the early termination of the contract for the lease of lands earmarked for the Neotown project at Les Saline…
(No. B/911) Mr M. Seeburn (Second Member for Vieux Grand Port & Rose Belle) asked the Prime Minister, Minister of Defence, Home Affairs and External Communications, Minister of Finance, Minister for Rodrigues and Outer Islands whether, in regard to the early termination of the contract for the lease of lands earmarked for the Neotown project at Les Salines, he will state the amount of compensation paid therefor, indicating – (a) the circumstances which led to such payment, and (b) whether payment was made pursuant to an out-of-court settlement or following an award by an Arbitration Tribunal.
In December 2009, my Ministry signed a 99-year lease agreement with Les Salines Development Ltd, a company set up in Mauritius by Patel Engineering Ltd (India), in respect of a plot of land of an extent of 58A33P in the Port Area at Les Salines, Port Louis, for the purpose of implementing a Waterfront Development Project, commonly known as the Neotown Project. In February 2015, the then Government decided to terminate the lease agreement for failure by the company to make any significant progress in the development of the project in accordance with the lease agreement. In December 2023, the Arbitral Tribunal, set up to adjudicate the dispute between Patel Engineering Ltd and the State of Mauritius, awarded an amount of about Rs1.35 billion as compensation to Patel Engineering Ltd, together with interest at PLIBOR + 2% until payment, plus costs. I am advised by the Attorney-General’s Office that no further information may be given concerning the arbitration as parties are required to maintain confidentiality as to all aspects of the arbitration.
134 SPECIAL STRIKING TEAM – INITIATED ENQUIRIES – CASES’ DETAILS