MAR 23 DE ABRIL DE 2024 - 17:41hs.
Due to “lack of funds for investment”

Uruguay revoked permission to build a casino hotel in Rocha

The Executive Power of Uruguay repealed a 2005 resolution in which it granted the company Lanetur S.A the authorization to build and operate a five-star hotel with a private casino on the coast of Rocha, a place where the government intends to promote a new tender. Firm’s representative Fabio Fossati filed an appeal for revocation of the proposal and plans to initiate a 'millionaire trial' if the resolution is not revoked, according to local media El Observador.

However, the company Lanetur SA, which had obtained the casino license in 2005, responded that the suspension of the process is due to the fact that the Government must previously revoke the license, while this step is difficult because they decided to take the case to Court.

The stoppage of the call is because we filed an appeal. From the Presidency they ordered to stop the process until the revocation of my license was resolved. That is the true reality, I was the stone of the shoe and they took it out to be able to continue walking," said Fabio Fossati, director of the Lanetur S.A.

As Fossati explained, when calling for a new tender, "they ignored my current license," and will pursue the claim by legal means to obtain a response from the Government.

On the contrary, the president of Uruguay Luis Lacalle Pou signed a resolution to revoke Lanetur's license and, once the Rocha Government Tourism area gives the go-ahead, continue with the international call for what is expected to be a luxury hotel casino.

In the document, the president established: “By virtue of the long time that has elapsed, and the numerous requests made by the Administration as it appears from the file, the company Lanetur S.A. it has not proven compliance with the minimum essential requirements for the conclusion of the concession contract that are established in the Resolution of the Executive Power dated September 5, 2005 and in the Bidding Terms and Conditions of the Public Bid.”

In the more than fifteen years since the award, Lanetur S.A. has not complied with the requirement established in the Bidding Terms and Conditions to provide an adequate guarantee of faithful compliance with the contract, without prejudice to the other breaches referred to in matters of administrative contracting,” the text continued.

For this reason, the Government considered revoking “the Resolution of the Executive Power of September 5, 2005, which authorized the direct contracting of Lanetur S.A. for the construction, concession and operation of a 5-star hotel with a casino on the coast of the department of Rocha."

Source: GMB