The Drama at Baha Mar – Part 1
by Simon
Lights, camera, action! At least, that was the theory. With giddy fanfare the Christie administration broke into the ZNS evening news to broadcast live from Cable Beach a deal hyping an agreement with Baha Mar. The made-for-television reality show was obviously and deliberately timed to coincide with the beginning of the evening news, commandeering most of that night’s broadcast.
But after the lights and cameras trekked back to Third Terrace Centreville, nothing happened. Well, quite a bit happened. Except, of course, the construction of the promised mega complex. The original deal, the world economy and the Christie administration all collapsed, though not necessarily in that order.
The impressive architectural models and glittering high-tech videos of the touted development glossed over the realities on the ground. The public relations bonanza also obscured the nature and details surrounding the proposed plans to re-develop the historic Cable Beach.
We have seen this reality show before. It involves the same mindset, plot and cast of PLP cabinet ministers and their associated dealmakers that brought us the Great Mayaguana Land Give-away. The initial arrangements for the Baha Mar deal and the I-Group deal in Mayaguana involved more than rank hypocrisy by the party whose progressive and liberal brand name are whispery echoes of a by-gone era.
More fundamentally, the deals betrayed the PLP’s own nationalist rhetoric and chest-thumping patriotism. At the core of the Cable Beach and Mayaguana deals were stunning betrayals of the very idea of Bahamianization. This included making Bahamians subordinate in the deals, while alienating prime Crown Land and Government real estate to foreigners in perpetuity.
GALLING
Equally galling, was the PLP’s attempt to market these schemes to Bahamians as if we were idiots who could not see the big picture or read the fine print. There was also the smugness and arrogance by PLP hucksters. They pretended that these deals were more for the benefit of ordinary Bahamians than for the self-satisfied oligarchs who brokered them with gleeful abandon.
As recently as the 2010/11 budget debate, the Opposition’s Leader in the Senate, Senator Allyson Maynard Gibson, boasted that the Mayaguana Development Company, the group responsible for a proposed development at our most easterly island, was owned 50/50 by the I-Group and the Bahamas Government.
As noted in Front Porch in July: “This 50/50 arrangement would have eventually sold off nearly 100 per cent of Mayaguana’s coastal area and nearly 10,000 acres to non-Bahamians.
“As Mayaguana, by comparison, is somewhat larger than New Providence, the deal the PLP continues to brag about was the equivalent of turning over to a single developer a stretch of coastal land from the eastern end of New Providence to Lyford Cay. Again, the vast majority of this land would have ended up in foreign hands.”
Back to the drama at Baha Mar. Perry Gladstone Christie and his new PLP sold off at bargain basement prices prime beachfront and other public land at Cable Beach that Sir Stafford Sands and the UBP, Sir Lynden Pindling and an earlier version of the PLP, and Hubert Ingraham and the FNM never did over the course of more than half a century. Mr. Christie now has his place in the history books!
The original Baha Mar deal was a disaster on so many levels. Despite the rhetoric, the supposedly new PLP under Mr. Christie never updated their philosophy and policy ideas. The party simply wanted to be back in power. Upon returning to office they scrambled, cobbling together various slogans, clichés and talking points to justify their old habits of wheeling and dealing.
Perhaps realizing the controversial nature of significant elements of the original Baha Mar deal, Mr. Christie -- who purports to be the man of great consultation -- kept details of the deal secret. It was left to the Ingraham administration to table the Heads of Agreements on the initial deal.
INSULT
This was an insult added to the many injuries inflicted on our national interest in the initial deal, including public land sold at discounted prices and the proposed grant of extraordinarily generous concessions and cash payments. There were initial hints that Goodman’s Bay may have been alienated from the Bahamian people, though somebody appeared to backtrack quickly on this affront.
With Baha Mar and various anchor projects, the PLP failed to embrace newer ideas in terms of our tourism product and economic development. The idea of Baha Mar as essentially another Atlantis may have been a critical mistake. Such a vision stoked the egos of the proponents of the deal and Mr. Christie.
Still, a different type of project or variety of projects at Cable Beach, aimed at a different tourism demographic, would have been the wiser course of action. Moreover, rather than alienating invaluable public land, other arrangements could have been made to secure most of this land for generations of Bahamians.
In the Mayaguana deal the PLP at least pretended to be concerned about the national interest. The deal with Baha Mar was a give-away of monumental proportions.
There could have also been arrangements to enable Bahamians to have various levels of ownership and equity in a development which was to be built on mostly public land. Instead, the Christie administration turned its back on the core ideal of Bahamianization which was at the heart of the movement for Majority Rule.
Sadly, with the conclusion of the original deal with Baha Mar, there was no turning back, one of the slogans beloved by the PLP’s marketers. That other favourite PLP slogan, “Forward Ever, Backward Never”, also crashed and burned in light of the initial deal negotiated by Mr. Christie.
Having set in motion and made unavoidable many of the features of the current deal with Baha Mar, Mr. Christie in his typical political style, has left it up to Prime Minister Ingraham to do the heavy lifting on a final deal which he himself failed to conclude.
TONE!
Now Mr. Christie is commenting on the Prime Minister’s tone – tone! -- on a final deal. This is in keeping with his usual course of inaction in which style and tone are more important than substance. After all, who can forget his gushing and ingratiating tone when the Baha Mar deal was announced live on television? For all of Mr. Christie’s sweet melodies and tone, nothing happened.
Moreover, despite his lovely tone about the initial deal, he brokered an agreement which was wrong for The Bahamas on many levels. Mr. Ingraham has replaced Mr. Christie’s amateur tone with that of a seasoned leader. Whereas Mr. Christie was impetuous and cavalier, Mr. Ingraham has been measured and has driven a harder bargain.
