Cape Verde gov’t reclaims Macau Legend project assets in Praia

The Cape Verde government has formally taken possession of all assets and existing structures linked to the long-stalled Macau Legend Development project in Praia, including the unfinished hotel-casino complex in the capital.

Authorities said the takeover concludes a years-long reversion process following repeated contractual breaches by the project’s concessionaires.

In a statement issued by the Ministry of Finance, the government confirmed that the handover was completed on Friday, January 16, under Administrative Order No. 47/2024 of November 18.

The order mandated the return to the state of all movable and immovable property granted or built under concession agreements signed with MLD Cabo Verde Entretenimento S.A. and MLD Cabo Verde Resorts S.A., subsidiaries of Macau-based operator Macau Legend.

According to the government, as cited in media reports, all assets were reclaimed in their current condition and free of any liens, charges, or liabilities.

The properties include infrastructure in Praia, the Santa Maria Islet, and the abandoned hotel-casino building, which has stood unfinished for years. The Directorate General of State Assets and Public Procurement has assumed full control of the site.

The project originated from a memorandum of understanding signed in February 2014 between the Cape Verdean state and the two MLD companies. It envisioned a major tourism and real estate development covering Praia Bay, the Santa Maria Islet, and Gamboa Beach.

In 2015, entrepreneur David Chow announced an investment valued at 250 million euros. Following later revisions, the first phase of the project was scheduled for completion in 2021.

Despite initial optimism, the development stalled and was ultimately abandoned. The government said it made extensive efforts to facilitate implementation but concluded that the concessionaires had “irremediably failed” to meet their contractual obligations.

As a result, all related agreements were terminated and the assets reverted to state ownership in line with legal and contractual provisions.

In late 2023, Macau Legend chairman Li Chu Kwan publicly stated that the group intended to wind down its projects in Cape Verde and Cambodia, underscoring the company’s financial difficulties.

The site remains largely dormant. Only security guards are stationed at the gates of the approximately 160,000-square-meter area, which includes the islet and the partially gutted hotel structure.

The complex is connected by a short asphalt bridge to an empty, roughly eight-story building that has been sealed off with hoardings, some of which have recently begun to be removed.

The government stressed that its decision was guided by the public interest and the principle of legality, which it described as fundamental to a democratic state governed by the rule of law. Officials said all procedures were followed throughout what they called a lengthy and complex process, reflecting sustained efforts to salvage the investment before termination became unavoidable.

Meanwhile, the government still expressed confidence in Cape Verde’s investment prospects and its ability to attract new, viable projects, while pledging to remain firm in upholding the law and protecting the public interest, and to respect the rights and legitimate expectations of the country and its citizens.