Former PLP chairman questions the need for 8,150 Chinese workers
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:
FORMER Progressive Liberal Party chairman Raynard Rigby is urging the opposition to reject the "absurd" notion that Baha Mar developers need 8,150 Chinese workers to construct the $2.6 billion project.
Mr Rigby, partner of law firm Gibson, Rigby and Co, questioned how the PLP could support the proposal in face of a high unemployment rate, suggesting this did not coincide with the group's ideology of being the party of the working man.
"We should reject as absurd the need for 8,150 Chinese workers. Unemployment is reaching 25 per cent. How can the party of the working man agree to such a move without causing irreparable damage to our philosophy?"
Mr Rigby added that the party should only throw its full support behind the Cable Beach redevelopment if the current deal is the same one the PLP left on the table when they lost the general election in 2007.
Over the past few weeks, key members of the PLP have been meeting with trade unionists, Baha Mar officials, and stakeholders in the construction industry in order to formulate an informed position on the current deal.
However, Mr Rigby thinks the party should expand its discussions to public forums in order to glean a clear consensus on party supporters' concerns.
"The views of the unions and other civil groups do not represent the views of the PLP. This is a matter of national importance and the PLP should be taking the leadership on this issue by talking to the Bahamian people ... talking to them and not at them.
"We therefore should go throughout the country seeking the views and opinions of the Bahamian people, that is what a responsible opposition would do that is serious about winning the next general election. This cannot be a deal made in a dark room with the selected few," said Mr Rigby in a letter sent to PLP Leader Perry Christie, a copy of which The Tribune obtained.
The lawyer also cautioned officials in the party to analyse whether the Chinese involvement in Baha Mar will truly benefit the country in the long run, drawing examples with this deal and the Hutchinson Whampoa port, operated by a Hong Kong shipping giant.
"We must assess the Chinese involvement in this deal by looking at their impact in Freeport in the tourism product? Have they assisted with bringing Chinese tourists to Freeport? Have they demonstrated that they are resort/hotel savvy? It seems that the product in Freeport has declined and that no leadership has been brought by the Chinese. How do we know that the same dilemma won't occur at Cable Beach," he asked.
He also criticised statements made by Obie Wilchombe, leader of opposition business in the House of Assembly, who said there is "no chance in hell" that the party would abstain from voting on government's Baha Mar labour resolution.
"I thought that this was a mistake as it came too early in the development of the party's strategy," said Mr Rigby.
Last week, Prime Minister Hubert Ingraham tabled a labour resolution which would pave the way for the approval of work permits for 8,150 Chinese workers on the Baha Mar project in the House of Assembly.
Parliamentarians are expected to vote on the resolution later this month.
September 13, 2010
tribune242
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.
Monday, September 13, 2010
Sunday, September 12, 2010
Sir Baltron Bethel: The Baha Mar project is one of the pillars for the continued expansion and development of the tourism industry
SIR BALTRON BIG ON BAH MAR
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com:
The planned transfer of more than 264 acres of publicly-owned land to the Baha Mar developers would be justified given the tremendous benefits the project would provide for the country, according to Sir Baltron Bethel, who was the chief negotiator for the deal under the Christie government.
"I think that both the original agreement and the supplemental agreement were fair agreements, having been involved with those,"said Sir Baltron, who spoke after he was approached by The Nassau Guardian for an interview yesterday.
"I say that because of what the project is all about. The project is one of the pillars for the continued expansion and development of the tourism industry.
"The Cable Beach resort area is tired and in order to put it right it needed a vision, a plan. Now it could be argued that this project could have been approached in phases, however, the developers'concept was to do the project all one time."
Sir Baltron served as managing director of the Hotel Corporation and also investments and tourism development consultant for the government. He spent many hours helping to arrive at a deal that former Prime Minister Perry Christie had repeatedly said would be transformational.
Unlike Kerzner International's Atlantis Resort on Paradise Island, the Baha Mar project would not be developed in separate phases, Sir Baltron pointed out yesterday.
He noted that the thinking was that Baha Mar would complement Atlantis, and would occur simultaneously with the redevelopment of Lynden Pindling International Airport.
Sir Baltron indicated that when the original deal was being negotiated government negotiators looked closely at all issues surrounding the Cable Beach deal, including the controversial land issue.
"For purposes of finance the developer was unable to obtain financing without there being some provision for the freehold transfer(of publicly-owned land)so that has been the long and short of it and the current arrangement with the Chinese, as I understand it, is contingent upon the freehold being conveyed to the developer."
When he brought a resolution to the House of Assembly on the Baha Mar project on Wednesday, Prime Minister Hubert Ingraham, who is also the minister responsible for lands, said approval for the Baha Mar project requires the transfer of 264.965 acres of publicly-owned land.
Among other properties, this would include the land on which the Wyndham Resort and casino sit; the Nassau Beach Resort; the Hobby Horse Hall parcel; Fidelity Bank; the Cecil Wallace-Whifield Centre; the Cable Beach Police Station and 50 acres on Gladstone Road.
Because of the conditions precedent set by Baha Mar's financiers--The Export-Import Bank of China and the China State Construction Engineering Corporation--these lands are required to be transfered in advance of the start of construction of the project.
"It is the position of my government that these lands will only be transferred for the expressed purpose of facilitating the development and that should the development not proceed the land must return to the government,"said Ingraham, who inherited the Baha Mar deal from the previous administration.
He has termed Baha Mar" a PLP baby "and on Wednesday outlined the requirements, consequences and benefits related to the deal.
Sir Baltron said the Baha Mar agreement must be looked at in the context of today's economic environment.
"The developer has secured the financing. There are very few projects anywhere in the world where financing to the tune of$2.5 billion is available for a tourism project in a developing country," he said.
"I think we have to weigh all of these things; your outlook with regard to how public lands should be transfered and the other demands which are being made in light of prevailing circumstances.
"So the arrangements that are now being proposed represent the best possible arrangements that the developers could secure and certainly it's a feather in the cap of the developer to have obtained such a gigantic amount of funding at the present time."
The Central Bank reported last week in its latest economic report that the outlook for 2011 is less favorable than originally forecast.
"However, upside benefits could accrue to the economy, if the proposed large-scale hotel investment projects gain traction in the coming months,"the Central Bank said.
There is a great deal riding on Baha Mar because of its promise of job creation--even with the 8,150 work permits factored in--and economic spinoffs.
Sir Baltron said given the current depressed climate, Baha Mar would provide"the push that we need".
"If the project gets off the ground it would not only be good for the Baha Mar project and for the economy of New Providence, but it can also be that which could jumpstart other smaller projects," said Sir Baltron, who currently serves as president of the Bahamas Baptist Community College.
These days he is an independent observer as it relates to Baha Mar, he noted.
Speaking of the project, he added,"It would be a good thing from where I sit as president of the Community College in terms of providing jobs and also of being able to continue to provide the kind of services that a growing college like this needs to provide, and we can only do that if the economy is growing."
When Sir Baltron helped negotiate the deal, the Chinese element was not yet a factor.
Asked yesterday what his thoughts are on the extraordinary work permit request, he said,"We all know with Chinese funding there comes the demand for use of a significant amount of Chinese labor, more than would be the norm, but the Chinese have also financed a project for more than the norm. It would be the largest touristic project ever financed in one shot in The Bahamas."
He added,"It's very important to see this project go forward. The government has invested a huge amount of money in the airport. We're going to have the finest airport in all of the Caribbean and the return on that depends upon its utilization which included the Baha Mar project coming to fruition."
9/10/2010
thenassauguardian
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com:
The planned transfer of more than 264 acres of publicly-owned land to the Baha Mar developers would be justified given the tremendous benefits the project would provide for the country, according to Sir Baltron Bethel, who was the chief negotiator for the deal under the Christie government.
"I think that both the original agreement and the supplemental agreement were fair agreements, having been involved with those,"said Sir Baltron, who spoke after he was approached by The Nassau Guardian for an interview yesterday.
"I say that because of what the project is all about. The project is one of the pillars for the continued expansion and development of the tourism industry.
"The Cable Beach resort area is tired and in order to put it right it needed a vision, a plan. Now it could be argued that this project could have been approached in phases, however, the developers'concept was to do the project all one time."
Sir Baltron served as managing director of the Hotel Corporation and also investments and tourism development consultant for the government. He spent many hours helping to arrive at a deal that former Prime Minister Perry Christie had repeatedly said would be transformational.
