Concerned citizen writes to UK for intervention in Cruise pier project
This news site’s sources had disclosed that a Steve Johnson from the Foreign and Commonwealth Office (FCO) visited the Virgin Islands (VI) about two weeks ago to deliver the UK’s position and it was further revealed that the FCO opined that the project was not allegedly compliant and not within the spirit of the recently signed Protocols for Effective Financial Management penned in April of this year, between the Smith Administration and the UK Government through Hon. Henry Bellingham, the Parliamentary Under Secretary of State and Minister for the Overseas Territories.
It was believed the FCO objections were related to section 10 of the Protocol and the issue of ‘Delivering Value for Money’. While some are saying the project is squashed, according to a high ranking National Democratic Party (NDP) source, “that is not the case, however, we have to go back to the drawing board on many aspects of the project.”
In the letter dated July 13, 2012 to Mr. Billingham by well-known activist Donald de Castro, he called on the UK to intervene if they felt his concerns were genuine and stated that the Tortola Pier Park Development, in his opinion, is very similar to the Bates Hill plan of the 60’s and not in the best interest of the Territory.
“This proposal will gravely affect the local business people and tie the hands of the next twelve administrations and several generations of our people. It is my understanding similar projects were undertaken by the same set of developers in Jamaica and other countries and they were not at all satisfactory. I am not an educated man but simple common sense tells me that should this project be approved and completed our children and grandchildren will pay a very heavy price financially and otherwise,” an excerpt from the letter read.
According to Mr. de Castro’s letter, he claimed that at the June 27, 2012 public meeting in the Virgin Islands, it was made clear that the contract will be signed in about 30 days and retail rental spaces for locals will be few.
“It has been the practice of past governments to go into agreements with foreign corporations and the coming to the public to inform them as to what they are doing rather than getting the input from the public first. This government is walking the same road. This, therefore, tells me that this requires the intervention of the UK government,” the letter explained.
He further charged that, “we have a number of greedy individuals and influential business people that support this project as their only interest is personal and not that of their country or its people. Then of course we have those that would not voice their opinion for fear of victimization”.
Background of Project
According to information provided and research done by this news site, the development which is referred to as the Tortola Pier Park is an investment that will come from Tortola Ports Partners consisting of a consortium of US-Based United Infrastructure and Cashman Groups.
The participating cruise lines are Disney and Norwegian, who under the proposed plan, Government will have to lease the land for 48 years in exchange for Disney and Norwegian Cruise Lines guarantying a large number of passengers over the next 15 years and an increase in passenger tax. The guaranteed amount of passengers is reported to be 425,000 minimum passenger arrivals per year.
The total investment is around $75M, coming primarily form the head tax of $15 per person, with $6.00 going to the BVI Ports Authority. Currently, the BVI Ports Authority Act has them receiving $7.00 per person head tax which means with the new proposal for the Cruise ship project will see a reduction in head tax for the Authority.
After 15 years, according to the proposal, the head tax will increase to $38.00 and by year 48, it will be shared 50/50 between the BVI Ports Authority and Tortola Port Partners.
The investment also includes another $25M for pier and excursion dock; $25M landside development; and $25M community investment all over the life of the project and will not be an immediate direct investment.
Please click to read letter sent to UK by Mr. de Castro. Letter to Henry Billingham
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