Paul Stephan Allegrini, Pierre Louis Amancic and Sebastian Tranchant, travelled to Ontiñena (Huesca) in February to sign options for the purchase of more than one thousand hectares of agricultural land with a total value of at least 320,000 euros, with about 70 land owners from the Huescan municipality and paid 4% of the total value of each hectare (agreed at 8,000 euros) in an investment that is already by any reckoning definitive.

If the developers decide not to go ahead with the project, the land owners will keep their land. For its part, the Town Council will make available to ILD another 1,300 hectares of uncultivated land that it owns, calculated in total to be worth almost 8 million euros. In addition to the signed options, the consortium, still wants to acquire the land belonging to the 35 owners of small plots who must define the boundaries of their land and indeed decide on a price. The vice-president of the Aragón Government, José Ángel Biel, did not rule out the possibility of compulsory purchase if necessary.

The situation is very different for the other large project, ‘El Mundo de Don Quixote' which is located in the Castilla - La Mancha region, whose continuity appears to be in danger. The intention of the construction giant DHO to invoke the law regarding the voluntary arrangement between creditors questions the future of the principal real estate and industrial projects with which it was trying to drive the development of that Autonomous Region forward, among them, the ‘El Mundo de Don Quixote' complex and the airport at Ciudad Real. The airport began operating in December, following a three month delay, due to the lack of permits and it faces an uncertain future on account of the crisis affecting the airlines at present. For its part, ‘El Mundo de Don Quixote' is a macro-complex that includes 4 and 5 star hotels, golf courses, a convention centre, and a casino belonging to the multinational Harrah's Entertainment.

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