by Linda Straker
- In 2016, NNP Government transferred freehold of land to True Blue Development
- Project halted by mid-2021 due to “discrepancies” regarding CBI regulations
- Arbitration will be settled and property transferred back to people of Grenada
Legal Affairs Minister Hon. Claudette Joseph has disclosed that the arbitration matter before the International Centre for Settlement of Investment Disputes (ICSID) between Grenada and True Blue Development Ltd Co., the developers of Kimpton Kawana Bay resort, will be settled outside of the tribunal appointed by Centre.
“On assuming office, we felt it best to engage in negotiations with the owners of the Kawana Bay project, and we are happy to report to this Honourable House that we have essentially reached an agreement, we have reached a settlement with Kawana Bay principals,” Joseph informed the Upper House during the 29 August sitting.
“The arbitration will be settled, and the property will be transferred back to the people of Grenada,” said Joseph, who is also the Attorney General. She explained that “before the week is up, the agreement will be consummated, and that agreement will again see the Kawana Bay properties, which is just over 5 acres of land on the far end of Grand Anse beach again coming back to the people of Grenada. We will once more own that property.”
Joseph explained that in 2016, the New National Party (NNP) Government transferred the freehold of the land to True Blue Development. “And in transferring, again nothing went into our treasury at the time the freehold was transferred in real terms because what happened there was a conveyance and a mortgage. Essentially Government loaned the True Blue company money to buy the property from us. Government advanced on the money, and they took the same money, and they brought the property from us. It was a really good deal. It was only $3.5 million,” she said without disclosing the transaction currency.
According to legal documents for the arbitration matter, on 23 March 2016, True Blue Development agreed to purchase the Flamboyant Hotel and Villas after the prior owners had defaulted on their mortgage and the property was in receivership.
On 23 May 2016, the Government of Grenada granted Approved Project status under Section 11 of the Citizenship by Investment (CBI) Act. That Approved Project status gave True Blue Development the right to raise capital and solicit investors for the development of the project. The status also meant that citizenship would be granted to all CBI applicants investing in the project who successfully applied for and qualified to become citizens of Grenada under the CBI Programme. However, the project was halted by mid-2021 due to what the then government described as “discrepancies” in the company’s records regarding the CBI regulations. The developers then filed for an arbitration hearing with the Centre in July 2021.
Under Article 25 of the ICSID Convention, an investor-state dispute may be submitted to ICSID jurisdiction when the following 5 elements are met:
- The dispute in question is a legal dispute
- The dispute arises directly out of an investment
- The State party is a Contracting State to the ICSID Convention
- The other party is a national or company of another Contracting State
- The parties have consented to ICSID jurisdiction
More detail please – not enough information as to what this will mean financially for the people of Grenada.
I understand the buying back of land or properties but i want to know what are we going to do with said properties, whos going to run these resorts, are we going to do culinary training for hotel workers are they going to be showcasing grenadian talent and cuisine
Does the public have a right to know the full terms of the settlement and Government’s plans for the property in the public’s interest or not ? This is doublespeak to me.