``We expect to begin construction in the second quarter of 2005,'' chairman and chief executive Terry Lanni said Wednesday.

Asked by an analyst specifically about the approval process, general counsel Gary Jacobs said: ``We believe we are making satisfactory progress.''

Former gaming regulators had expected MGM to encounter some difficulty in the approval process because of Ho's involvement with Sociedade de Turismo e Diversoes de Macau and Sociedade de Jogos de Macau (SJM), her family's privately held gambling businesses. Ho is a director of both companies, as well as managing director of Shun Tak Holdings, the Hong Kong-listed hotel, shipping and property company also controlled by the family. MGM's 50-50 joint venture with Ho would operate the casino under a subconcession from SJM. (Ho is also a director of The Standard's parent company, Global China Group.)

Regulators in any of the American states in which MGM operates could take action to block the deal, but Jacobs said that only in Mississippi are officials required to formally approve or reject the deal. MGM applied for approval there at least four months ago, but the Mississippi Gaming Commission has yet to take up the request.

Jacobs, however, said the commission has approved involvement by other companies in Macau before. MGM has yet to apply for approval from the Macau government, Gaming Inspection & Coordination Bureau director Manuel Joaquim das Neves said. Nevertheless, Lanni said that MGM and Ho are proceeding with design work on the MGM Grand Macau. MGM originally wanted to open the casino next year, but its target date has slipped to early 2007.

MGM plans to invest US$280 million (HK$2.18 billion) of its own cash in the casino. James Murren, the company's president and chief financial officer, said it expects to seek a big bank loan in April or May for additional funds for the project and that Ho will be putting equity into the MGM Grand Macau as well.

``The proceeds from the operation of that property will likely be able to fund future expansions of not only that property but perhaps a second or a third casino also in Macau,'' he added.

zach.coleman@globalchina.com