St Vincent Finance Minister Camilo Gonsalves says the land on which the Black Sands Resort is being constructed can be forfeited to the Government due to conditions in the alien landholding licenses.
Owners of the delayed Black Sands Resort were expected to give an update on the project on 19 March; it is not clear if such occurred since no public announcement was made.
Gonsalves speaking on the Issue at Hand programme last Sunday, 27 March, said there are levers that the Government can pull to accelerate the Black Sands Project.
Canadian investors, PACE Developments, which broke ground on the project in 2017, are yet to complete the resort five years after they promised a 24 -30 months construction period.
Gonsalves pointed out that the developers had faced issues related to the COVID-19 pandemic and volcanic eruptions; however, he noted that they had been behind schedule before these issues.
In 2018, former Minister of Tourism Cecil Mckee when questioned about the progress of the resort in parliament said; “The exterior plastering has been completed, and the workers are now on the inside of the villas completing the plastering, after which the windows will be put in place, and the doors hung. They are also doing some exterior work, relative to the driveways and the roads and some retaining walls”.
Gonsalves said the levers could ensure that that project accelerates, is completed, or other alternative things can occur.
“When you come in to develop a project like that, and you’re a foreign direct investor, you have to sign an alien landholding license, and that alien landholding license has conditions in it”.
Gonsalves said the conditions include a promise that the investor would spend a certain amount of dollars by a certain time, a guarantee they will hire ‘X’ number of workers, and a further promise they would construct several rooms in so many months or so many years.
“There are consequences if you don’t do those things, and the ultimate consequence is that the land can be forfeited to the Government,” he said.
On 8 October 2020, then Minister of Tourism Cecil Mckee stated that there was no precise date for completion.
Gonsalves stated that other measures could be taken, such as withdrawing concessions. However, he says that Prime Minister Ralph Gonsalves is working collaboratively with the developers, understanding the challenges they faced due to the COVID-19 pandemic and the eruption of the La Soufriere volcano.
Prime Minister Ralph Gonsalves giving an update on state radio in January 2022, said he was advised that work on the Black Sands Resort, which was delayed for months, was expected to recommence either late February or early March 2022.
In February of 2021, Pace Developments St. Vincent Inc, in a press release, denied allegations made by the then (News784) that they had received some $300 million of European investors’ money, which, according to information, was destined for the project but was never used.
“Pace Developments St. Vincent Inc. is aware of allegations made on a recent social media blog regarding a Black Sands project and receiving 300 Million of investors’ monies. We vehemently deny these allegations, as they are false.
We wish to clarify that Pace Developments St. Vincent Inc. has never been contacted by any authorities, investigators, accounting or legal firms concerning these allegations. Pace Developments St. Vincent Inc. will vigorously defend its reputation against these baseless falsehoods”.
The project consists of three phases, which involve ten villas, each with five rooms. Phases two and three will see the construction of a hotel block comprising an additional 350 rooms. It is financed 100% by PACE Development SVG Inc.
