The Macau government has announced that the operating rights of the outer harbor passenger terminal will be granted to Sociedade de Turismo e Diversões de Macau, S.A. (STDM), the controlling shareholder of Melco International Development Limited (00880.HK), for a period of 60 months. STDM is required to pay the government 18% of the pre-tax profit as annual return, and submit business reports by March 31 of each year or earlier.

According to Asia Gaming Brief, the Macau government has always assigned the operating rights of the outer harbor passenger terminal to STDM. The last time the rights were assigned was in November 2018, with a term of 66 months and a return condition of MOP 1.8008 million paid to the government every three months, which is different from the latest return condition.

In addition, the contract stipulates that the government has the right to cancel the contract if STDM accumulates share transfer exceeding 50% of its total shares during the term. The contract also requires STDM to guarantee the minimum wage for the employees of the outer harbor passenger terminal, and the compensation methods for hourly wage, daily wage, or monthly salary of the employees need to comply with the minimum wage regulations.