Former PLP chairman questions the need for 8,150 Chinese workers
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:
FORMER Progressive Liberal Party chairman Raynard Rigby is urging the opposition to reject the "absurd" notion that Baha Mar developers need 8,150 Chinese workers to construct the $2.6 billion project.
Mr Rigby, partner of law firm Gibson, Rigby and Co, questioned how the PLP could support the proposal in face of a high unemployment rate, suggesting this did not coincide with the group's ideology of being the party of the working man.
"We should reject as absurd the need for 8,150 Chinese workers. Unemployment is reaching 25 per cent. How can the party of the working man agree to such a move without causing irreparable damage to our philosophy?"
Mr Rigby added that the party should only throw its full support behind the Cable Beach redevelopment if the current deal is the same one the PLP left on the table when they lost the general election in 2007.
Over the past few weeks, key members of the PLP have been meeting with trade unionists, Baha Mar officials, and stakeholders in the construction industry in order to formulate an informed position on the current deal.
However, Mr Rigby thinks the party should expand its discussions to public forums in order to glean a clear consensus on party supporters' concerns.
"The views of the unions and other civil groups do not represent the views of the PLP. This is a matter of national importance and the PLP should be taking the leadership on this issue by talking to the Bahamian people ... talking to them and not at them.
"We therefore should go throughout the country seeking the views and opinions of the Bahamian people, that is what a responsible opposition would do that is serious about winning the next general election. This cannot be a deal made in a dark room with the selected few," said Mr Rigby in a letter sent to PLP Leader Perry Christie, a copy of which The Tribune obtained.
The lawyer also cautioned officials in the party to analyse whether the Chinese involvement in Baha Mar will truly benefit the country in the long run, drawing examples with this deal and the Hutchinson Whampoa port, operated by a Hong Kong shipping giant.
"We must assess the Chinese involvement in this deal by looking at their impact in Freeport in the tourism product? Have they assisted with bringing Chinese tourists to Freeport? Have they demonstrated that they are resort/hotel savvy? It seems that the product in Freeport has declined and that no leadership has been brought by the Chinese. How do we know that the same dilemma won't occur at Cable Beach," he asked.
He also criticised statements made by Obie Wilchombe, leader of opposition business in the House of Assembly, who said there is "no chance in hell" that the party would abstain from voting on government's Baha Mar labour resolution.
"I thought that this was a mistake as it came too early in the development of the party's strategy," said Mr Rigby.
Last week, Prime Minister Hubert Ingraham tabled a labour resolution which would pave the way for the approval of work permits for 8,150 Chinese workers on the Baha Mar project in the House of Assembly.
Parliamentarians are expected to vote on the resolution later this month.
September 13, 2010
tribune242
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 developers. Show all posts
Showing posts with label Baha Mar developers. Show all posts
Monday, September 13, 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
Tuesday, September 7, 2010
The $2.6 billion Baha Mar development set to get approval
Baha Mar set to get approval
By ERICA WELLS
NG Managing Editor
ewells@nasguard.com:
The billion-dollar Baha Mar development looks set to get the approval of the Bahamian government.
As reported over the weekend inThe Nassau Guardian, Leader of Government Business in the House of Assembly Tommy Turnquest said it is a given that the governing side intends to support its Baha Mar labor resolution that will be debated in Parliament.
Opposition House Leader Obie Wilchcombe has also said that the PLP supports the deal, with several caveats.
The $2.6 billion Baha Mar deal, which is projected to pump millions and millions of dollars into the local economy, is sorely needed at this time of economic turmoil.
In fact, the most recent Central Bank of The Bahamas report said as much. In its monthly report for July, the bank indicated that "large-scale hotel investment projects" - such as Baha Mar and Atlantis'$100 million investment - could be key to The Bahamas not continuing in recession.
"Domestic economic conditions are expected to remain mild over the remaining months of 2010, although the outlook for 2011 is less certain than in prior months, due to mounting evidence of increased fragility in the U.S. growth momentum. This could dampen the short-to medium-term performance of the tourism sector, and the timing for a turnaround in domestic demand and an improvement in employment conditions,"said the report.
"However, upside benefits could accrue to the economy if the proposed large-scale hotel investment projects gain traction in the coming months."
While there is a general consensus that the $2 billion deal will provide the Bahamian economy with a much-needed infusion, it is the labor issue that has put a damper on the prospect of the project, and in some respects has become a political hot potato.
