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
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 Chinese labor. Show all posts
Showing posts with label Baha Mar Chinese labor. Show all posts
Friday, October 8, 2010
Sunday, September 12, 2010
Sir Baltron Bethel: The Baha Mar project is one of the pillars for the continued expansion and development of the tourism industry
SIR BALTRON BIG ON BAH MAR
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com:
The planned transfer of more than 264 acres of publicly-owned land to the Baha Mar developers would be justified given the tremendous benefits the project would provide for the country, according to Sir Baltron Bethel, who was the chief negotiator for the deal under the Christie government.
"I think that both the original agreement and the supplemental agreement were fair agreements, having been involved with those,"said Sir Baltron, who spoke after he was approached by The Nassau Guardian for an interview yesterday.
"I say that because of what the project is all about. The project is one of the pillars for the continued expansion and development of the tourism industry.
"The Cable Beach resort area is tired and in order to put it right it needed a vision, a plan. Now it could be argued that this project could have been approached in phases, however, the developers'concept was to do the project all one time."
Sir Baltron served as managing director of the Hotel Corporation and also investments and tourism development consultant for the government. He spent many hours helping to arrive at a deal that former Prime Minister Perry Christie had repeatedly said would be transformational.
Unlike Kerzner International's Atlantis Resort on Paradise Island, the Baha Mar project would not be developed in separate phases, Sir Baltron pointed out yesterday.
He noted that the thinking was that Baha Mar would complement Atlantis, and would occur simultaneously with the redevelopment of Lynden Pindling International Airport.
Sir Baltron indicated that when the original deal was being negotiated government negotiators looked closely at all issues surrounding the Cable Beach deal, including the controversial land issue.
"For purposes of finance the developer was unable to obtain financing without there being some provision for the freehold transfer(of publicly-owned land)so that has been the long and short of it and the current arrangement with the Chinese, as I understand it, is contingent upon the freehold being conveyed to the developer."
When he brought a resolution to the House of Assembly on the Baha Mar project on Wednesday, Prime Minister Hubert Ingraham, who is also the minister responsible for lands, said approval for the Baha Mar project requires the transfer of 264.965 acres of publicly-owned land.
Among other properties, this would include the land on which the Wyndham Resort and casino sit; the Nassau Beach Resort; the Hobby Horse Hall parcel; Fidelity Bank; the Cecil Wallace-Whifield Centre; the Cable Beach Police Station and 50 acres on Gladstone Road.
Because of the conditions precedent set by Baha Mar's financiers--The Export-Import Bank of China and the China State Construction Engineering Corporation--these lands are required to be transfered in advance of the start of construction of the project.
"It is the position of my government that these lands will only be transferred for the expressed purpose of facilitating the development and that should the development not proceed the land must return to the government,"said Ingraham, who inherited the Baha Mar deal from the previous administration.
He has termed Baha Mar" a PLP baby "and on Wednesday outlined the requirements, consequences and benefits related to the deal.
Sir Baltron said the Baha Mar agreement must be looked at in the context of today's economic environment.
"The developer has secured the financing. There are very few projects anywhere in the world where financing to the tune of$2.5 billion is available for a tourism project in a developing country," he said.
"I think we have to weigh all of these things; your outlook with regard to how public lands should be transfered and the other demands which are being made in light of prevailing circumstances.
"So the arrangements that are now being proposed represent the best possible arrangements that the developers could secure and certainly it's a feather in the cap of the developer to have obtained such a gigantic amount of funding at the present time."
The Central Bank reported last week in its latest economic report that the outlook for 2011 is less favorable than originally forecast.
"However, upside benefits could accrue to the economy, if the proposed large-scale hotel investment projects gain traction in the coming months,"the Central Bank said.
There is a great deal riding on Baha Mar because of its promise of job creation--even with the 8,150 work permits factored in--and economic spinoffs.
Sir Baltron said given the current depressed climate, Baha Mar would provide"the push that we need".
"If the project gets off the ground it would not only be good for the Baha Mar project and for the economy of New Providence, but it can also be that which could jumpstart other smaller projects," said Sir Baltron, who currently serves as president of the Bahamas Baptist Community College.
These days he is an independent observer as it relates to Baha Mar, he noted.
Speaking of the project, he added,"It would be a good thing from where I sit as president of the Community College in terms of providing jobs and also of being able to continue to provide the kind of services that a growing college like this needs to provide, and we can only do that if the economy is growing."
When Sir Baltron helped negotiate the deal, the Chinese element was not yet a factor.
Asked yesterday what his thoughts are on the extraordinary work permit request, he said,"We all know with Chinese funding there comes the demand for use of a significant amount of Chinese labor, more than would be the norm, but the Chinese have also financed a project for more than the norm. It would be the largest touristic project ever financed in one shot in The Bahamas."