Unlike Sir Lynden and the PLP’s unilateral abrogation of elements of the Hawksbill Creek Agreement, Mr. Ingraham negotiated the best deal he could for the Bahamas with Baha Mar. He has struck the right tone in negotiating with others who simply rolled over the hapless Mr. Christie, who was panicked about getting a deal at just about any cost to secure his re-election and legacy.
Short-term, the Prime Minister has sometimes been criticized about his manner and timing in negotiating elements of a final deal. In the longer term the wisdom of his negotiating strategy may prove more beneficial for the country.
In addition to tabling all heads of agreements related to Baha Mar, the Prime Minister is correct in bringing a resolution to the House of Assembly so that the Bahamian people’s elected representatives can express their will.
This will be time for Mr. Christie to do something which he has been reluctant to do from the inception of Baha Mar: To go on record clearly and unambiguously about his party’s stance on many of the controversial issues involved in an agreement whose initial seeds he helped to plant and water.
Baha Mar Drama - (Part 2)
bahamapundit
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.
Thursday, October 14, 2010
Wednesday, October 13, 2010
Prime Minister Hubert Ingraham will personally discuss aspects of the proposed Baha Mar project which continue to be of "concern" to his Government - during his upcoming trip to China
Baha Mar on PM's China trip agenda
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net
PRIME Minister Hubert Ingraham, in an interview with The Tribune, said he intends to personally discuss aspects of the proposed Baha Mar project, which continues to be of "concern" to his Government, when he meets with the leaders of the China State Construction Company and the China Export Import Bank during his trip to China next week.
Mr Ingraham gave details of this considerably important visit and the issues he hopes to discuss with several companies and the government of the People's Republic of China.
The Prime Minister will also meet with high level officials from Hutchison Whampoa and the Chinese Government to discuss, among other things, the future of Hutchison's hotel properties in Grand Bahama, the National Stadium and the Gateway Road Corridor.
Mr Ingraham's hectic schedule begins when he leaves the country on October 22. His proposed itinerary reads like a list of some of the most economically vital and controversial issues facing the country today.
It seems almost fitting that it is Mr Ingraham who is sitting at the helm of the nation's business while the government has to deal with the eminent completion of the National Stadium, the construction of the Gateway Road Corridor and the proposed multi-billion dollar Baha Mar project, as it was under his leadership that the Bahamas established diplomatic relations with Beijing in 1997.
The prime minister has publicly expressed concern over what he considers some of the more vexatious aspects of the Baha Mar deal.
He proposes to take advantage of his visit to China to meet with the leadership of the China State Construction Company and the China Export Import Bank to discuss "aspects of the proposed Baha Mar project construction terms which continue to be of concern" to his government.
Mr Ingraham will also meet with the leaders of Hutchison Whampoa - Deputy Chairman of Hutchison Whampoa Vincent Li and Raymond Chow, head of Hutchison's Hotel Division. While all of Hutchison's operations in The Bahamas will be discussed, uppermost on his agenda will be the future of Hutchison's hotel properties in Grand Bahama.
Hotels
"As you are aware those hotels continue to operate at a loss and to be supported by direct funding from Hong Kong," the prime minister said.
When Mr Ingraham visits Beijing, he is expected to call on a number of senior officials in the Government of the People's Republic of China to discuss matters of mutual interest and concern.
These will include the National Stadium, the Gateway Road Corridor, the Bahamas' interest in training and transfer of skills connected to the engagement of significant numbers of Chinese construction experts on projects in The Bahamas; cooperation on matters arising from climate change and disaster relief initiatives, agriculture, clean energy (solar and wind) and IT, increased tourism flow and other general bilateral relations, including China-CARICOM relations. The prime minister is travelling to China this year at the invitation of the Government of China. It is an invitation that he has had to delay on at least two occasions due to pressing national matters and other scheduling conflicts.
"Originally I had proposed to visit China during the last Olympiad. Subsequently, I signalled my intention to attend the opening ceremonies of the Shanghai Expo earlier this year. As it turns out, it will be the closing ceremony of the Expo that I will attend," Mr Ingraham said.
He is also expected to meet with Chinese officials, including Chairman Wu Bangguo and Vice-Premier Hui Liangyu both of whom have visited The Bahamas recently.
On his way to China, Mr Ingraham will spend a full day in Hong Kong where he will participate in the official opening of a new Bahamas Maritime Authority office and attend a reception, hosted by the BMA for a cross section of potential investors in The Bahamas - maritime, financial services and tourism in particular.
"I believe that we have excellent relations with the People's Republic of China. The importance that my Government places on this relationship is demonstrated by our appointment of a former non-portfolio Cabinet Minister to head our Diplomatic Mission in Beijing. Ambassador (Elma) Campbell is the first resident Bahamian Ambassador appointed to Beijing.
Diplomatic
"It was under my party's leadership that The Bahamas ended diplomatic relations with the Republic of China (Taiwan) and in recognition of our support for the One China policy, established diplomatic relations with Beijing in 1997," Mr Ingraham said.
Mr Ingraham acknowledged that China has been a generous friend to The Bahamas whether in response to hurricanes, in offering technical and language training scholarships to Bahamian nationals, in gifting the National Stadium, or in supporting the Bahamas' recent efforts to overcome the challenges from the OECD regarding the country's financial services sector and the conclusion of TIEAs with OECD and G20 countries.
China has set aside the sum of $1 billion for soft loans to Caricom countries. Of that sum, some 15 per cent, i.e. $150 million, has been earmarked for lending to The Bahamas.
