State Attorney assessed agreement St. Eustatius Government and NUSTAR

The State Attorney has, on the request of the Minister of the Interior and Kingdom Relations, assessed the agreement between the island of St. Eustatius and Nustar on the harbor fees and delivery of pilotage service. The State Attorney concluded that this agreement as presently negotiated is not legally valid and is further in violation of applicable laws and regulations. However, the State Attorney noted that it is still possible to bring the agreement into conformity herewith. The initiative to reach an agreement with Nustar, after all, deserves a good and quick outcome in the (economic) interest of the island territory.


The State Attorney finds that the agreement is not legally valid, because a decree of the Executive Council is missing and the agreement was not signed by the Island Governor or signed by his proxy. Besides, the Island Council was not asked (in advance) for approval about the agreements made. The agreement is, on several points, in violation of laws and regulations, in particular where taxation is concerned. Finally, in the agreement, arrangements are made on the exercise of (regulatory) powers that the Public Entity St. Eustatius does not have. These agreements may therefore not be fulfilled and that brings a big (financial) risk for Public Entity St. Eustatius (having regard to the granted indemnity and guarantees).


Given the great economic importance of the agreement between the Public Entity St. Eustatius and Nustar, the Minister of the Interior and Kingdom Relations has expressed a willingness to assist the Public Entity with advice and expertise to restore the detected legal flaws, both in terms of content and in terms of the administrative process.