Baha Mar set to get approval
By ERICA WELLS
NG Managing Editor
ewells@nasguard.com:
The billion-dollar Baha Mar development looks set to get the approval of the Bahamian government.
As reported over the weekend inThe Nassau Guardian, Leader of Government Business in the House of Assembly Tommy Turnquest said it is a given that the governing side intends to support its Baha Mar labor resolution that will be debated in Parliament.
Opposition House Leader Obie Wilchcombe has also said that the PLP supports the deal, with several caveats.
The $2.6 billion Baha Mar deal, which is projected to pump millions and millions of dollars into the local economy, is sorely needed at this time of economic turmoil.
In fact, the most recent Central Bank of The Bahamas report said as much. In its monthly report for July, the bank indicated that "large-scale hotel investment projects" - such as Baha Mar and Atlantis'$100 million investment - could be key to The Bahamas not continuing in recession.
"Domestic economic conditions are expected to remain mild over the remaining months of 2010, although the outlook for 2011 is less certain than in prior months, due to mounting evidence of increased fragility in the U.S. growth momentum. This could dampen the short-to medium-term performance of the tourism sector, and the timing for a turnaround in domestic demand and an improvement in employment conditions,"said the report.
"However, upside benefits could accrue to the economy if the proposed large-scale hotel investment projects gain traction in the coming months."
While there is a general consensus that the $2 billion deal will provide the Bahamian economy with a much-needed infusion, it is the labor issue that has put a damper on the prospect of the project, and in some respects has become a political hot potato.
Baha Mar developers want to bring in 5,000-7,000 Chinese workers to help build the mega resort.
This proposal has been met with much skepticism and in some cases high emotion.
The Bahamian Contractors Association supports the project, but wants the government to make provision for the training of contractors and tradesmen to participate on the project, and the inclusion of the BCA as a focal point for training recruitment.
"If the assurances that the training and maximum utilization of Bahamian contractors are not put into place, we will undermine the industry as well as the Bahamian consumers and developers who have existing or proposed projects,"said the association in a position paper on the proposed project.
"The BCA feels that in conjunction with our association initiatives, government has the opportunity and authority to address this situation. With funding and technical expertise we can maximize significant Bahamian contractor participation through our training and certification programs and through discussion with stakeholders we can reach workable relationships."
The Progressive Liberal Party has laid out a similar case, at least when it comes to training.
Wilchcombe told The Guardian on Friday that the PLP supports the project, but several objectives must be met in order to maximize its benefits to the Bahamian people.
He said that Bahamians must be given opportunities; there must be job training to ensure locals can be employed in skilled areas; current workers at the company should be looked after; there should be a role for the national airline to assist with airlift; there should be consideration of the position of the taxi union; and it is essential that there be an investigation about the energy requirement to power such a large scale development.
The agreement on the Baha Mar development was announced in March. The project will be financed by the Export-Import Bank of China, while construction will be performed by China State Construction Engineering Corporation. At one point the project had been virtually given up on when Harrah's Entertainment, one of the original joint venture partners of the project pulled out in 2008.
It is being billed as an unprecedented resort development in The Bahamas that captures the true spirit of the island and the region.
The 1,000-acre Baha Mar project may start construction before the end of the year if given approval by the Bahamian government. The project has already received approval from the Chinese government. It is scheduled for completion in early 2014.
The project, according to developers, represents the largest single-phase hospitality investment in the Caribbean and a one-of-a-kind destination resort experience in its operation, range of top-shelf accommodations, services and amenities, and"true-to-The Bahamas setting and design".
The development definitely lives up to its description as"mega".
Plans for Baha Mar's first phase include approximately 3,000 rooms; a 100,000 square foot casino; two signature spas and a third world-class destination spa; and an 18-hole championship Jack Nicklaus Signature Golf Course; 200,000 square feet of meeting space; 3,000 feet of continuous beachfront; a 20-acre beach and pool experience; and a 35,000-square-foot retail village with upscale shopping, chef-branded restaurants, and entertainment venues.
A report by the Oxford Economics company set out some of the key economic benefits of Baha Mar, including, 6,500 Bahamians directly employed by Baha Mar by 2014; a further 2,000 jobs indirectly created by the project, totalling 8,500; $5.5 billion in direct wages going straight into the pockets of Bahamian families; a further $1.5 billion in salaries for those indirectly employed; a $14.8 billion contribution to The Bahamas'GDP; $24.5 billion extra in visitor spending over a 20-year period, and; an extra $6.2 billion in government revenues over 25 years.
If approved, this project represents a massive boost to the country's struggling economy. It also represents a delicate balancing act.