He added,"It's very important to see this project go forward. The government has invested a huge amount of money in the airport. We're going to have the finest airport in all of the Caribbean and the return on that depends upon its utilization which included the Baha Mar project coming to fruition."
9/10/2010
thenassauguardian
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com:
The planned transfer of more than 264 acres of publicly-owned land to the Baha Mar developers would be justified given the tremendous benefits the project would provide for the country, according to Sir Baltron Bethel, who was the chief negotiator for the deal under the Christie government.
"I think that both the original agreement and the supplemental agreement were fair agreements, having been involved with those,"said Sir Baltron, who spoke after he was approached by The Nassau Guardian for an interview yesterday.
"I say that because of what the project is all about. The project is one of the pillars for the continued expansion and development of the tourism industry.
"The Cable Beach resort area is tired and in order to put it right it needed a vision, a plan. Now it could be argued that this project could have been approached in phases, however, the developers'concept was to do the project all one time."
Sir Baltron served as managing director of the Hotel Corporation and also investments and tourism development consultant for the government. He spent many hours helping to arrive at a deal that former Prime Minister Perry Christie had repeatedly said would be transformational.
Unlike Kerzner International's Atlantis Resort on Paradise Island, the Baha Mar project would not be developed in separate phases, Sir Baltron pointed out yesterday.
He noted that the thinking was that Baha Mar would complement Atlantis, and would occur simultaneously with the redevelopment of Lynden Pindling International Airport.
Sir Baltron indicated that when the original deal was being negotiated government negotiators looked closely at all issues surrounding the Cable Beach deal, including the controversial land issue.
"For purposes of finance the developer was unable to obtain financing without there being some provision for the freehold transfer(of publicly-owned land)so that has been the long and short of it and the current arrangement with the Chinese, as I understand it, is contingent upon the freehold being conveyed to the developer."
When he brought a resolution to the House of Assembly on the Baha Mar project on Wednesday, Prime Minister Hubert Ingraham, who is also the minister responsible for lands, said approval for the Baha Mar project requires the transfer of 264.965 acres of publicly-owned land.
Among other properties, this would include the land on which the Wyndham Resort and casino sit; the Nassau Beach Resort; the Hobby Horse Hall parcel; Fidelity Bank; the Cecil Wallace-Whifield Centre; the Cable Beach Police Station and 50 acres on Gladstone Road.
Because of the conditions precedent set by Baha Mar's financiers--The Export-Import Bank of China and the China State Construction Engineering Corporation--these lands are required to be transfered in advance of the start of construction of the project.
"It is the position of my government that these lands will only be transferred for the expressed purpose of facilitating the development and that should the development not proceed the land must return to the government,"said Ingraham, who inherited the Baha Mar deal from the previous administration.
He has termed Baha Mar" a PLP baby "and on Wednesday outlined the requirements, consequences and benefits related to the deal.
Sir Baltron said the Baha Mar agreement must be looked at in the context of today's economic environment.
"The developer has secured the financing. There are very few projects anywhere in the world where financing to the tune of$2.5 billion is available for a tourism project in a developing country," he said.
"I think we have to weigh all of these things; your outlook with regard to how public lands should be transfered and the other demands which are being made in light of prevailing circumstances.
"So the arrangements that are now being proposed represent the best possible arrangements that the developers could secure and certainly it's a feather in the cap of the developer to have obtained such a gigantic amount of funding at the present time."
The Central Bank reported last week in its latest economic report that the outlook for 2011 is less favorable than originally forecast.
"However, upside benefits could accrue to the economy, if the proposed large-scale hotel investment projects gain traction in the coming months,"the Central Bank said.
There is a great deal riding on Baha Mar because of its promise of job creation--even with the 8,150 work permits factored in--and economic spinoffs.
Sir Baltron said given the current depressed climate, Baha Mar would provide"the push that we need".
"If the project gets off the ground it would not only be good for the Baha Mar project and for the economy of New Providence, but it can also be that which could jumpstart other smaller projects," said Sir Baltron, who currently serves as president of the Bahamas Baptist Community College.
These days he is an independent observer as it relates to Baha Mar, he noted.
Speaking of the project, he added,"It would be a good thing from where I sit as president of the Community College in terms of providing jobs and also of being able to continue to provide the kind of services that a growing college like this needs to provide, and we can only do that if the economy is growing."
When Sir Baltron helped negotiate the deal, the Chinese element was not yet a factor.
Asked yesterday what his thoughts are on the extraordinary work permit request, he said,"We all know with Chinese funding there comes the demand for use of a significant amount of Chinese labor, more than would be the norm, but the Chinese have also financed a project for more than the norm. It would be the largest touristic project ever financed in one shot in The Bahamas."
He added,"It's very important to see this project go forward. The government has invested a huge amount of money in the airport. We're going to have the finest airport in all of the Caribbean and the return on that depends upon its utilization which included the Baha Mar project coming to fruition."
9/10/2010
thenassauguardian
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