The Government of Saint Lucia is waiting on Desert Star Holdings (DSH) to make its next move in a dispute over the halted Pearl of the Caribbean development in Vieux Fort South.
Under the project, Hong Kong-based development company, DSH, was slated to develop a multi-billion-dollar compound with boutique resorts, a marina, a casino, shopping, waterfront villas, and a world-class racetrack with turf and dirt courses.
The project, initiated under the United Workers Party (UWP) administration, had been marketed as a game-changing investment but has faced numerous setbacks, including public opposition, funding challenges, and changes in government priorities.
At a Saint Lucia Labour Party (SLP) town hall meeting in Dennery on Tuesday night, Minister for Investment Dr Ernest Hilaire provided an update on the saga. He disclosed that DSH had served the government with an arbitration notice.
“They wanted to go to an arbitration to see whether or not the Government of Saint Lucia was responsible for preventing the DSH project from going ahead. We responded and indicated to them that whenever they’re ready, they can proceed, and we will respond accordingly,” Hilaire said in response to a question posed at the meeting.
Following the notice, the parties held an initial meeting where DSH reportedly sought compensation for the abandoned project. However, the government firmly rejected the request, Hilaire revealed.
“We had one meeting with them on the matter. They asked us to pay them compensation. Of course, we told them we were not interested in doing that and that they should proceed to arbitration and we will deliver the matter. We’ve not heard from them since, and we are waiting to see what they will do next. We have gotten legal advice as to what we can do,” Hilaire revealed.
The investment minister emphasised that the government remains ready to defend Saint Lucia’s interests should DSH choose to pursue legal action.
“We have to make sure we give them all the opportunity to go to arbitration, but I think you can suspect what they’re doing. They’re probably waiting to see what will happen, but whenever they’re ready, we are ready.
“We have our lawyers on standby, we’ve done all our preparation, and we’re ready to defend Saint Lucia whenever they decide to go to arbitration or go to court,” he declared.