Unlike Kerzner International's Atlantis Resort on Paradise Island, the Baha Mar project would not be developed in separate phases, Sir Baltron pointed out yesterday.
He noted that the thinking was that Baha Mar would complement Atlantis, and would occur simultaneously with the redevelopment of Lynden Pindling International Airport.
Sir Baltron indicated that when the original deal was being negotiated government negotiators looked closely at all issues surrounding the Cable Beach deal, including the controversial land issue.
"For purposes of finance the developer was unable to obtain financing without there being some provision for the freehold transfer(of publicly-owned land)so that has been the long and short of it and the current arrangement with the Chinese, as I understand it, is contingent upon the freehold being conveyed to the developer."
When he brought a resolution to the House of Assembly on the Baha Mar project on Wednesday, Prime Minister Hubert Ingraham, who is also the minister responsible for lands, said approval for the Baha Mar project requires the transfer of 264.965 acres of publicly-owned land.
Among other properties, this would include the land on which the Wyndham Resort and casino sit; the Nassau Beach Resort; the Hobby Horse Hall parcel; Fidelity Bank; the Cecil Wallace-Whifield Centre; the Cable Beach Police Station and 50 acres on Gladstone Road.
Because of the conditions precedent set by Baha Mar's financiers--The Export-Import Bank of China and the China State Construction Engineering Corporation--these lands are required to be transfered in advance of the start of construction of the project.
"It is the position of my government that these lands will only be transferred for the expressed purpose of facilitating the development and that should the development not proceed the land must return to the government,"said Ingraham, who inherited the Baha Mar deal from the previous administration.
He has termed Baha Mar" a PLP baby "and on Wednesday outlined the requirements, consequences and benefits related to the deal.
Sir Baltron said the Baha Mar agreement must be looked at in the context of today's economic environment.
"The developer has secured the financing. There are very few projects anywhere in the world where financing to the tune of$2.5 billion is available for a tourism project in a developing country," he said.
"I think we have to weigh all of these things; your outlook with regard to how public lands should be transfered and the other demands which are being made in light of prevailing circumstances.
"So the arrangements that are now being proposed represent the best possible arrangements that the developers could secure and certainly it's a feather in the cap of the developer to have obtained such a gigantic amount of funding at the present time."
The Central Bank reported last week in its latest economic report that the outlook for 2011 is less favorable than originally forecast.
"However, upside benefits could accrue to the economy, if the proposed large-scale hotel investment projects gain traction in the coming months,"the Central Bank said.
There is a great deal riding on Baha Mar because of its promise of job creation--even with the 8,150 work permits factored in--and economic spinoffs.
Sir Baltron said given the current depressed climate, Baha Mar would provide"the push that we need".
"If the project gets off the ground it would not only be good for the Baha Mar project and for the economy of New Providence, but it can also be that which could jumpstart other smaller projects," said Sir Baltron, who currently serves as president of the Bahamas Baptist Community College.
These days he is an independent observer as it relates to Baha Mar, he noted.
Speaking of the project, he added,"It would be a good thing from where I sit as president of the Community College in terms of providing jobs and also of being able to continue to provide the kind of services that a growing college like this needs to provide, and we can only do that if the economy is growing."
When Sir Baltron helped negotiate the deal, the Chinese element was not yet a factor.
Asked yesterday what his thoughts are on the extraordinary work permit request, he said,"We all know with Chinese funding there comes the demand for use of a significant amount of Chinese labor, more than would be the norm, but the Chinese have also financed a project for more than the norm. It would be the largest touristic project ever financed in one shot in The Bahamas."
He added,"It's very important to see this project go forward. The government has invested a huge amount of money in the airport. We're going to have the finest airport in all of the Caribbean and the return on that depends upon its utilization which included the Baha Mar project coming to fruition."
9/10/2010
thenassauguardian
Saturday, September 11, 2010
Baha Mar resolution before Parliament calls for more than 8,000 work permits for foreign workers
BAHA MAR WANTS WORK PERMITS FOR 8,150 NON-BAHAMIANS
By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com:
Prime Minister Hubert Ingraham yesterday tabled a resolution in Parliament for the multi-billion dollar Baha Mar project, laying out some of the details of the proposed deal which would require the government to transfer more than 260 acres of land to the developers before any work even begins, and grant more than 8,000 work permits to foreigners.
"The resolution results from the fact that the foreign labor component intended during the construction of the resort exceeds levels ever experienced in The Bahamas and is beyond anything ever contemplated by my government,"Ingraham said.
Ingraham indicated that debate of the resolution would not begin until Baha Mar resolves the outstanding loan matter that it has with Scotiabank.
Baha Mar CEO Sarkis Izmirlian will travel to Toronto, Canada, next week to meet with bank officials on the issue.
The progress on the Baha Mar deal is being held up by the payment of an outstanding loan the company has with Scotiabank, reportedly worth around $160 million. The Cable Beach properties are being held as security.
While debate on the resolution is not expected to begin until near the end of September, the prime minister yesterday laid out some of the aspects of the deal to ensure that the Bahamian people are fully informed on the requirements, consequences and benefits that are projected to result for The Bahamas if the development proceeds as currently proposed.
The total value of the project is estimated at $2.6 billion. Ingraham revealed yesterday that a contract for the amount of $1,918,965,693 has been negotiated with the China State Construction Company as primary contractors for the project.
Ingraham said the terms of the funding obtained by the developers of the resort"include a requirement that the overwhelming majority, if not virtually all of the workers to be engaged on the core project, over the life of the project, be foreign workers--some 8,150 persons."
Baha Mar officials have stated that at no time will more than 5,000 foreigners be working on the site.
"It is projected that some 1,200 Bahamians will be engaged in the construction of the non-core project that is, the new West Bay Street, the new Commercial Village and the initial site preparation for the core project,"Ingraham added.
Using the construction phase of the Atlantis Resort as a comparison, Ingraham noted that before that was constructed his government established that the ratio of Bahamians to non-Bahamians on the site would not exceed 30 percent foreign to 70 percent Bahamian.
Ingraham said that was done despite the need at that time for large numbers of expatriate experts and labor for the efficient completion of the project.
He added that the established ratio was obtained during two phases of construction of the Kerzner International resorts under FNM administrations and was continued during the PLP government during the third phase expansion of the project.
Ingraham said based on Baha Mar's numbers, it is proposed that 71 percent of the workforce be foreign and 29 percent Bahamian.
"This represents a complete reversal of conditions imposed upon Kerzner, for example,"he said.
"What must be determined is whether this invaluable benefit of skills transfer and improved exposure to new technologies can or will occur in a project where contact between Bahamians and foreign experts is likely to be limited."
As previously reported, the Baha Mar project is to comprise six hotels with approximately 3,500 rooms and condominiums, an approximately 100,000 square foot casino, 200,000 square feet of convention facilities, a 20-acre beach and pool experience, an 18-hole golf course and a 60,000 square-foot retail village and additional residential products.
To achieve this, Ingraham explained that a large amount of government and crown land must be transferred to the developers.
The Radisson, now the Sheraton, was transferred to Baha Mar in 2005. The Wyndham Crystal Palace and the Nassau Beach Hotel are currently on leased crown land, the prime minister noted.
But Ingraham said the approval for the Baha Mar project requires the transfer of the land occupied by both hotel properties, the Hobby Horse Hall parcel, Fidelity Bank, Cecil Wallace-Whitfield Centre(which houses the Ministry of Finance and the Office of the Prime Minister), the Cable Beach Police Station and the old West Bay Street, new corridor number seven, 50 acres of Gladstone Road, the Prospect Ridge parcel, Water and Sewerage Corporation parcel, BEC Parcel, BECâ substation, plus an additional parcel of .783 acre for a total of 264.965 acres.
Ingraham said because of the conditions set by Baha Mar's financiers China Import Export Bank and the China State Construction Company these lands are required to be transferred in advance of the start of construction of the project.
"It is the position of my government that these lands will only be transferred for the expressed purpose of facilitating the development and that should the development not proceed the land must return to the government,"he said.
Baha Mar has said 8,00 permanent jobs are also projected once the resort is completed.
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.
It is expected that all outstanding matters relating to the Scotiabank loan will be resolved within the next two-week period.
Debate is expected to start on September 23 or 24.