According to the Baha Mar project management team, Phase one involves the construction of the commercial village and road re-alignment, which is slated to be awarded to Bahamian contractors and is valued at around $60 million.
Beyond the first phase of construction, the BCA in its position paper accepts that there is a limited pool of skilled construction worker resources in the country, and at any given time the majority of these workers or tradesmen are normally employed by practicing Bahamian contractors.
The BCA says it is primarily concerned with three issues: That the country does not have 4,000 skilled and non-skilled workers ready to participate on the Baha Mar or any project in The Bahamas; the standards which are being used to validate the number of skilled Bahamian workers; and if the requisite number of workers can be trained in time to meet the requirements of the project.
"No one definitively knows how many skilled construction workers are currently in the field. One critical component of this scenario is that if Baha Mar is permitted to hire workers from the existing pool, they will in effect be depleting the pool of skilled workers that Bahamian contractors have paid to train and have kept employed all year round,"says the association.
"Obviously, with a project the size of Baha Mar, in a very short time the skilled and non-skilled workforce will be depleted from the local sector leaving small, medium and large contractors alike with little to no labor resources for the duration of the Baha Mar project."
The BCA fears that this dynamic will have a particularly dramatic and negative impact on the small contractor who may employ only a few workers."When he(or she)loses those workers to Baha Mar, it will possibly cripple this important segment of our industry."
"Since we are pinning our economic recovery hopes not eh turnaround that will be created, it is imperative that we protect and nurture the independent small business growth potential,"says the association.
The BCA is also asking about the possibility of importing other nationalities for labor requirements to the project. According to the BCA, indications are that European, Indian and Mexican contractors, sub-contractors and tradesmen may supplement the Chinese component, particularly in some of the specialty trades.
It is unclear exactly when the Baha Mar resolution will be debated in Parliament and when the project will receive final approval from the Bahamian government.
The Guardian understands that there is a major hurdle preventing that approval from being handed down. It's the debate over the payment of an outstanding loan the company has with Scotiabank, worth around $160 million. It is unclear how long it will take the bank and developers to come to an agreement.
It is understood that Baha Mar has offered the bank, and its partners, a combination of cash and equity in the Cable Beach project, but so far Scotiabank has not accepted.
Bahamians eagerly await the outcome of the proposal that some have said always seemed almost too good to be true.
9/4/2010
thenassauguardian
A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
Tuesday, September 7, 2010
Sunday, September 5, 2010
Bahamian Contractors' Association fears inadequate funding for a national training programme to certify Bahamian construction workers for jobs on the Baha Mar project
Funding fears over Baha Mar construction training
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:
THE Bahamian Contractors' Association fears that a national training programme needed to certify construction workers for employment on the Baha Mar development will be impeded by inadequate funding.
The organisation is calling for a tangible commitment from the developers before work begins on the $2.6 billion Cable Beach redevelopment to fund the training programme - a joint venture of the association and trade school BTVI.
"While they (Baha Mar) appear to be genuinely interested in both the short and long term success of the project and the country, they have informed us that presently there is no funding allocated for any training of construction personnel," according to the BCA's position paper on the project, which was recently given to government and the developers.
"We find the fact that a $2.6 billion project is proceeding with no training programme, or responsibility for one, incomprehensible. They have assured us that under their Heads of Agreement (with the government) there is apparently no stipulation for this critical and necessary component," said the BCA, in part.
As a non-profit organisation that operates primarily on membership dues, the BCA cannot fund the initiative at BTVI, an institution that relies on government subsidies. So far, nearly 500 tradesmen and contractors have registered for enrolment at BTVI's training programme.
"One of the possibilities we have discussed with Baha Mar is collecting a percentage of every contract awarded to be allocated for the training of Bahamian workers."
The Baha Mar project has yet to be formally approved by government. A labour resolution on the thousands of work permits the developers are seeking in Chinese labour will be brought to Parliament next week.
The peak period for Baha Mar's construction is between month 24 and month 36 of the project, and at that time there also will be more than 2,500 Bahamian construction workers employed.
Total employment at the peak of the project will be close to 7,500 foreign and Bahamian workers. The China Export-Import Bank and China State Construction are Baha Mar's financing and equity/project manager partners.
September 04, 2010
tribune242
Saturday, September 4, 2010
Bahamas' recession woes are 'not close to being over by any stretch of imagination' - due to the nation's dependence on external forces that are themselves struggling
Recovery prospects 'nil' over short-term
By NEIL HARTNELL
Tribune Business Editor
The Bahamian economy's short-term recovery prospects are "nil", the Bahamas Chamber of Commerce's president warned yesterday, warning that the recession was "not close to being over by any stretch of the imagination" due to this nation's dependence on external forces that are themselves struggling.