Baha Mar developers want to bring in 5,000-7,000 Chinese workers to help build the mega resort.
This proposal has been met with much skepticism and in some cases high emotion.
The Bahamian Contractors Association supports the project, but wants the government to make provision for the training of contractors and tradesmen to participate on the project, and the inclusion of the BCA as a focal point for training recruitment.
"If the assurances that the training and maximum utilization of Bahamian contractors are not put into place, we will undermine the industry as well as the Bahamian consumers and developers who have existing or proposed projects,"said the association in a position paper on the proposed project.
"The BCA feels that in conjunction with our association initiatives, government has the opportunity and authority to address this situation. With funding and technical expertise we can maximize significant Bahamian contractor participation through our training and certification programs and through discussion with stakeholders we can reach workable relationships."
The Progressive Liberal Party has laid out a similar case, at least when it comes to training.
Wilchcombe told The Guardian on Friday that the PLP supports the project, but several objectives must be met in order to maximize its benefits to the Bahamian people.
He said that Bahamians must be given opportunities; there must be job training to ensure locals can be employed in skilled areas; current workers at the company should be looked after; there should be a role for the national airline to assist with airlift; there should be consideration of the position of the taxi union; and it is essential that there be an investigation about the energy requirement to power such a large scale development.
The agreement on the Baha Mar development was announced in March. The project will be financed by the Export-Import Bank of China, while construction will be performed by China State Construction Engineering Corporation. At one point the project had been virtually given up on when Harrah's Entertainment, one of the original joint venture partners of the project pulled out in 2008.
It is being billed as an unprecedented resort development in The Bahamas that captures the true spirit of the island and the region.
The 1,000-acre Baha Mar project may start construction before the end of the year if given approval by the Bahamian government. The project has already received approval from the Chinese government. It is scheduled for completion in early 2014.
The project, according to developers, represents the largest single-phase hospitality investment in the Caribbean and a one-of-a-kind destination resort experience in its operation, range of top-shelf accommodations, services and amenities, and"true-to-The Bahamas setting and design".
The development definitely lives up to its description as"mega".
Plans for Baha Mar's first phase include approximately 3,000 rooms; a 100,000 square foot casino; two signature spas and a third world-class destination spa; and an 18-hole championship Jack Nicklaus Signature Golf Course; 200,000 square feet of meeting space; 3,000 feet of continuous beachfront; a 20-acre beach and pool experience; and a 35,000-square-foot retail village with upscale shopping, chef-branded restaurants, and entertainment venues.
A report by the Oxford Economics company set out some of the key economic benefits of Baha Mar, including, 6,500 Bahamians directly employed by Baha Mar by 2014; a further 2,000 jobs indirectly created by the project, totalling 8,500; $5.5 billion in direct wages going straight into the pockets of Bahamian families; a further $1.5 billion in salaries for those indirectly employed; a $14.8 billion contribution to The Bahamas'GDP; $24.5 billion extra in visitor spending over a 20-year period, and; an extra $6.2 billion in government revenues over 25 years.
If approved, this project represents a massive boost to the country's struggling economy. It also represents a delicate balancing act.
According to the Baha Mar project management team, Phase one involves the construction of the commercial village and road re-alignment, which is slated to be awarded to Bahamian contractors and is valued at around $60 million.
Beyond the first phase of construction, the BCA in its position paper accepts that there is a limited pool of skilled construction worker resources in the country, and at any given time the majority of these workers or tradesmen are normally employed by practicing Bahamian contractors.
The BCA says it is primarily concerned with three issues: That the country does not have 4,000 skilled and non-skilled workers ready to participate on the Baha Mar or any project in The Bahamas; the standards which are being used to validate the number of skilled Bahamian workers; and if the requisite number of workers can be trained in time to meet the requirements of the project.
"No one definitively knows how many skilled construction workers are currently in the field. One critical component of this scenario is that if Baha Mar is permitted to hire workers from the existing pool, they will in effect be depleting the pool of skilled workers that Bahamian contractors have paid to train and have kept employed all year round,"says the association.
"Obviously, with a project the size of Baha Mar, in a very short time the skilled and non-skilled workforce will be depleted from the local sector leaving small, medium and large contractors alike with little to no labor resources for the duration of the Baha Mar project."
The BCA fears that this dynamic will have a particularly dramatic and negative impact on the small contractor who may employ only a few workers."When he(or she)loses those workers to Baha Mar, it will possibly cripple this important segment of our industry."
