By Robert A Emmanuel
Prime Minister Gaston Browne said no one benefits from the lack of progress made on the Yida Special Economic Zone after news broke that the High Court has permitted real estate firm Lux Locations to sell off any shares owned by Zhang in his company, Yida International Investment Antigua.
Since it was announced in 2014, the development project has been mired in controversy over its environmental impact as the project encompassed parts of the North East Marine Management Area (NEMMA).
In Parliament on Monday, the Prime Minister responded to a query from the Leader of the Opposition Jamale Pringle on the matter.
“Mr Yida has invested over US$200 million in acquiring land and building out the infrastructure on his zone; it would appear that he has not been as successful in attracting investment to the zone as he anticipated.
“From all indications and based on what I seen in the news, he may be having some issues and we continue to wish him the best and hope that he will be able to resolve those [legal] issues and that he will be able to attract the necessary business to make his zone a success,” Browne said.
Zhang has been embroiled in a protracted legal case brought by the Antiguan real estate firm that brokered the land sale nine years ago.
Lux Locations want the Chinese businessman to pay the agreed US$3 million commission. The case went as far as the Privy Council which in June ruled in Lux’ favour.
In a ruling earlier this month, Judge Rene Williams allowed Lux Locations to sell the shares directly, under court supervision, in a bid to speed up the process.
The Prime Minister added, “It doesn’t benefit any of us if [Zhang] fails to attract further businesses and there is failure, but again as you know, it is the nature of business; we have winners and losers and it would be unfortunate if he ends up as a loser as we recognise the kinds of commitment and funds he has invested so far.”
Zhang previously claimed that he did not understand the document he signed with the real estate firm.
However, the businessman still retains the option of continuing the project, provided he pays Lux Locations the outstanding commission, now said to be more than US$4 million with interest and legal fees.