The limitations of the Chinese love affair
thenassauguardian editorial
The Bahamas has fallen fully into the embrace of China. And the rising empire has been kind with its “gifts.”
The $2.6 billion Baha Mar project and the $70 million airport highway are being financed by China. Last week, the government announced that the China Harbour Engineering Company Ltd. will build the North Abaco Port and by-pass road; a bridge between Little and Great Abaco; a port and by-pass highway in Exuma; and the Eleuthera Glass Window Bridge and approaching embankments.
The airport highway money is a part of the $1 billion in loans set aside for the Caribbean by China. The Bahamas has been allocated $150 million of that amount.
Chinese loans are cheap. And The Bahamas is borrowing. What is tied to Chinese money in the developing world, however, is Chinese labor. When China lends or invests in poor countries, it sends lots of Chinese workers to construct the projects it finances.
For poor countries struggling to attract investment or to solicit financing, there is little resolve to make demands of the rising power.
Here in The Bahamas, Sarkis Izmirlian and Baha Mar needed financing. Baha Mar received that financing from China and it also received 8,150 foreign workers (who mostly will be Chinese).
The government borrowed cheap money from China for the airport highway and it received 200 Chinese workers. How many hundreds of Chinese will be forced on The Bahamas to build the Family Island ports and infrastructure upgrades announced last week?
What Bahamians must understand is that when China lends, and it contracts its workers to do the work, a significant amount of the money borrowed goes back to China with the workers who build the project. They pay their workers with money we borrow.
In addition, The Bahamas gets the bill for the loan. Over the years, the interest and principal payments also go to China.
The Chinese also keep their workers on self-contained on-site camps when they are sent abroad. We barely even get them to visit our stores to spend the money we borrowed when they are working in our countries.
The Bahamas should embrace Chinese investment. Without Baha Mar, our near future would look less bright. But The Bahamas must be careful regarding the relationship it develops with China regarding the labor issue.
We lose a significant chuck of the value of these investments when our uneducated laborers are denied work because Chinese get these jobs.
China brilliantly creates unequal trade relationships. China’s manipulated currency has helped it suck a significant portion of manufacturing from the West. It then loans the cash it has made back to countries such as the United States to buy more of its products.
China is now the second largest economy in the world and in the near future it will displace the United States as the world largest economy.
Much debate is needed among our policymakers about the Bahamian-Chinese embrace. We must find ways to continue to attract Chinese money that comes with fewer Chinese workers attached.
We think Chinese investment should be welcomed. We also think a reasonable number of Chinese workers should be accepted. However, China building most of our infrastructure projects and commercial projects almost solely with Chinese labor is not acceptable.
If China does not budge to the representations of a small place such as this, or a small region such as ours, we then have to do some analysis to determine if it is wise to borrow as much from China as opposed to other commercial lenders who do not set similar labor requirements. This issue is not simple.
Bahamians have thus far been okay with China’s involvement in The Bahamas. But as the numbers of Chinese coming to country get larger and larger with each announced project, the attitude towards China in The Bahamas will change. When a country has a double-digit unemployment level, its citizens get upset when foreigners get lots of jobs in their country.
Our political parties must be careful with this relationship. More concessions on the labor issue are needed from a China that does not like to compromise.
3/15/2011
thenassauguardian editorial
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 project. Show all posts
Showing posts with label Baha Mar project. Show all posts
Tuesday, March 15, 2011
Friday, December 31, 2010
Sarkis Izmirlian, Man of the Year
Sarkis Izmirlian JCN Man of the Year
The Bahama Journal
As we here at JCN have done for the past ten years; so do we continue this year: we have decided to recognize certain deserving men and women for the contribution they have made [and continue to make] to the ongoing development of the Bahamas.
We do so not only because we can; but because we must –as a responsible media organization – continue to do all that we can to help build up our nation; and so by the same token, we must always give credit where and when credit is due others.
We note also that, right-thinking Bahamians throughout the length and breadth of the Bahamas are today excited at the vistas of opportunity they see as they contemplate the initiation of the Baha Mar project, slated for the Cable Beach strip.
As in the case of these highly expectant Bahamians, we too look forward to the start-up and completion of this mega-project.
In this regard, it should not take the genius that comes with rocket-science to understand and appreciate the import of a project that promises to employ thousands of Bahamians.
Such a venture would also bring with it a multiplier effect that promises to buoy other aspects of the Bahamian economy, its society and its competitiveness in that wider world where in the struggle for economic pre-eminence and consumer satisfaction, it is excellence that matters most of all.
Izmirlian is this Journal’s Man of the Year because he has been able to match word with deed in support of his stated conclusion to the effect that the Baha Mar project – in its guise as a world-class resort - will significantly benefit The Bahamas and all Bahamians.
We believe him when he says that, “… Baha Mar will make The Bahamas one of the premier tourist locations in the world…"
And so, distilled to its essence, the word we are getting is to the effect that, Baha Mar will draw millions of vacationers and business travelers every year to the resort's six hotels, with almost 3,500 rooms and condos, the largest casino in the Caribbean, the largest convention center in The Bahamas, a world-class golf course, retail village and much more.
In addition, it is to be noted that, Baha Mar –once fully operational- will boast having a staff that is fully operational, with some 98 per cent of the staff being Bahamian.
This is excellent-good news.
It is this new information that supports and under girds the decision we have made to name this entrepreneur par excellence – Sarkis Izmirlian- as our man of the year.
He is this year’s choice not only because of his tenacity and vision; but also for being that kind of investor who clearly has a phenomenal depth of confidence in the Bahamas and in its people.
In addition, he is clearly that kind of man who is driven to get things up and going; here we would also venture that this man has a depth of confidence in himself and in his capacity to get up from under any number of disappointments and challenges.
To put the matter concerning Izmirlian in its proper perspective; this investor makes things happen; in this, he is to be distinguished from all those others who wait patiently for things to line up this or that way.
This is not to say that, he does not recognize the need for perseverance; indeed, he surely had his share of this as he plotted his way through what might have – on first glance- seemed to be seemed so very many high hurdles.
As the record shows; this man persevered; stuck to his guns; sought out and found a worthy strategic partner in the guise of the Chinese Export-Import Bank and has thereafter gone on to victory.
As we now know, “The proposed Cable Beach development would be financed by the Export-Import Bank of China and constructed by the China State Construction Engineering Corporation…”
And clearly, while we reference victory on the part of this man –Sarkis Izmirlian – we are also minded to take note of the fact that, the Bahama Mar project signals good news not only for those who govern, but also for the nation’s Loyal Opposition.
As the record would show, the initial conversations and tentative agreements concerning Baha Mar and the revitalization of the Cable Beach Strip came up for consideration in that time when, the Free National Movement was then in opposition.
In toto, then, the vast majority of our people are also winners in that saga that now involves Sarkis Izmirlian, Baha Mar and the transformation of the tourism product in the Bahamas.
This believer in the Bahamas deserves not only our recognition; but also that of all right-thinking Bahamians.
And so, we salute Sarkis Izmirlian as JCN’s Man of the Year.
December 31, 2010
The Bahama Journal
The Bahama Journal
As we here at JCN have done for the past ten years; so do we continue this year: we have decided to recognize certain deserving men and women for the contribution they have made [and continue to make] to the ongoing development of the Bahamas.
We do so not only because we can; but because we must –as a responsible media organization – continue to do all that we can to help build up our nation; and so by the same token, we must always give credit where and when credit is due others.
We note also that, right-thinking Bahamians throughout the length and breadth of the Bahamas are today excited at the vistas of opportunity they see as they contemplate the initiation of the Baha Mar project, slated for the Cable Beach strip.