Mr Ingraham said that the extent to which the Bahamas might identify other suitable projects that fall within the quota set for The Bahamas, will be determined at a later date. The House of Assembly recently approved a resolution for the government to borrow nearly $58 million from the China Export-Import Bank to construct a four-lane airport highway. The project will mean the grant of 200 work permits for Chinese labourers, but also a very low interest rate for the loan. "The Bahamas very much appreciates that in an international environment where soft or concessional loans for infrastructure development is increasingly scarce for middle income countries like the Bahamas, the willingness of the Chinese Government to extend such low interest loans to us," the prime minister said.
This will be Mr Ingraham's second visit to the People's Republic of China. Mr Ingraham first visited China in 2000.
October 12, 2010
tribune242
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net
PRIME Minister Hubert Ingraham, in an interview with The Tribune, said he intends to personally discuss aspects of the proposed Baha Mar project, which continues to be of "concern" to his Government, when he meets with the leaders of the China State Construction Company and the China Export Import Bank during his trip to China next week.
Mr Ingraham gave details of this considerably important visit and the issues he hopes to discuss with several companies and the government of the People's Republic of China.
The Prime Minister will also meet with high level officials from Hutchison Whampoa and the Chinese Government to discuss, among other things, the future of Hutchison's hotel properties in Grand Bahama, the National Stadium and the Gateway Road Corridor.
Mr Ingraham's hectic schedule begins when he leaves the country on October 22. His proposed itinerary reads like a list of some of the most economically vital and controversial issues facing the country today.
It seems almost fitting that it is Mr Ingraham who is sitting at the helm of the nation's business while the government has to deal with the eminent completion of the National Stadium, the construction of the Gateway Road Corridor and the proposed multi-billion dollar Baha Mar project, as it was under his leadership that the Bahamas established diplomatic relations with Beijing in 1997.
The prime minister has publicly expressed concern over what he considers some of the more vexatious aspects of the Baha Mar deal.
He proposes to take advantage of his visit to China to meet with the leadership of the China State Construction Company and the China Export Import Bank to discuss "aspects of the proposed Baha Mar project construction terms which continue to be of concern" to his government.
Mr Ingraham will also meet with the leaders of Hutchison Whampoa - Deputy Chairman of Hutchison Whampoa Vincent Li and Raymond Chow, head of Hutchison's Hotel Division. While all of Hutchison's operations in The Bahamas will be discussed, uppermost on his agenda will be the future of Hutchison's hotel properties in Grand Bahama.
Hotels
"As you are aware those hotels continue to operate at a loss and to be supported by direct funding from Hong Kong," the prime minister said.
When Mr Ingraham visits Beijing, he is expected to call on a number of senior officials in the Government of the People's Republic of China to discuss matters of mutual interest and concern.
These will include the National Stadium, the Gateway Road Corridor, the Bahamas' interest in training and transfer of skills connected to the engagement of significant numbers of Chinese construction experts on projects in The Bahamas; cooperation on matters arising from climate change and disaster relief initiatives, agriculture, clean energy (solar and wind) and IT, increased tourism flow and other general bilateral relations, including China-CARICOM relations. The prime minister is travelling to China this year at the invitation of the Government of China. It is an invitation that he has had to delay on at least two occasions due to pressing national matters and other scheduling conflicts.
"Originally I had proposed to visit China during the last Olympiad. Subsequently, I signalled my intention to attend the opening ceremonies of the Shanghai Expo earlier this year. As it turns out, it will be the closing ceremony of the Expo that I will attend," Mr Ingraham said.
He is also expected to meet with Chinese officials, including Chairman Wu Bangguo and Vice-Premier Hui Liangyu both of whom have visited The Bahamas recently.
On his way to China, Mr Ingraham will spend a full day in Hong Kong where he will participate in the official opening of a new Bahamas Maritime Authority office and attend a reception, hosted by the BMA for a cross section of potential investors in The Bahamas - maritime, financial services and tourism in particular.
"I believe that we have excellent relations with the People's Republic of China. The importance that my Government places on this relationship is demonstrated by our appointment of a former non-portfolio Cabinet Minister to head our Diplomatic Mission in Beijing. Ambassador (Elma) Campbell is the first resident Bahamian Ambassador appointed to Beijing.
Diplomatic
"It was under my party's leadership that The Bahamas ended diplomatic relations with the Republic of China (Taiwan) and in recognition of our support for the One China policy, established diplomatic relations with Beijing in 1997," Mr Ingraham said.
Mr Ingraham acknowledged that China has been a generous friend to The Bahamas whether in response to hurricanes, in offering technical and language training scholarships to Bahamian nationals, in gifting the National Stadium, or in supporting the Bahamas' recent efforts to overcome the challenges from the OECD regarding the country's financial services sector and the conclusion of TIEAs with OECD and G20 countries.
China has set aside the sum of $1 billion for soft loans to Caricom countries. Of that sum, some 15 per cent, i.e. $150 million, has been earmarked for lending to The Bahamas.
Mr Ingraham said that the extent to which the Bahamas might identify other suitable projects that fall within the quota set for The Bahamas, will be determined at a later date. The House of Assembly recently approved a resolution for the government to borrow nearly $58 million from the China Export-Import Bank to construct a four-lane airport highway. The project will mean the grant of 200 work permits for Chinese labourers, but also a very low interest rate for the loan. "The Bahamas very much appreciates that in an international environment where soft or concessional loans for infrastructure development is increasingly scarce for middle income countries like the Bahamas, the willingness of the Chinese Government to extend such low interest loans to us," the prime minister said.
This will be Mr Ingraham's second visit to the People's Republic of China. Mr Ingraham first visited China in 2000.
