CONFLICT IN BAHA MAR STATEMENTS
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com:
Prime Minister Hubert Ingraham and Baha Mar have both made statements in recent days about the planned $2.6 billion deal at Cable Beach, but there appears to be conflicting statements related to when hundreds of acres of publicly-owned land would be transfered to Baha Mar.
In bringing the Baha Mar resolution to Parliament last week, Ingraham laid out, among other matters, issues related to how the land deal would be structured.
"Because of the conditions precedent set by Baha Mar's financiers the Export-Import Bank of China and the China Construction Engineering Company these lands are required to be transferred in advance of the start of construction of the project,"the prime minister said.
However, Baha Mar claimed two days later that,"The government lands will only be transferred after construction starts and the financing is formally in place."
In total, Baha Mar will receive 264.965 acres of government-owned and Crown lands for the development.
As reported earlier, Ingraham has said these lands will only be transferred for the expressed purpose of facilitating the development and should the development not proceed the land must return to the government.
According to Baha Mar,it will pay $62.6 million to acquire the government land on which the Wyndham Resort and the Nassau Beach Hotel sit, and the parcels occupied by the nearby Fidelity Bank and old Hobby Horse Hall.
Under the deal the Cecil Wallace-Whitfield Centre which currently houses the Office of the Prime Minister will be transferred to Baha Mar, in return for a cash payment to the government of$18 million and 2.259 acres of land.
Baha Mar has said the project is completedly owned by the Izmirlian family.
The Chinese will only finance and construct the project, according to the company.
9/14/2010
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.
Wednesday, September 15, 2010
Tuesday, September 14, 2010
The opposition Progressive Liberal Party (PLP) called for the Free National Movement (FNM) government to alter its position on the current structure of the Urban Renewal Programme (URP)
PLP calls for FNM to change position on Urban Renewal
tribune242
THE Progressive Liberal Party has again called for the Free National Movement government to alter its position on the current structure of the Urban Renewal Programme (URP) after Jamaica began reporting that its community policing programme is yielding results in that country.
The PLP said it is reported that the Jamaican Constabulary revitalised their community policing programme in the area known as "Tivoli Gardens", which is commonly regarded as one of the most violent areas in Jamaica.
A party statement said: "It is reported that community policing was nonexistent or very challenging in that area. Following the joint police/military operation of June 24, 2010 in Tivoli Gardens, the police are now able to go in there, step by step and win back the community through engaging the people in a new partnership. This is precisely how Urban Renewal was structured - the police would go into an area and conduct an assessment. Challenges relating to crime, disorder and social ills would be identified and addressed and then community policing officers would be there to sustain the efforts," the party said.
The PLP's statement claims this is how the party had structured the URP and it "worked".
"Jamaica along with all the other Caribbean countries that form the Association of Caribbean Commissioners of Police (ACCP) had the benefit of firsthand experience when they came to the Bahamas to witness for themselves the URP in operation. Further, Paul Farquharson, former Commissioner of Police made several presentations to these countries on URP and they have all embarked on introducing what we had established in the Bahamas.
"The URP won the ACCP Community Policing Award in 2003 for being the best (and most progressive) community policing programme in the Caribbean. Yet, the FNM Government cancelled the Programme. After much pressure, The FNM introduced a 'watered down' version of the Programme when other countries are now boasting of success," the statement read.
The PLP said they can confirm this is the case since the language contained in the report is attributed to research and documents from the URP that were shared with the Bahamas' Caribbean counterparts.
"The PLP invites the FNM Government to put aside its political differences to avoid further crime, social disorder and neighbourhood decay. The country's murder rate alone has already exceeded 65 cases and there are still three months left in 2010. The Bahamas has never seen such unprecedented killings and violence. This has all occurred since the 'altering' of the URP under the FNM Government.
"As a matter of fact, the Bahamas has recorded two record-breaking homicide rates (in 2007 and in 2009) and is on track for another record under the FNM administration. The significance is that most of these murders occurred in the areas where potent URPs once existed.
"The PLP has concluded that part of the solution lies within the URP as it was structured under the PLP. Return the Police to URP without further delay. This is time for action and the PLP stands ready to partner with the FNM to make our country safe again for our residents and visitors alike," the party said.
September 13, 2010
tribune242
tribune242
THE Progressive Liberal Party has again called for the Free National Movement government to alter its position on the current structure of the Urban Renewal Programme (URP) after Jamaica began reporting that its community policing programme is yielding results in that country.
The PLP said it is reported that the Jamaican Constabulary revitalised their community policing programme in the area known as "Tivoli Gardens", which is commonly regarded as one of the most violent areas in Jamaica.
A party statement said: "It is reported that community policing was nonexistent or very challenging in that area. Following the joint police/military operation of June 24, 2010 in Tivoli Gardens, the police are now able to go in there, step by step and win back the community through engaging the people in a new partnership. This is precisely how Urban Renewal was structured - the police would go into an area and conduct an assessment. Challenges relating to crime, disorder and social ills would be identified and addressed and then community policing officers would be there to sustain the efforts," the party said.
The PLP's statement claims this is how the party had structured the URP and it "worked".
"Jamaica along with all the other Caribbean countries that form the Association of Caribbean Commissioners of Police (ACCP) had the benefit of firsthand experience when they came to the Bahamas to witness for themselves the URP in operation. Further, Paul Farquharson, former Commissioner of Police made several presentations to these countries on URP and they have all embarked on introducing what we had established in the Bahamas.
"The URP won the ACCP Community Policing Award in 2003 for being the best (and most progressive) community policing programme in the Caribbean. Yet, the FNM Government cancelled the Programme. After much pressure, The FNM introduced a 'watered down' version of the Programme when other countries are now boasting of success," the statement read.
The PLP said they can confirm this is the case since the language contained in the report is attributed to research and documents from the URP that were shared with the Bahamas' Caribbean counterparts.
"The PLP invites the FNM Government to put aside its political differences to avoid further crime, social disorder and neighbourhood decay. The country's murder rate alone has already exceeded 65 cases and there are still three months left in 2010. The Bahamas has never seen such unprecedented killings and violence. This has all occurred since the 'altering' of the URP under the FNM Government.
"As a matter of fact, the Bahamas has recorded two record-breaking homicide rates (in 2007 and in 2009) and is on track for another record under the FNM administration. The significance is that most of these murders occurred in the areas where potent URPs once existed.
"The PLP has concluded that part of the solution lies within the URP as it was structured under the PLP. Return the Police to URP without further delay. This is time for action and the PLP stands ready to partner with the FNM to make our country safe again for our residents and visitors alike," the party said.
September 13, 2010
tribune242
Monday, September 13, 2010
Raynard Rigby - Former Progressive Liberal Party (PLP) Chairman - Urges The Opposition To Reject Baha Mar Developers 8,150 Chinese Workers Proposal For Its $2.6 Billion Cable Beach Redevelopment Project
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
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
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
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