As in the case of these highly expectant Bahamians, we too look forward to the start-up and completion of this mega-project.
In this regard, it should not take the genius that comes with rocket-science to understand and appreciate the import of a project that promises to employ thousands of Bahamians.
Such a venture would also bring with it a multiplier effect that promises to buoy other aspects of the Bahamian economy, its society and its competitiveness in that wider world where in the struggle for economic pre-eminence and consumer satisfaction, it is excellence that matters most of all.
Izmirlian is this Journal’s Man of the Year because he has been able to match word with deed in support of his stated conclusion to the effect that the Baha Mar project – in its guise as a world-class resort - will significantly benefit The Bahamas and all Bahamians.
We believe him when he says that, “… Baha Mar will make The Bahamas one of the premier tourist locations in the world…"
And so, distilled to its essence, the word we are getting is to the effect that, Baha Mar will draw millions of vacationers and business travelers every year to the resort's six hotels, with almost 3,500 rooms and condos, the largest casino in the Caribbean, the largest convention center in The Bahamas, a world-class golf course, retail village and much more.
In addition, it is to be noted that, Baha Mar –once fully operational- will boast having a staff that is fully operational, with some 98 per cent of the staff being Bahamian.
This is excellent-good news.
It is this new information that supports and under girds the decision we have made to name this entrepreneur par excellence – Sarkis Izmirlian- as our man of the year.
He is this year’s choice not only because of his tenacity and vision; but also for being that kind of investor who clearly has a phenomenal depth of confidence in the Bahamas and in its people.
In addition, he is clearly that kind of man who is driven to get things up and going; here we would also venture that this man has a depth of confidence in himself and in his capacity to get up from under any number of disappointments and challenges.
To put the matter concerning Izmirlian in its proper perspective; this investor makes things happen; in this, he is to be distinguished from all those others who wait patiently for things to line up this or that way.
This is not to say that, he does not recognize the need for perseverance; indeed, he surely had his share of this as he plotted his way through what might have – on first glance- seemed to be seemed so very many high hurdles.
As the record shows; this man persevered; stuck to his guns; sought out and found a worthy strategic partner in the guise of the Chinese Export-Import Bank and has thereafter gone on to victory.
As we now know, “The proposed Cable Beach development would be financed by the Export-Import Bank of China and constructed by the China State Construction Engineering Corporation…”
And clearly, while we reference victory on the part of this man –Sarkis Izmirlian – we are also minded to take note of the fact that, the Bahama Mar project signals good news not only for those who govern, but also for the nation’s Loyal Opposition.
As the record would show, the initial conversations and tentative agreements concerning Baha Mar and the revitalization of the Cable Beach Strip came up for consideration in that time when, the Free National Movement was then in opposition.
In toto, then, the vast majority of our people are also winners in that saga that now involves Sarkis Izmirlian, Baha Mar and the transformation of the tourism product in the Bahamas.
This believer in the Bahamas deserves not only our recognition; but also that of all right-thinking Bahamians.
And so, we salute Sarkis Izmirlian as JCN’s Man of the Year.
December 31, 2010
The Bahama Journal
Sunday, November 28, 2010
The history of the Baha Mar project
The history of the 1,000 acre Baha Mar project
BY LARRY SMITH
AFTER years of manoeuvering over the 1,000-acre Baha Mar project on Cable Beach, the Ingraham government (in its own words) has finally made sweet lemonade from the sour fruit left on the table by the Christie administration.
In April 2005 the newly formed Baha Mar Development Company (owned by a Lyford Cay-based property developer named Sarkis Izmirlian) bought three aging hotels on the Cable Beach strip with a $200 million loan from the Bank of Nova Scotia. The venerable Nassau Beach was subsequently closed, while the Crystal Palace and Cable Beach Hotels were renovated and re-branded.
That same year Baha Mar concluded an agreement with the Christie administration for a $1 billion-plus development, including several hotels, a casino, retail village, convention centre, expanded golf course, and beach and pool amenities. Ironically, had the project got underway when it was supposed to, it would have opened in the midst of the Great Recession - with potentially devastating consequences.
Side agreements to the 2005 agreement included deferred taxes that could later be paid in instalments, a $20 million marketing contribution from the Ministry of Tourism, and a commitment to upgrade the airport and other infrastructure.
There was also an agreement to transfer to the developer hundreds of acres of both Crown and government land on Cable Beach worth an estimated $150 million.
However, Baha Mar proved unable to raise $400 million in capital, show evidence of further financing, produce detailed plans, or attract world class partners by the agreement's stated deadline of October 2006.
With an election approaching, the Christie government scrambled to revive the project. And by early 2007 it had been reorganised as a joint venture with Harrah's Entertainment. The planned capital spent more than doubled to $2.6 billion (along with more than a quarter billion dollars in government concessions) and promoters were hailing the project as unprecedented in scope and character.
The revised project included a larger casino, double the meeting room space, and 1200 more hotel rooms.
But despite "vigorous negotiations" a deal could not be finalised before May 2007. And when the electoral dust had settled, Perry Christie was replaced as prime minister by Hubert Ingraham, who immediately launched a review of the project.
Although the new government eventually decided it would abide by the 2005 terms, Baha Mar insisted on further negotiations, according to the prime minister. And by February 2008 he unveiled a supplemental Heads of Agreement that trimmed some of the concessions given three years earlier.
"There is high expectation by the Bahamian public about the Baha Mar project," Ingraham acknowledged in March, 2008 during passage of a parliamentary resolution to authorise the transfer of public lands to the developer. "We will do all we can to facilitate it, but I do not want to oversell it."
March 2009 was the new deadline set for the government's conditions to be met so that the deal could be finalised. But long before that could happen, Harrah's got cold feet due to the economic downturn and pulled out of the partnership, putting the whole project in jeopardy. Unable to obtain regular financing in the capital markets, Baha Mar turned to the cash-rich Chinese government to save the development.
Earlier this year, China's Export-Import Bank agreed to arrange $2.5 billion in financing, and Beijing's state-owned construction corporation signed on to build the project, which will feature six hotels and add 3,500 hotel rooms and condos to the country's current inventory of 15,000 - more than half of which in Nassau.
Following the prime minister's recent trip to China to firm up the details of the construction arrangements, the House of Assembly unanimously passed a government-sponsored resolution to approve the project, including the unprecedented issuance of up to 8,150 work permits for non-Bahamian construction workers.
After talks with the Chinese, Ingraham was able to announce that he had doubled the share of business for Bahamian subcontractors, with more than construction 4,000 jobs now on offer, and that some $8 million would be spent on training programmes for Bahamian workers.
"We put down some benchmarks, like the $400 million in Bahamian contracts, and said if they accepted our terms we would approve the project by the end of November," the prime minister told me.
"We always disclose the terms of deals - not like the PLP when they signed the 2005 Baha Mar Heads of Agreement with a confidentiality clause, and contemporaneously issued side letters containing larger exemptions from taxes and committing even more public money in violation of the (phase three) deal they had agreed with Kerzner two years earlier."
In fact, this last point has proven to be the only remaining fly in the Cable Beach lemonade.
The prime minister does not accept that the current Baha Mar deal violates the guarantees to Atlantis developer Sol Kerzner that no subsequent investor would get more favourable terms. Kerzner's complaint focused on the ratio of Bahamian to non-Bahamian construction workers, presumably because Baha Mar will benefit from a cheaper, more skilled, and more productive labour force.
"Among the many requirements that the government imposed (on us) was a strict rule that at least 70 per cent of the total construction labour force would be Bahamian. However, this new (Baha Mar) deal will constitute a complete reversal of (that) standard," Kerzner said angrily.
The prime minister's response is that "the government will review Kerzner's claim and seek to resolve all issues."
