The Commission of Inquiry into the lease and development of Assomption Island has heard that the developer continues to incur substantial daily expenses while a stop notice remains in place.
The issue was raised during the commission’s first public hearing on Monday, 12 January 2025. Representatives of Ocean Breeze Investments Limited appeared remotely by video link and answered questions from Commissioner Mathilda Twomey.
Part of the hearing focused on costs incurred despite the suspension of works. The developer told the commission it continues to spend about 300,000 US dollars per day. It described the figure as an estimate. The company said the costs relate to barges, mobilisation equipment and other fixed expenses already deployed on the island.
The commission also heard that about 500 workers remain on Assomption Island. Ocean Breeze said it kept them on site because it expected the stop notice to be lifted sooner. It said relocating them would have resulted in higher costs. According to the developer, Island Development Company Limited covers workers’ food, accommodation and maintenance, with the developer reimbursing those expenses.
When asked how much had already been spent, Ocean Breeze said it could not provide a total figure at this stage. It said finishing materials had already been procured and delivered to Seychelles. The company told the commission these materials are stored in warehouses on Mahé under the control of Island Development Company Limited.
Ocean Breeze said the situation had caused embarrassment for the company. It also raised concerns about reputational implications for Qatar. The developer warned that the uncertainty surrounding the project could discourage other international investors.
The Commission of Inquiry stems from a lease agreement signed on 5 July 2024, under which the Republic of Seychelles leased Assomption Island to Island Development Company Limited for 99 years. A sublease agreement followed on 18 September 2024 between Island Development Company Limited, Ocean Breeze Investments Limited and the Republic of Seychelles under the previous administration.
The commission is examining whether the sublease and related development activities complied with the law and served the national interest. Public hearings will continue this week.