Monaco Singles Out Two Offshore Urban Extension Proposals

by Pascal Boehm, Tax-News.com, Monte-Carlo

02 October 2008

The Principality of Monaco has singled out the Monte-Carlo Development Company and Monte-Carlo Sea Land proposals, in its ongoing procedure to select the developers of Monaco's answer to Dubai's Palm project.

The Urban Extension Project will feature an artificial headland of approximately 275,000 square meters, intended primarily for residential, tourist and retail use, the design of which should be a “key focal point”. The build is expected to begin in 2011, to last ten years and cost in the region of USD15bn.

Five candidates presented their completed bids in March 2008, and following six months of internal consultation by a special commission the government was able to give particular praise to the bids from the two named groups. Their proposals were deemed to have most closely fulfilled the primary requirements of:

• Compliance with the environmental constraints, notably with regard to the preservation of the marine environment
• Reliability of the technical solutions put forward
• A global contract for a 60-year period including the construction of a sub-structure to support the new district, public and private superstructures, in addition to maintenance of the sub-structure.

The Principality of Monaco are giving priority, as far as landscape and urban planning are concerned, to an extension project with an aspect of a headland or peninsula.

The current financial crisis, though not expected to derail the development, has caused the Principality to begin a fresh exchange with all five candidates to ensure that the financial aspects of their proposals are still financially viable.

Whilst two candidates have been singled out for praise, the final decision will not be made until the conclusion of this final round of consultations.

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