Prime Minister Dr Keith Mitchell
By Caribbean News Now contributor
ST GEORGE’S, Grenada — The government of Grenada has introduced new regulations to ensure developers commit equity to projects in the country and experts say the move is positive for the industry and will ensure completion of projects.
According to an amendment to the Grenada Citizenship by Investment (CBI) regulations, signed by Prime Minister Dr Keith Mitchell: “For the purposes of approval of a project under section 11 (1) of the Act, a minimum equity of 20 percent of the total cost of construction as proposed shall be invested into the project prior to approval.”
This has been greeted with widespread approval by many in the industry, especially in the Caribbean, which has suffered in the past from promoters promising to build a myriad of luxury hotels and projects that never materialise. White elephants litter the beaches of the region, some half built and others never to be completed. This new legislation will provide much required protection to potential citizenship by investment applicants.
“Grenada is back to basic business 101, where a CBI real estate developer must put real money down,” said Sam Bayat, managing director and senior lawyer at Bayat Legal Services. “How can an applicant believe in a project where the promoter is not investing his own savings? This measure will reinforce the program’s integrity, and in both the short- and long-terms, weed out bad actors.”
