By MINDELL SMALL, Guardian Senior Reporter

mindell@nasguard.com

The government has given the I-Group 20 years of concessions and exemptions, which could be extended upon the request of the company.

Minister of Financial Ser-vices and Investments Vin-cent Peet on Wednesday revealed the details of the Heads of Agreement signed on March 7 between the government and the Massachuse-tts-based company.

The group is planning to build a $1.8 billion resort and condominium project in May-aguana, and fund the development of much needed infrastructure on that remote sout-heastern island.

The project is being made possible through a 50/50 joint venture agreement with The Bahamas government, the first of its kind.

"Recognising the considerable benefits that will accrue from the development of The Bahamas, the government has agreed to grant to the Mayag-uana Island Developers Ltd and its licensees, in respect of the development, the concessions and exemptions for a period of 20 years," said Mr Peet, during his contribution to the government's 2006/07 Budget debate in the House of Assembly.

"The Heads of Agreement also indicates that at anytime after the 18th anniversary date, the Mayaguana Island Developers may apply to the government to review the concessions with a view for further exemptions."

Mr Peet explained that these concessions were made possible under The Bahamas Ince-ntives Investments Act, the Family Island Economic Ent-erprise Zone Act, the Hotels Encouragement Act and the Industries Encouragement Act.

Pointing to the other projects that the I-Group intends to develop, the investment minister said the company, with a fully equipped ambulance on the island, has sought to construct a health clinic, a science laboratory at the Abrah-am's Bay School, sporting and community facilities as well as roads.

He also said the group has agreed to construct affordable residential housing within the development area and make the homes available to Baha-mians who move to the island as a result of the project. "It is important that the people of the Mayaguana area know that there are several phase developments," said Mr Peet. "Beyond the initial two-year phased developments, there are plans to build additional rooms, residences, golf courses and marinas. They are in fact committed to fulfilling these obligations."

He also said that the developers will contribute to the community through a fund, in graduate sums, leading up to a minimum annual contribution of $500,000."

The project will cover 9,999 acres and is expected to take 15 years to complete.