ILE AURORE: ANOTHER PROJECT BUILT ON QUICK SAND?

THE Minister for National Development, Jacquelin Dugasse, went to the National Assembly last year and “revealed” details of the Ile Aurore project. Ile Aurore is the man-made island opposite Anse Etoile on the North East coast of Mahe. It was reclaimed in 2000, at the cost of US$9,000,000 (9 million) to the taxpayers according to Dugasse, although the Government ended up borrowing US$180,000,000 from a consortium of banks led by the Bank of Tokyo-Mitsubishi to cover the liabilities due to the reclamation.

The figures about the potential revenues which will accrue to the Government from the l'Ile Aurore Project, as churned out by Dugasse to impress the members of the National Assembly, sounded staggering to the ears of the unwary, even in dollar terms.  Except that, from the perspective of the population at large, there was a sense of déja-vu, after the Eden Island presentation 3 years ago.

At that time, the predecessor of Dugasse, Joel Morgan, claimed that Government would be paid US$30,000,000 within five years of the signing of the agreement with the South African based developers, as part payment a total of US$ 75,000,000 payable over 99 years. Three years down the road no one knows how much the government has actually received from the developers. Like the Eden Island project, the developers of l'Ile Aurore are based in South Africa and also “introduced” to the project by Mrs. Marie-May Kolsch, the Seychelles consul general in South Africa. Mrs. Kolsch, despite her unusual name, is a Seychelles born lady who has been living in South Africa for over 30 years and is married to a South African national of Austrian origin. Her elevation to consul general from a mere honorary consul gives her pseudo-diplomatic status. Records show that 99 out of the 100 shares in the Eden Island Development Company, a BVI company registered in Seychelles, are held by a company of unknown ownership registered in the British Virgin Islands.

Dugasse told us at the time that the Government had signed three agreements with the South African based property developers called Pinnacles Development for the development of l'Ile Aurore. One concerned a lease agreement for the existing island itself. The lease is for 99 years and the government will be paid a total sum of US$ 70,000,000 for the lease alone. This works out at US$ 125, 000 per square metre. 

The total sum for the lease will be paid over a period of years not upfront. However, Dugasse seems confused as to when exactly the government is expected to receive the final payment. According to Dugasse Government received US$1,000,000 on the date of signing of the lease, as part of the agreement, which Dugasse said was signed on 19 September. The next installment, some US$ 5,000,000 will be paid only after planning permission has been granted followed by a grace period of three years. On the fourth year the first of three annual installments of US$ 16,000,000 would be paid consecutively. That would be two years after the next presidential election would have been held.

The second agreement concerned a commitment by the developers to pay US$10,000,000 towards the cost of installing additional electricity generating capacity at the PUC power station to supply the island. Although the development will have its own water desalination plant, the developers have agreed to contribute US$1,000,000 towards the cost of linking the island to the existing mains supply.

This is a very controversial arrangement since the east coast of Mahe already suffers from a water shortage as soon as the rain stops for a few weeks. Matters will get worse once the 2500 houses development on l'Ile Perseverance next door is completed together with the new sewerage treatment plant for the two islands is completed. Dugasse did not say who would finance the sewerage plant. It is assumed from his silence that it would be the government.  The developers will also contribute US$1,000,000 towards the cost of constructing a highway stretching from the Maison du Peuple round about to la Retraite, presumably passing through both islands.

The third agreement which the government has signed with the developers is to make the government the manager of the dredging operation to reclaim an additional 65 acres from the sea. Just where this additional land will situate remains to be seen.

Many fear it could only be situated on the reef which already protects the island, and therefore cause the destruction of this natural barrier against the open sea.

This agreement Dugasse said, is recognition of the expertise Seychelles has gained in dredging and reclaiming the foreshore. Whether that faith is well placed remains to be seen.

Dugasse, however, somehow lost the plot in his enthusiasm.  He said that the developers will be allowed 60% retention of their foreign currency earnings. This means that six years from now, when the project would have been completed the rupee will still not be fully convertible.  Dugasse was over enthusiastic in his presentation of the project before the National Assembly last year. He built it up as the project, which will spell the end of all our problems when completed.

Recently news reached this newspaper suggesting that the whole deal has now collapsed around the forehead of the poor Minister. But, still the Minister refuses to come out with the truth on this project.

We are appealing to President Michel to send Dugasse back on television to explain himself and what has caused the collapse of this lucrative project.

Is that not, what was promised to us by our President, transparency and holding the Ministers accountable?

As the saying goes, if it sounded too good to be true, it usually is.