One of the matters taken before the Anguilla House of Assembly on Tuesday, September 7, was the presentation of a paper entitled “Special Economic Zones (Virtual City) Regulations, 2021.”
The presenter was the Minister of Economic Development, Mr. Kyle Hodge. He told the Speaker, Mrs. Barbara Webster-Bourne: “Back in 2018, a definitive agreement was signed between the Government of that day and the Chord Group who are the developers and operators of the Special Economic Zone. It was not until early 2020, Madam Speaker, that the legislation was enacted and passed in this Honourable House; and, it was not until we got into office in 2020 that we created a Special Economic Zone Board of Authority to manage things locally.
“But, right after the legislation was passed, the world was struck with COVID so travel bans and restrictions, and boarder closures, started to take place all across the world. So no doubt, Madam Speaker, that COVID would have played a part in stalling the progression of the actual physical Special Economic Zone that was intended to be here in Anguilla.”
Minister Hodge continued: “This Government successively negotiated with the Chord Group, and the Board members of the Special Economic Zone, to come up with the idea of a virtual sitting joining the likes of Dubai with their Virtual City Special Economic Zone. So for us, the Virtual City component of the Special Economic Zone is a stepping stone for the actual physical Economic Zone.
“We have installed within the agreement an expiration date where companies that would join the Virtual City Special Economic Zone, in order for them to continue being a part of the Anguilla Virtual City Special Economic Zone, that they would have to roll over and set up shop in Anguilla to create some sort of economic substance locally.
“The Regulations state that there is a two-year expiration with a mutual agreement to review. Madam Speaker, as I said, the real benefit is for companies to move and relocate to Anguilla for them to bring their families here; for them to bring their employees; and their employees would most likely bring a family member. Thus, we will be growing the population of Anguilla.”
Mr. Hodge stressed one particular matter. “What we don’t want, Madam Speaker, is to be just operating in a virtual space in Anguilla. But, because of COVID, we went back to the drawing board and made some arrangements for a virtual component to the Special Economic Zone.
He added: “I just want to say to the Chord Group, and the Board members of the Special Economic Zone, that I wish them much success as they push forward with their plans for a thriving Special Economic Zone – whether virtually or physically. If the two can co-exist together, then it would be a win-win for all.”
The agreement, of which Minister Kyle Hodge spoke, was signed on Wednesday, October 31, 2018, by former Chief Minister, Mr. Victor Banks, other representatives of Government and the Chord Group. The archives of The Anguillian newspaper record Mr. Banks as having said during the signing ceremony:
“We have been having discussions on this for a long time to ensure that it fits with the possibilities and opportunities that exist in Anguilla. I think that we’ve been able to come to some agreement as to how we should proceed.”
Mr. Jason Web, CEO of Frontier X, a shareholder in The Chord Group, said at the signing of the agreement: “One of the most important technology zones in the planet is starting here in Anguilla. We think that Anguilla is going to be a remarkable place of development of new technologies. We think globally this part of the world will be seen as the beginning of a new era of development. While governments around the world struggle to keep up with change, this government has moved forward bravely and will be rewarded for it.”
That reward may instead come to the present Government of Anguilla which, in fact, is now carrying forward the project.