October 12, 2010
tribune242
Tuesday, October 12, 2010
Prime Minister Hubert Ingraham lashes out at the Progressive Liberal Party's (PLP's) 'absolute nonsense' on the Baha Mar deal
PM lashes out at PLP's 'absolute nonsense' on Baha Mar deal
tribune242
PRIME MINISTER Hubert Ingraham has called the PLP's latest jab over his stance on the Baha Mar deal "absolute nonsense".
The PLP accused Mr Ingraham of making a mockery of the foreign investment process after he declared that the government was still not satisfied with the terms of the deal, particularly with regard to the foreign labour element and the fact that the entire project is to be completed in one phase.
The PLP accused the government and Mr Ingraham of having policies that "come off as shifting sands, sinking ground".
But in a dismissive two line statement issued yesterday, the prime minister said the PLP's problem is they "simply cannot take a stand".
"Having negotiated a deal giving away our land, they shamelessly continue to defend the indefensible," he said.
The debate over the proposed $2.6 billion resort development intensified this week after Baha Mar announced it had concluded an agreement with SoctiaBank over outstanding loan payments, this being considered one of the final hurdles to the project getting off the ground.
Mr Ingraham responded shortly after, saying the government still has concerns about the deal.
This prompted the PLP, on whose watch the Baha Mar heads of agreement were signed, to accuse the government of not sticking to its word. The party issued a statement which read: "What does someone think of a prime minister who comes to parliament asking parliament to approve a project, having negotiated a new agreement with Baha Mar and then unceremoniously abrogates that agreement by changing the rules in the middle of the game?
Warned
"We warned him that there was a problem with the high foreign labour content. He was dismissive saying a deal was a deal.
"We warned him of the consequences of default of the project falling into the hands of a foreign state. He was dismissive and said a deal was a deal.
"Now it turns out that a deal is not a deal and he is prepared to flip and flop at every turn to save his political skin."The opposition said the Baha Mar project is the only major investment game in town and there is no other project on the horizon that offers the same level of capital injection, job creation, economic stimulation, and public revenue generation - all of which "the weakened and challenged economy of the Bahamas so desperately needs."
October 09, 2010
tribune242
tribune242
PRIME MINISTER Hubert Ingraham has called the PLP's latest jab over his stance on the Baha Mar deal "absolute nonsense".
The PLP accused Mr Ingraham of making a mockery of the foreign investment process after he declared that the government was still not satisfied with the terms of the deal, particularly with regard to the foreign labour element and the fact that the entire project is to be completed in one phase.
The PLP accused the government and Mr Ingraham of having policies that "come off as shifting sands, sinking ground".
But in a dismissive two line statement issued yesterday, the prime minister said the PLP's problem is they "simply cannot take a stand".
"Having negotiated a deal giving away our land, they shamelessly continue to defend the indefensible," he said.
The debate over the proposed $2.6 billion resort development intensified this week after Baha Mar announced it had concluded an agreement with SoctiaBank over outstanding loan payments, this being considered one of the final hurdles to the project getting off the ground.
Mr Ingraham responded shortly after, saying the government still has concerns about the deal.
This prompted the PLP, on whose watch the Baha Mar heads of agreement were signed, to accuse the government of not sticking to its word. The party issued a statement which read: "What does someone think of a prime minister who comes to parliament asking parliament to approve a project, having negotiated a new agreement with Baha Mar and then unceremoniously abrogates that agreement by changing the rules in the middle of the game?
Warned
"We warned him that there was a problem with the high foreign labour content. He was dismissive saying a deal was a deal.
"We warned him of the consequences of default of the project falling into the hands of a foreign state. He was dismissive and said a deal was a deal.
"Now it turns out that a deal is not a deal and he is prepared to flip and flop at every turn to save his political skin."The opposition said the Baha Mar project is the only major investment game in town and there is no other project on the horizon that offers the same level of capital injection, job creation, economic stimulation, and public revenue generation - all of which "the weakened and challenged economy of the Bahamas so desperately needs."
October 09, 2010
tribune242
Stephen Wrinkle - Bahamas Contractors Association (BCA) President says: It is time for industry involvement in the Baha Mar negotiations
Call for more industry input in Baha Mar negotiations
NOELLE NICOLLS
Tribune Staff Reporter
nnicolls@tribunemedia.net
IT IS time for industry involvement in the Baha Mar negotiations, according to the Bahamas Contractors Association.
Since the BCA submitted its position paper to the government in August it has received no response. Association president Stephen Wrinkle said "it seems to be the typical way of doing business" that industry stakeholders are not consulted.
Mr Wrinkle's comments came in the wake of Prime Minister Hubert Ingraham making his strongest personal statements yet on the Baha Mar issue.
Now that the financial hurdles have been overcome, Mr Wrinkle said he hopes the major stakeholders - Baha Mar, government and industry - will be brought together to iron out the remaining kinks.
"I would have thought more industry consultation would have taken place. They certainly have access to people in the industry through the Ministry of Works, but then again that is a government ministry," said Mr Wrinkle.
"We met with the opposition party and their caucus; we briefed them on our position paper and had discussions. We have met with Baha Mar and had discussions with them, but we have had absolutely no response from the government. I couldn't elaborate any further on what their position is because we don't know," he said.
Last week Mr Ingraham suggested Baha Mar may have to review the labour component of its proposal as well as plans for a "single-phased development" in order to satisfy the government's concerns.
One of the main concerns of industry, according to Mr Wrinkle, is the involvement of Bahamian contractors and the transfer of knowledge.
"These big international contracts are extremely difficult to micro-manage at a small level. It will take additional resources on their part to include more Bahamian contractors. It will take more oversight, more management, more participation from the project management team. We understand that," said Mr Wrinkle.
"I think there are concessions that have been given and others that are available to offset this added expense. The tradeoff is well worth it," he said.