"Since we are pinning our economic recovery hopes not eh turnaround that will be created, it is imperative that we protect and nurture the independent small business growth potential,"says the association.
The BCA is also asking about the possibility of importing other nationalities for labor requirements to the project. According to the BCA, indications are that European, Indian and Mexican contractors, sub-contractors and tradesmen may supplement the Chinese component, particularly in some of the specialty trades.
It is unclear exactly when the Baha Mar resolution will be debated in Parliament and when the project will receive final approval from the Bahamian government.
The Guardian understands that there is a major hurdle preventing that approval from being handed down. It's the debate over the payment of an outstanding loan the company has with Scotiabank, worth around $160 million. It is unclear how long it will take the bank and developers to come to an agreement.
It is understood that Baha Mar has offered the bank, and its partners, a combination of cash and equity in the Cable Beach project, but so far Scotiabank has not accepted.
Bahamians eagerly await the outcome of the proposal that some have said always seemed almost too good to be true.
9/4/2010
thenassauguardian
By ERICA WELLS
NG Managing Editor
ewells@nasguard.com:
The billion-dollar Baha Mar development looks set to get the approval of the Bahamian government.
As reported over the weekend inThe Nassau Guardian, Leader of Government Business in the House of Assembly Tommy Turnquest said it is a given that the governing side intends to support its Baha Mar labor resolution that will be debated in Parliament.
Opposition House Leader Obie Wilchcombe has also said that the PLP supports the deal, with several caveats.
The $2.6 billion Baha Mar deal, which is projected to pump millions and millions of dollars into the local economy, is sorely needed at this time of economic turmoil.
In fact, the most recent Central Bank of The Bahamas report said as much. In its monthly report for July, the bank indicated that "large-scale hotel investment projects" - such as Baha Mar and Atlantis'$100 million investment - could be key to The Bahamas not continuing in recession.
"Domestic economic conditions are expected to remain mild over the remaining months of 2010, although the outlook for 2011 is less certain than in prior months, due to mounting evidence of increased fragility in the U.S. growth momentum. This could dampen the short-to medium-term performance of the tourism sector, and the timing for a turnaround in domestic demand and an improvement in employment conditions,"said the report.
"However, upside benefits could accrue to the economy if the proposed large-scale hotel investment projects gain traction in the coming months."
While there is a general consensus that the $2 billion deal will provide the Bahamian economy with a much-needed infusion, it is the labor issue that has put a damper on the prospect of the project, and in some respects has become a political hot potato.
Baha Mar developers want to bring in 5,000-7,000 Chinese workers to help build the mega resort.
This proposal has been met with much skepticism and in some cases high emotion.
The Bahamian Contractors Association supports the project, but wants the government to make provision for the training of contractors and tradesmen to participate on the project, and the inclusion of the BCA as a focal point for training recruitment.
"If the assurances that the training and maximum utilization of Bahamian contractors are not put into place, we will undermine the industry as well as the Bahamian consumers and developers who have existing or proposed projects,"said the association in a position paper on the proposed project.
"The BCA feels that in conjunction with our association initiatives, government has the opportunity and authority to address this situation. With funding and technical expertise we can maximize significant Bahamian contractor participation through our training and certification programs and through discussion with stakeholders we can reach workable relationships."
The Progressive Liberal Party has laid out a similar case, at least when it comes to training.
Wilchcombe told The Guardian on Friday that the PLP supports the project, but several objectives must be met in order to maximize its benefits to the Bahamian people.
He said that Bahamians must be given opportunities; there must be job training to ensure locals can be employed in skilled areas; current workers at the company should be looked after; there should be a role for the national airline to assist with airlift; there should be consideration of the position of the taxi union; and it is essential that there be an investigation about the energy requirement to power such a large scale development.
The agreement on the Baha Mar development was announced in March. The project will be financed by the Export-Import Bank of China, while construction will be performed by China State Construction Engineering Corporation. At one point the project had been virtually given up on when Harrah's Entertainment, one of the original joint venture partners of the project pulled out in 2008.
It is being billed as an unprecedented resort development in The Bahamas that captures the true spirit of the island and the region.
The 1,000-acre Baha Mar project may start construction before the end of the year if given approval by the Bahamian government. The project has already received approval from the Chinese government. It is scheduled for completion in early 2014.