Khaalis Rolle said the Bahamas' economic model made it almost totally dependent on foreign direct investment (FDI) inflows and US tourist visitor/spending levels to drive recovery, and both were under increasing threat from the possibility of a 'double dip' recession in North America and elsewhere, with the next three-six months being key.
"The prospects for recovery in the short-term are nil," Mr Rolle told Tribune Business. "Mr prediction has always been for stability over the next 24-36 months, and then we will see an improved level of confidence come back."
Adding that economic recovery "isn't automatic", the Chamber president said: "If follows the typical economic model, and under that model, when we're totally reliant on the consumer from the US to come here as a tourist and spend money, you're not going to recover."
A rebound would only be possible, Mr Rolle said, if there was an immediate upsurge in US business and consumer confidence, and a reduction in that country's employment numbers, something that was unlikely given the seeming possibility of a 'double dip' US recession.
Foreign
"Secondly, the Bahamian model of economic activity is completely and utterly built on foreign direct investment, and if foreign direct investment is at a standstill, everything else is at a standstill," he told Tribune Business.
"We have a ways to go. It's not, by any stretch of the imagination, close to being over. We have some challenges." US economic policy over the next three to six months, Mr Rolle said, was likely to determine whether it, and by extension the Bahamas, went "deeper into recession".
He was backed yesterday by his predecessor as Chamber of Commerce chairman, Dionisio D'Aguilar, who told Tribune Business that while many Bahamian businesses had "bottomed out" and settled into their "new normal", there was little for the private sector and consumers to get excited about in terms of recovery prospects.
"I think most businesses have settled where they are going to settle," Mr D'Aguilar said. "Most businesses have completed their decline and have bottomed out, and I think this is the new normal.
"Businesses are going to have to fight to get any substantial double digit growth in revenue.
"Indeed, if there's any growth at all it will be in the 1-3 per cent range. I don't see anything on the horizon to get us terribly excited.
"Ray Winder summed it up wonderfully [in yesterday's Tribune Business] in that the only item that will cause an uptick is foreign direct investment. There is nothing else out there."
Both current and former Chamber presidents thus agreed with Mr Winder and the Central Bank of the Bahamas, as each expressed growing concern yesterday over the prospects for a Bahamian economic recovery occurring in 2011. Mr Winder even suggested that without a major foreign direct investment rebound, a recovery in this nation may not be seen until 2012 at earliest.
The private sector's weakness was highlighted by the Central Bank's report on monthly economic and financial developments in July, as some 27 per cent of all commercial loans to Bahamian businesses and firms were said to be in arrears.
The Bahamian commercial banking system has an estimated $1 billion in outstanding credit to Bahamian companies, and the Central Bank reported that commercial delinquencies increased by $2.1 million to $270.6 million in July, as a $1.4 million decrease in short-term arrears was outweighed by a $3.5 million increase in non-performing loans.
Mr Rolle acknowledged that some companies with overdue loans were likely to go out of business, although those with greater strength might have the ability to refinance at more favourable rates and obtain some "breathing space".
Describing the private sector's health, Mr Rolle told Tribune Business: "I think the current state is tenuous at best, especially small and medium-sized businesses and businesses that rely on services. I know a lot of service businesses are being impacted. Companies in property management, facilities management, janitorial services, who are cutting back. We've got some challenges."
September 03, 2010
tribune242
By NEIL HARTNELL
Tribune Business Editor
The Bahamian economy's short-term recovery prospects are "nil", the Bahamas Chamber of Commerce's president warned yesterday, warning that the recession was "not close to being over by any stretch of the imagination" due to this nation's dependence on external forces that are themselves struggling.
Khaalis Rolle said the Bahamas' economic model made it almost totally dependent on foreign direct investment (FDI) inflows and US tourist visitor/spending levels to drive recovery, and both were under increasing threat from the possibility of a 'double dip' recession in North America and elsewhere, with the next three-six months being key.
"The prospects for recovery in the short-term are nil," Mr Rolle told Tribune Business. "Mr prediction has always been for stability over the next 24-36 months, and then we will see an improved level of confidence come back."
Adding that economic recovery "isn't automatic", the Chamber president said: "If follows the typical economic model, and under that model, when we're totally reliant on the consumer from the US to come here as a tourist and spend money, you're not going to recover."
