Chinese consider Baha Mar changes
By CANDIA DAMES Guardian News Editor
candia@nasguard.com
Gov’t presses for $500 million in work for subcontractors
The much-touted $2.6 billion Baha Mar project planned for Cable Beach is hanging in the balance as the government awaits word from the company’s Chinese partners on whether they will make fundamental changes to the deal.
The Nassau Guardian can confirm that the government is waiting on the Chinese to say whether they would agree to Bahamian subcontractors getting up to $500 million of the work, as opposed to the $200 million in work currently envisioned in the deal.
It would mean a stronger involvement of Bahamians on the project, something Prime Minister Hubert Ingraham has been insisting on.
It is understood that Ingraham has also asked the Chinese to agree to a phased development as opposed to a one phase project.
The Guardian has learnt that the government expects an answer from the Chinese on these issues by the end of November. Baha Mar officials had hoped to break ground on their development by then, but that appears unlikely.
Until such time, the Baha Mar resolution — which the government had intended to debate many weeks back — will remain on the shelf in Parliament.
Ingraham told The Nassau Guardian in Beijing late last month that the government expects to have an answer for Baha Mar by the end of 2010.
The prime minister, who returned to Nassau late last week from his travels, has been quiet on his discussions with officials of the China State Construction Engineering Corporation and the China Export-Import Bank.
It remains unclear whether Baha Mar’s request for more than 8,000 work permits will be adjusted.
Not long before he travelled to China, Ingraham stressed that there were certain points the government was not prepared to budge on as it related to the project.
“There are two things that stick in our craw and we want to be able to digest the project and it is difficult to digest it with these things sticking across here,” he said, pointing to his throat.
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.
But Baha Mar CEO Sarkis Izmirlian told The Nassau Gaurdian recently that the one-phased approach was a condition of the financing.
Ingraham said prior to the China trip, “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 while in Beijing, just prior to his meetings, that he expected the Chinese would be receptive to the government’s position.
The prime minister is expected to announce adjustments to Baha Mar’s plans in Parliament after the government hears from the Chinese partners.
11/10/2010
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.
Showing posts with label Baha Mar CEO. Show all posts
Showing posts with label Baha Mar CEO. Show all posts
Wednesday, November 10, 2010
Monday, September 20, 2010
Baha Mar Resolution Iced
BAHA MAR RESOLUTION FACING DELAY
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com:
The government has shelved plans to debate a resolution on the controversial $2.6 billion Baha Mar project on Wednesday, The Nassau Guardian understands.
Instead, it will bring a resolution to approve the borrowing of $68 million to construct a four-lane highway between Lynden Pindling International Airport and the new six-legged roundabout on John. F. Kennedy Drive.
Leader of Government Business in the House Tommy Turnquest said yesterday that there was a change in plans given that the government had not yet received any confirmation that Baha Mar executives have settled a critical loan issue with the Bank of Nova Scotia(Scotiabank).
Baha Mar Chairman and CEO Sarkis Izmirlian was in Toronto last week meeting with top bank officials on the matter. Prime Minister Hubert Ingraham previously said the expectation was for this matter to be resolved by this week.
However, last night it appeared that a resolution had not yet been reached.
The Scotiabank loan issue is considered a final hurdle before the government decides on whether to give final approval for the project. Baha Mar is requesting 8,150 work permits for the mega development. The foreign labor component has shaped up to be the most controversial aspect of the deal.
The government had planned to debate the Baha Mar resolution on Wednesday and Thursday, but plans to do so after the banking issue is cleared up.
Instead, the focus will be on the airport highway resolution.
Last year, the government signed an agreement with China to finance that road project.
The 20-year concessionary loan will be made through the Chinese Export-Import Bank.
The agreement was signed during an official visit of Wu Bangguo, the chairman of the standing committee of China's National People's Congress, to The Bahamas.
During the visit, China and The Bahamas signed several other agreements, including a US $7.32m grant to help fund the construction of the national stadium.
9/17/2010
thenassauguardian
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com:
The government has shelved plans to debate a resolution on the controversial $2.6 billion Baha Mar project on Wednesday, The Nassau Guardian understands.
Instead, it will bring a resolution to approve the borrowing of $68 million to construct a four-lane highway between Lynden Pindling International Airport and the new six-legged roundabout on John. F. Kennedy Drive.
Leader of Government Business in the House Tommy Turnquest said yesterday that there was a change in plans given that the government had not yet received any confirmation that Baha Mar executives have settled a critical loan issue with the Bank of Nova Scotia(Scotiabank).
Baha Mar Chairman and CEO Sarkis Izmirlian was in Toronto last week meeting with top bank officials on the matter. Prime Minister Hubert Ingraham previously said the expectation was for this matter to be resolved by this week.
However, last night it appeared that a resolution had not yet been reached.
The Scotiabank loan issue is considered a final hurdle before the government decides on whether to give final approval for the project. Baha Mar is requesting 8,150 work permits for the mega development. The foreign labor component has shaped up to be the most controversial aspect of the deal.
The government had planned to debate the Baha Mar resolution on Wednesday and Thursday, but plans to do so after the banking issue is cleared up.
Instead, the focus will be on the airport highway resolution.
Last year, the government signed an agreement with China to finance that road project.
The 20-year concessionary loan will be made through the Chinese Export-Import Bank.
The agreement was signed during an official visit of Wu Bangguo, the chairman of the standing committee of China's National People's Congress, to The Bahamas.
During the visit, China and The Bahamas signed several other agreements, including a US $7.32m grant to help fund the construction of the national stadium.
9/17/2010
thenassauguardian
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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