Cape Verde and promoters celebrate MOU for White Sands resort completion

A Memorandum of Understanding has been celebrated between the State of Cape Verde and the promoters of White Sands (WS) for the completion of the Resort on Boa Vista Island.

Given the importance and economic and social impact that the WS Resort can have on the country, the project has been considered of exceptional interest since 2013, as per the Establishment Convention published in Resolution No. 6/2013, on January 28.

However, considering that the project has been stalled for 5 years, with about 40% of the work already done, and having painfully suffered the consequences of the Covid-19 pandemic and now facing the repercussions of Russia’s invasion of Ukraine, the Government and the project promoters intend to reach an understanding – through a Memorandum – to promote the completion of the WS resort works and, through this, cancel the reversion process and protect the legitimate interests of those who purchased properties in the resort or invested in the project and safeguard the reputation of the destination Cape Verde and Boa Vista, an asset that deserves our full protection.

This decision also fits within the framework of Government initiatives aimed at accelerating the recovery of tourism and economic activity on Boa Vista Island, so battered by the consequences of the Covid-19 pandemic and multiple crises. The main purpose of the said memorandum is to create conditions to finalize the execution of the White Sands Resort.

The Government of Cape Verde, considering the national interest and the impact of the project in job creation and enhancing the destination, intends to support the project, within the framework of financial instruments and guarantees promoted by the financing ecosystem and also the financing lines provided by international financial institutions and development banks, in accessing financing aimed at completing the WS Resort development.

It is important to highlight that before any decision about a more specific agreement and as was explicitly defined, it is necessary to advance towards:

(1) the creation of a SPV – Special Purpose Vehicle -, ensuring its better governance, in light of best practices;
(2) the realization of a DD – Due Diligence to know the current state of the project in its various dimensions;
(3) the development of an economic and financial feasibility study.

The studies and the DD should be carried out by one of the BIG 5 of International Auditing and Consulting. Only after rigorously evaluating this information will the State be in a position to make any additional and definitive decision.