The question of whether the Bahamas can accommodate thousands of new hotel rooms opening at the same time is another issue for Atlantis.
"The reason is that the tourism infrastructure needs to catch up to additional demand.
"Airlift is not going to grow and develop in one day just because another 3,000 luxury rooms are opened. And I think that is very critical...and not easily done," Managing Director George Markantonis told The Tribune recently.
The Baha Mar project will get underway before the end of this year, with contracts awarded to Bahamian firms. The China State Construction & Engineering Company should begin work by the spring, and the project could be substantially completed by 2014.
In response to market concerns, Baha Mar has agreed to stagger the opening of the new hotels over a five-month period stretching into 2015, and close the Crystal Palace Hotel during renovations.
According to the Chinese, the project relies on being developed, marketed and operated as a single phase "to induce demand that would not otherwise exist for a series of standalone hotels."
They point out that the Hyatt, Morgan's and Rosewood hotel companies are investing $62 million of their own money into the project, and note that the airport will be redeveloped by the time Baha Mar opens. Expectations are that the tourism market will have rebounded by then.
Another issue that has received somewhat less attention in the media is the provision of water and power for such a massive project being built and brought on stream at one time. As we all know, these commodities are relatively scarce on New Providence these days, and there are fears that our infrastructure will be further strained in the short-term.
In fact, BEC will need to generate an additional 25 megawatts of electricity to accommodate the projected power demand for Baha Mar.
And the developer is supposed to cover the cost of a new BEC substation, as well as build a central sewerage system, and a reverse osmosis plant for potable water.
Although there was understandable shock and dismay when Baha Mar's requirement for such a large foreign labour component first became known, public opinion seems to have quickly moved to accept the inevitable - no doubt fully motivated by the recession.
For example, in June of this year the PLP said it would not involve itself in the decision to allow thousands of Chinese workers into the country and seemed determined to let the government twist in the wind. But only two months later they were singing a different tune, based on the state of the economy.
And from the sense of jubilation conveyed by the government since the Baha Mar deal was approved, it seems that the studied scepticism of the past few years was aimed not only at getting the best deal possible in a difficult environment, but also at drawing the opposition into a full embrace of the project's current framework in order to minimize the obvious political risks.
As one well-connected insider told me: "I'm sure there was some political thinking involved, but for the most part it was to get a doable deal."
What do you think?
Send comments to
larry@tribunemedia.net
Or visit www.bahamapundit.com
November 24, 2010
tribune242
BY LARRY SMITH
AFTER years of manoeuvering over the 1,000-acre Baha Mar project on Cable Beach, the Ingraham government (in its own words) has finally made sweet lemonade from the sour fruit left on the table by the Christie administration.
In April 2005 the newly formed Baha Mar Development Company (owned by a Lyford Cay-based property developer named Sarkis Izmirlian) bought three aging hotels on the Cable Beach strip with a $200 million loan from the Bank of Nova Scotia. The venerable Nassau Beach was subsequently closed, while the Crystal Palace and Cable Beach Hotels were renovated and re-branded.
That same year Baha Mar concluded an agreement with the Christie administration for a $1 billion-plus development, including several hotels, a casino, retail village, convention centre, expanded golf course, and beach and pool amenities. Ironically, had the project got underway when it was supposed to, it would have opened in the midst of the Great Recession - with potentially devastating consequences.
Side agreements to the 2005 agreement included deferred taxes that could later be paid in instalments, a $20 million marketing contribution from the Ministry of Tourism, and a commitment to upgrade the airport and other infrastructure.
There was also an agreement to transfer to the developer hundreds of acres of both Crown and government land on Cable Beach worth an estimated $150 million.
However, Baha Mar proved unable to raise $400 million in capital, show evidence of further financing, produce detailed plans, or attract world class partners by the agreement's stated deadline of October 2006.
With an election approaching, the Christie government scrambled to revive the project. And by early 2007 it had been reorganised as a joint venture with Harrah's Entertainment. The planned capital spent more than doubled to $2.6 billion (along with more than a quarter billion dollars in government concessions) and promoters were hailing the project as unprecedented in scope and character.
The revised project included a larger casino, double the meeting room space, and 1200 more hotel rooms.
But despite "vigorous negotiations" a deal could not be finalised before May 2007. And when the electoral dust had settled, Perry Christie was replaced as prime minister by Hubert Ingraham, who immediately launched a review of the project.
Although the new government eventually decided it would abide by the 2005 terms, Baha Mar insisted on further negotiations, according to the prime minister. And by February 2008 he unveiled a supplemental Heads of Agreement that trimmed some of the concessions given three years earlier.
"There is high expectation by the Bahamian public about the Baha Mar project," Ingraham acknowledged in March, 2008 during passage of a parliamentary resolution to authorise the transfer of public lands to the developer. "We will do all we can to facilitate it, but I do not want to oversell it."
March 2009 was the new deadline set for the government's conditions to be met so that the deal could be finalised. But long before that could happen, Harrah's got cold feet due to the economic downturn and pulled out of the partnership, putting the whole project in jeopardy. Unable to obtain regular financing in the capital markets, Baha Mar turned to the cash-rich Chinese government to save the development.
Earlier this year, China's Export-Import Bank agreed to arrange $2.5 billion in financing, and Beijing's state-owned construction corporation signed on to build the project, which will feature six hotels and add 3,500 hotel rooms and condos to the country's current inventory of 15,000 - more than half of which in Nassau.
Following the prime minister's recent trip to China to firm up the details of the construction arrangements, the House of Assembly unanimously passed a government-sponsored resolution to approve the project, including the unprecedented issuance of up to 8,150 work permits for non-Bahamian construction workers.
After talks with the Chinese, Ingraham was able to announce that he had doubled the share of business for Bahamian subcontractors, with more than construction 4,000 jobs now on offer, and that some $8 million would be spent on training programmes for Bahamian workers.
"We put down some benchmarks, like the $400 million in Bahamian contracts, and said if they accepted our terms we would approve the project by the end of November," the prime minister told me.
"We always disclose the terms of deals - not like the PLP when they signed the 2005 Baha Mar Heads of Agreement with a confidentiality clause, and contemporaneously issued side letters containing larger exemptions from taxes and committing even more public money in violation of the (phase three) deal they had agreed with Kerzner two years earlier."
In fact, this last point has proven to be the only remaining fly in the Cable Beach lemonade.
The prime minister does not accept that the current Baha Mar deal violates the guarantees to Atlantis developer Sol Kerzner that no subsequent investor would get more favourable terms. Kerzner's complaint focused on the ratio of Bahamian to non-Bahamian construction workers, presumably because Baha Mar will benefit from a cheaper, more skilled, and more productive labour force.
"Among the many requirements that the government imposed (on us) was a strict rule that at least 70 per cent of the total construction labour force would be Bahamian. However, this new (Baha Mar) deal will constitute a complete reversal of (that) standard," Kerzner said angrily.
The prime minister's response is that "the government will review Kerzner's claim and seek to resolve all issues."
The question of whether the Bahamas can accommodate thousands of new hotel rooms opening at the same time is another issue for Atlantis.
"The reason is that the tourism infrastructure needs to catch up to additional demand.
"Airlift is not going to grow and develop in one day just because another 3,000 luxury rooms are opened. And I think that is very critical...and not easily done," Managing Director George Markantonis told The Tribune recently.
The Baha Mar project will get underway before the end of this year, with contracts awarded to Bahamian firms. The China State Construction & Engineering Company should begin work by the spring, and the project could be substantially completed by 2014.
In response to market concerns, Baha Mar has agreed to stagger the opening of the new hotels over a five-month period stretching into 2015, and close the Crystal Palace Hotel during renovations.
