ST. GEORGE’S, Grenada, CMC – The Grenada Government says it will seek new investors for an approved Citizenship by Investment tourism project, which became the Center of an arbitration matter before the World Bank’s International Centre for Settlement of Investment Disputes.
The Government and a group of U.S. investors that had been working through True Blue Development to build the Kawana Bay Resort near world-famous Grand Anse Beach jointly announced the resolution of a dispute that had been under arbitration since 2021 before the World Bank’s International Centre for Settlement of Investment Disputes.
“True Blue Development will no longer be involved, and the ICSID arbitration is discontinued,” said a news release from the Government Information Service. 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 acquired by the Government under the Acquisition Act must be gazetted at least twice before the acquisition. Still, the August 18th and 25th, 2023 gazette did not carry such a notice.
According to the government release, Prime Minister Dickon Mitchell led efforts to reach an amicable outcome to the impasse, which had halted construction of the five-star resort two years ago under the New National Party government of Dr Keith Mitchell.
The Government says that 92 percent 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 Government release did not provide details about the cost of acquiring the assignment.
“Importantly, by Grenadian law, owners and investors in Kimpton Kawana Bay will be entitled to seek compensation from the Government of Grenada under Grenadian law for the compulsory acquisition of the Property,” the release said.
Mitchell commented on the development, “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. The Citizenship by Investment Program 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: “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 the Kawana Bay Project will tremendously contribute to Grenada’s economy. We are pleased that the Kawana Bay Project will move forward unburdened by a dispute that arose under a previous government.”
According to the International Centre for Settlement of Investment Disputes rules, an official withdrawal of the matter notice must be sent to the Secretary General of the Center for the settlement to be acknowledged. Under the Cent
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