On the matter of transferring knowledge, Mr Wrinkle said foreign contractors are not interested in transferring knowledge at the level of labour.
If the focus is only on supplying labour, he said, there would likely be little transfer of knowledge.
"How do you transfer knowledge on how to drive a shovel? That is nothing. We don't need that type of transfer of knowledge. We need to capitalise on techniques and technologies that are unavailable to us on the local market.
"There is not transfer at knowledge at the labour level. It is the duty of the government, the responsibility of government to put in place measures to ensure participation of the local industry. We cannot do it on our own," he said.
So far, Baha Mar has been responsive to the concerns of industry representatives, according to Mr Wrinkle.
However, there are currently no pledges on the table for money to be allocated for training and no stipulations requiring Baha Mar to integrate Bahamian contractors and their crews into the Baha Mar project.
October 09, 2010
tribune242
NOELLE NICOLLS
Tribune Staff Reporter
nnicolls@tribunemedia.net
IT IS time for industry involvement in the Baha Mar negotiations, according to the Bahamas Contractors Association.
Since the BCA submitted its position paper to the government in August it has received no response. Association president Stephen Wrinkle said "it seems to be the typical way of doing business" that industry stakeholders are not consulted.
Mr Wrinkle's comments came in the wake of Prime Minister Hubert Ingraham making his strongest personal statements yet on the Baha Mar issue.
Now that the financial hurdles have been overcome, Mr Wrinkle said he hopes the major stakeholders - Baha Mar, government and industry - will be brought together to iron out the remaining kinks.
"I would have thought more industry consultation would have taken place. They certainly have access to people in the industry through the Ministry of Works, but then again that is a government ministry," said Mr Wrinkle.
"We met with the opposition party and their caucus; we briefed them on our position paper and had discussions. We have met with Baha Mar and had discussions with them, but we have had absolutely no response from the government. I couldn't elaborate any further on what their position is because we don't know," he said.
Last week Mr Ingraham suggested Baha Mar may have to review the labour component of its proposal as well as plans for a "single-phased development" in order to satisfy the government's concerns.
One of the main concerns of industry, according to Mr Wrinkle, is the involvement of Bahamian contractors and the transfer of knowledge.
"These big international contracts are extremely difficult to micro-manage at a small level. It will take additional resources on their part to include more Bahamian contractors. It will take more oversight, more management, more participation from the project management team. We understand that," said Mr Wrinkle.
"I think there are concessions that have been given and others that are available to offset this added expense. The tradeoff is well worth it," he said.
On the matter of transferring knowledge, Mr Wrinkle said foreign contractors are not interested in transferring knowledge at the level of labour.
If the focus is only on supplying labour, he said, there would likely be little transfer of knowledge.
"How do you transfer knowledge on how to drive a shovel? That is nothing. We don't need that type of transfer of knowledge. We need to capitalise on techniques and technologies that are unavailable to us on the local market.
"There is not transfer at knowledge at the labour level. It is the duty of the government, the responsibility of government to put in place measures to ensure participation of the local industry. We cannot do it on our own," he said.
So far, Baha Mar has been responsive to the concerns of industry representatives, according to Mr Wrinkle.
However, there are currently no pledges on the table for money to be allocated for training and no stipulations requiring Baha Mar to integrate Bahamian contractors and their crews into the Baha Mar project.
October 09, 2010
tribune242
Sunday, October 10, 2010
Stephen Wrinkle, Bahamas Contractors Association (BCA) president said the Baha Mar project could drain the country of workers in a "New York minute", and leave Bahamian contractors "left on the side lines."
Fears Baha Mar could drain country of workers
By NOELLE NICOLLS
Tribune Staff Reporter
nnicolls@tribunemedia.net
If Baha Mar drains the labour pool of Bahamian workers then contractors will be left twiddling their thumbs, according to the Bahamas Contractors Association.
Stephen Wrinkle, BCA president said the project could drain the country of workers in a "New York minute", and leave Bahamian contractors "left on the side lines." It has happened before and it could happen again, he said. "(Atlantis) drained our labour pool and caused the labour rates to go up; the supply of skilled labour was at a bare minimum for local contractors. It was that experience that caused us to learn you cannot just take the labour. Otherwise what is the point of having Bahamian contractors. Why not just have a labour agent," said Mr Wrinkle.
The situation will not be different this time around unless the government requires Baha Mar to insert specific language in any final agreement mandating the participation of Bahamian contractors and funding to train Bahamians.
His comments came in the wake of Prime Minister Hubert Ingraham calling the labour component of Baha Mar "onerous, burdensome and unacceptable."
Baha Mar has requested work permits for 8150 foreign workers over the life span of the $2.6 billion project and pledged $60 million in the first instance for Bahamian contractors two work on phase one.
"There are very few contractors poised to participate in the scope of work. We are trying to press the point that they need to employ contractors who would be able to bring their crew and the full resources of the company to the project. Otherwise we are going to have a whole bunch of contractors standing around with no crew," said Mr Wrinkle.
In the long run, he said, the direct trickle down effect from employing Bahamian contractors will be significantly higher than with foreign contractors.
"They have no need to inject money into our local economy. Their priority is to take our labour. What we continue to say is this is the wrong approach, because all we are doing is providing maids and spades. That cannot work; our economy cannot work in a labour only supply environment. We need to see the mandatory inclusion and provision of Bahamian contractors rather than simply bringing in foreign contractors to suck up our labour supply," said Mr Wrinkle.
There were many lessons learned by the industry from the "Kerzner experience." Tribune sources say the number of Mexican and Filipino workers hired to build Atlantis reached the thousands, although Atlantis is often referenced as the poster child for employing Bahamian construction workers.