9/9/2010
thenassauguardian
By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com:
Prime Minister Hubert Ingraham yesterday tabled a resolution in Parliament for the multi-billion dollar Baha Mar project, laying out some of the details of the proposed deal which would require the government to transfer more than 260 acres of land to the developers before any work even begins, and grant more than 8,000 work permits to foreigners.
"The resolution results from the fact that the foreign labor component intended during the construction of the resort exceeds levels ever experienced in The Bahamas and is beyond anything ever contemplated by my government,"Ingraham said.
Ingraham indicated that debate of the resolution would not begin until Baha Mar resolves the outstanding loan matter that it has with Scotiabank.
Baha Mar CEO Sarkis Izmirlian will travel to Toronto, Canada, next week to meet with bank officials on the issue.
The progress on the Baha Mar deal is being held up by the payment of an outstanding loan the company has with Scotiabank, reportedly worth around $160 million. The Cable Beach properties are being held as security.
While debate on the resolution is not expected to begin until near the end of September, the prime minister yesterday laid out some of the aspects of the deal to ensure that the Bahamian people are fully informed on the requirements, consequences and benefits that are projected to result for The Bahamas if the development proceeds as currently proposed.
The total value of the project is estimated at $2.6 billion. Ingraham revealed yesterday that a contract for the amount of $1,918,965,693 has been negotiated with the China State Construction Company as primary contractors for the project.
Ingraham said the terms of the funding obtained by the developers of the resort"include a requirement that the overwhelming majority, if not virtually all of the workers to be engaged on the core project, over the life of the project, be foreign workers--some 8,150 persons."
Baha Mar officials have stated that at no time will more than 5,000 foreigners be working on the site.
"It is projected that some 1,200 Bahamians will be engaged in the construction of the non-core project that is, the new West Bay Street, the new Commercial Village and the initial site preparation for the core project,"Ingraham added.
Using the construction phase of the Atlantis Resort as a comparison, Ingraham noted that before that was constructed his government established that the ratio of Bahamians to non-Bahamians on the site would not exceed 30 percent foreign to 70 percent Bahamian.
Ingraham said that was done despite the need at that time for large numbers of expatriate experts and labor for the efficient completion of the project.
He added that the established ratio was obtained during two phases of construction of the Kerzner International resorts under FNM administrations and was continued during the PLP government during the third phase expansion of the project.
Ingraham said based on Baha Mar's numbers, it is proposed that 71 percent of the workforce be foreign and 29 percent Bahamian.
"This represents a complete reversal of conditions imposed upon Kerzner, for example,"he said.
"What must be determined is whether this invaluable benefit of skills transfer and improved exposure to new technologies can or will occur in a project where contact between Bahamians and foreign experts is likely to be limited."
As previously reported, the Baha Mar project is to comprise six hotels with approximately 3,500 rooms and condominiums, an approximately 100,000 square foot casino, 200,000 square feet of convention facilities, a 20-acre beach and pool experience, an 18-hole golf course and a 60,000 square-foot retail village and additional residential products.
To achieve this, Ingraham explained that a large amount of government and crown land must be transferred to the developers.
The Radisson, now the Sheraton, was transferred to Baha Mar in 2005. The Wyndham Crystal Palace and the Nassau Beach Hotel are currently on leased crown land, the prime minister noted.
But Ingraham said the approval for the Baha Mar project requires the transfer of the land occupied by both hotel properties, the Hobby Horse Hall parcel, Fidelity Bank, Cecil Wallace-Whitfield Centre(which houses the Ministry of Finance and the Office of the Prime Minister), the Cable Beach Police Station and the old West Bay Street, new corridor number seven, 50 acres of Gladstone Road, the Prospect Ridge parcel, Water and Sewerage Corporation parcel, BEC Parcel, BECâ substation, plus an additional parcel of .783 acre for a total of 264.965 acres.
Ingraham said because of the conditions set by Baha Mar's financiers China Import Export Bank and the China State Construction Company these lands are required to be transferred in advance of the start of construction of the project.
"It is the position of my government that these lands will only be transferred for the expressed purpose of facilitating the development and that should the development not proceed the land must return to the government,"he said.
Baha Mar has said 8,00 permanent jobs are also projected once the resort is completed.
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.
It is expected that all outstanding matters relating to the Scotiabank loan will be resolved within the next two-week period.
Debate is expected to start on September 23 or 24.
9/9/2010
thenassauguardian
Friday, September 10, 2010
Baha Mar deciding factors
The deciding factors for Baha Mar
tribune242 editorial
IT IS understandable why former Prime Minister Perry Christie was still haggling over the BahaMar deal up to two days before the 2007 election, which he lost.
Not only was he concerned about whether the developer had enough finances to see the project through, but he certainly did not want the "secret" clauses involving prime land in the agreement to be exposed on the floor of the House. Just before an election an admission that government was prepared to transfer 264,965 acres of public land on Cable Beach to a foreign investor could have scuttled his election.
Likewise, Prime Minister Ingraham is taking no chances in the new Baha Mar deal with a new partner. The request for work permits for foreign labourers -- 8,150 with the peak number at any given time being 5,000 -- is unprecedented. This is one decision that his government is not going to make alone. The Bahamian people -- through their duly elected representatives -- will now have to join government in saying aye or nay to the $2.5 billion project.
If either of these proposals -- the land deal or the labour request -- had been presented to the Bahamian people in 2007, there would have been a loud bellow: "Hell, no!"
But times have changed. Too many Bahamians are jobless. In 2007 no one could predict the world's economic collapse. Today suffering from that collapse, Bahamians need jobs. They have to educate their children and pay their bills. And so they will probably agree to the project provided all foreign workers on completion of their work are repatriated. Also if the developers do not live up to their agreement, all public land will revert to the government.
We certainly understand the position of the Chinese. Wherever they do similar projects, they use their own material and labour. Not only do they understand what they are dealing with and know how to cost it, but it is their money, and their policy is to invest it in their people. And so the concessions that they are now prepared to make to Bahamians from their point of view would be a considerable bending of their own rules to accommodate Bahamians.
It is said that all Chinese workers, 8,150 of them, will be engaged on Baha Mar's "Core" projects, while some 1,200 Bahamians will be employed in the non-"Core" projects. Mr Ingraham said that the Baha Mar principals are in discussion with their Chinese partners to also engage Bahamian contractors in a number of "trade packages" related to the Core project, totalling about $40 million. It is expected that this might engage about 3,300 Bahamians at the height of construction of the Core projects.
Mr Ingraham said that in the 1950s the law and the government permitted as high as 25 per cent of the labour force in construction and/or operation of tourism development to be foreign. Beginning in the 1980s, said Mr Ingraham, the practice evolved where large foreign components were engaged in the construction of hotels, and a smaller number of foreigners were allowed to work in the hotel upon completion.
He reminded House members of the substantial foreign work force engaged to construct the Crystal Palace Resort and Casino, the Wyndham Crystal Palace Resort and the US Departure Terminal at the then Nassau International Airport. He said at those two projects there were Indians, Brazilians and other foreigners who far outnumbered the Bahamian work force.
When in 1992 his party became the government, it was decided to discontinue the PLP employment practices. In 1993, he said, on agreeing the terms of the redevelopment of Kerzner's Paradise Island, "notwithstanding the demonstrable need for the engagement of large numbers of expatriate experts and labour for the timely completion of the project," the ratio of Bahamians to non-Bahamians on the construction site was not to exceed 30 per cent foreign to 70 per cent Bahamian, increasing on the required Bahamian component above the 1954 statutory base of 25 per cent.
However, he pointed out that when the PLP succeeded his government, they did not adhere to this employment ratio on the construction of the Bimini Bay resort at North Bimini. As a result, foreign workers, mainly Mexican, far exceeded the number of Bahamians engaged on that project.
And now they are faced with the Baha Mar project: a 71 per cent foreign work force to a 29 per cent Bahamian work force.
The legislators now have to decide on behalf of their constituents: Will this revive employment and will the transfer of technology and skills to the Bahamian work force make this project not only viable, but also attractive?
This will be debated and decided in the House on Wednesday or Thursday, September 22 and 23.
In the meantime Baha Mar has to satisfy the Scotia Bank loan before it can conclude a deal with the Chinese bank. And so the two deciding factors- the Bahamian people on the one side, and Scotia Bank on the other before Baha Mar and their Chinese partners can turn the first sod of Bahamian soil.