According to the Chinese, the project relies on being developed, marketed and operated as a single phase "to induce demand that would not otherwise exist for a series of standalone hotels."
They point out that the Hyatt, Morgan's and Rosewood hotel companies are investing $62 million of their own money into the project, and note that the airport will be redeveloped by the time Baha Mar opens. Expectations are that the tourism market will have rebounded by then.
Another issue that has received somewhat less attention in the media is the provision of water and power for such a massive project being built and brought on stream at one time. As we all know, these commodities are relatively scarce on New Providence these days, and there are fears that our infrastructure will be further strained in the short-term.
In fact, BEC will need to generate an additional 25 megawatts of electricity to accommodate the projected power demand for Baha Mar.
And the developer is supposed to cover the cost of a new BEC substation, as well as build a central sewerage system, and a reverse osmosis plant for potable water.
Although there was understandable shock and dismay when Baha Mar's requirement for such a large foreign labour component first became known, public opinion seems to have quickly moved to accept the inevitable - no doubt fully motivated by the recession.
For example, in June of this year the PLP said it would not involve itself in the decision to allow thousands of Chinese workers into the country and seemed determined to let the government twist in the wind. But only two months later they were singing a different tune, based on the state of the economy.
And from the sense of jubilation conveyed by the government since the Baha Mar deal was approved, it seems that the studied scepticism of the past few years was aimed not only at getting the best deal possible in a difficult environment, but also at drawing the opposition into a full embrace of the project's current framework in order to minimize the obvious political risks.
As one well-connected insider told me: "I'm sure there was some political thinking involved, but for the most part it was to get a doable deal."
What do you think?
Send comments to
larry@tribunemedia.net
Or visit www.bahamapundit.com
November 24, 2010
tribune242
Monday, November 22, 2010
Sir Sol Kerzner and the Baha Mar deal
Kerzner's concerns on Baha Mar project
By PAUL G TURNQUEST
Tribune Staff Reporter
pturnquest@tribunemedia.net
A NEW day is dawning in the Bahamas. An entity that was once only talked about will soon become a reality on Cable Beach - Baha Mar.
At an estimated value of over $2.6 billion, it is considered by all estimates to be a monolithic project. To some it is considered a monstrosity that will consume all that was here before it. To others it is a golden egg.
To the chairman and CEO of Kerzner International, Sir Sol Kerzner, it is something else altogether.
Last week, Sir Sol made a rare appearance in the local press by issuing a statement to the media on the impending approval of Bah Mar.
In his statement, Sir Sol said that while they welcomed any project that would enhance and improve the tourism sector in The Bahamas, "the proposed terms of the Baha Mar project violates the Kerzner Heads of Agreement with The Bahamas." He promised that Kerzner International would discuss with the Government how to address this "breach" in their "most favoured nation" clause.
Principle
Since this statement there has been much talk in the press about what exactly a most favoured nation clause is. According to the Minister of State for Finance, Zhivargo Laing, a MFN classification is an internationally established economic principle, centrally recognized by the World Trade Organization (WTO), which seeks to establish a level playing field between mutual parties.
"The term is counter intuitive," Minister Laing explained.
"The name suggests that you treat the entity with MFN status more favourably than others, but what it really means is that you treat everyone alike; you don't treat anyone more favourably," he said.
Based on the MFN principle, if one MFN entity is granted special Customs rates, for example, then all MFN entities should be granted special Customs rates. The specific rates would be established by government policy or law.
In the case of the Bahamas, the Hotels Encouragement Act addresses the issue of concessions, while allowances for labour are specified in government policy, he said.
In order to establish whether a breach of MFN privilege exists, Mr Laing suggested one would have to assess a competing agreement "in its totality" and not compare a single line item. He said the question of a breach is "not so simple from the government's point of view."
In fact during the Prime Minister's wrap up on the Baha Mar debate he said, "I do not concede that we would be in breach of the deal with Kerzner. The relationship between the Bahamas and Kerzner has been mutually beneficial," Prime Minister Ingraham said.
Sir Sol, however, has taken the conversation to another level when he revealed during a teleconference with the press last week that if Baha Mar were to be approved in its current state the jobs of over 8,000 employees at Atlantis could be put at risk.
"It seems to me pretty ridiculous in this current environment, even if the economic environment were a lot better to look to come in and double the current number of rooms overnight. It seems to me pretty irresponsible. I also believe that one should take into account that we have 8,000 people working with us, and if this were to move forward the likelihood is that people's jobs would have to be threatened. It is just impossible, practically impossible to double the size of the market.
Pressure
"As we said in our statement, last year was a tough year and occupancy was under pressure. Well guess what, this year is even tougher. So it seems pretty ridiculous to me that these folks are wanting to move forward," he said.
And move forward they have. The Baha Mar labour resolution was passed unanimously before the House of Assembly (36 voting for, with four absent), which allows for 8,150 foreign workers, but no more than 5,000 at one time to be employed on the Baha Mar Cable Beach project.
Following this unanimous vote in the House of Assembly last week, Baha Mar's senior vice-president of external affairs, Robert "Sandy" Sands said that construction for the single-phase $2.6 billion Baha Mar development project could break ground as early as January, pending the close of the Export Import (EXIM) Bank of China loan.
Contractors have already been chosen for the first six construction packages, totaling $60 million, which will include the new Commercial Village contracts and the new West Bay Street.
According to Mr Sands, the initial payout will cover construction contracts and also includes numerous Bahamian architects, engineers, quantity surveyors, suppliers and many other related parties who will participate in these first six contract packages.
Prior to the approval of this massive project, Sir Sol said that he did not want to speculate on what he would do if Baha Mar was approved without at least the development being "phased" in as his Atlantis properties were. Now that the project has been pushed through the proverbial pipeline, the question remains: What will Atlantis do in response?
Addressing these concerns, Prime Minister Hubert Ingraham informed the nation that he was confident that Sir Sol's concerns about Baha Mar could be resolved satisfactorily.
He also publicly proclaimed his respect and gratitude for Sir Sol's contributions to the country, adding that he will do anything in his power to ensure the Atlantis product remains successful on Paradise Island. However this commitment, he said, does not mean he will not be fair to other developers.
"We were always concerned, when we came to office that there was nothing in the Baha Mar deal that would have given them a better deal than Kerzner. I think I can say that the thing that ticked Kerzner (off) more than anything else is a statement by Perry Christie to the effect that Baha Mar only wants to get what Kerzner got," said Mr Ingraham on the radio show Issues of the Day.
"There is no question in my mind of my high regard for Sol Kerzner and what he has done for the Bahamas. I was berated by many when he came in 1994 and what he has done for the Bahamas has transformed our tourism industry.
"He has provided us with 2,000 more jobs than he committed to, he has a very successful project on Paradise Island and I will do all I can, for as long as I can, to ensure that his project is successful."
"That has nothing to do with whether I will be fair to anybody else. (But) I will not knowingly give anybody else a better deal than Kerzner got," stated the nation's chief.
During his live radio interview, Mr Ingraham also accused the former Christie administration of engaging in secret deals with Baha Mar by promising them concessions not included in their contract.
He said these secret concessions are part of what government is trying to renegotiate.
"The PLP government gave Baha Mar a deal over and above what they signed in the contract. So on the same day that they signed the contract they issued what was called side letters offering Baha Mar more.
"We tried to pull those things back. We are now doing an analysis to see the extent to which we have been successful, we think we have been somewhat successful in ensuring that there is equity and balance between the two."
Hopefully this "equity" and "balance" between the two resorts will eventually allow the two properties to complement each other, without there being any cannibalism in the marketplace, he said.
