Issues causing delays to the construction of a pavilion for the Osaka 2025 expo are raising concerns that the impact could overflow into the construction of the MGM-Orix integrated resort.
According to the Japan Times, preparatory works for developing the Yumeshima artificial island in Osaka Bay started less than 500 days before the expo is due to open in spring, 2025.
In September of this year, MGM Resorts finally reached an implementation agreement with the Osaka prefecture for its massive IR project in partnership with the ORIX Corporation in a project estimated to cost JPY1.27 trillion ($8.6 billion) and finish completion in 2030.
This week the Osaka prefectural and municipal governments announced that the first cement was being poured into the ground at a 21-hectare area on Yumeshima, in order to prevent liquefaction and firm up the base on the part of the island where the casino facilities will be built.
The land liquefaction countermeasures are expected to be completed by the end of the fiscal year beginning April 2027, with the Osaka Governor pointing for full-scale construction of the resort to start in the spring of next year.
Before it even started the IR project already suffered delays and cost expense hikes.
The city of Osaka, however, is assuming the burden for the JPY25.5 billion ($173.6 million) land-related construction but can opt out if the expenses become too high, with the MGM-Oriz joint venture to bear the brunt of the remaining costs.
Still, once completed, the resort is expected to bring in JPY520 billion ($3.5 billion) in annual revenue.