September 09, 2010
tribune242 editorial
tribune242 editorial
IT IS understandable why former Prime Minister Perry Christie was still haggling over the BahaMar deal up to two days before the 2007 election, which he lost.
Not only was he concerned about whether the developer had enough finances to see the project through, but he certainly did not want the "secret" clauses involving prime land in the agreement to be exposed on the floor of the House. Just before an election an admission that government was prepared to transfer 264,965 acres of public land on Cable Beach to a foreign investor could have scuttled his election.
Likewise, Prime Minister Ingraham is taking no chances in the new Baha Mar deal with a new partner. The request for work permits for foreign labourers -- 8,150 with the peak number at any given time being 5,000 -- is unprecedented. This is one decision that his government is not going to make alone. The Bahamian people -- through their duly elected representatives -- will now have to join government in saying aye or nay to the $2.5 billion project.
If either of these proposals -- the land deal or the labour request -- had been presented to the Bahamian people in 2007, there would have been a loud bellow: "Hell, no!"
But times have changed. Too many Bahamians are jobless. In 2007 no one could predict the world's economic collapse. Today suffering from that collapse, Bahamians need jobs. They have to educate their children and pay their bills. And so they will probably agree to the project provided all foreign workers on completion of their work are repatriated. Also if the developers do not live up to their agreement, all public land will revert to the government.
We certainly understand the position of the Chinese. Wherever they do similar projects, they use their own material and labour. Not only do they understand what they are dealing with and know how to cost it, but it is their money, and their policy is to invest it in their people. And so the concessions that they are now prepared to make to Bahamians from their point of view would be a considerable bending of their own rules to accommodate Bahamians.
It is said that all Chinese workers, 8,150 of them, will be engaged on Baha Mar's "Core" projects, while some 1,200 Bahamians will be employed in the non-"Core" projects. Mr Ingraham said that the Baha Mar principals are in discussion with their Chinese partners to also engage Bahamian contractors in a number of "trade packages" related to the Core project, totalling about $40 million. It is expected that this might engage about 3,300 Bahamians at the height of construction of the Core projects.
Mr Ingraham said that in the 1950s the law and the government permitted as high as 25 per cent of the labour force in construction and/or operation of tourism development to be foreign. Beginning in the 1980s, said Mr Ingraham, the practice evolved where large foreign components were engaged in the construction of hotels, and a smaller number of foreigners were allowed to work in the hotel upon completion.
He reminded House members of the substantial foreign work force engaged to construct the Crystal Palace Resort and Casino, the Wyndham Crystal Palace Resort and the US Departure Terminal at the then Nassau International Airport. He said at those two projects there were Indians, Brazilians and other foreigners who far outnumbered the Bahamian work force.
When in 1992 his party became the government, it was decided to discontinue the PLP employment practices. In 1993, he said, on agreeing the terms of the redevelopment of Kerzner's Paradise Island, "notwithstanding the demonstrable need for the engagement of large numbers of expatriate experts and labour for the timely completion of the project," the ratio of Bahamians to non-Bahamians on the construction site was not to exceed 30 per cent foreign to 70 per cent Bahamian, increasing on the required Bahamian component above the 1954 statutory base of 25 per cent.
However, he pointed out that when the PLP succeeded his government, they did not adhere to this employment ratio on the construction of the Bimini Bay resort at North Bimini. As a result, foreign workers, mainly Mexican, far exceeded the number of Bahamians engaged on that project.
And now they are faced with the Baha Mar project: a 71 per cent foreign work force to a 29 per cent Bahamian work force.
The legislators now have to decide on behalf of their constituents: Will this revive employment and will the transfer of technology and skills to the Bahamian work force make this project not only viable, but also attractive?
This will be debated and decided in the House on Wednesday or Thursday, September 22 and 23.
In the meantime Baha Mar has to satisfy the Scotia Bank loan before it can conclude a deal with the Chinese bank. And so the two deciding factors- the Bahamian people on the one side, and Scotia Bank on the other before Baha Mar and their Chinese partners can turn the first sod of Bahamian soil.
September 09, 2010
tribune242 editorial
Thursday, September 9, 2010
Baha Mar Chairman and CEO Sarkis Izmirlian Allays Foreign Worker Fears
Baha Mar Chief Allays Foreign Worker Fears
By IANTHIA SMITH
Clearing the air on the foreign labour component of his multi-billion dollar proposed hotel project, Baha Mar Chairman and CEO Sarkis Izmirlian claimed the situation is not as bad as it looks, as thousands of Chinese workers will not be in the country long.
In fact, Mr. Izmirlian said the whole labour issue surrounding Baha Mar has been totally misconstrued.
"It’s true that at the peak of construction we are going to have about 4,950 expat workers in The Bahamas, but that is only for a period of six months," he explained when he appeared as a guest on the Love 97/JCN weekly talk show "Jones and Co with host Wendall Jones on Sunday.
"Construction [will last for] four years. During the four years, the average number of expat workers is only going to be 1,700. So it is much lower than the numbers that are being put out there. But the best part is when construction is over and the expats go home, we are going to create 6,500 full-time high paying Bahamian jobs."
Initial reports indicated that the Chinese government proposed to hire 3,300 Bahamians during the construction phase of the Cable Beach project and 5,000 to 8,000 Chinese workers.
Government officials said this translates into five Chinese workers to every three Bahamian workers.
Recently commenting on the disparity, National Security Minister Tommy Turnquest said never has any government policy allowed a ratio of non-Bahamian to Bahamian workers on construction projects of this magnitude.
But according to Mr. Izmirlian, the plan is to create 4,000 Bahamian jobs during construction.
"When you compare the number of expats, the number of Bahamian jobs and the economic impact during construction it is really as not as it has been described in the press," he said.
The government is expected to bring a resolution to parliament tomorrow to determine the number of Chinese labourers required for the project, a move former Cabinet minister Pierre Dupuch calls "illegal."
He claims it usurps the constitutional power given to the government.
But the number of Chinese labourers is not the only issue Baha Mar officials face.
Whether the project moves ahead is contingent on Baha Mar resolving its debt with Scotiabank.
Baha Mar owes the bank some $200 million.
On Sunday, Mr. Izmirlian moved to allay any fears of his company’s inability to satisfy the debt.
"We’re committed to finding a solution with the bank. We are committed to moving this project forward for me, my family and for the benefit of The Bahamas. I don’t see that as a hindrance," he said.
"Again, it takes a little bit of time, but I think we’ve reached a point where we are ready. The government is ready to bring this to parliament. We’re ready to start construction, so hopefully over the next few weeks, we should be done."
When asked if he thinks the project has become political, Mr. Izmirlian said, "any project of this size would be."
"I hope that we can put the politics behind us because to me the message from the Bahamian people is loud and clear – they want to move on. They need jobs. The country needs it," he said.
"I can’t think of a downside to this project. It’s great to create a small hotel here in The Bahamas, but when you have this level of unemployment, this many children coming out of school each year, you need a big bang. You don’t need a promise of the future. You need it today."
Officials from the National Congress of Trade Unions of the Bahamas (NCTUB) recently threw their support behind the development, claiming they are satisfied the controversial project is in the country’s best interest.
NCTUB President John Pinder said his union also supports the number of foreign workers being drafted as, "we do not have the skill set to do this project on our own."
Mr. Izmirlian accepts that more training is needed.
In fact, he said very early after construction starts, Baha Mar will work with the various unions, the Bahamas Technical and Vocational Institute (BTVI) and other schools to train Bahamians.
"We need to give them the skills so that when the hotel opens, they are ready to start," he said.
"It’s going to be a challenge to train people, but our goal is to train, train and train."
Baha Mar is projected to generate almost $15 billion in GDP, with more than 8,100 direct and indirect jobs, totaling in excess of $7 billion in wages over a 20-year period.
September 7th, 2010
jonesbahamas
By IANTHIA SMITH
Clearing the air on the foreign labour component of his multi-billion dollar proposed hotel project, Baha Mar Chairman and CEO Sarkis Izmirlian claimed the situation is not as bad as it looks, as thousands of Chinese workers will not be in the country long.
In fact, Mr. Izmirlian said the whole labour issue surrounding Baha Mar has been totally misconstrued.