The project, according to developers, represents the largest single-phase hospitality investment in the Caribbean and a one-of-a-kind destination resort experience in its operation, range of top-shelf accommodations, services and amenities, and"true-to-The Bahamas setting and design".
The development definitely lives up to its description as"mega".
Plans for Baha Mar's first phase include approximately 3,000 rooms; a 100,000 square foot casino; two signature spas and a third world-class destination spa; and an 18-hole championship Jack Nicklaus Signature Golf Course; 200,000 square feet of meeting space; 3,000 feet of continuous beachfront; a 20-acre beach and pool experience; and a 35,000-square-foot retail village with upscale shopping, chef-branded restaurants, and entertainment venues.
A report by the Oxford Economics company set out some of the key economic benefits of Baha Mar, including, 6,500 Bahamians directly employed by Baha Mar by 2014; a further 2,000 jobs indirectly created by the project, totalling 8,500; $5.5 billion in direct wages going straight into the pockets of Bahamian families; a further $1.5 billion in salaries for those indirectly employed; a $14.8 billion contribution to The Bahamas'GDP; $24.5 billion extra in visitor spending over a 20-year period, and; an extra $6.2 billion in government revenues over 25 years.
If approved, this project represents a massive boost to the country's struggling economy. It also represents a delicate balancing act.
According to the Baha Mar project management team, Phase one involves the construction of the commercial village and road re-alignment, which is slated to be awarded to Bahamian contractors and is valued at around $60 million.
Beyond the first phase of construction, the BCA in its position paper accepts that there is a limited pool of skilled construction worker resources in the country, and at any given time the majority of these workers or tradesmen are normally employed by practicing Bahamian contractors.
The BCA says it is primarily concerned with three issues: That the country does not have 4,000 skilled and non-skilled workers ready to participate on the Baha Mar or any project in The Bahamas; the standards which are being used to validate the number of skilled Bahamian workers; and if the requisite number of workers can be trained in time to meet the requirements of the project.
"No one definitively knows how many skilled construction workers are currently in the field. One critical component of this scenario is that if Baha Mar is permitted to hire workers from the existing pool, they will in effect be depleting the pool of skilled workers that Bahamian contractors have paid to train and have kept employed all year round,"says the association.
"Obviously, with a project the size of Baha Mar, in a very short time the skilled and non-skilled workforce will be depleted from the local sector leaving small, medium and large contractors alike with little to no labor resources for the duration of the Baha Mar project."
The BCA fears that this dynamic will have a particularly dramatic and negative impact on the small contractor who may employ only a few workers."When he(or she)loses those workers to Baha Mar, it will possibly cripple this important segment of our industry."
"Since we are pinning our economic recovery hopes not eh turnaround that will be created, it is imperative that we protect and nurture the independent small business growth potential,"says the association.
The BCA is also asking about the possibility of importing other nationalities for labor requirements to the project. According to the BCA, indications are that European, Indian and Mexican contractors, sub-contractors and tradesmen may supplement the Chinese component, particularly in some of the specialty trades.
It is unclear exactly when the Baha Mar resolution will be debated in Parliament and when the project will receive final approval from the Bahamian government.
The Guardian understands that there is a major hurdle preventing that approval from being handed down. It's the debate over the payment of an outstanding loan the company has with Scotiabank, worth around $160 million. It is unclear how long it will take the bank and developers to come to an agreement.
It is understood that Baha Mar has offered the bank, and its partners, a combination of cash and equity in the Cable Beach project, but so far Scotiabank has not accepted.
Bahamians eagerly await the outcome of the proposal that some have said always seemed almost too good to be true.
9/4/2010
thenassauguardian
Friday, July 30, 2010
Concerns over Bahamian participation in the proposed $2.6 billion Baha Mar development
Concerns over Bahamian participation in Baha Mar raised at BCA meeting
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:
CONSTRUCTION industry stakeholders yesterday questioned how the Bahamas Contractors' Association would ensure that small operators get a fair share of work on the proposed $2.6 billion Baha Mar development and similar projects.
These concerns were raised yesterday at a luncheon held by the BCA at the Wyndham Crystal Palace Resort and Casino in Cable Beach to inform the industry of impending changes the local construction sector must adopt to qualify for work on massive foreign investment projects such as Baha Mar.
Baha Mar's developers will introduce $60 million worth of contracts to begin the first phase of the project, which will only be awarded to Bahamian contractors, in the coming weeks.