However, this appears highly unlikely if both hotels will be aiming for the same dwindling number of "high-end" visitors.
At this stage it is not easy to dismiss Atlantis' concerns as a mere fear of competition when one considers that our air arrivals have not actually been booming over the past few years. With a global recession still wreaking havoc on our tourism industry, no "expert" is willing to guess on when things are expected to turn around in that sector.
Maybe, like the haunting voice in the Hollywood film "A Field of Dreams," if Baha Mar builds it, the tourists will come.
November 22, 2010
Tribune242 Insight
By PAUL G TURNQUEST
Tribune Staff Reporter
pturnquest@tribunemedia.net
A NEW day is dawning in the Bahamas. An entity that was once only talked about will soon become a reality on Cable Beach - Baha Mar.
At an estimated value of over $2.6 billion, it is considered by all estimates to be a monolithic project. To some it is considered a monstrosity that will consume all that was here before it. To others it is a golden egg.
To the chairman and CEO of Kerzner International, Sir Sol Kerzner, it is something else altogether.
Last week, Sir Sol made a rare appearance in the local press by issuing a statement to the media on the impending approval of Bah Mar.
In his statement, Sir Sol said that while they welcomed any project that would enhance and improve the tourism sector in The Bahamas, "the proposed terms of the Baha Mar project violates the Kerzner Heads of Agreement with The Bahamas." He promised that Kerzner International would discuss with the Government how to address this "breach" in their "most favoured nation" clause.
Principle
Since this statement there has been much talk in the press about what exactly a most favoured nation clause is. According to the Minister of State for Finance, Zhivargo Laing, a MFN classification is an internationally established economic principle, centrally recognized by the World Trade Organization (WTO), which seeks to establish a level playing field between mutual parties.
"The term is counter intuitive," Minister Laing explained.
"The name suggests that you treat the entity with MFN status more favourably than others, but what it really means is that you treat everyone alike; you don't treat anyone more favourably," he said.
Based on the MFN principle, if one MFN entity is granted special Customs rates, for example, then all MFN entities should be granted special Customs rates. The specific rates would be established by government policy or law.
In the case of the Bahamas, the Hotels Encouragement Act addresses the issue of concessions, while allowances for labour are specified in government policy, he said.
In order to establish whether a breach of MFN privilege exists, Mr Laing suggested one would have to assess a competing agreement "in its totality" and not compare a single line item. He said the question of a breach is "not so simple from the government's point of view."
In fact during the Prime Minister's wrap up on the Baha Mar debate he said, "I do not concede that we would be in breach of the deal with Kerzner. The relationship between the Bahamas and Kerzner has been mutually beneficial," Prime Minister Ingraham said.
Sir Sol, however, has taken the conversation to another level when he revealed during a teleconference with the press last week that if Baha Mar were to be approved in its current state the jobs of over 8,000 employees at Atlantis could be put at risk.
"It seems to me pretty ridiculous in this current environment, even if the economic environment were a lot better to look to come in and double the current number of rooms overnight. It seems to me pretty irresponsible. I also believe that one should take into account that we have 8,000 people working with us, and if this were to move forward the likelihood is that people's jobs would have to be threatened. It is just impossible, practically impossible to double the size of the market.
Pressure
"As we said in our statement, last year was a tough year and occupancy was under pressure. Well guess what, this year is even tougher. So it seems pretty ridiculous to me that these folks are wanting to move forward," he said.
And move forward they have. The Baha Mar labour resolution was passed unanimously before the House of Assembly (36 voting for, with four absent), which allows for 8,150 foreign workers, but no more than 5,000 at one time to be employed on the Baha Mar Cable Beach project.
Following this unanimous vote in the House of Assembly last week, Baha Mar's senior vice-president of external affairs, Robert "Sandy" Sands said that construction for the single-phase $2.6 billion Baha Mar development project could break ground as early as January, pending the close of the Export Import (EXIM) Bank of China loan.
Contractors have already been chosen for the first six construction packages, totaling $60 million, which will include the new Commercial Village contracts and the new West Bay Street.
According to Mr Sands, the initial payout will cover construction contracts and also includes numerous Bahamian architects, engineers, quantity surveyors, suppliers and many other related parties who will participate in these first six contract packages.
Prior to the approval of this massive project, Sir Sol said that he did not want to speculate on what he would do if Baha Mar was approved without at least the development being "phased" in as his Atlantis properties were. Now that the project has been pushed through the proverbial pipeline, the question remains: What will Atlantis do in response?
Addressing these concerns, Prime Minister Hubert Ingraham informed the nation that he was confident that Sir Sol's concerns about Baha Mar could be resolved satisfactorily.
He also publicly proclaimed his respect and gratitude for Sir Sol's contributions to the country, adding that he will do anything in his power to ensure the Atlantis product remains successful on Paradise Island. However this commitment, he said, does not mean he will not be fair to other developers.
"We were always concerned, when we came to office that there was nothing in the Baha Mar deal that would have given them a better deal than Kerzner. I think I can say that the thing that ticked Kerzner (off) more than anything else is a statement by Perry Christie to the effect that Baha Mar only wants to get what Kerzner got," said Mr Ingraham on the radio show Issues of the Day.
"There is no question in my mind of my high regard for Sol Kerzner and what he has done for the Bahamas. I was berated by many when he came in 1994 and what he has done for the Bahamas has transformed our tourism industry.
"He has provided us with 2,000 more jobs than he committed to, he has a very successful project on Paradise Island and I will do all I can, for as long as I can, to ensure that his project is successful."
"That has nothing to do with whether I will be fair to anybody else. (But) I will not knowingly give anybody else a better deal than Kerzner got," stated the nation's chief.
During his live radio interview, Mr Ingraham also accused the former Christie administration of engaging in secret deals with Baha Mar by promising them concessions not included in their contract.
He said these secret concessions are part of what government is trying to renegotiate.
"The PLP government gave Baha Mar a deal over and above what they signed in the contract. So on the same day that they signed the contract they issued what was called side letters offering Baha Mar more.
"We tried to pull those things back. We are now doing an analysis to see the extent to which we have been successful, we think we have been somewhat successful in ensuring that there is equity and balance between the two."
Hopefully this "equity" and "balance" between the two resorts will eventually allow the two properties to complement each other, without there being any cannibalism in the marketplace, he said.
However, this appears highly unlikely if both hotels will be aiming for the same dwindling number of "high-end" visitors.
At this stage it is not easy to dismiss Atlantis' concerns as a mere fear of competition when one considers that our air arrivals have not actually been booming over the past few years. With a global recession still wreaking havoc on our tourism industry, no "expert" is willing to guess on when things are expected to turn around in that sector.
Maybe, like the haunting voice in the Hollywood film "A Field of Dreams," if Baha Mar builds it, the tourists will come.
November 22, 2010
Tribune242 Insight
Prime Minister Hubert Ingraham: I will not knowingly give anybody else a better deal than Kerzner got...
PM responds to Kerzner’s claims
By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com
Prime Minister Hubert Ingraham said yesterday that he is not concerned with the statements made by Kerzner International’s Chairman and CEO Sol Kerzner that thousands of jobs may be at risk as a result of the Baha Mar project.
Kerzner told reporters on Thursday that the 8,000 jobs at the Atlantis Resort on Paradise Island would be placed in jeopardy if the government approves the Baha Mar project in its current form.
“It’s a deal that makes no sense,” Kerzner said. “It’s a deal that could be harmful to the people of The Bahamas and certainly to future investors and indeed ourselves.”
Kerzner has also argued that the deal between the government and Baha Mar violates the most favored nation status clause his company agreed to with the government in successive agreements.