"It’s true that at the peak of construction we are going to have about 4,950 expat workers in The Bahamas, but that is only for a period of six months," he explained when he appeared as a guest on the Love 97/JCN weekly talk show "Jones and Co with host Wendall Jones on Sunday.
"Construction [will last for] four years. During the four years, the average number of expat workers is only going to be 1,700. So it is much lower than the numbers that are being put out there. But the best part is when construction is over and the expats go home, we are going to create 6,500 full-time high paying Bahamian jobs."
Initial reports indicated that the Chinese government proposed to hire 3,300 Bahamians during the construction phase of the Cable Beach project and 5,000 to 8,000 Chinese workers.
Government officials said this translates into five Chinese workers to every three Bahamian workers.
Recently commenting on the disparity, National Security Minister Tommy Turnquest said never has any government policy allowed a ratio of non-Bahamian to Bahamian workers on construction projects of this magnitude.
But according to Mr. Izmirlian, the plan is to create 4,000 Bahamian jobs during construction.
"When you compare the number of expats, the number of Bahamian jobs and the economic impact during construction it is really as not as it has been described in the press," he said.
The government is expected to bring a resolution to parliament tomorrow to determine the number of Chinese labourers required for the project, a move former Cabinet minister Pierre Dupuch calls "illegal."
He claims it usurps the constitutional power given to the government.
But the number of Chinese labourers is not the only issue Baha Mar officials face.
Whether the project moves ahead is contingent on Baha Mar resolving its debt with Scotiabank.
Baha Mar owes the bank some $200 million.
On Sunday, Mr. Izmirlian moved to allay any fears of his company’s inability to satisfy the debt.
"We’re committed to finding a solution with the bank. We are committed to moving this project forward for me, my family and for the benefit of The Bahamas. I don’t see that as a hindrance," he said.
"Again, it takes a little bit of time, but I think we’ve reached a point where we are ready. The government is ready to bring this to parliament. We’re ready to start construction, so hopefully over the next few weeks, we should be done."
When asked if he thinks the project has become political, Mr. Izmirlian said, "any project of this size would be."
"I hope that we can put the politics behind us because to me the message from the Bahamian people is loud and clear – they want to move on. They need jobs. The country needs it," he said.
"I can’t think of a downside to this project. It’s great to create a small hotel here in The Bahamas, but when you have this level of unemployment, this many children coming out of school each year, you need a big bang. You don’t need a promise of the future. You need it today."
Officials from the National Congress of Trade Unions of the Bahamas (NCTUB) recently threw their support behind the development, claiming they are satisfied the controversial project is in the country’s best interest.
NCTUB President John Pinder said his union also supports the number of foreign workers being drafted as, "we do not have the skill set to do this project on our own."
Mr. Izmirlian accepts that more training is needed.
In fact, he said very early after construction starts, Baha Mar will work with the various unions, the Bahamas Technical and Vocational Institute (BTVI) and other schools to train Bahamians.
"We need to give them the skills so that when the hotel opens, they are ready to start," he said.
"It’s going to be a challenge to train people, but our goal is to train, train and train."
Baha Mar is projected to generate almost $15 billion in GDP, with more than 8,100 direct and indirect jobs, totaling in excess of $7 billion in wages over a 20-year period.
September 7th, 2010
jonesbahamas
Wednesday, September 8, 2010
Baha Mar Resolution Tabled In Parliament
Statement to Parliament on the Baha Mar Development by Prime Minister the Rt. Hon. Hubert Ingraham:
THE PRIME MINISTER: Mr. Speaker,
I rise to Table a Resolution meant to garner the position and sense of the representatives of the people on the proposed Resort development by Baha Mar at Cable Beach, New Providence and to ensure that the Bahamian people are fully informed on the requirements, consequences and benefits which are projected to result for The Bahamas if the development proceeds as now proposed by the principals.
The Baha Mar project is to comprise six hotels with approximately 3,500 rooms and condominiums, an approximately 100,000 square foot casino, 200,000 square feet of convention facilities, a twenty acre beach and pool experience, an 18-hole golf course and a 60,000 square-foot retail village and additional residential products.
The total value of the project is estimated at $2.5 billion. A contract for the amount of $1.918,965,693 billion has been negotiated with the China Construction Company as primary contractors for the project.
The Resolution results from the fact that the foreign labour component intended during the construction of the Resort exceeds levels ever experienced in The Bahamas and is beyond anything ever contemplated by my Government.
In the earliest of times in the development of the tourism sector in our country in the 1950s the law and the Government permitted as much as 25% of the labour force in construction and or operation of a tourism development resort to be foreign. The Hotels Encouragement Act 1954 permitted “for the admission into The Bahamas of key personnel and special workmen both during the construction period and operation of the new hotel, subject to the proviso that at all times seventy-five per centum of the total number of persons employed in the construction or operation of the new hotel shall be natives of The Bahamas if such natives of The Bahamas are available to perform the several and respective services required.”
While that provision remained in the law, following Majority Rule a move toward Bahamianization of the work force brought change.
Beginning in the 1980s the practice evolved where large foreign components were engaged in the construction of hotels, and a smaller number of foreigners were allowed to work in the hotel upon completion.
Honourable Members will recall the substantial foreign work force engaged to construct the Crystal Palace Resort and casino, today the Wyndham Crystal Palace Resort and the US Departure Terminal at the then Nassau International Airport. At those two projects Indian, Brazilian and other foreign nationals far out-numbered Bahamian nationals on the work force.
When my Government first came to office in 1992 we determined not to continue this practice of the former Government. When, in 1993 we agreed terms for the commencement of a Five Phase redevelopment and Expansion of Resort Properties on Paradise Island by Sun International (now Kerzner International) we established that notwithstanding the demonstrable need for the engagement of large numbers of expatriate experts and labour for the timely completion of the project, the ratio of Bahamians to non-Bahamians on the construction site would not exceed 30% foreign to 70% Bahamian, increasing on the required Bahamian component above the 1954 statutory base of 25%.
It is noteworthy that this ratio obtained during Two Phases of construction of the Kerzner International resorts under FNM administrations and was continued when Members Opposite most recently formed the Government during the Third Phase expansion of Kerzner International on Paradise Island. (70% Bahamian : 30% Foreign)
Members Opposite at the same time however, did not require an adherence to this accepted ratio of Bahamian to foreign workers in the construction of the Bimini Bay Resort at North Bimini. As a result foreign workers, principally from Mexico, far exceeded the number of Bahamian nationals engaged on that construction site in the middle of the last decade.
The Bahamas Government now has for consideration the construction of the Baha Mar Resort in Cable Beach. The terms of the funding obtained by the developers of the Resort include a requirement that the overwhelming majority, if not virtually all of the workers to be engaged on the “Core Project”, over the life of the project, be foreign workers - some 8,150 persons.
It is projected that some 1,200 Bahamians will be engaged in the construction of the non-Core project that is, the new West Bay Street, the new Commercial Village and the initial site preparation for the Core Project. More specifically these projects include:
• Construction of a new West Bay Street/Corridor including utilities with a value of $75 million
• Construction of a new Commercial Village at Cable Beach and related “back of house” on Gladstone Road with a value of $30 million
• Construction of free standing buildings including the golf clubhouse and buildings around the beach and pool area and retail village with a value of $20 million
• Major earthwork, irrigation and landscaping related to the construction of the new Golf Course with a value of $10 million.
I have been advised that the principals of Baha Mar are in discussion with their Chinese partners and financiers with a view to additionally, engaging Bahamian contractors in a number of “trade packages” related to the Core Project to include general site clearing and preparatory work, masonry, dry wall, ceilings, painting, electrical, mechanical, site security, fencing, beach restoration, remediation, and landscaping having a total estimated value of $40 million.
It is further expected that many of these jobs will carry over to continued employment in the “trade packages” for the Core Project I mentioned. This we are informed is expected to result in the engagement of 3,300 Bahamians at the height of construction of the Core Project.
Honourable Members are aware that the basic justification for permitting the engagement of foreign workers in The Bahamas has been the transfer of technology and of skills. This occurred, very measurably, during each phase of the Kerzner International developments on Paradise Island and is occurring now, at the first phase in the expansion of the Lynden Pindling International Airport.
Based on the numbers, in the case of the Baha Mar Project it is proposed that 71% of the work force will be foreign and 29% Bahamian. This represents a complete reversal of conditions imposed upon Kerzner, for example.
