Effective Date: 24 September 2024

The third amendment to Regulation 2022/R-236, which addresses construction period extensions and the deferment of rent and fines, introduces several important changes. These modifications aim to provide clearer guidelines for stakeholders involved in redevelopment projects, particularly in the tourism sector. Below, we detail the amendments and how they differ from previous provisions.

Key Amendments Overview

1. Rent obligations would commence automatically when the redevelopment period granted by the Ministry of Tourism (“Ministry”) concludes, providing more clarity for leaseholders as this was not specified before.
2. For general redevelopment, the maximum period allowed is 36 months which is a significant increase from 24 months for developers, offering more flexibility.
3. In the case of extended redevelopment where the whole property is renovated, a maximum of 42 months is allowed.
4. The limitation on allowing for redevelopment for tourism purposes every 10 years was repealed allowing for more flexibility for developers.
5. Regarding tourism related construction where the extension was allowed for 3 years for islands or land designated for tourism Clause 12 (b) and 4 years for lagoon projects Clause 12 (c), the criteria reviewed by the Ministry for further extension is made simpler. The amendment clarifies that an additional extension may be granted if the property is not in operation, provided the developer submits a decree confirming the availability of labour and materials. The Ministry reserves the right to revoke the extension if any non-compliance is identified.
6. Previously, the Ministry required the work to be at least 70% completed and for developers to submit a progress report along with certification from an approved quantity surveyor or structural engineer which is not required now.
7. The definition of ‘Redevelopment Period’ has been further refined to refer to the phase during which a site is closed for renovation or upgrading, encompassing situations where all or part of the site is being reconstructed. This change provides clearer guidance on what constitutes a redevelopment period.

Conclusion

The amendments to Regulation 2022/R-236 represent a significant shift in the management of redevelopment projects, particularly in tourism contexts. By clarifying timelines and responsibilities, these changes aim to streamline the process for developers while ensuring compliance with regulatory standards.