Eden Island Project-Best deal for Seychelles |21 February 2006

Government said yesterday that its agreement with Eden Island Development Company (Seychelles) Limited for the development of Zone 10 of the reclamation is completely above-board and in the interests of Seychelles and the Seychellois people.

In categorically refuting allegations made in the media, which it called “devious” and “aimed at stirring ill-feelings among the Seychellois”, the Department of Information has said that Government “has acted in a transparent manner in securing the best possible investment deal for the country and its people”.

The foreign direct investment into Seychelles through the Eden Island project is valued at over US$450 million and other significant benefits and spin-offs for the country such as opportunities for employment and local services are without doubt on a scale unseen before in the country.

“As in the case of all projects, established procedures were followed and the development rights were awarded to the company in a transparent manner whilst Government ensured that it secured the best possible investment deal for the country,” a communiqué from the Department of Information said yesterday.

The 48-hectare Eden Island was specifically created as part of the East Coast Project (ECP) Phase III, for the type of development that is currently being undertaken on the island by the promoters.

The island, which cost around US$9 million out of the total cost of US $52 million for the whole ECP III project, was promoted to potential investors from late 2002 through a brochure and on the official web site of the Seychelles Government.

Three potential international investors including Eden Island Development Company (Seychelles) Ltd. showed interest in the project.

Government retained the latter and undertook extensive discussions and negotiations with the company from February 2003 culminating into a lease agreement dated June 8, 2004 for the whole island.

Under the terms of the lease, Government was to receive an up front payment of US$5 million within a period of 1 year and 17.5% of all proceeds from sales revenue guaranteeing the Government a minimum of US$25 million within the first five years of the lease. Revenue from sales would thereafter continue to accrue to Government to a maximum of US$50 million.

“Extensive presentations was made to the Seychellois public through media by the promoters at the time of the signing of the lease and extensive publicity was also given by both Government and Eden Island Development Company (Seychelles) Limited upon each subsequent payment made to Government,” said the communiqué.
According to the communiqué, Government has to date received a total of US$5 million in two instalments and work is progressing well on the first stages.

Since the signing of the lease, there has been three addendums varying certain conditions of the lease in particular an undertaking by Government to transfer the freehold of the part of the island on which residential development is to take place in order to allow potential purchasers to become owners of their own homes, as is common practice in such developments worldwide.

The communiqué said Seychelles will continue to retain the freehold of the site for the marina, hotel and commercial centre including the causeway currently being constructed by the promoters.

Under the original lease that has subsequently been amended, Government was responsible to design, construct and complete the causeway, bridge and related infrastructure to link the island to Mahe at a cost of US$1.25 million.

After detailed geotechnical and engineering studies undertaken by the promoters, the cost of the bridge, causeway and related infrastructure was revised to US$2.6 million.

The promoters agreed to meet the additional cost and assume the responsibility for the upkeep and maintenance of the road link and infrastructure throughout the period of the lease.

As reported in Eden Island News Issue No.1 of this month, which is also available on the Internet, the project has made remarkable progress and has generated widespread interest throughout the world with already over 1,000 enquiries for villas being received by the promoters.