What must be determined is whether this invaluable benefit of skills transfer and improved exposure to new technologies can or will occur in a project where contact between Bahamians and foreign experts is likely to be limited.
I also believe that the Government has an obligation to explain to the Bahamian people other requirements of The Bahamas unrelated to labour issues which arise from this project. Principally this will involve the transfer of Government-owned and Crown Lands to the developers. Because of the conditions precedent set by Baha Mar’s financiers – China Import Export Bank and the China Construction Company – these lands are required to be transferred in advance of the start of construction of the project.
As you are aware, the Cable Beach Hotel, now the Sheraton was transferred to Baha Mar in 2005.
The Crystal Palace Resort and Casino, now the Wyndham Crystal palace, was acquired on leased land by Baha Mar in 2005. That hotel, like the Nassau Beach Hotel, is constructed on leased Crown Land.
Approval for the Baha Mar Project requires the transfer of the following publicly-owned land:
Wyndham Hotel & Casino Land - 13.450 acres
Nassau Beach Land - 7.546 acres
Hobby Horse Hall parcel - 70.964 acres
Fidelity Bank - .866 acre
Cecil Wallace-Whitfield Centre - 2.259 acres
Cable Beach Police Station - 1.377 acres
Old West Bay Street - 11.228 acres
New Corridor #7 - 1.610 acres Plus an additional parcel of .783 acre
Gladstone Road back of House - 50.00 acres
Prospect Ridge Parcel - 2.365 acres
Water and Sewerage Corporation - 99.782 acres Parcel
BEC Parcel - 2.570 acres
BEC Substation - .165 acres
TOTAL - 264.965 acres
It is the position of my Government that these lands will only be transferred for the expressed purpose of facilitating the development and that should the development not proceed the land must return to the Government.
Mr. Speaker,
I should also advise that a number of unresolved matters between Baha Mar and Scotia Bank relating to outstanding loans attached to the Baha Mar Project are being negotiated even now. It is expected that all outstanding matters will be resolved within the next two week period. Hence, it is proposed that we reserve our debate of the matter until these matters have been completed.
It would appear that the Wednesday 22nd or Thursday 23rd September may be an appropriate time for the debate.
THE RESOLUTION:
Mr. Speaker,
To be very explicit, so that the noise in the print and broadcast media to the effect that somebody is holding up this project can be put to rest – BahaMar cannot do the deal with the Chinese bank until it satisfies the ScotiaBank loan.
They are in discussions with ScotiaBank. The next meetings take place next week in Toronto. But there will be no deal unless Scotia’s loan is satisfied.
Secondly, there will be no deal unless the Government of The Bahamas and the Chinese Government exchange letters saying “we approve in The Bahamas’’, and we get from the Chinese Government at the same time in the next hand, “we approve here [China].”
They will go ‘hand go, hand come’ – at the same time and the same place.
WHEREAS the Government of the Commonwealth of The Bahamas (hereinafter called ‘the Government’) and Baha Mar Development Company Ltd., a company incorporated under the laws of the said Commonwealth (hereinafter called ‘BDC’), entered into a Heads of Agreement, dated the 6th day of April 2005, to develop a major resort in the Cable Beach area of the Western District of New Providence, one of the Islands of the said Commonwealth (hereinafter called ‘the Agreement’);
AND WHEREAS the Government, BDC and Baha Mar Joint Venture Holdings Ltd., an international business company incorporated under the laws of the said Commonwealth, entered into a Supplemental Heads of Agreement dated the 31st day of January 2008 (hereinafter called ‘the Supplemental Agreement’);
AND WHEREAS neither project contemplated under either the Agreement or Supplemental Agreement has materialised;
AND WHEREAS Baha Mar Ltd. (hereinafter called ‘Baha Mar’) now proposes to undertake a project comprising six hotels with approximately 3,500 rooms and condominiums, an approximately 100,000 square foot casino, 200,000 square feet of convention facilities, a twenty acre beach and pool experience, an 18-hole golf course and a 60,000 square-foot retail village and additional residential products (together hereinafter called ‘the Project’);
AND WHEREAS one of the conditions precedent to the Government performing its obligations under the Agreement and Supplemental Agreement is that Baha Mar shall provide the Government with satisfactory evidence of funding;
AND WHEREAS Baha Mar’s primary source of funding for the project will be obtained from The Export-Import Bank of China, and the primary contractor in respect of the Project will be CCA (Bahamas), Ltd., a subsidiary of China State Construction Engineering Corporation Limited;
AND WHEREAS The Export-Import Bank of China has agreed to make available to Baha Mar and or its subsidiaries a term loan facility in respect of the Project in an amount up to $2.45 billion;
AND WHEREAS a condition precedent for the disbursement of the loan facility by The Export-Import Bank of China is that Baha Mar must provide evidence to The Export-Import Bank of China of release of all Scotiabank existing security and financial indebtedness incurred by Baha Mar under or in relation to the Scotiabank existing facility;
AND WHEREAS completion of the Project on a highly accelerated schedule will necessitate substantial employment of non-Bahamian workers during construction;
AND WHEREAS Baha Mar has specified that the aggregate number of non-Bahamians required over the course of the construction phase is 8,150 with the peak number at any given time being 5,000 non-Bahamians as shown in Annex I;
AND WHEREAS CCA (Bahamas), Ltd., Baha Mar and its subcontractors will be required to cause all of the non-Bahamian workers on the Project to be repatriated from the Bahamas immediately following the completion of their respective work periods;
AND WHEREAS Baha Mar has indicated the job categories required for workers in the initial project phase and core project phase as shown in Annex II;
AND WHEREAS the Project, if undertaken as proposed, will have immense impact on the economy of The Bahamas creating approximately 3,000 construction jobs in addition to 7,000 new permanent jobs for Bahamians;
NOW THEREFORE BE IT RESOLVED that this House supports the Project and the issuance of work permits for up to 8,150 non-Bahamian construction workers with the number at any given time being not more than 5,000.
Bahamas Blog International
THE PRIME MINISTER: Mr. Speaker,
I rise to Table a Resolution meant to garner the position and sense of the representatives of the people on the proposed Resort development by Baha Mar at Cable Beach, New Providence and to ensure that the Bahamian people are fully informed on the requirements, consequences and benefits which are projected to result for The Bahamas if the development proceeds as now proposed by the principals.
The Baha Mar project is to comprise six hotels with approximately 3,500 rooms and condominiums, an approximately 100,000 square foot casino, 200,000 square feet of convention facilities, a twenty acre beach and pool experience, an 18-hole golf course and a 60,000 square-foot retail village and additional residential products.
The total value of the project is estimated at $2.5 billion. A contract for the amount of $1.918,965,693 billion has been negotiated with the China Construction Company as primary contractors for the project.
The Resolution results from the fact that the foreign labour component intended during the construction of the Resort exceeds levels ever experienced in The Bahamas and is beyond anything ever contemplated by my Government.
In the earliest of times in the development of the tourism sector in our country in the 1950s the law and the Government permitted as much as 25% of the labour force in construction and or operation of a tourism development resort to be foreign. The Hotels Encouragement Act 1954 permitted “for the admission into The Bahamas of key personnel and special workmen both during the construction period and operation of the new hotel, subject to the proviso that at all times seventy-five per centum of the total number of persons employed in the construction or operation of the new hotel shall be natives of The Bahamas if such natives of The Bahamas are available to perform the several and respective services required.”
While that provision remained in the law, following Majority Rule a move toward Bahamianization of the work force brought change.
Beginning in the 1980s the practice evolved where large foreign components were engaged in the construction of hotels, and a smaller number of foreigners were allowed to work in the hotel upon completion.
Honourable Members will recall the substantial foreign work force engaged to construct the Crystal Palace Resort and casino, today the Wyndham Crystal Palace Resort and the US Departure Terminal at the then Nassau International Airport. At those two projects Indian, Brazilian and other foreign nationals far out-numbered Bahamian nationals on the work force.
When my Government first came to office in 1992 we determined not to continue this practice of the former Government. When, in 1993 we agreed terms for the commencement of a Five Phase redevelopment and Expansion of Resort Properties on Paradise Island by Sun International (now Kerzner International) we established that notwithstanding the demonstrable need for the engagement of large numbers of expatriate experts and labour for the timely completion of the project, the ratio of Bahamians to non-Bahamians on the construction site would not exceed 30% foreign to 70% Bahamian, increasing on the required Bahamian component above the 1954 statutory base of 25%.
