Changes Made to Grant of Rights Regulation

The Ministry of Tourism, on 26 April 2017, published the 2nd Amendment to Regulation Number 2010/R-14 (Grant of Rights – land and islands leased for tourism purposes) which amends Section 29 of the regulation. The section concerns debt clearance of lease transfer applicants.

The amendment to Section 29(a) requires the Ministry to make a general announcement to ensure that the lease holder has no outstanding debts or issues attached to the island or land being subject to transfer. The transfer will only be permitted once outstanding issues have been resolved.

Prior to this amendment, Section 29(b), in effect, required lease transfer applicants to settle all debts with the state and, if the land or island was mortgaged, obtain permission of the mortgagee before the applicant would be permitted to transfer the lease. The latter requirement has been removed from subsection (b) and added as a separate requirement as sub-section (d).

The amendment to the Regulation also adds subsection (c) which allows lease transfer recipients to take responsibility of all outstanding debts, payable amounts, and any other issues attached with the land or island and gives assurance that they will be resolved. This assurance will be included as a provision in the lease transfer agreement. If that assurance is given by the lease transfer recipient, the Ministry has the discretion to waive the requirements under Section 29(a) and 29(b).