MOT Asks for MONTHLY Progress Reports
On 25 November 2019 the Ministry of Tourism introduced a Policy requirement that monthly Progress Reports must be submitted by all islands under development – that is all islands which are not in operation.This requirement for Progress Reports applies to all lessees equally whether the requirement is already spelled out in the Island Lease Agreement or an island is currently in its pre-construction stage and has no construction permit or whether the construction period has expired or is currently in the process of seeking an extension of the construction period.The Ministry has also prescribed a form for submitting these reports.The submission of Progress Reports has been around for some time now. The Island Lease Agreements do contain a similar requirement as well. However, this provision is more followed in its breach than in its compliance.What is different about this Policy initiative is that the Ministry will now begin to enforce this requirement by imposing a penalty. The Ministry will invoke the Non – Financial Breaches clause in Island Lease Agreements. Under most Island Lease Agreements, the penalty amounts to a fine of USD 25,000.The Policy announcement asks for Progress Reports to be submitted every month by the 15th day unless a different deadline is provided in the Island Lease Agreement. You may want to confirm the due date for your Progress Report with your lawyers or the Ministry directly.One thing is clear. Failure to submit Progress Reports may attract a fine.