It is noteworthy that this ratio obtained during Two Phases of construction of the Kerzner International resorts under FNM administrations and was continued when Members Opposite most recently formed the Government during the Third Phase expansion of Kerzner International on Paradise Island. (70% Bahamian : 30% Foreign)
Members Opposite at the same time however, did not require an adherence to this accepted ratio of Bahamian to foreign workers in the construction of the Bimini Bay Resort at North Bimini. As a result foreign workers, principally from Mexico, far exceeded the number of Bahamian nationals engaged on that construction site in the middle of the last decade.
The Bahamas Government now has for consideration the construction of the Baha Mar Resort in Cable Beach. The terms of the funding obtained by the developers of the Resort include a requirement that the overwhelming majority, if not virtually all of the workers to be engaged on the “Core Project”, over the life of the project, be foreign workers - some 8,150 persons.
It is projected that some 1,200 Bahamians will be engaged in the construction of the non-Core project that is, the new West Bay Street, the new Commercial Village and the initial site preparation for the Core Project. More specifically these projects include:
• Construction of a new West Bay Street/Corridor including utilities with a value of $75 million
• Construction of a new Commercial Village at Cable Beach and related “back of house” on Gladstone Road with a value of $30 million
• Construction of free standing buildings including the golf clubhouse and buildings around the beach and pool area and retail village with a value of $20 million
• Major earthwork, irrigation and landscaping related to the construction of the new Golf Course with a value of $10 million.
I have been advised that the principals of Baha Mar are in discussion with their Chinese partners and financiers with a view to additionally, engaging Bahamian contractors in a number of “trade packages” related to the Core Project to include general site clearing and preparatory work, masonry, dry wall, ceilings, painting, electrical, mechanical, site security, fencing, beach restoration, remediation, and landscaping having a total estimated value of $40 million.
It is further expected that many of these jobs will carry over to continued employment in the “trade packages” for the Core Project I mentioned. This we are informed is expected to result in the engagement of 3,300 Bahamians at the height of construction of the Core Project.
Honourable Members are aware that the basic justification for permitting the engagement of foreign workers in The Bahamas has been the transfer of technology and of skills. This occurred, very measurably, during each phase of the Kerzner International developments on Paradise Island and is occurring now, at the first phase in the expansion of the Lynden Pindling International Airport.
Based on the numbers, in the case of the Baha Mar Project it is proposed that 71% of the work force will be foreign and 29% Bahamian. This represents a complete reversal of conditions imposed upon Kerzner, for example.
What must be determined is whether this invaluable benefit of skills transfer and improved exposure to new technologies can or will occur in a project where contact between Bahamians and foreign experts is likely to be limited.
I also believe that the Government has an obligation to explain to the Bahamian people other requirements of The Bahamas unrelated to labour issues which arise from this project. Principally this will involve the transfer of Government-owned and Crown Lands to the developers. Because of the conditions precedent set by Baha Mar’s financiers – China Import Export Bank and the China Construction Company – these lands are required to be transferred in advance of the start of construction of the project.
As you are aware, the Cable Beach Hotel, now the Sheraton was transferred to Baha Mar in 2005.
The Crystal Palace Resort and Casino, now the Wyndham Crystal palace, was acquired on leased land by Baha Mar in 2005. That hotel, like the Nassau Beach Hotel, is constructed on leased Crown Land.
Approval for the Baha Mar Project requires the transfer of the following publicly-owned land:
Wyndham Hotel & Casino Land - 13.450 acres
Nassau Beach Land - 7.546 acres
Hobby Horse Hall parcel - 70.964 acres
Fidelity Bank - .866 acre
Cecil Wallace-Whitfield Centre - 2.259 acres
Cable Beach Police Station - 1.377 acres
Old West Bay Street - 11.228 acres
New Corridor #7 - 1.610 acres Plus an additional parcel of .783 acre
Gladstone Road back of House - 50.00 acres
Prospect Ridge Parcel - 2.365 acres
Water and Sewerage Corporation - 99.782 acres Parcel
BEC Parcel - 2.570 acres
BEC Substation - .165 acres
TOTAL - 264.965 acres
It is the position of my Government that these lands will only be transferred for the expressed purpose of facilitating the development and that should the development not proceed the land must return to the Government.
Mr. Speaker,
I should also advise that a number of unresolved matters between Baha Mar and Scotia Bank relating to outstanding loans attached to the Baha Mar Project are being negotiated even now. It is expected that all outstanding matters will be resolved within the next two week period. Hence, it is proposed that we reserve our debate of the matter until these matters have been completed.
It would appear that the Wednesday 22nd or Thursday 23rd September may be an appropriate time for the debate.
THE RESOLUTION:
Mr. Speaker,
To be very explicit, so that the noise in the print and broadcast media to the effect that somebody is holding up this project can be put to rest – BahaMar cannot do the deal with the Chinese bank until it satisfies the ScotiaBank loan.
They are in discussions with ScotiaBank. The next meetings take place next week in Toronto. But there will be no deal unless Scotia’s loan is satisfied.
Secondly, there will be no deal unless the Government of The Bahamas and the Chinese Government exchange letters saying “we approve in The Bahamas’’, and we get from the Chinese Government at the same time in the next hand, “we approve here [China].”
They will go ‘hand go, hand come’ – at the same time and the same place.
RESOLUTION
WHEREAS the Government of the Commonwealth of The Bahamas (hereinafter called ‘the Government’) and Baha Mar Development Company Ltd., a company incorporated under the laws of the said Commonwealth (hereinafter called ‘BDC’), entered into a Heads of Agreement, dated the 6th day of April 2005, to develop a major resort in the Cable Beach area of the Western District of New Providence, one of the Islands of the said Commonwealth (hereinafter called ‘the Agreement’);
AND WHEREAS the Government, BDC and Baha Mar Joint Venture Holdings Ltd., an international business company incorporated under the laws of the said Commonwealth, entered into a Supplemental Heads of Agreement dated the 31st day of January 2008 (hereinafter called ‘the Supplemental Agreement’);
AND WHEREAS neither project contemplated under either the Agreement or Supplemental Agreement has materialised;
AND WHEREAS Baha Mar Ltd. (hereinafter called ‘Baha Mar’) now proposes to undertake a project comprising six hotels with approximately 3,500 rooms and condominiums, an approximately 100,000 square foot casino, 200,000 square feet of convention facilities, a twenty acre beach and pool experience, an 18-hole golf course and a 60,000 square-foot retail village and additional residential products (together hereinafter called ‘the Project’);
AND WHEREAS one of the conditions precedent to the Government performing its obligations under the Agreement and Supplemental Agreement is that Baha Mar shall provide the Government with satisfactory evidence of funding;
AND WHEREAS Baha Mar’s primary source of funding for the project will be obtained from The Export-Import Bank of China, and the primary contractor in respect of the Project will be CCA (Bahamas), Ltd., a subsidiary of China State Construction Engineering Corporation Limited;
AND WHEREAS The Export-Import Bank of China has agreed to make available to Baha Mar and or its subsidiaries a term loan facility in respect of the Project in an amount up to $2.45 billion;
AND WHEREAS a condition precedent for the disbursement of the loan facility by The Export-Import Bank of China is that Baha Mar must provide evidence to The Export-Import Bank of China of release of all Scotiabank existing security and financial indebtedness incurred by Baha Mar under or in relation to the Scotiabank existing facility;
AND WHEREAS completion of the Project on a highly accelerated schedule will necessitate substantial employment of non-Bahamian workers during construction;
AND WHEREAS Baha Mar has specified that the aggregate number of non-Bahamians required over the course of the construction phase is 8,150 with the peak number at any given time being 5,000 non-Bahamians as shown in Annex I;
AND WHEREAS CCA (Bahamas), Ltd., Baha Mar and its subcontractors will be required to cause all of the non-Bahamian workers on the Project to be repatriated from the Bahamas immediately following the completion of their respective work periods;
AND WHEREAS Baha Mar has indicated the job categories required for workers in the initial project phase and core project phase as shown in Annex II;
AND WHEREAS the Project, if undertaken as proposed, will have immense impact on the economy of The Bahamas creating approximately 3,000 construction jobs in addition to 7,000 new permanent jobs for Bahamians;
NOW THEREFORE BE IT RESOLVED that this House supports the Project and the issuance of work permits for up to 8,150 non-Bahamian construction workers with the number at any given time being not more than 5,000.