A rebound would only be possible, Mr Rolle said, if there was an immediate upsurge in US business and consumer confidence, and a reduction in that country's employment numbers, something that was unlikely given the seeming possibility of a 'double dip' US recession.
Foreign
"Secondly, the Bahamian model of economic activity is completely and utterly built on foreign direct investment, and if foreign direct investment is at a standstill, everything else is at a standstill," he told Tribune Business.
"We have a ways to go. It's not, by any stretch of the imagination, close to being over. We have some challenges." US economic policy over the next three to six months, Mr Rolle said, was likely to determine whether it, and by extension the Bahamas, went "deeper into recession".
He was backed yesterday by his predecessor as Chamber of Commerce chairman, Dionisio D'Aguilar, who told Tribune Business that while many Bahamian businesses had "bottomed out" and settled into their "new normal", there was little for the private sector and consumers to get excited about in terms of recovery prospects.
"I think most businesses have settled where they are going to settle," Mr D'Aguilar said. "Most businesses have completed their decline and have bottomed out, and I think this is the new normal.
"Businesses are going to have to fight to get any substantial double digit growth in revenue.
"Indeed, if there's any growth at all it will be in the 1-3 per cent range. I don't see anything on the horizon to get us terribly excited.
"Ray Winder summed it up wonderfully [in yesterday's Tribune Business] in that the only item that will cause an uptick is foreign direct investment. There is nothing else out there."
Both current and former Chamber presidents thus agreed with Mr Winder and the Central Bank of the Bahamas, as each expressed growing concern yesterday over the prospects for a Bahamian economic recovery occurring in 2011. Mr Winder even suggested that without a major foreign direct investment rebound, a recovery in this nation may not be seen until 2012 at earliest.
The private sector's weakness was highlighted by the Central Bank's report on monthly economic and financial developments in July, as some 27 per cent of all commercial loans to Bahamian businesses and firms were said to be in arrears.
The Bahamian commercial banking system has an estimated $1 billion in outstanding credit to Bahamian companies, and the Central Bank reported that commercial delinquencies increased by $2.1 million to $270.6 million in July, as a $1.4 million decrease in short-term arrears was outweighed by a $3.5 million increase in non-performing loans.
Mr Rolle acknowledged that some companies with overdue loans were likely to go out of business, although those with greater strength might have the ability to refinance at more favourable rates and obtain some "breathing space".
Describing the private sector's health, Mr Rolle told Tribune Business: "I think the current state is tenuous at best, especially small and medium-sized businesses and businesses that rely on services. I know a lot of service businesses are being impacted. Companies in property management, facilities management, janitorial services, who are cutting back. We've got some challenges."
September 03, 2010
tribune242
Friday, September 3, 2010
The National Congress of Trade Unions of The Bahamas (NCTUB) endorses the multi-billion dollar Baha Mar project
UNIONS ENDORSE BAHA MAR
By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com:
Reversing its stance on the controversial Chinese labor issue surrounding the multi-billion dollar Baha Mar project, the National Congress of Trade Unions of The Bahamas(NCTUB)yesterday endorsed the project, saying the benefits outweigh any difficulties the union had.
Initially NCTUB threatened to hold massive demonstrations if the government approved Baha Mar's bid to bring in approximately 5,000 Chinese workers the mega resort says it needs during the project's construction phase.
However, during a news conference yesterday, NCTUB President John Pinder acknowledged that The Bahamas does not have the capacity nor the skill set to construct the project without the help of foreign aid.
"After further consultations with Baha Mar officials we got all of the concerns we had addressed and we're satisfied that this project is in the best interest of this country,"he said during the news conference which was held at the Bahamas Public Service Union headquarters on Wulff Road."We are further satisfied that we do not have the skill set to do this project all on our own."
Pinder said the issue with work permits can be a serious revenue generator for the government.
"It's proposed that Baha mar may ask for as much as 5,000 work permits, but at no time will there be 5,000 Chinese workers,"Pinder said."We are told that they will maximize the use of Bahamian workers qualified to work on this project and the semi-skilled persons. We have asked that these positions be made known to us so persons could apply for various positions."
"Work permits will cost Baha Mar an average of$5,000 per work permit... we believe this is a golden opportunity for the government to raise some revenue to be able to ensure that unions are able to get some sort of increase for our membership,"he continued.
The union also hopes that the government would consider using a percentage of the $5 million it stands to bring in from work permit fees to expand and redevelop the Bahamas Technical and Vocational Institute(BTVI).
Pinder said the key to the union's endorsement was the assurance by Baha Mar officials that Bahamian workers will receive first preference during and after the construction, and that Baha Mar will train Bahamians in some of the more modern techniques that are currently not widely used in the country.
