– “The Bemax LLC housing project commenced in October 2024 … ”
– “The project was approved in January 2024 and the developer started the sale of shares to Investors in February 2024”
– On Monday, September 30, 2024, I was informed that Aleksandar Mijajlovic had been arrested on February 19, 2024, for alleged involvement in the smuggling of cigarettes between 2016 and 2021.
– “… whether it is with BEMAX or no BEMAX, the Rock Hall Housing Development will be built! ~ Ernest Hilaire.
By Caribbean News Global contributor
CASTRIES, St Lucia – Saint Lucians can’t lose sight of the tussling ongoing in Citizenship by Investment (CIP) Saint Lucia, the major economic and political decisions that confront the country; meantime the brinksmanship and facilitated playbooks are burning up the theatrics, as government infrastructure projects are suspended, CIP St Lucia Bemax housing project “should be stopped.”
On October 8, 2024, Prime Minister Philip J Pierre, told reports concerning Bemax LLC – Rock Hall Housing Development Project that, “ What’s important to me is to house the people of Saint Lucia.”
Bemax LLC, a registered company in Saint Lucia, December 23, 2023, signed an agreement with the government of Saint Lucia, under the approved CIP Infrastructure project, on November 3, 2023, to “construct a housing complex in Rock Hall, Castries, Saint Lucia.”
Bemax LLC was expected to finalize the design and construction of 66 apartments, 14 commercial units and a recreational space, finance and build the project.
According to contract documents represented by the minister with whom the CIP is assigned, Dr Ernest Hilaire, funding amounts to USD 23 million in construction cost and USD 2.225 million for construction management.
Construction schedules included Phase 1 commencing February 1, 2024; and Phase 2 commencing July 1 2024.
Phase 3 commencing November 1 2024; and estimated completion June 1, 2025.
Subject to effective actions on site – Phases 1- 3 are improbable.
On October 9, CNG reported that “St Lucia’s Citizenship by Investment (CIP), infrastructure programme and the government by extension, have taken a bold step to increase the islands’ housing stock, utilizing infamous resources fingered in Eastern European Mafia circles.”
Thus, notwithstanding “The legal capacity to approve such projects was provided in the Citizenship by Investment (Amendment) Regulations published in Extraordinary Gazette dated December 20, 2023,” and now that effective actions on site – Phases 1- 3 are improbable and disputes that may arise in legal action and statutes, the CIP St Lucia Bemax housing project “should be stopped.”
At the sitting of the parliament, on October 15 the minister for tourism, investment, creative industries, culture and information, Dr Ernest Hilaire, tabled in parliament the 2022/2023 annual report of the Citizenship by Investment (CIP) programme.
Did the ministers’ statement address the relevant concerns of the public?
“The Bemax LLC housing project commenced in October 2024 … “ said minister Hilaire. “The project was approved in January 2024 and the developer started the sale of shares to Investors in February 2024.”
“We have been able to secure investment in a national infrastructure improvement project by Caribbean Galaxy, a housing project by Bemax LLC (which I will come to shortly) and we have a pending application for another housing project.”
“Having been provided with the list of possible areas of investment in roads and housing, BEMAX submitted a Letter of Intent dated 22 November 2022 for the Rock Hall Housing Development. Bemax visited Saint Lucia in December 2022. All background checks and due diligence were undertaken and provided no adverse findings. The project was approved in January 2024 and the developer started the sale of shares to Investors in February 2024.”~ minister statement.
The superficial has transformed in an environment where housing is a major concern in the government’s thrust in the “year of infrastructure” and under CIP St Lucia development programme. However, in the allotment of non-performance, there is sufficient blame on the dexterity of many to catalogue. In the light of hindrances, the CIP St Lucia Bemax housing project “should be stopped.”
Parliamentarians should have been digging in their heels and looking for common ground, and/or attempts to reach agreements on finance to address worsening housing and infrastructure on the island, but are rather engaged in bluffing and political convenience.
In the decision-making process, “housing can be implemented to improve the lives of our people without increasing the debt burden of the country, said Prime Minister Philip Pierre. “This year, we intend to construct houses under the CIP programme, as has been done in other islands. Areas initially earmarked for housing development are Rock Hall, where land clearing has commenced.”
“Our CIP programme is anchored by robust due diligence processes at every stage and complemented by robust due diligence processes by the financial institutions involved in facilitating the CIP. We will continue to strengthen processes where necessary and aim to be the first in the ranking of global citizen programmes.”
With the inference that Bemax LLC – Rock Hall Housing Development Project “should be stopped” improving the infrastructure, housing opportunities, and increased support for the poor and vulnerable members of our society, is further withheld.
The other interesting factor here is the plausible stress factors this places on infrastructure investment and investor confidence in general. The government’s economic and political decisions can be impacted.
Failure is not an option at a time for leadership by example to the challenges faced by housing and infrastructure development.
In the face of challenges, Prime Minister Philip J Pierre said in his 2024/2025 budget, “There will be something for everyone.” As realized “ in 2023/24, 180 households received housing assistance.”
“We have secured financing of a US$20M loan from the Import-Export Bank of the Republic of China on Taiwan (ROCT) for on-lending to Saint Lucians to construct new houses or buy residential lots. A new line of credit will be established at the Saint Lucia Development Bank to manage this new line of credit. ~ Budget address 2024/2025.
“NIPRO is currently in discussion with two developers for the construction of 100 affordable houses in the Massacre area. The project has been modified to include the availability and sale of middle-income housing lots.”
“Public servants will be entitled to 100 percent residential mortgages under the US$ 20 million Republic of China on Taiwan EXIM Bank’s new credit line facility being managed by the Saint Lucia Development Bank. In addition, the government will assist every successful applicant with a $1,000 payment towards their legal cost.”
Infrastructure and finance have been slow and contentious to meet the scale of challenges in Saint Lucia.
“Between 2016 and 2021 the rules governing our CIP had changed. There has not been one issue with our CIP programme. No one has raised any negatives regarding the due diligence of our programme. Our programme is now well poised to deliver infrastructure in the form of roads, community centres, and hotels to our people without increasing the national debt.”~ Budget address 2024/2025. “In December 2023, this government introduced an infrastructure option to complement the other funding options. The new infrastructure option requires developers to raise the financing needed to undertake approved projects in a number of selected areas and recover their expenses through CIP.”
In this changed agenda, much of that seems unlikely in the context of Bemax LLC – Rock Hall Housing Development Project. Other delays, suspensions and legal measures that may be considered mean that the government’s current plans are time-deficient and cost-prohibitive with each passing week.
The government of Saint Lucia must re-prioritize with urgency. There has been no greater time to communicate in a language Saint Lucians understand. Now is the time to act!
The post CIP St Lucia Bemax housing project should be stopped appeared first on Caribbean News Global.
