RAROTONGA (Pacnews) — The High Court in the Cook Islands sits this morning to settle the dispute over the lease for the Vaimaanga hotel project site.
The lease for the “Sheraton” project, which has been delayed for 10 years, was granted by owner Pa Ariki to the Covington Group from New Zealand.
But the Cook Islands government said it was concerned about Covington’s ability to complete the project and favored another New Zealand-based developer, the Tepaki Group. Deputy Prime Minister Geoffrey Henry said Covington had failed to comply with a number of conditions.
Earlier this month, the Leases Approval Tribunal ruled in favor of Covington and the High Court has now been asked to confirm the lease.
The Cook Islands News newspaper said it attempted to confirm from the deputy prime minister’s office whether or not government would oppose this morning’s application to confirm the lease in the High Court. The newspaper reported that the government will not be represented at the hearing.
If the lease is approved, Fletcher South Pacific will build the resort and Hilton International will operate it.