NCTUB Assistant General Secretary Jennifer Isaacs-Dotson said the union in conjunction with the Ministry of Education, BTVI and The College of The Bahamas would ensure that workers receive on-the-job-training.
She said the union would be working closely with Baha Mar personnel to hack out the details of the training exercise.
"Our main job is to ensure that workers receive cross training. This is a good opportunity to train our workers,"Dotson said."Every time a large project comes, we say we don't have the skilled workers. I think it's now time to put our money where our mouth is."
Dotson added that the union's initial concerns also had to do with the lack of consultation both the previous Christie administration and the current Ingraham administration had with the union on the project.
"We need to be involved more at the ground level,"she said, adding that the union will be present on the day the government brings the issue to Parliament.
Leader of Government Business in the House of Assembly Tommy Turnquest confirmed that the Ingraham administration intends to bring the labor resolution to Parliament on September 8. Turnquest said the MPs would be allowed to express their views on the labor issue before the government makes a final determination.
If a majority of MPs take issue with that component, he said the government would have to take that into consideration prior to making its decision.
Pinder said the union is hoping that the government and the official opposition will give the necessary approval for the project.
Turnquest said publicly that at the height of construction Baha Mar could have up to 8,000 foreign workers on the project.
Dotson said it would also be the union's job to protect the rights of the Chinese workers. Yesterday the union pledged to make every effort to do that if the work permits are granted.
Baha Mar has said that out of the 10,000 proposed construction jobs the project will create, at least 3,300 will be set aside for Bahamians. Eight thousand permanent jobs are also projected once the resort is completed.
The proposed Cable Beach development would be financed by the Export-Import Bank of China and constructed by the China State Construction Engineering Corporation.
If the project receives Bahamas government approval, Baha Mar's first course of action would be to award nearly$60 million of construction contracts to six Bahamian contractors, representing early infrastructure works needed to prepare the site, Baha Mar's Chairman and Chief Executive Officer Sarkis Izmirlian said in a press statement last month.
9/2/2010
thenassauguardian
By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com:
Reversing its stance on the controversial Chinese labor issue surrounding the multi-billion dollar Baha Mar project, the National Congress of Trade Unions of The Bahamas(NCTUB)yesterday endorsed the project, saying the benefits outweigh any difficulties the union had.
Initially NCTUB threatened to hold massive demonstrations if the government approved Baha Mar's bid to bring in approximately 5,000 Chinese workers the mega resort says it needs during the project's construction phase.
However, during a news conference yesterday, NCTUB President John Pinder acknowledged that The Bahamas does not have the capacity nor the skill set to construct the project without the help of foreign aid.
"After further consultations with Baha Mar officials we got all of the concerns we had addressed and we're satisfied that this project is in the best interest of this country,"he said during the news conference which was held at the Bahamas Public Service Union headquarters on Wulff Road."We are further satisfied that we do not have the skill set to do this project all on our own."
Pinder said the issue with work permits can be a serious revenue generator for the government.
"It's proposed that Baha mar may ask for as much as 5,000 work permits, but at no time will there be 5,000 Chinese workers,"Pinder said."We are told that they will maximize the use of Bahamian workers qualified to work on this project and the semi-skilled persons. We have asked that these positions be made known to us so persons could apply for various positions."
"Work permits will cost Baha Mar an average of$5,000 per work permit... we believe this is a golden opportunity for the government to raise some revenue to be able to ensure that unions are able to get some sort of increase for our membership,"he continued.
The union also hopes that the government would consider using a percentage of the $5 million it stands to bring in from work permit fees to expand and redevelop the Bahamas Technical and Vocational Institute(BTVI).
Pinder said the key to the union's endorsement was the assurance by Baha Mar officials that Bahamian workers will receive first preference during and after the construction, and that Baha Mar will train Bahamians in some of the more modern techniques that are currently not widely used in the country.
NCTUB Assistant General Secretary Jennifer Isaacs-Dotson said the union in conjunction with the Ministry of Education, BTVI and The College of The Bahamas would ensure that workers receive on-the-job-training.
She said the union would be working closely with Baha Mar personnel to hack out the details of the training exercise.
"Our main job is to ensure that workers receive cross training. This is a good opportunity to train our workers,"Dotson said."Every time a large project comes, we say we don't have the skilled workers. I think it's now time to put our money where our mouth is."
Dotson added that the union's initial concerns also had to do with the lack of consultation both the previous Christie administration and the current Ingraham administration had with the union on the project.