Under these agreements, no investor should receive more favorable terms with the government than Kerzner’s company.
Ingraham said he thinks the issue with Kerzner will come to a satisfactory conclusion.
“I have many discussions with Mr. Kerzner,” said Prime Minister Ingraham, who was a guest on Love 97’s radio talk show Issues of the Day. “I think that we will resolve this issue satisfactorily. I think so.”
Despite the public criticisms of the Baha Mar deal by Kerzner, the House of Assembly unanimously approved the Baha Mar resolution on Thursday.
The company is seeking 8,150 work permits for non-Bahamian construction workers. The government brought the resolution to the House in order to get the ‘blessing’ of members before it finally approves the project, likely by the end of the month.
“We were always concerned that when we came to office that there was nothing in the Baha Mar deal that would give them a better deal than Kerzner, ”?Ingraham said yesterday. “I think I can say that the thing that ticked Kerzner more than anything else is a statement made by (Progressive Liberal Party Leader) Perry Christie to the effect that Baha Mar only wanted to get what Kerzner got. And he (Kerzner) was of the view that Baha Mar was getting more than him. And he was very hurt that Christie would make such a statement.”
Ingraham said Kerzner is concerned about Baha Mar’s lower construction labor costs, as compared to his company’s construction labor costs. Baha Mar will be mostly using Chinese labor to build its resort. Kerzner used more Bahamian labor at his property, increasing costs.
According to Ingraham, Kerzner is also concerned about the sum Baha Mar paid for the land the development is located on.
Ingraham said one of the reasons why they insisted there had to be a substantial increase to the contract value for Bahamian contractors was to help to offset any question about Kerzner’s concerns.
As a result of negotiations between Ingraham and the Chinese, and subsequent negotiations between the Chinese and Baha Mar, subcontracts to Bahamians in connection with the Baha Mar project will increase from $200 million to $400 million.
Ingraham said he wants to be sure that the government is not giving Baha Mar a better deal than Kerzner.
He added that when the Free National Movement (FNM) government negotiated a deal with Baha Mar in 2008, it did not give Baha Mar some of the concessions the Christie administration had agreed to.
“They issued side letters offering Baha Mar more. We tried to pull those things back. We think we have been somewhat successful ensuring that there is equity and balance between the two,” Ingraham said.
In response to criticism that he treats Kerzner with more regard than he does other developers, Ingraham didn’t shy away from the relationship he shares with the hotel developer. However, he added that all developers are treated fairly.
“There’s no question of my high regard for Sol Kerzner for what he has done for The Bahamas,” Ingraham said adding that Kerzner provided The Bahamas with 2,000 more jobs than he committed to.
“I will do all I can for as long as I can to ensure that his project is successful, but that has nothing to do with whether I will be fair to anyone else. But I will not knowingly give anybody else a better deal than Kerzner got,” he said.
Ingraham added that the Baha Mar project is only going forward because of his government.
He said there was no means by which Baha Mar’s CEO Sarkis Izmirlian could get the funding from the Chinese unless the government gave the Chinese the go ahead.
China Export-Import Bank (China Eximbank) is extending a $2.45 billion loan to Baha Mar.
11/21/2010
thenassauguardian
By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com
Prime Minister Hubert Ingraham said yesterday that he is not concerned with the statements made by Kerzner International’s Chairman and CEO Sol Kerzner that thousands of jobs may be at risk as a result of the Baha Mar project.
Kerzner told reporters on Thursday that the 8,000 jobs at the Atlantis Resort on Paradise Island would be placed in jeopardy if the government approves the Baha Mar project in its current form.
“It’s a deal that makes no sense,” Kerzner said. “It’s a deal that could be harmful to the people of The Bahamas and certainly to future investors and indeed ourselves.”
Kerzner has also argued that the deal between the government and Baha Mar violates the most favored nation status clause his company agreed to with the government in successive agreements.
Under these agreements, no investor should receive more favorable terms with the government than Kerzner’s company.
Ingraham said he thinks the issue with Kerzner will come to a satisfactory conclusion.
“I have many discussions with Mr. Kerzner,” said Prime Minister Ingraham, who was a guest on Love 97’s radio talk show Issues of the Day. “I think that we will resolve this issue satisfactorily. I think so.”
Despite the public criticisms of the Baha Mar deal by Kerzner, the House of Assembly unanimously approved the Baha Mar resolution on Thursday.
The company is seeking 8,150 work permits for non-Bahamian construction workers. The government brought the resolution to the House in order to get the ‘blessing’ of members before it finally approves the project, likely by the end of the month.
“We were always concerned that when we came to office that there was nothing in the Baha Mar deal that would give them a better deal than Kerzner, ”?Ingraham said yesterday. “I think I can say that the thing that ticked Kerzner more than anything else is a statement made by (Progressive Liberal Party Leader) Perry Christie to the effect that Baha Mar only wanted to get what Kerzner got. And he (Kerzner) was of the view that Baha Mar was getting more than him. And he was very hurt that Christie would make such a statement.”
Ingraham said Kerzner is concerned about Baha Mar’s lower construction labor costs, as compared to his company’s construction labor costs. Baha Mar will be mostly using Chinese labor to build its resort. Kerzner used more Bahamian labor at his property, increasing costs.
According to Ingraham, Kerzner is also concerned about the sum Baha Mar paid for the land the development is located on.
Ingraham said one of the reasons why they insisted there had to be a substantial increase to the contract value for Bahamian contractors was to help to offset any question about Kerzner’s concerns.
As a result of negotiations between Ingraham and the Chinese, and subsequent negotiations between the Chinese and Baha Mar, subcontracts to Bahamians in connection with the Baha Mar project will increase from $200 million to $400 million.
Ingraham said he wants to be sure that the government is not giving Baha Mar a better deal than Kerzner.
He added that when the Free National Movement (FNM) government negotiated a deal with Baha Mar in 2008, it did not give Baha Mar some of the concessions the Christie administration had agreed to.
“They issued side letters offering Baha Mar more. We tried to pull those things back. We think we have been somewhat successful ensuring that there is equity and balance between the two,” Ingraham said.
In response to criticism that he treats Kerzner with more regard than he does other developers, Ingraham didn’t shy away from the relationship he shares with the hotel developer. However, he added that all developers are treated fairly.
“There’s no question of my high regard for Sol Kerzner for what he has done for The Bahamas,” Ingraham said adding that Kerzner provided The Bahamas with 2,000 more jobs than he committed to.
“I will do all I can for as long as I can to ensure that his project is successful, but that has nothing to do with whether I will be fair to anyone else. But I will not knowingly give anybody else a better deal than Kerzner got,” he said.
Ingraham added that the Baha Mar project is only going forward because of his government.
He said there was no means by which Baha Mar’s CEO Sarkis Izmirlian could get the funding from the Chinese unless the government gave the Chinese the go ahead.
China Export-Import Bank (China Eximbank) is extending a $2.45 billion loan to Baha Mar.
11/21/2010
thenassauguardian
Saturday, November 20, 2010
Prime Minister Hubert Ingraham insists that the Government of The Bahamas will not concede a breach of contract that Kerzner International is alleging will be made - if the Baha Mar project is approved
PM: Govt will not concede breach of Kerzner contract
By CHESTER ROBARDS
Guardian Staff Reporter
chester@nasguard.com
The Government of The Bahamas will not concede a breach of contract that Kerzner International is alleging will be made if the Baha Mar project is approved, Prime Minister Hubert Ingraham insisted last night during his contribution to debate in the House of Assembly. The House unanimously passed the resolution to move forward with the Baha Mar project late last night.
Ingraham urged that Kerzner International, owners of the Atlantis Resort on Paradise Island, should outline why it thinks The Bahamas has breached the ‘Most Favored Nation’ (MFN) clause in its agreement with Kerzner, and put it to his government.
