Kerzner concerned about terms of Baha Mar deal
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
Kerzner International Chairman and CEO Sir Sol Kerzner has concerns about some of the terms of the $2.6 billion Baha Mar deal, Prime Minister Hubert Ingraham said yesterday.
Ingraham told reporters at a meet the press event that he met with Kerzner yesterday morning to discuss those concerns.
“There are some concerns on the part of Kerzner as to the extent to which Baha Mar is getting a deal from The Bahamas that is more favorable to them than Kerzner got,” Ingraham said.
“In 2003 when the government of the day signed an agreement for Kerzner to do its phase three, it agreed that nobody would get a better deal in The Bahamas for any development than Kerzner got.”
He added, “They are concerned about the extent to which they themselves had to pay huge sums of money for property to do their development and Baha Mar was given property at [concessionary] prices. Secondly, they were required to hire 70 percent (Bahamian) workers on their job, and only 30 percent foreigners and we are considering giving Baha Mar these 5,000 to 8,000 Chinese workers.”
Ingraham said Kerzner International officials will get back to the government on the extent to which they have justifiable reasons for their concerns.
“And we will review their concerns and make determinations, but in the meantime it will not interfere with our intention to approve the Baha Mar project by the end of this month,” he said.
Asked whether Kerzner International plans to pursue a phase four of its development, Ingraham said, “The reality is even if they had the money and even if they had the will, the desire, nobody would do a phase four at Atlantis if you’re going to put down on Cable Beach another 2,600 hotel rooms and all the facilities.
“The reality is that there is only one market. Nassau is only just one place and airlift and business and profitability and room rates and the whole host of things (come into play). So it isn’t likely that they are going to do another phase at the moment. That’s not likely.”
Ingraham said Kerzner told him yesterday that there is no truth to rumors that he is considering selling the Atlantis Resort on Paradise Island.
“He said absolutely not,” Ingraham said. “I believe him.”
11/15/2010
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.