Mr Wrinkle said that is a fair assessment. It is a well known fact that the Bahamas does not have a sufficient number of workers to fill the labour needs of large foreign direct investment (FDI) projects like Atlantis and Baha Mar, he said.
Mr Wrinkle speculated that is why the Prime Minister "was hoping Baha Mar could be phased, so we wouldn't need that tremendous injection of foreign labour."
That is why it is important for the government to ensure the participation of Bahamian contractors and not just labourers on FDI projects, he said.
In the case of Atlantis, Mr Wrinkle said it was only because of the persistence of the BCA that Bahamian contractors got a piece of the Atlantis pie.
"It took us until phase three to have substantial participation on that project. We fought long and hard against Atlantis before we finally got a piece of the pie over there. It was not a gift. Mr Kerzner did not voluntarily employ Bahamians.
"At the end of the day we were successful at negotiating with them for the participation of Bahamian contractors," he said.
October 09, 2010
tribune242
By NOELLE NICOLLS
Tribune Staff Reporter
nnicolls@tribunemedia.net
If Baha Mar drains the labour pool of Bahamian workers then contractors will be left twiddling their thumbs, according to the Bahamas Contractors Association.
Stephen Wrinkle, BCA president said the project could drain the country of workers in a "New York minute", and leave Bahamian contractors "left on the side lines." It has happened before and it could happen again, he said. "(Atlantis) drained our labour pool and caused the labour rates to go up; the supply of skilled labour was at a bare minimum for local contractors. It was that experience that caused us to learn you cannot just take the labour. Otherwise what is the point of having Bahamian contractors. Why not just have a labour agent," said Mr Wrinkle.
The situation will not be different this time around unless the government requires Baha Mar to insert specific language in any final agreement mandating the participation of Bahamian contractors and funding to train Bahamians.
His comments came in the wake of Prime Minister Hubert Ingraham calling the labour component of Baha Mar "onerous, burdensome and unacceptable."
Baha Mar has requested work permits for 8150 foreign workers over the life span of the $2.6 billion project and pledged $60 million in the first instance for Bahamian contractors two work on phase one.
"There are very few contractors poised to participate in the scope of work. We are trying to press the point that they need to employ contractors who would be able to bring their crew and the full resources of the company to the project. Otherwise we are going to have a whole bunch of contractors standing around with no crew," said Mr Wrinkle.
In the long run, he said, the direct trickle down effect from employing Bahamian contractors will be significantly higher than with foreign contractors.
"They have no need to inject money into our local economy. Their priority is to take our labour. What we continue to say is this is the wrong approach, because all we are doing is providing maids and spades. That cannot work; our economy cannot work in a labour only supply environment. We need to see the mandatory inclusion and provision of Bahamian contractors rather than simply bringing in foreign contractors to suck up our labour supply," said Mr Wrinkle.
There were many lessons learned by the industry from the "Kerzner experience." Tribune sources say the number of Mexican and Filipino workers hired to build Atlantis reached the thousands, although Atlantis is often referenced as the poster child for employing Bahamian construction workers.
Mr Wrinkle said that is a fair assessment. It is a well known fact that the Bahamas does not have a sufficient number of workers to fill the labour needs of large foreign direct investment (FDI) projects like Atlantis and Baha Mar, he said.
Mr Wrinkle speculated that is why the Prime Minister "was hoping Baha Mar could be phased, so we wouldn't need that tremendous injection of foreign labour."
That is why it is important for the government to ensure the participation of Bahamian contractors and not just labourers on FDI projects, he said.
In the case of Atlantis, Mr Wrinkle said it was only because of the persistence of the BCA that Bahamian contractors got a piece of the Atlantis pie.
"It took us until phase three to have substantial participation on that project. We fought long and hard against Atlantis before we finally got a piece of the pie over there. It was not a gift. Mr Kerzner did not voluntarily employ Bahamians.
"At the end of the day we were successful at negotiating with them for the participation of Bahamian contractors," he said.
October 09, 2010
tribune242
Saturday, October 9, 2010
Baha Mar says: $60 million allocated to Bahamian contractors is only a portion of the overall direct benefit earmarked for Bahamians
$60m 'only a portion' of overall benefit for Bahamians
By NOELLE NICOLLS
Tribune Staff Reporter
nnicolls@tribunemedia.net:
BAHA MAR executives say the $60 million allocated to Bahamian contractors is only a portion of the overall direct benefit earmarked for locals.
Robert Sands, Baha Mar's senior vice-president for governmental and external affairs, said it is "erroneous" to portray the initial $60 million being allocated as the total direct benefit to Bahamians.
He said the company's pledge to award all contracts for the $200 million first phase construction of the $2.6 billion Cable Beach redevelopment is still current. And the figure released to the public represents those initial works the company has quantified.
"Our position has not in fact changed. We have always said in the first phase the value of the works was around $200 million. The first part of that $200 million is $60 million; that is what we have announced and put a value on immediately," said Mr Sands.
The work scheduled for phase one includes the road re-routing, the building of the Commercial Village and the Pompey Village Straw Market.
There "absolutely" will be additional money to be earned by Bahamians in the remaining phases of the project, whether through direct contracts with local companies, the employment for tradesmen or the purchase of local goods and materials, he said.
October 08, 2010
tribune242
By NOELLE NICOLLS
Tribune Staff Reporter
nnicolls@tribunemedia.net:
BAHA MAR executives say the $60 million allocated to Bahamian contractors is only a portion of the overall direct benefit earmarked for locals.
Robert Sands, Baha Mar's senior vice-president for governmental and external affairs, said it is "erroneous" to portray the initial $60 million being allocated as the total direct benefit to Bahamians.
He said the company's pledge to award all contracts for the $200 million first phase construction of the $2.6 billion Cable Beach redevelopment is still current. And the figure released to the public represents those initial works the company has quantified.
