THE Minister for National Development, Mr. Jacquelin Dugasse, sensationally revealed details of the Ile Aurore project before the National Assembly not so long ago. Mr. Dugasse stated that the government has signed three agreements with Pinacle Point Holdings amongst which, inter alia, there was the lease agreement and the dredger agreement. Pinacle Point Holdings is the company which was awarded the tender for development of Ile Aurore because of their strong development concept.
The Minister said that Pinacle Point Investment now owns 100% of the island. Pinacle Point Investment is the subsidiary company of Pinacle Point Holding company. The complex will comprise of several boutiques, four presidential suites, casino, conference facilities, 18 holes golf course, 144 residential villas, 90 condominiums, sport centre, shops, waterfront marina for 30 boats, parking facilities and heli-pad. The company will also build a fishermen village, jetty facilities, craft village and staff quarters.
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 government said it paid US$ 9, 000, 000 to reclaim the island some ten years ago. The payment shall be made by installment and shall be paid as follows:
1. US$ 1, 000, 000 on the signature of the agreement which was paid on the 19th September 2007.
2. US$ 5,000,000 after planning permission for the project is granted.
After the second payment has been made, there will be a grace period. In the 4th year the company shall pay US$ 16, 000,000 to the government and thereafter US$ 16, 000, 000 every year. The government intends to collect the US$ 70, 000, 000 in the sixth year upfront.
The company will also pay for the cost of a four to five mega watts of electricity generator to supply electricity to Ile Aurore to the tune of US$ 10, 000, 000. Furthermore the company will set up their own desalination plant although there would be a water pipe linked to the PUC network for which the company will pay US$ 1, 000, 000 to PUC. A sewage treatment plant to service Ile Aurore and Ile Perseverance will also be set up.
The Minister said that the company has also agreed to pay for the cost of a highway from Maison du Peuple to La Retraite. This will cost US$ 1, 000, 000 the Minister said. A road and bridge shall also be built from Ile Aurore linking to the Anse Etoile road, all to be financed by the company.
The Minister also revealed that the company will pay stamp duty and sanction fee to the government which will comprise of 10% of the total cost of the sale price of the villas and condominiums. The company will pay 1.5% processing fee, 5% stamp duty, 3.5% sanction fee. Altogether, the government expects to collect US$ 80, 000, 000 from the sale and re-sale of the villas and the condominiums. Under the Tourism Incentive Act the company will pay 15% of profit over R. 250, 000 to the government as taxes. The company will also pay GOP for foreign workers and GST of 7% on goods and services sold. For the casino the company has agreed to pay R. 1, 000, 000 per year licensing fee, R. 5000, 000 per year for each table and R.3, 000 per slot machine; all to be paid in foreign currency. One thousand workers are expected to work at Ile Aurore daily. The Minister said that 300 to 400 Seychellois are also expected to be employed there. The company will be allowed to keep 60% retention of their foreign currency and 40% will be converted in local currency. The company has been given the go ahead to reclaim another thirty hectares of land which will cost the company an extra US$ 100, 000, 000. Five percent of the dredging cost will be paid to the government for its expertise to manage the dredging operation, that is, US$ 5, 000, 000.
The government expects the net inflow of foreign exchange from the project to be US$ 38, 000, 000 in 2007, US$ 6.9, 000, 000 in 2008 and USD 5.9, 000, 000 in 2009. The foreign direct investment inflow from the project alone during construction phase is expected to be € 400, 000, 000. The Minister said 600, 000 tons of rocks will be used for bunding of the island costing the company an estimated US$ 20, 000, 000. The spin-off benefits will be many and will accrue to car hire operators, shops, airlines and taxi operators. The project is expected to be completed 54 months after planning permission is granted and not later than end of December 2011 and beginning of 2012. The government estimates that it will collect a total revenue of US$ 500, 000, 000 in 2012, US$ 324, 000, 000 in 2013, and US$ 105, 000, 000 in 2014 from the project. Thereafter the government is expected to collect US$ 120, 000, 000 to US$ 130, 000, 000 every year thereafter the Minister stated. There will also be a “multiplier effect” and the country will get US$ 3, 000, 000 each time the government collects US$ 1, 000, 000. Fifty thousand more new tourists are expected to come to Seychelles as a result of the Ile Aurore project, the Minister concluded.
NOW CAN WE HAVE THE LATEST ON THIS PROJECT MINISTER DUGASSE or else we will reveal all next week!!!!