French Construction Company Invests US$1 Billion in Mandalika
One of France’s largest companies, the Vinci Group, plans to invest US$1 billion in the Mandalika Special Economic Zone (SEZ), West Nusa Tenggara. The fund will be allocated for the development of an integrated sports and entertainment complex in the Mandalika resort that includes a MotoGP race circuit.
The commitment to the investment between Vinci Construction Grands Projects (VCGP) and the ITDC will develop facilities within 131 hectares of land in the Mandalika SEZ.
“The investment will be made in stages over 15 years. In the formative stage we will build four hotels and a street race circuit,” said VCGP Director, Michel Oliveres.”
Mr. Oliveres said Vinci will allocate US$600 million to build around 10 hotels consisting of 2,500 rooms and as much as US$70 million for the MotoGP race circuit, with the remainder of the investment for other facilities. “This is the first circuit in the world designed to function as a road, and as an international-standard race circuit, and is set to launch in 2021.”
VCGP is a subsidiary of Vinci, engaged in design, funding, construction and operation of large infrastructure and facility projects around the world. Vinci currently has a market capitalization of 55 billion euro with more than 195,000 employees across 100 countries.
“Cooperation between ITDC and VCGP marks the entry of Vinci Construction to Indonesia for a project with a large investment value,” said ITDC president director Abdulbar M. Mansoer.
Mr. Mansoer said the construction of an integrated entertainment and sports facility will begin no later than the end of 2018 starting with the construction of Shaza Resort and Mysk Hotel as its initial projects. The two hotels, which are five- and four-starred sharia hotels operated by Shaza Hotels, are expected to begin operation at the end of 2020.
Mr. Mansoer said the ITDC would establish a joint venture with VCGP to operate various facilities. To date, Mandalika SEZ has absorbed a total investment of Rp. 17.7 trillion from eight investors, Rp. 14.5 trillion from Vinci and the remainder from the USA, Korea, Qatar and Indonesia.
The Mandalika Resort is positioned as an eco destination. The development will incorporate environmentally friendly technologies such as solar farms, Seawater Reverse Osmosis (SWRO) plants, and dedicate more than 51% of its land to green spaces.
Next come the facilities. Under the master plan, key amenities will include more than 10,500 rooms, a golf course, a theme park, FIA (the governing body for world motor sport and the federation of the world’s leading motoring organizations) racetrack, waterpark, equestrian facilities and a convention center for 5,000-7,000 people.
A beach work, an interconnected arts center, MICE venue and hospital, as well as the Masjid Mandalika Lombok mosque will also be developed.
Frontiers reporting with source: PWC