"Our position has not in fact changed. We have always said in the first phase the value of the works was around $200 million. The first part of that $200 million is $60 million; that is what we have announced and put a value on immediately," said Mr Sands.
The work scheduled for phase one includes the road re-routing, the building of the Commercial Village and the Pompey Village Straw Market.
There "absolutely" will be additional money to be earned by Bahamians in the remaining phases of the project, whether through direct contracts with local companies, the employment for tradesmen or the purchase of local goods and materials, he said.
October 08, 2010
tribune242
Friday, October 8, 2010
Prime Minister Hubert Ingraham: It's not in our interest to have a Baha Mar - four years single-phased development
PM: BAHA MAR DEAL MUST CHANGE
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
The government is unwilling to back down from its position that the plans for the $2.6 billion Baha Mar project at Cable Beach be adjusted in major ways, Prime Minister Hubert Ingraham said yesterday.
His strongest public comments to date on the controversial project came during a sitdown interview at the House of Assembly late yesterday afternoon.
Speaking of the financing being provided by the China Export-Import Bank, Ingraham said,"Attached to their funding are conditions that are onerous, burdensome and unacceptable insofar as the labor content is concerned and the government is therefore asking that some adjustment be made with respect to the labor content of the deal.
"...There are two things that stick in our claw and we want to be able to digest the project and it is difficult to digest it with these things sticking across here."
Apart from the labor issue, Ingraham referred to Baha Mar's plan to build the massive project at Cable Beach in one phase with a planned 2014 completion.
He said those are "major issues, like a big bone". The prime minister added,"It has to be fixed."
"To do the project in a one, single-phased development is not in our interest, and it's in our interest to have the development but not as a single-phased development. Regrettably, that is the position,"he said.
The prime minister was repetitive in many respects as he sought to stress the government's position on this matter.
"What is going to happen to the hundreds of people who are working in those towers that are going to be demolished(at the Wyndham)while it's going to take four years for the project to be completed?" he questioned.
"They are going to be twiddling their thumbs while foreign workers are constructing the place."
Baha Mar has requested 8,150 work permits for the project.
Ingraham said yesterday,"There is more than enough land between the Nassau Beach(Hotel)and the land owned by Baha Mar east of the Nassau Beach for them to construct their 1,000 room hotel, their casino and whatever else they want to construct and open it.
"And nothing prevents them from building the others at the same time. There's no need whatsoever for all to be built and opened at the same time. That is not in our interest. That may well be in the interest of the financiers, the construction company and the owners of the project, but what about our interest? It is not in our interest."
Ingraham said that given persistent criticisms in the media he has faced over the government's handling of the Baha Mar deal he thought it was important for him to "put his anchor down".
"And it is now down," he said.
The prime minister also said there are a number of conditions that Baha Mar must meet, noting that even if the government said yes to the project, it would not necessarily mean it would start tomorrow.
"I have told the Chinese State Construction Company on two occasions, the most recent of which was when we signed the loan for the Airport Gateway(last week), that it is next to impossible for The Bahamas to approve 8,000 or so Chinese workers constructing a resort in The Bahamas with no Bahamian workers on the site at the same time and no transfer of skills to Bahamians at the same time.
"And I've asked them to go back and review their proposition so that the Government of The Bahamas can take a decision, but it is not possible for a resort to be built in The Bahamas with exclusive foreign labor. That's not possible."
He added,"They are in America. They are building lots of things in the United States of America. They're not using all Chinese labor on those projects. I don't expect all Chinese labor to be used on a project in The Bahamas, period.
"This is my country and this is yours."
Ingraham said,"I'm not now putting to them a percentum. We told Kerzner 70 percent of the workers had to be Bahamian. At the airport where the Canadian company is building the new US Departure Terminal, 75 percent or so percent of the workers are Bahamians.
"We understand the nature and complexity of this project. We understand the finances being provided by the Chinese Export-Import Bank. So we accept that the percentum of labor is going to be higher on such a project than it would be on other projects, but we cannot accept a 100 percent foreign labor content on the project, that's not possible."
Regarding the timing of the approval process, he said,"I don't want to be pressured by anybody."
Ingraham then emphasized that he was "sick and tired"of certain stories related to Baha Mar that were "being peddled every day, putting in people's heads things that are not true."
"This was a deal structured by Baha Mar and the Chinese. That's fine. They have come to us. We're not rubber stamps. We have to have our input, our say, before we make a determination. I think the Bahamian people expect no less of me and the Government of The Bahamas,"he said.
"I spoke, I believe very clearly in the House the other day when I said that firstly we would not consider the resolution on the agenda of the House until we get written confirmation that Baha Mar has settled its loan with Scotia[bank], and that two, we would not deal with the matter of the resolution in the House before I go away(to China)on October 22.
"Nothing has transpired to change those two."
He added"I tried to deal with this before. I scheduled my time to deal with it on two occasions. I don't now want to be pressured by anybody as to when I would do so. When I was ready others were not. In due time I will and it will be announced. So there will be no surprise as to when it is going to be dealt with.
"...We have been more than willing to facilitate and accommodate Baha Mar. It is not our fault that it took all this time for them to come to terms about the loan. It is not our fault. We had two separate meetings of the House of Assembly scheduled for that purpose. They were not in a position to do so."
Asked whether he thought the decision by the Chinese partners to invest in Baha Mar was a vote of confidence in The Bahamas, Ingraham said,"If the Chinese didn't have confidence in The Bahamas they wouldn't even talk to Baha Mar. I wouldn't talk about invest, so the investment's in The Bahamas.
"And we are deeply appreciative for the Chinese willingness to invest that kind of money in The Bahamas. We are deeply appreciative and would wish for the project to go ahead.
