Cuba has made a progressive stride towards bolstering its economy and environmental sustainability by opening its doors wider to foreign investors. The country's Ministry of Finance and Prices has introduced Resolution 271 of 2023, a landmark law that enables foreign investors to purchase land for renewable energy projects.
Published in the Official Gazette on November 27th, the resolution establishes a minimum value for land ownership at $0.34 per square meter in zones earmarked for foreign investment in solar photovoltaic and wind energy projects. This move reflects a strategic alignment with Article 28 of the Cuban Constitution, which underscores foreign investment as a critical lever for economic development and encourages the usage of renewable energy sources.
Property Rights and Joint Ventures
The resolution further stipulates that property rights on movable and immovable assets can form a part of the social capital of joint ventures or wholly foreign-owned companies. The mechanism for valuation of land for each specific negotiation or project is also outlined, with an appraisal and certification by the Ministry of Finance and Prices being mandatory. These minimum values serve as an obligatory reference point for calculating land value in each renewable energy project.
The resolution, which will take effect three days after its publication in Cuba's Official Gazette, aims to incentivize foreign investments in renewable energy and thus foster sustainable development. While the move is undoubtedly a significant step towards a greener future, its success will depend on its implementation and the response of potential foreign investors.