Follow us on:

Facebook Twitter LinkedIn YouTube

Domestic

Moratorium on industrial government land lifted   Stricter allocation procedures   By Laura Pillay |18 August 2021

Moratorium on industrial  government land lifted     Stricter allocation procedures    By Laura Pillay

Minister Vidot (second from right) accompanied by officials from IEA and her ministry during the press conference yesterday (Photo: Louis Toussaint)

Following a moratorium on the allocation of industrial state land which lasted nine months, the Industrial Estates Authority (IEA) yesterday announced the lifting of the moratorium, and new policies which are to guide the application process going forward. 

In a press conference held at the Seychelles Bureau of Standards (SBS) office, Providence, Minister for Investment, Entrepreneurship and Industry Devika Vidot explained that IEA is to function in line with newly drawn up policies, geared at improving the efficacy of the public service entity, while also rendering the operations and land allocation process clear, transparent and equitable for all.

In starting, Minister Vidot explained that since the imposition of the moratorium, the ministry and team at IEA have undertaken a series of comprehensive audits and review exercises, from which a number of deficiencies were identified in the in-house processes and procedures for allocating and managing land in industrial zones.

As per the audit findings, IEA failed to keep a proper Master List, or register of leaseholders, and had a disorderly waiting list. The results of the audit also indicate that despite land allocations, many plots remain undeveloped, or in certain instances, leaseholders failed to honour their contracts with government, in selling, sub-leasing the land or making use of it for purposes other than those applied for, or in failing to make the payments for the plots.

To date, the ministry and team have reviewed the allocation procedure and the lease agreement towards ensuring that abuses are curbed. The points system introduced in 2018 has also been amended, in line with government priorities. With the expertise of a private consultant, work is ongoing to finalise the waiting list.

“In consideration of these changes, the ministry has also introduced new policies which are imperative for IEA to deliver on its functions.  To avoid instances whereby the same person continues to benefit from industrial land, only persons who do not have industrial land can benefit from the new allocations. Secondly, allocation of plots will be based on the priority sectors and demand registered at the ministry. Activities such as processing, value-addition, the promotion of local products and accompanying services will be prioritised,” the minister said.

“On account of the large gap between the number of applicants on the waiting list and land which we actually have, we have had to find a fairer way to allocate land, and therefore, this will have to be done through tender,” Minister Vidot stated, explaining the policies which form part of the restructuring of IEA.

In addition, a points system has been established, based on different parameters, such as the applicant’s financial capability, to ensure that they have the ability to make payments and develop the plot within a reasonable time period. Decisions as to the merit of applications are to be made by an independent committee. Still, under the points system, applicants must be willing to make available space on the property for micro, small and medium enterprises (MSMEs), an initiative which aims to make more space available for smaller businesses.

With regard to who is eligible to apply for an industrial plot, Minister Vidot noted that only sole traders and companies may apply. Stricter measures are to apply to post-lease or changes in beneficial owner, change of use of any other changes, stricter measures are to apply.

As the review of the availability of land is yet to be completed, IEA will for the present time handle applications received over the nine-month period for which the moratorium was enforced. Once the procedures for new allocations are finalised, IEA intends to allocate plots located at the Providence Zone 20 Extension, designated for marine repairs and construction-related businesses. It is important to note however that with severe budget implications on government, the plots will be tendered out with no existing infrastructure in place. Therefore, this puts the onus on the private sectors to bear the full cost of serving the property with road access, sewage and water, under the respective guidelines.

According to chief executive of IEA, Roy Collie, from the start of the year up until August 13, 2021, IEA managed to collect R12.6 million in arrears, as compared to R11.2 million over the course of 2020.

“The total arrears that we have left to collect, with the work that we have done now, we have around R20 million more to collect,” Mr Collie added.

Minister Vidot was also joined by lease officer at IEA, Denise Simeon; legal officer at IEA Patrick Quatre and senior policy analyst at the Ministry Fadette Khan.    

The moratorium was officially lifted on August 5, following a decision of the cabinet of ministers.

 

Laura Pillay

More news