Bahamas Blog International
The Progressive Liberal Party (PLP) should do a memory check
The PLP should do a memory check
tribune242 editorial
WELL FOR Pete's sake look whose talking!
In yesterday's Tribune the PLP criticised the "inept" FNM government for allowing crime to spiral out of control.
The PLP also condemned the FNM for failing to conduct a salary review for judges as is required by the Judges Remuneration and Pensions Act. Have they forgotten the furore created during their administration in 2006 when Justice John Lyons accused the PLP government of causing a constitutional crisis and showing a "manifest disregard for the rule of law" by failing to conduct a review of justices' salaries -- the very same Judges Remuneration and Pensions Act of which they now complain?
At the time of the Lyons' accusation the country could have afforded such a review of salaries. However, in today's economic climate, such a salary review for judges or anyone else in the civil service would put too great a strain on the Public Treasury.
In a controversial ruling in that year, Justice Lyons claimed that the PLP government had deliberately ignored a law designed to protect the constitutional independence of "that body of persons whose task is to protect all persons in the Bahamas against abuses of their constitutional right.
"If this was a deliberate act by the Cabinet (the Christie Cabinet) then -- and there is no dull edge to this -- this must be considered a deliberate attack on the independence of the judiciary. And that, in turn, is an attack on the fundamental constitutional right enjoyed by all persons in this country," said Justice Lyons.
Some angry words were exchanged with Justice Lyons accusing then Attorney General Allyson Maynard Gibson of using her "swift justice" system as a "self-promoting" piece of headline hunting and Mrs Gibson counter attacking from the security of the House of Assembly to pour equal scorn on the judge in denouncing his assertions as "misleading."
The Bahamas Bar Association agreed with the judge that if judges had to rely on the discretion of politicians for salary increases, the impartiality of their judgments could be compromised.
"You are losing half of your judiciary in 12 months," Justice Lyons said in a speech to a financial group. He talked of the backlog of cases, of the length of time accused persons on remand had to wait in prison for a court date, of one judge having to do the work of five -- all the same complaints now facing Attorney General John Delaney, who was appointed to his post on November 25, 2009.
At the time even Court of Appeal President Dame Joan Sawyer sided with Justice Lyons, admitting that she had had "personal experience of the executive trying to manipulate the judiciary."
"When you destroy the public's faith in the independence of the judiciary, to which court do you take your case?" she wanted to know.
And in the Senate, Senator Delaney, criticised then Attorney General Maynard Gibson for using the House to launch her attack on Justice Lyons' integrity.
"While the current crisis may have started with the government failing (twice) in its legal obligations under the Judges Remuneration and Pensions Act, the assailing of the character of a sitting judge is a separate and most egregious act by our Attorney General," said Senator Delaney.
Surely, the PLP who made the statement to the press yesterday are not so ignorant of their own history that they would make themselves look so foolish in pubic print. Or maybe their arrogance is such that they believe that Bahamians, like themselves, also have weak mental recall.
They also criticised the FNM government for allowing crime to spiral out of control, forgetting that crime has no nationality, nor has it any politics. Crime started to spiral out of control in the eighties when drugs took control of this country. And everyone knows under whose administration that occurred when Bahamians were made to believe that wealth, however obtained, was the sign of success, and it was nobody's business "whether I make it or I 'tief it!"
They also complain about not bringing offenders to justice and allowing persons who intimidate witnesses to continue to roam our streets -- the very criticism that we have of our judiciary's generosity with bail.
They talk of the serious criminal cases pending. This accumulation of a backlog didn't start under the FNM. We are particularly concerned about the murder of one of our staff during that administration, a case that could have been brought to a quick conclusion because of the number of eyewitnesses. However, the accused in this case is one of those walking the streets on bail.
As for our assessment of the Bahamian judiciary as a colossal failure, we make no apologies. Nor should anyone assume that this conclusion was aimed solely at our judges. Our lawyers are the largest part of this judicial body. The examination of conscience should start within "the honourable profession."
Attorney General Delaney knows the problems -- an accumulation of years of mismanagement. He has pinpointed the areas in need of reform and started the process. Not only should he be given time, but he should be given the resources and personnel to do the job.
September 07, 2010
tribune242 editorial
tribune242 editorial
WELL FOR Pete's sake look whose talking!
In yesterday's Tribune the PLP criticised the "inept" FNM government for allowing crime to spiral out of control.
The PLP also condemned the FNM for failing to conduct a salary review for judges as is required by the Judges Remuneration and Pensions Act. Have they forgotten the furore created during their administration in 2006 when Justice John Lyons accused the PLP government of causing a constitutional crisis and showing a "manifest disregard for the rule of law" by failing to conduct a review of justices' salaries -- the very same Judges Remuneration and Pensions Act of which they now complain?
At the time of the Lyons' accusation the country could have afforded such a review of salaries. However, in today's economic climate, such a salary review for judges or anyone else in the civil service would put too great a strain on the Public Treasury.
In a controversial ruling in that year, Justice Lyons claimed that the PLP government had deliberately ignored a law designed to protect the constitutional independence of "that body of persons whose task is to protect all persons in the Bahamas against abuses of their constitutional right.
"If this was a deliberate act by the Cabinet (the Christie Cabinet) then -- and there is no dull edge to this -- this must be considered a deliberate attack on the independence of the judiciary. And that, in turn, is an attack on the fundamental constitutional right enjoyed by all persons in this country," said Justice Lyons.
Some angry words were exchanged with Justice Lyons accusing then Attorney General Allyson Maynard Gibson of using her "swift justice" system as a "self-promoting" piece of headline hunting and Mrs Gibson counter attacking from the security of the House of Assembly to pour equal scorn on the judge in denouncing his assertions as "misleading."
The Bahamas Bar Association agreed with the judge that if judges had to rely on the discretion of politicians for salary increases, the impartiality of their judgments could be compromised.
"You are losing half of your judiciary in 12 months," Justice Lyons said in a speech to a financial group. He talked of the backlog of cases, of the length of time accused persons on remand had to wait in prison for a court date, of one judge having to do the work of five -- all the same complaints now facing Attorney General John Delaney, who was appointed to his post on November 25, 2009.
At the time even Court of Appeal President Dame Joan Sawyer sided with Justice Lyons, admitting that she had had "personal experience of the executive trying to manipulate the judiciary."
"When you destroy the public's faith in the independence of the judiciary, to which court do you take your case?" she wanted to know.
And in the Senate, Senator Delaney, criticised then Attorney General Maynard Gibson for using the House to launch her attack on Justice Lyons' integrity.
"While the current crisis may have started with the government failing (twice) in its legal obligations under the Judges Remuneration and Pensions Act, the assailing of the character of a sitting judge is a separate and most egregious act by our Attorney General," said Senator Delaney.
Surely, the PLP who made the statement to the press yesterday are not so ignorant of their own history that they would make themselves look so foolish in pubic print. Or maybe their arrogance is such that they believe that Bahamians, like themselves, also have weak mental recall.
They also criticised the FNM government for allowing crime to spiral out of control, forgetting that crime has no nationality, nor has it any politics. Crime started to spiral out of control in the eighties when drugs took control of this country. And everyone knows under whose administration that occurred when Bahamians were made to believe that wealth, however obtained, was the sign of success, and it was nobody's business "whether I make it or I 'tief it!"
They also complain about not bringing offenders to justice and allowing persons who intimidate witnesses to continue to roam our streets -- the very criticism that we have of our judiciary's generosity with bail.
They talk of the serious criminal cases pending. This accumulation of a backlog didn't start under the FNM. We are particularly concerned about the murder of one of our staff during that administration, a case that could have been brought to a quick conclusion because of the number of eyewitnesses. However, the accused in this case is one of those walking the streets on bail.
As for our assessment of the Bahamian judiciary as a colossal failure, we make no apologies. Nor should anyone assume that this conclusion was aimed solely at our judges. Our lawyers are the largest part of this judicial body. The examination of conscience should start within "the honourable profession."
Attorney General Delaney knows the problems -- an accumulation of years of mismanagement. He has pinpointed the areas in need of reform and started the process. Not only should he be given time, but he should be given the resources and personnel to do the job.
September 07, 2010
tribune242 editorial
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