"We know what the Chinese interest is in terms of what benefits they get out of the deal...There must be some interest on the part of The Bahamas and The Bahamas'interest is to maximize the benefits which may be derived for The Bahamas from this investment and to ensure that when the project is complete, that the project advances us, enhances our tourism and does not drag us down."
10/6/2010
thenassauguardian
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
The government is unwilling to back down from its position that the plans for the $2.6 billion Baha Mar project at Cable Beach be adjusted in major ways, Prime Minister Hubert Ingraham said yesterday.
His strongest public comments to date on the controversial project came during a sitdown interview at the House of Assembly late yesterday afternoon.
Speaking of the financing being provided by the China Export-Import Bank, Ingraham said,"Attached to their funding are conditions that are onerous, burdensome and unacceptable insofar as the labor content is concerned and the government is therefore asking that some adjustment be made with respect to the labor content of the deal.
"...There are two things that stick in our claw and we want to be able to digest the project and it is difficult to digest it with these things sticking across here."
Apart from the labor issue, Ingraham referred to Baha Mar's plan to build the massive project at Cable Beach in one phase with a planned 2014 completion.
He said those are "major issues, like a big bone". The prime minister added,"It has to be fixed."
"To do the project in a one, single-phased development is not in our interest, and it's in our interest to have the development but not as a single-phased development. Regrettably, that is the position,"he said.
The prime minister was repetitive in many respects as he sought to stress the government's position on this matter.
"What is going to happen to the hundreds of people who are working in those towers that are going to be demolished(at the Wyndham)while it's going to take four years for the project to be completed?" he questioned.
"They are going to be twiddling their thumbs while foreign workers are constructing the place."
Baha Mar has requested 8,150 work permits for the project.
Ingraham said yesterday,"There is more than enough land between the Nassau Beach(Hotel)and the land owned by Baha Mar east of the Nassau Beach for them to construct their 1,000 room hotel, their casino and whatever else they want to construct and open it.
"And nothing prevents them from building the others at the same time. There's no need whatsoever for all to be built and opened at the same time. That is not in our interest. That may well be in the interest of the financiers, the construction company and the owners of the project, but what about our interest? It is not in our interest."
Ingraham said that given persistent criticisms in the media he has faced over the government's handling of the Baha Mar deal he thought it was important for him to "put his anchor down".
"And it is now down," he said.
The prime minister also said there are a number of conditions that Baha Mar must meet, noting that even if the government said yes to the project, it would not necessarily mean it would start tomorrow.
"I have told the Chinese State Construction Company on two occasions, the most recent of which was when we signed the loan for the Airport Gateway(last week), that it is next to impossible for The Bahamas to approve 8,000 or so Chinese workers constructing a resort in The Bahamas with no Bahamian workers on the site at the same time and no transfer of skills to Bahamians at the same time.
"And I've asked them to go back and review their proposition so that the Government of The Bahamas can take a decision, but it is not possible for a resort to be built in The Bahamas with exclusive foreign labor. That's not possible."
He added,"They are in America. They are building lots of things in the United States of America. They're not using all Chinese labor on those projects. I don't expect all Chinese labor to be used on a project in The Bahamas, period.
"This is my country and this is yours."
Ingraham said,"I'm not now putting to them a percentum. We told Kerzner 70 percent of the workers had to be Bahamian. At the airport where the Canadian company is building the new US Departure Terminal, 75 percent or so percent of the workers are Bahamians.
"We understand the nature and complexity of this project. We understand the finances being provided by the Chinese Export-Import Bank. So we accept that the percentum of labor is going to be higher on such a project than it would be on other projects, but we cannot accept a 100 percent foreign labor content on the project, that's not possible."
Regarding the timing of the approval process, he said,"I don't want to be pressured by anybody."
Ingraham then emphasized that he was "sick and tired"of certain stories related to Baha Mar that were "being peddled every day, putting in people's heads things that are not true."
"This was a deal structured by Baha Mar and the Chinese. That's fine. They have come to us. We're not rubber stamps. We have to have our input, our say, before we make a determination. I think the Bahamian people expect no less of me and the Government of The Bahamas,"he said.
"I spoke, I believe very clearly in the House the other day when I said that firstly we would not consider the resolution on the agenda of the House until we get written confirmation that Baha Mar has settled its loan with Scotia[bank], and that two, we would not deal with the matter of the resolution in the House before I go away(to China)on October 22.
"Nothing has transpired to change those two."
He added"I tried to deal with this before. I scheduled my time to deal with it on two occasions. I don't now want to be pressured by anybody as to when I would do so. When I was ready others were not. In due time I will and it will be announced. So there will be no surprise as to when it is going to be dealt with.
"...We have been more than willing to facilitate and accommodate Baha Mar. It is not our fault that it took all this time for them to come to terms about the loan. It is not our fault. We had two separate meetings of the House of Assembly scheduled for that purpose. They were not in a position to do so."
Asked whether he thought the decision by the Chinese partners to invest in Baha Mar was a vote of confidence in The Bahamas, Ingraham said,"If the Chinese didn't have confidence in The Bahamas they wouldn't even talk to Baha Mar. I wouldn't talk about invest, so the investment's in The Bahamas.
"And we are deeply appreciative for the Chinese willingness to invest that kind of money in The Bahamas. We are deeply appreciative and would wish for the project to go ahead.
"We know what the Chinese interest is in terms of what benefits they get out of the deal...There must be some interest on the part of The Bahamas and The Bahamas'interest is to maximize the benefits which may be derived for The Bahamas from this investment and to ensure that when the project is complete, that the project advances us, enhances our tourism and does not drag us down."
10/6/2010
thenassauguardian
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