The Administrative Court (TA) has ruled against a damages claim filed by Polytex against the Macau SAR government amounting to more than MOP25 billion (US$3.1 billion) for losses caused by the failed Pearl Horizon project.
The company – the local arm of Hong Kong group Polytec – had made a damages claim to the TA in November, 2018.
The project was halted following the Macau government’s decision to revoke the company’s land concession and reclaim the land plot where the project was being developed.
According to the court, Polytex has filed for damages over the alleged responsibility by the Macau SAR in the failed project, including MOP5.4 billion in emerging damages, more than MOP18.4 billion in lost profits, MOP1.4 billion in loss of business opportunities, and MOP1 in moral damages.
The company argued that the action of the Government had constituted an unjustified obstacle to its use of the assigned land in Areia Preta for the Pearl Horizon project within the established period for the land concession until the proposed expiration date.
The company even considered that authorities should provide a new concession for the same land plot for the purpose of completing of the project.
The local government argued in its defense that deadline for prescription of the claim for damages has been surpassed and that a waiver on any damages claim had been made by Polytex, as well as the incompatibility between the reasons for the claim and the inadequacy of the process used.
It also stated that on August 2014, Polytex submitted a request to obtain authorization for the extension of the period of land use and the issuance of the work license until the end of the concession period, which would exclude the possibility of the latter making the government liable again.
The court considered that this Polytex declaration renouncing to damages claim was valid and absolved the local government.
Macau News Agency attempted to contact Polytex’s defense lawyer, Lionel Alves, but was unable to obtain a response when this article was published.
In March 2019, the Land, Public Works and Transport Bureau (DSSOPT) initiated works to vacate and reclaim the 68,000-square metre land plot where the failed Pearl Horizon residential project was planned to be developed.
Government projects to turn the reclaimed land into replacement public housing are currently under evaluation at the Urban Planning Committee, with land to be into four plots, plot A will accommodate Pearl Horizon unit buyers and will have 2,000 housing units, plots B and C will be used for temporary accommodation within the scope of urban renewal projects, and will have some 2,500 housing units.
