World Bank to arbitrate canceled King's City casino project
Friday, July 29, 2011, 13:25
The owner of the planned King's City casino project has turned to international arbitration to settle its dispute with the Hungarian government, it announced in a press release. Cyprus-based Vigotop Ltd. submitted a request to the World Bank's International Centre for Settlement of Investment Disputes (ICSID) on July 18 in connection with a planned investment in a resort and casino in Sukoró.
Vigotop won a concession for construction and operation of a Category I casino in 2009 under the previous government, which also gave it priority status. The company claims that after the election of the new Fidesz government in 2010, government officials rebuffed several of its attempts to work out a future for the project.
In January, the government decided to cancel the project, stating that Vigotop-owned KC Bidding Kft failed to meet the conditions included in the concession contract, according to government commissioner Gyula Budai.
Vigotop intended the King's City project as a premier casino and holiday resort to be located on the shores of Lake Velence.