"We need to be involved more at the ground level,"she said, adding that the union will be present on the day the government brings the issue to Parliament.
Leader of Government Business in the House of Assembly Tommy Turnquest confirmed that the Ingraham administration intends to bring the labor resolution to Parliament on September 8. Turnquest said the MPs would be allowed to express their views on the labor issue before the government makes a final determination.
If a majority of MPs take issue with that component, he said the government would have to take that into consideration prior to making its decision.
Pinder said the union is hoping that the government and the official opposition will give the necessary approval for the project.
Turnquest said publicly that at the height of construction Baha Mar could have up to 8,000 foreign workers on the project.
Dotson said it would also be the union's job to protect the rights of the Chinese workers. Yesterday the union pledged to make every effort to do that if the work permits are granted.
Baha Mar has said that out of the 10,000 proposed construction jobs the project will create, at least 3,300 will be set aside for Bahamians. Eight thousand permanent jobs are also projected once the resort is completed.
The proposed Cable Beach development would be financed by the Export-Import Bank of China and constructed by the China State Construction Engineering Corporation.
If the project receives Bahamas government approval, Baha Mar's first course of action would be to award nearly$60 million of construction contracts to six Bahamian contractors, representing early infrastructure works needed to prepare the site, Baha Mar's Chairman and Chief Executive Officer Sarkis Izmirlian said in a press statement last month.
9/2/2010
thenassauguardian
Thursday, September 2, 2010
BPC Shares tumbled after the surprise announcement that the government was suspending consideration of exploration licences in The Bahamas
Govt's "no to oil" shock hits BPC shares
By SCOTT ARMSTRONG
Guardian Business Editor
scott@nasguard.com
twitter.com/guardianbiz:
Shares in the company dedicated to drilling for oil in The Bahamas have tumbled after the surprise announcement that the government was suspending consideration of exploration licences.
BPC was due tomorrow to change its name to Bahamas Petroleum Company, and had expressed its desire to be listed on the BISX so that shares in the company could be sold domestically. BPC believes there could be as much as$12 billion in oil revenue underneath Bahamian waters waiting to be brought up, specifically in the area called Cay Sal Bank.
The company estimates that an oil industry could create around 15,000 jobs for The Bahamas, and to that end teamed up with Norwegian oil giant Statoil, insisting their partner had created the highest safety standard in the world for drilling, one which every other exploration would soon be forced to follow in the wake of the Gulf of Mexico spill.
But despite the assurance that The Bahamas had the'safest'company on board, the Minister for the Environment Dr. Earl Deveaux yesterday put on hold the exploration licence process, saying the government wanted to make sure it had a stringent set of environmental rules in place before it considered applications, and added it would also review all existing licences.
In the wake of that announcement shares in BPC, which owns five exploration licences in Bahamian waters to the east of Florida and Cuba, fell by 27 percent from 4.08 pence to 2.98 pence on the London Stock Exchange's Alternative Investment Market(AIM).
That took the estimated value of the company from$45 million to$39.4 million.
The move by The Bahamas follows the U.S. issue of a six-month ban on deepwater drilling in the Gulf of Mexico in July, after the explosion of a BP well caused the world's worst offshore oil accident.
BPC is reported to have said it would continue to analyse seismic data on its existing licences as it has not yet established a definitive drilling program.
A report on Reuters quoted the company as saying that drilling on BPC's Bahamian acreage did not face the same geological risks as those found in the Gulf of Mexico.
A spokesperson for Statoil told Reuters said the company was viewing the suspension as a"postponement".
BPC believes there could be multiple 500 million barrel fields in the 2.5 million acres it wants to explore.
Deveaux said yesterday: "The Ministry of the Environment has suspended consideration of all applications for oil exploration and drilling in the waters of The Bahamas. The ministry seeks, by this decision, to maintain and safeguard an unpolluted marine environment for The Bahamas notwithstanding the potential financial benefits of oil exploration.
"We are not seeking to interfere with any existing licenses and the people who have licenses know of the policy. The recent events showed us that(a)oil if it is to be found, will likely be in the marine environment and(b)we want to maintain an unpolluted environment.
"And so before we explore for oil we want to have the most stringent environmental protocols in place."
9/1/2010
thenassauguardian
Tuesday, August 31, 2010
Bahamas Government has suspended the consideration process for all oil exploration and drilling applications...
Govt suspends consideration process for oil exploration
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:
GOVERNMENT has suspended the consideration process for all oil exploration and drilling applications until the country has stringent environmental protocols in place to mitigate against a catastrophic oil well leak.
