by Linda Straker
- Under ICSID rules, no party can unilaterally withdraw a matter
- Government will be seeking new investors for Kimpton Kawana Bay resort
- Property acquired under Land Acquisition Act must be gazetted at least twice before acquisition
The Government of Grenada said that it will be seeking new investors for an approved Citizenship by Investment (CBI) tourism project, which became the centre of an arbitration matter before the World Bank’s International Centre for Settlement of Investment Disputes (ICSID).
The Government of Grenada and a group of US investors that had been working through True Blue Development to build the Kimpton Kawana Bay Resort at the world-famous Grand Anse Beach jointly announced the resolution of a dispute that had been under arbitration since 2021 before the ICSID.
“True Blue Development will no longer be involved, and the ICSID arbitration is discontinued,” said a news release from the Government Information Service (GIS). The release further explained that “Under terms of the agreement, the Government of Grenada will obtain the entire Kawana Bay Resort through a compulsory acquisition and take steps to ensure that the project is completed and built out to its fullest potential, for the benefit of the tourism industry and with maximum employment for Grenadian citizens’ top of mind.”
Any property to be acquired by Government under the Land Acquisition Act must be published in the Gazette at least twice before the acquisition, but the Gazette publications for 18 and 25 August 2023 did not carry that declaration.
According to the government release, Prime Minister Dickon Mitchell, elected in 2022, led efforts to reach an amicable outcome to the impasse, which had halted construction of the 5-star resort 2 years ago under the New National Party government of Dr Keith Mitchell. The Government said that 92% of available units at Kawana Bay have been sold or committed for sale to international investors.
As a result of the agreement, the government will assume ownership of the Kawana Bay project and property and seek a new developer to complete the project, which had already reached an advanced state before the dispute arose. The release did not provide any details about the cost to compulsory acquire the project.
“Importantly, in accordance with Grenadian law, owners and investors in Kimpton Kawana Bay will be entitled to seek compensation from the Government of Grenada pursuant to Grenadian law for the compulsory acquisition of the Property,” the release explained.
Commenting on the development Prime Minister Dickon Mitchell said, “the Government of Grenada desires a fair and equitable resolution with all owners and committed purchasers at Kimpton Kawana Bay, whose citizenship status in Grenada is unaffected by this negotiated agreement. In fact, the Citizenship by Investment Programme remains active and strong, and we anticipate its continued contributions to the Grenada economy and our people.”
The release quotes the True Blue Development investors as saying, “We commend the Government of Prime Minister Dickon Mitchell for working with us to resolve this situation in an atmosphere of mutual respect and trust. We have always believed that the Kawana Bay Project will make a tremendous contribution to Grenada’s economy and are pleased that the Kawana Bay Project will now move forward unburdened by a dispute that arose under a previous government.”
According to ICSID rules, an official withdrawal of the matter notice must be sent to the Secretary General of the Centre for the settlement to be acknowledged. Under the Center’s rules, no party can unilaterally withdraw a matter.
Drilling down on this topic I present you with the details of the dispute and they (some may say) shady and dishonest attempts but the then government to squeeze the developers and get it’s hands on much of the citizen by investment money. ttps://kawanabay.com/wp-content/uploads/2021/07/Summary_of_Dispute.pdf
So now you have the background but we still don’t know how much this ‘event’ has cost Grenadians and where the money is now…
No mention of how much this land grab has cost Grenada of course inder the terms of this so-called agreement, but I’d like to see a deep and honest dive into the strange transactions of the Hog Island and Mt. Hartman Estate over the years where the Treasury received nothing.