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Tougher Criteria Demanded for Barbuda Investors

Tougher Criteria Demanded for Barbuda InvestorsAntigua St. John's - Former Barbuda legislator Linton Thomas wants tougher conditions set for financiers interested in investing in the sister isle.

Thomas said the criteria should build on what has been proposed by the Baldwin Spencer-led Cabinet for the disputed Gravenor Bay project.

"The lands in Barbuda should not be held as collateral for any loans that an investor may want to get from a bank," he said, insisting this should be "entrenched" in the Barbuda Local Government Act of 2007.

"You must deposit, in an escrow account, between US$5 million and US$10 million so that if you don't perform that money should go to the people of Barbuda. And, the people of Barbuda must have a stake in that development, whether its 5 to 15 per cent because we will not allow what is happening at K Club to happen at any new development," the ex-senator said.

No performance clause was attached to the K-Club lease, which has prevented the Barbuda Council from taking action to force compliance, though the property has been closed for more than eight years.

Last week, Cabinet advised the Gravenor Bay developers to put US$5 million of the projected US$100 million they intend to invest in the 987-acre project in an escrow account.



Thomas agrees with the Cabinet decision and said the message to investors should be: "Show us the money - if you can't, take a walk."

Both the Cabinet proposal and Thomas' recommendations have received the ‘thumbs-up’ from community activist John Mussington, who contends that central government was forced to do the job of the Barbuda Council.

"They (council) agreed to this project without any background checks, without any sort of conditionality attached,” Mussington stated, adding: “People have to ask the question now: ‘why would a person sworn to look after constituents do something like that?'"

"This project is not feasible because they (the investors) have not done any feasibility studies, no Environment Impact Assessment; you have to prove that something like that can be done," Mussington said.

A team from the Barbuda Council is set to meet with Cabinet after carnival celebrations, with the aim of reaching an amicable settlement on the matter.

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11 Comments In This Article   

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Better no investors than wrong 'uns

#11 SouthernMan » 2012-08-07 04:23

Johnny below effectively suggests Barbuda is better taking whatever investors it can get than setting the bar for the right ones. Those of us who have seen this happen elsewhere know that policy can be fatal. A failed, or failing, development this big (1000 Acres!) on a small island could ruin the whole island's future. Can you imagine it - "Oh yeah, Barbuda - used to be nice till somebody left a huge half finished resort on it - I wouldn't bother, myself". That's why you're better with no development than the wrong one - proper background, history, experience, finance checks on developers are ESSENTIAL.
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SouthernMan

Any sustainable plans available?

#10 Robert Simpson » 2012-08-06 11:23

Are there any sustainable ecologically friendly development plans available for Barbuda, if so where do we find details please?
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Robert Simpson

Compliance clauses not enough

#9 Martin » 2012-08-06 07:47

Seems to me that future compliance clauses may not help if it turns out the main objective of a 'developer' is to get planning permission then sell the land on and take the profit offshore. What we need in any developer is a convincing past performance record and proof of solid financing plus long term commitment to employment. If the current applicant has demonstrated any of that, I've yet to read about it.
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Martin

RE: Tougher Criteria Demanded for Barbuda Investors

#8 GoodJobBob » 2012-08-05 03:21

The phrase "Beggars can't be choosers" springs to mind. Real, substantial, honest investors will only invest where there is a strong, honest government, developed, efficient infrastructure, and a well educated, motivated populous.

The rest are attracted to places like Antigua and Barbuda.
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GoodJobBob

Agree with this!

#7 john3 » 2012-08-04 11:58

Hallelujah for some common sense!
At last - thank you for thinking ahead. This criteria makes good sense.
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john3

RE: Tougher Criteria Demanded for Barbuda Investors

#6 the Truth » 2012-08-04 10:01

The fact that we are talking to the land **s who have no money, a bad track record and reputation, who are not wanted by the people, who wish to destroy the natural environment, pushed by a pathetic few who have been paid their commission to make it happen is Proof that the stringent requirements are NON existent.These particular characters are so divisive they would cause a war on the island not seen since Codrington try drag we off, so it is a no go. Further, their ARE many investors who wish to invest in Barbuda, of that their is no doubt, and they have REAL money and good intentions, unfortunately at present they will not deal with the Barbuda Council as it has proven itself unable and unworthy. Bottom line 'u nah build pon mi lan'.
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the Truth

Forget grandiose schemes, think small and real

#5 Seylan » 2012-08-04 07:31

How can Barbuda ever compete in the big-bucks big resort market envisaged by Stanhope Shepherd's grandiose plans - 'a mega yacht marina, an 18-hole golf course, a five-star residential resort and at least one five-star hotel in the Spanish Point area.' The island is just too small, and there aren't enough dramatic natural 'attractions' of the sort sought after by the type of people who frequent that kind of resort. At the same time such a resort would start to destroy Barbuda's natural attractions and serenity. Perhaps some more modest eco-tourism proposals could provide worthwhile local jobs but preserve the island?
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Seylan

Chancers

#4 Antigua me barn » 2012-08-03 23:32

Tsssssppppe! They have nothing. They have built nothing that anyone is happy with. They wantonly disregard the environmental. Barbuda, just send them back to their fish and chip shop.
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Antigua me barn

Check their real background thoroughly.

#3 Willi » 2012-08-03 14:25

Comprehensive background and financing checks are very neccessary - at least one of the current proposers of a big Barbuda development is a company one of whose prime movers makes no secret of having been convicted on counts of property fraud in UK. The company has no past record of development of this size, and is generally assumed in Antigua not to have the funds to pull off a development this big. See other comments here:

www.antiguaobserver.com/?p=78589

Even if one accpets that Barbuda needs this kind of development, the last thing anyone needs is a half finished white elephant project, and without ALL the right answers lining up, there's always a chance of that.
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Willi

RE: Tougher Criteria Demanded for Barbuda Investors

#2 Johnny » 2012-08-03 12:51

With such stringent requirements Barbuda will NEVER get any investors. You think you have gold or oil in them sands? When will you realize that nobody is lining up to invest in your 2x4 strip of land? Yet the Barbudan ppl still "ah cut style" Chuuuuuuups!!!!
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Johnny

Agree 100%

#1 Common Cents » 2012-08-03 09:52

I agree 100% with this. Too many times we allow outside developers to come in, scoop up land at peppercorn prices, and then it sits for YEARS without being accessible or available for the people of Antigua and Barbuda. We should also put in a clause where if a beachfront property is built but falls into bankruptcy, if it is not used/open for a certain amount of time (5-10 years is a good timeline) then it automatically reverts back to the state.
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Common Cents

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