According to Environment Minister Earl Deveaux, the new stipulation comes in response to British Petroleum's (BP) devastating oil leak in the Gulf of Mexico - which threatened fragile marine ecosystems and fishing industries - and the large volume of oil exploration applications inundating the government.
"The Ministry of the Environment has suspended consideration of all applications for oil exploration and drillings in the waters of the Bahamas. The ministry seeks, by this decision, to maintain and safeguard an unpolluted marine environment for the Bahamas notwithstanding the potential financial benefits of oil explorations," said a statement released by Dr Deveaux yesterday.
The release added that all existing licenses will be reviewed to ascertain any legal entitlement for renewal.
"We are not seeking to interfere with any existing licenses and the people who have licenses know of the policy. The recent events showed us that (a) oil if it is to be found, will likely be in the marine environment and (b) we want to maintain an unpolluted environment.
"And so before we explore for oil we want to have the most stringent environmental protocols in place," said Mr Deveaux when asked to clarify this point yesterday.
BPC Ltd recently partnered with Norwegian oil heavyweight Statoil to search for oil in some 2.5 million acres in Cay Sal Bank and hold five licenses for oil exploration. The government has not issued any licenses for oil drilling in Bahamian waters.
Environment Permanent Secretary Ronald Thompson said that while the ministry has yet to draft the necessary safety protocols, government will frame its future policies around existing ones from other countries.
"We haven't drafted any but there are ones that are in existence in other places where oil is currently being harvested or explored. We will in short order review all of those and come up with what we think will be the best (policies) for the Bahamas," said Mr Thompson.
Deepwater Horizon's oil rig exploded on April 20, killing 11 workers, and leaking an estimated 4.9 million barrels of oil from BP's underwater well.
Yesterday's statement said that calamity underscored the need for precautions.
"Given recent events involving oil exploration and the efforts to prevent pollution, this prudent safeguard is essential to preserving the most vital natural resource of the Bahamas - its environment," said the statement.
Speaking to The Tribune, Mr Deveaux said more stringent protocols could have prevented BP's disaster. "Everything we learned about BP suggests that there were a few mishaps that could have been avoided," he said.
In May, Dr Deveaux said it would be "impractical and unreasonable" for the Bahamas to shy away from oil exploration or drilling as a consequence of the environmentally devastating oil leak off the coast of the US state of Louisiana.
"The world is not going to shy away from oil because of this accident. This is not the first or the last," he said at the time.
He also said earlier that proper management of resources would be vital to any oil discovery in Bahamian waters.
August 31, 2010
tribune242
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:
GOVERNMENT has suspended the consideration process for all oil exploration and drilling applications until the country has stringent environmental protocols in place to mitigate against a catastrophic oil well leak.
According to Environment Minister Earl Deveaux, the new stipulation comes in response to British Petroleum's (BP) devastating oil leak in the Gulf of Mexico - which threatened fragile marine ecosystems and fishing industries - and the large volume of oil exploration applications inundating the government.
"The Ministry of the Environment has suspended consideration of all applications for oil exploration and drillings in the waters of the Bahamas. The ministry seeks, by this decision, to maintain and safeguard an unpolluted marine environment for the Bahamas notwithstanding the potential financial benefits of oil explorations," said a statement released by Dr Deveaux yesterday.
The release added that all existing licenses will be reviewed to ascertain any legal entitlement for renewal.
"We are not seeking to interfere with any existing licenses and the people who have licenses know of the policy. The recent events showed us that (a) oil if it is to be found, will likely be in the marine environment and (b) we want to maintain an unpolluted environment.
"And so before we explore for oil we want to have the most stringent environmental protocols in place," said Mr Deveaux when asked to clarify this point yesterday.
BPC Ltd recently partnered with Norwegian oil heavyweight Statoil to search for oil in some 2.5 million acres in Cay Sal Bank and hold five licenses for oil exploration. The government has not issued any licenses for oil drilling in Bahamian waters.
Environment Permanent Secretary Ronald Thompson said that while the ministry has yet to draft the necessary safety protocols, government will frame its future policies around existing ones from other countries.
"We haven't drafted any but there are ones that are in existence in other places where oil is currently being harvested or explored. We will in short order review all of those and come up with what we think will be the best (policies) for the Bahamas," said Mr Thompson.
Deepwater Horizon's oil rig exploded on April 20, killing 11 workers, and leaking an estimated 4.9 million barrels of oil from BP's underwater well.
Yesterday's statement said that calamity underscored the need for precautions.
"Given recent events involving oil exploration and the efforts to prevent pollution, this prudent safeguard is essential to preserving the most vital natural resource of the Bahamas - its environment," said the statement.
