A Hawaii-based company, the South Pacific Development Group, has sealed an agreement with the village of Sasina in Samoa to lease 600 acres of customary land for the construction of a multimillion resort on Savaii Island.
The company representative to sign the deal, Jesse James, says the first part of the project will be the construction of a 150 room resort at a cost of about 150 million US dollars.
The total cost for the whole project, which will later include a harbour, a helicopter service and a golf course, is estimated between 400 and 500 million US dollars.
The lease is set for 120 years according to the MP representing Sasina village in parliament, Laauli Leuataea Polataivao Fossie Schmidt.
However, he says it will be reviewed every 30 years.
The first payment for 2008 land lease of 120,000 US dollars was presented to the Minister of Natural Resources and Environment on behalf of the village after the agreement was signed.
Work on the project is expected to start next year.