“On behalf of the government, I do not concede that we have breached our agreements with Kerzner,” said Ingraham.
“I await receipt of the particulars of Kerzner’s claim which we will review and determine.
“We always honor our deals. And the arrangement with Kerzner is no exception.”
Kerzner charged in a press release issued Wednesday that the government of The Bahamas has given the Baha Mar developers more favorable labor terms than they received during the development of Atlantis, which violates the MFN clause.
However, Ingraham insisted last night that Baha Mar has not been offered certain concession given Kerzner during their development phases.
He argued that The Bahamas over the years has been just as good to Kerzner as Kerzner has been to the Bahamian people and economy.
“The entry of Kerzner in The Bahamas has been good, indeed very good for The Bahamas,” said Ingraham.
“Kerzner has created as many as 2,000 more new and additional jobs to that required under the terms of the various agreements concluded with the government.
“Kerzner’s impact on training – whether of workers involved in the construction of its various resort properties, or for workers engaged in the operation and maintenance of Kerzner’s properties is clearly evident. The impact of Kerzner International – of Atlantis, the Ocean Club and the Cove, with their themed park, marina, etc, is also evident.
“Yes, Kerzner is good for The Bahamas. It is also true that The Bahamas has been good to Mr. Kerzner.
“It has not been a one way street. The relationship has been mutually beneficial.”
The prime minister also lamented the fact that it took more than six years for Kerzner to bring its concerns to the table, which he insisted cannot stop Baha Mar’s development now.
“I note that Kerzner International is late in expressing its concern with the Baha Mar project; having not voiced those concerns in 2005 when the dimensions of this project would have been very widely covered in the Bahamian press, nor in 2007 when my government made the details of the various agreements concluded with Baha Mar public in this place,” he said.
“I believe, Mr. Speaker, that the horse has left the barn. I am fully confident that this honorable House will signal its approval for this project to proceed.”
Ingraham also took his alloted time in Parliament to reaffirm Baha Mar and China State Construction’s (CSC) commitment to increasing the amount of subcontracted work for Bahamians from $200 to $400 million, and creating an $8 million training program for construction workers, $1 million of which is to be a cash injection at the approval of the project.
Baha Mar and its Chinese partners have also agreed to develop a permanent training and service academy that will prepare Bahamians for the resort properties’ opening and beyond, Ingraham said.
He tabled e-mails and a letter from CSC and Baha Mar bolstering their support for these services.
According to him, the net benefit of this deal for Bahamians and the Bahamian economy far outweigh the counter-arguments to such a large development.
Baha Mar released a statement last night, following the government’s passage of the resolution, thanking it for its support and ensuring that, following their receipt of the final government approvals, they will commence the project by awarding contracts immediately to Bahamian contractors.
The development’s Chairman and CEO Sarkis Izmirlian said his company is dedicated to the project and the economic benefits it promises to The Bahamas.
“The Baha Mar team is delighted with today’s unanimous vote by Parliament,” he said.
“We are dedicated to delivering to The Bahamas this world class destination resort and the immediate and long term economic benefits, both from its construction and operation.
“The government and the Bahamian people are placing their trust in us, not just to have Baha Mar succeed as a business enterprise, but as importantly for Baha Mar to be a productive and exemplary member of the Bahamian community.
“Succeeding for The Bahamas is the key to Baha Mar’s success. This is what Baha Mar is about, and this is the guiding principle with respect to how we will run our business.
“We look forward to the tremendous positive benefits that Baha Mar will bring to The Bahamas.”
11/19/2010
thenassauguardian
By CHESTER ROBARDS
Guardian Staff Reporter
chester@nasguard.com
The Government of The Bahamas will not concede a breach of contract that Kerzner International is alleging will be made if the Baha Mar project is approved, Prime Minister Hubert Ingraham insisted last night during his contribution to debate in the House of Assembly. The House unanimously passed the resolution to move forward with the Baha Mar project late last night.
Ingraham urged that Kerzner International, owners of the Atlantis Resort on Paradise Island, should outline why it thinks The Bahamas has breached the ‘Most Favored Nation’ (MFN) clause in its agreement with Kerzner, and put it to his government.
“On behalf of the government, I do not concede that we have breached our agreements with Kerzner,” said Ingraham.
“I await receipt of the particulars of Kerzner’s claim which we will review and determine.
“We always honor our deals. And the arrangement with Kerzner is no exception.”
Kerzner charged in a press release issued Wednesday that the government of The Bahamas has given the Baha Mar developers more favorable labor terms than they received during the development of Atlantis, which violates the MFN clause.
However, Ingraham insisted last night that Baha Mar has not been offered certain concession given Kerzner during their development phases.
He argued that The Bahamas over the years has been just as good to Kerzner as Kerzner has been to the Bahamian people and economy.
“The entry of Kerzner in The Bahamas has been good, indeed very good for The Bahamas,” said Ingraham.
“Kerzner has created as many as 2,000 more new and additional jobs to that required under the terms of the various agreements concluded with the government.
“Kerzner’s impact on training – whether of workers involved in the construction of its various resort properties, or for workers engaged in the operation and maintenance of Kerzner’s properties is clearly evident. The impact of Kerzner International – of Atlantis, the Ocean Club and the Cove, with their themed park, marina, etc, is also evident.
“Yes, Kerzner is good for The Bahamas. It is also true that The Bahamas has been good to Mr. Kerzner.
“It has not been a one way street. The relationship has been mutually beneficial.”
The prime minister also lamented the fact that it took more than six years for Kerzner to bring its concerns to the table, which he insisted cannot stop Baha Mar’s development now.
“I note that Kerzner International is late in expressing its concern with the Baha Mar project; having not voiced those concerns in 2005 when the dimensions of this project would have been very widely covered in the Bahamian press, nor in 2007 when my government made the details of the various agreements concluded with Baha Mar public in this place,” he said.
“I believe, Mr. Speaker, that the horse has left the barn. I am fully confident that this honorable House will signal its approval for this project to proceed.”
Ingraham also took his alloted time in Parliament to reaffirm Baha Mar and China State Construction’s (CSC) commitment to increasing the amount of subcontracted work for Bahamians from $200 to $400 million, and creating an $8 million training program for construction workers, $1 million of which is to be a cash injection at the approval of the project.
Baha Mar and its Chinese partners have also agreed to develop a permanent training and service academy that will prepare Bahamians for the resort properties’ opening and beyond, Ingraham said.
He tabled e-mails and a letter from CSC and Baha Mar bolstering their support for these services.
According to him, the net benefit of this deal for Bahamians and the Bahamian economy far outweigh the counter-arguments to such a large development.
Baha Mar released a statement last night, following the government’s passage of the resolution, thanking it for its support and ensuring that, following their receipt of the final government approvals, they will commence the project by awarding contracts immediately to Bahamian contractors.
The development’s Chairman and CEO Sarkis Izmirlian said his company is dedicated to the project and the economic benefits it promises to The Bahamas.
“The Baha Mar team is delighted with today’s unanimous vote by Parliament,” he said.
“We are dedicated to delivering to The Bahamas this world class destination resort and the immediate and long term economic benefits, both from its construction and operation.
“The government and the Bahamian people are placing their trust in us, not just to have Baha Mar succeed as a business enterprise, but as importantly for Baha Mar to be a productive and exemplary member of the Bahamian community.
“Succeeding for The Bahamas is the key to Baha Mar’s success. This is what Baha Mar is about, and this is the guiding principle with respect to how we will run our business.
“We look forward to the tremendous positive benefits that Baha Mar will bring to The Bahamas.”