Speaking to The Tribune, Mr Deveaux said more stringent protocols could have prevented BP's disaster. "Everything we learned about BP suggests that there were a few mishaps that could have been avoided," he said.
In May, Dr Deveaux said it would be "impractical and unreasonable" for the Bahamas to shy away from oil exploration or drilling as a consequence of the environmentally devastating oil leak off the coast of the US state of Louisiana.
"The world is not going to shy away from oil because of this accident. This is not the first or the last," he said at the time.
He also said earlier that proper management of resources would be vital to any oil discovery in Bahamian waters.
August 31, 2010
tribune242
Monday, August 30, 2010
Perry Christie: Brent Symonette's utterances on his administration's immigration policy have been quite confusing
PLP CALLS FOR CONSISTENT IMMIGRATION POLICY
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
The time has long passed for the Ingraham administration to articulate a clear and consistent immigration policy, according to Opposition Leader Perry Christie.
Christie's comments came in an interview with The Nassau Guardian after Deputy Prime Minister Brent Symonette, who has ministerial responsibility for immigration, said in a statement that apprehension exercises will resume September 1.
A day earlier, he had said there were no plans to restart apprehensions.
Christie said Symonette's utterances on his administration's immigration policy have been quite confusing.
"It seems to me that the deputy prime minister does not have a grasp of his portfolio, given the confusion that he is bringing about in the different statements that he is making as to the intention of the ministry(of immigration)with respect to illegal immigrants,"Christie said.
"It appears that he is now being directed by persons from outside of that ministry--either the Cabinet or some other force[perhaps]the prime minister--in terms of how he is looking in his pronouncements and there is a need to become more consistent in articulating the policy. And so that has resulted in a comical kind of development in one of the most pressing and urgent issues confronting the country."
Symonette faced similar controversy relating to his portfolio earlier this year when he contradicted Prime Minister Hubert Ingraham's announced policies that undocumented Haitian migrants who came to The Bahamas after the January earthquake in Haiti would be charged before the courts with illegal landing.
Asked by The Nassau Guardian what would happen to a group of Haitian migrants who landed in The Bahamas not long after, Symonette said they would most likely be released.
Within hours they were taken to court and charged with illegal landing. The migrants were later repatriated.
Christie said there are various important reasons why a clear immigration policy must be outlined.
"It is very, very important that the country has articulated for it the policy of The Bahamas government with respect to the illegal immigration situation here in The Bahamas, especially at a time when we are discussing the proposed Baha Mar development, which contemplates thousands of work permits which already, I think, embraces the full understanding that immigrants are now a full part of the construction force in the country and that if we are going to in fact have the maximum benefit of a Baha Mar development, it has to take into consideration the government's policy as it is now working and as it will affect the construction industry,"he said.
"The Bahamas, faced with the level of unemployment, which is in itself related to the increasing crime, needs to have a clear, and coherent policy which we all can embrace and that is what we call upon the minister of immigration to do, to get it right with his colleagues and then come to the country and articulate a policy that makes sense to the country and one in which the community of immigrants who have become(legal)residents of our country can also themselves be a part of enforcing."
The Opposition leader recognized that successive administrations have been faced with the politics of immigration. He said immigration policies sometimes result in fear and concern and the loss of support among an increasing voting bloc--the Haitian community.
"This is a very difficult subject that at the best of times governments walk gingerly in dealing with issues relating to immigration, but it is an incredibly serious issue that will impact the future of our country and we need to have unanimity among the political directorate. There ought to be no division between the parties on what the policy of the Commonwealth of The Bahamas is,"Christie said."We need to be able to agree on an issue of that kind, to discuss it nationally and agree because it is an incredibly serious issue and one that is not going away. And the longer we take to be strong and bring our national will to bear on this problem it's going to continue to get worse, and we are going to rue the day that we delayed and procrastinated on having an immigration policy that can be strictly enforced with the concurrence of the population of our country."On August 16, Symonette issued a statement saying:"Persons who are found to be in The Bahamas illegally will be repatriated forthwith."
He said Thursday that in the interest of allowing illegal migrants who wished to leave immediately and voluntarily to do so, the government has allowed for a brief period of voluntary repatriation.
The current debate on illegal immigration was sparked by the change in immigration policy announced by the prime minister in the wake of the earthquake that devastated Port-au-Prince in January. But the immigration issue has long been a controversial one.
Under the Christie administration, then Blue Hills MP Leslie Miller had warned that the illegal immigration problem was a ticking time bomb.
8/28/2010
thenassauguardian
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