BCA President Stephen Wrinkle assured the crowd of construction workers, contractors and tradesmen that his organisation would find ways to help create the "maximum Bahamian participation" in the development.
"The reason we're here today is to try to get the little man onboard with these projects. Let's face it – the big fellas, they fight their battles too but they're going to be here whether Baha Mar goes (forward) or not but the little man needs a lil' leg up right now to get along with this project and that's all we're trying to do," he said in a response to a question from the crowd.
The changes, which will allow the local construction sector to meet the expectations of the international market are separated into three parts: Creating a jobs skills bank for the sector; adopting an internationally recognised system of identifying classifications for division contractors; and launching a construction seminar series to help contractors meet the pre-qualification, tendering and administrative requirements of large scale developers.
Courses will then be held at the Bahamas Technical and Vocational Institute (BTVI) to certify these workers, and allow them to received advanced certification.
The skills bank will be of use to contractors and sub-contractors, allowing them to draw from a pool of qualified workers. It also will establish, for the first time according to Mr Wrinkle, national standards for those in the industry, "So that when a carpenter comes looking for work and he shows the certificate you will have some assurance that they have attained the basic, minimum skills required for each level.”
The crowd was also briefed on the most recent developments in the progress of Baha Mar's proposed transformation of the Cable Beach strip, which got a boost this week after the government of the People's Republic of China formally approved the joint venture.
The first phase requires the removal of government and other buildings adjacent to the Sheraton Nassau Beach and Wyndham Crystal Palace hotels, as well as the rerouting of West Bay Street for one and a half miles to skirt Baha Mar’s build site.
Vice president of construction for the project, Tom Dunlap, said the first phase could take 9-18 months.
The development is expected to create 11,000 jobs for Bahamians and add $1 billion to the local economy in the first year after completion. However the future of the project faces another hurdle – final approval from the Bahamas government.
July 29, 2010
tribune242
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:
CONSTRUCTION industry stakeholders yesterday questioned how the Bahamas Contractors' Association would ensure that small operators get a fair share of work on the proposed $2.6 billion Baha Mar development and similar projects.
These concerns were raised yesterday at a luncheon held by the BCA at the Wyndham Crystal Palace Resort and Casino in Cable Beach to inform the industry of impending changes the local construction sector must adopt to qualify for work on massive foreign investment projects such as Baha Mar.
Baha Mar's developers will introduce $60 million worth of contracts to begin the first phase of the project, which will only be awarded to Bahamian contractors, in the coming weeks.
BCA President Stephen Wrinkle assured the crowd of construction workers, contractors and tradesmen that his organisation would find ways to help create the "maximum Bahamian participation" in the development.
"The reason we're here today is to try to get the little man onboard with these projects. Let's face it – the big fellas, they fight their battles too but they're going to be here whether Baha Mar goes (forward) or not but the little man needs a lil' leg up right now to get along with this project and that's all we're trying to do," he said in a response to a question from the crowd.
The changes, which will allow the local construction sector to meet the expectations of the international market are separated into three parts: Creating a jobs skills bank for the sector; adopting an internationally recognised system of identifying classifications for division contractors; and launching a construction seminar series to help contractors meet the pre-qualification, tendering and administrative requirements of large scale developers.
Courses will then be held at the Bahamas Technical and Vocational Institute (BTVI) to certify these workers, and allow them to received advanced certification.
The skills bank will be of use to contractors and sub-contractors, allowing them to draw from a pool of qualified workers. It also will establish, for the first time according to Mr Wrinkle, national standards for those in the industry, "So that when a carpenter comes looking for work and he shows the certificate you will have some assurance that they have attained the basic, minimum skills required for each level.”
The crowd was also briefed on the most recent developments in the progress of Baha Mar's proposed transformation of the Cable Beach strip, which got a boost this week after the government of the People's Republic of China formally approved the joint venture.
The first phase requires the removal of government and other buildings adjacent to the Sheraton Nassau Beach and Wyndham Crystal Palace hotels, as well as the rerouting of West Bay Street for one and a half miles to skirt Baha Mar’s build site.
Vice president of construction for the project, Tom Dunlap, said the first phase could take 9-18 months.
The development is expected to create 11,000 jobs for Bahamians and add $1 billion to the local economy in the first year after completion. However the future of the project faces another hurdle – final approval from the Bahamas government.
July 29, 2010
tribune242
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