11/19/2010
thenassauguardian
Perry Christie - Opposition Leader says: ... if the government considers itself a partner in the deal with Baha Mar, it should have dealt with the alleged breach with Kerzner outside of the House of Assembly
Christie: Issues with Kerzner should have been resolved first
By CHESTER ROBARDS
Guardian Staff Reporter
chester@nasguard.com
Leader of the Opposition Perry Christie admonished the government during his contribution to debate in the House of Assembly yesterday, for not moving to resolve their apparent breach of a ‘Most Favored Nation’ (MFN) clause with Kerzner International, before bringing the Baha Mar resolution to Parliament for a vote.
Christie said if the government considers itself a partner in the deal with Baha Mar, it should have dealt with the alleged breach with Kerzner outside of the House of Assembly.
According to him, when the government was made aware that Kerzner considered the allowance of 8,000 Chinese workers for the Baha Mar project a violation of MFN, the prime minister should have met with them to resolve the issue before yesterday.
“It looks like there is antagonism in the product, serious difficulties in the product, where the government is making a decision to breach an agreement,” said Christie.
“Because, if we are saying that we are going to approve it (Baha Mar) and he (Sol Kerzner) is saying we are in breach of it (MFN), Parliament should suspend itself, since we have been asked to come to this point to have a determination made as to whether or not we are in breach.”
According to him, the matter of a breach of contract is “a matter to do with partners” and “not to do with public relations of a government”.
He said he was taken aback when Member of Parliament for Marco City, Zhivargo Laing read the press statement in the House of Assembly that was issued by Kerzner International outlining what it considered to be a breach of MFN.
“I was shocked yesterday,” he said. “This (MFN breach) is essentially a major legal matter that has exercised the minds of lawyers here in the attorney general’s office and the Queens Counsel of England.”
Christie also used much of the beginning of his alloted time in the House to respond to the government’s accusations that his party was not an effective government when they were in power and with regard to the Baha Mar agreement.
He got extremely testy with his colleagues across the floor yesterday, reminding them to act like parliamentarians while addressing the House and each other, as Bahamians look to them as a good example.
“We are coming to a time in the country where we have to be careful that we do not begin applying in our country retribution and reaction,” he said.
“That is not good for this country and our leadership in this country must exercise the greatest care as we move forward, dealing with people's reputations.
“Recognize that as best we can, we will try to avoid the snaring remarks and try to focus on the issues at hand.”
11/19/2010
thenassauguardian
By CHESTER ROBARDS
Guardian Staff Reporter
chester@nasguard.com
Leader of the Opposition Perry Christie admonished the government during his contribution to debate in the House of Assembly yesterday, for not moving to resolve their apparent breach of a ‘Most Favored Nation’ (MFN) clause with Kerzner International, before bringing the Baha Mar resolution to Parliament for a vote.
Christie said if the government considers itself a partner in the deal with Baha Mar, it should have dealt with the alleged breach with Kerzner outside of the House of Assembly.
According to him, when the government was made aware that Kerzner considered the allowance of 8,000 Chinese workers for the Baha Mar project a violation of MFN, the prime minister should have met with them to resolve the issue before yesterday.
“It looks like there is antagonism in the product, serious difficulties in the product, where the government is making a decision to breach an agreement,” said Christie.
“Because, if we are saying that we are going to approve it (Baha Mar) and he (Sol Kerzner) is saying we are in breach of it (MFN), Parliament should suspend itself, since we have been asked to come to this point to have a determination made as to whether or not we are in breach.”
According to him, the matter of a breach of contract is “a matter to do with partners” and “not to do with public relations of a government”.
He said he was taken aback when Member of Parliament for Marco City, Zhivargo Laing read the press statement in the House of Assembly that was issued by Kerzner International outlining what it considered to be a breach of MFN.
“I was shocked yesterday,” he said. “This (MFN breach) is essentially a major legal matter that has exercised the minds of lawyers here in the attorney general’s office and the Queens Counsel of England.”
Christie also used much of the beginning of his alloted time in the House to respond to the government’s accusations that his party was not an effective government when they were in power and with regard to the Baha Mar agreement.
He got extremely testy with his colleagues across the floor yesterday, reminding them to act like parliamentarians while addressing the House and each other, as Bahamians look to them as a good example.
“We are coming to a time in the country where we have to be careful that we do not begin applying in our country retribution and reaction,” he said.
“That is not good for this country and our leadership in this country must exercise the greatest care as we move forward, dealing with people's reputations.
“Recognize that as best we can, we will try to avoid the snaring remarks and try to focus on the issues at hand.”
11/19/2010
thenassauguardian
Friday, November 19, 2010
Baha Mar; No Need for Acrimony
The Bahama Journal Editorial
That we live in a time and in a place where some who lead can be petty; can be vindictive and where there is more bile spewing than even the law should allow is today self-evident.
And for sure, that we also live in a time when Bahamians should come together in order to pull themselves up from under is also as clear as day. But as clear happens to be the fact that, there are still so very many Bahamians who – for whatever reason – relish in the politics of personal destruction.
As a direct result of this penchant to see politics as some kind of infernal blood-sport, there are those in parliament who routinely hurl invective and slander-tainted innuendoes at others; all in aid of supposedly winning in a debate.
Much of this is rooted in the fact that some of these people are simply ignorant of the fact that this is just not the way it should be in Parliament.
Here we take some little comfort in the fact that, where ignorance is bliss; ‘tis folly to be wise.
Notwithstanding our current chagrin, there is –yet- some comfort to be found in some of what is about to happen in the House of Assembly.
Here, the good news we have today concerns what seems a dawning consensus to the effect that, the Baha Mar Project should proceed.
We suspect that it will proceed precisely because it seemingly has the potential to help the Bahamas in this dread hour; when things are clearly set to pose any number of other challenges.
Evidently, the principals behind this Baha Mar project are to be given their kudos for having the fortitude to persist in a time and in a place where the going –as they say- was rough.
But yet again, in a world where all’s well that ends well, we are happy to report that, the Rt. Hon. Hubert A. Ingraham seems agreed that the Baha Mar project should and indeed, will proceed.
As this nation’s Chief notes: “...As a result of candid discussions with the Chinese Export Import Bank, the China State Construction Company, and following upon discussions between those companies and their partner, Baha Mar, I can advise that consensus has been reached on a number of significant issues related to the proposed Baha Mar Cable Beach Development...”
And as Mr. Ingraham went on to explain, “First, the construction value of works to be subcontracted to Bahamian contractors and subcontractors has been doubled from $200 million to $400 million. Bahamians will also work on elements of the Core Project... Second, China State Construction and Baha Mar have agreed to an extensive and comprehensive training and retraining programme...”
We also note that, “ Baha Mar has also agreed to establish a Training and Service Academy which will provide extensive training prior to the opening of the various hotels and other amenities. The Academy will be permanent, offering ongoing training opportunities for employees and prospective employees...”
This is surely some very good news for the Bahamian people, writ large. But even while all of this is well and good, we wonder why this eminently worthy project attracted so much venom and so much bile from so very many quarters.
Indeed, even as we send out praise-thanks for what has transpired concerning Baha Mar in the aftermath of the prime minister’s Asian foray and in particular, his visit to Beijing, we remain discomfited by some of what now emanates from Parliament as this matter is debated and digested by the nation’s law-makers.
Indeed, like lots of other Bahamians who routinely tune into some of what passes for debate in parliament; we are not impressed. Like others who believe that the people’s business should be handled with the highest degree of decorum and civility; we are just not impressed with speakers who believe that the essence of debate is to be found in making personal attacks.
And for sure, like lots of other Bahamians who seriously believe that there are times in life when the governing party and its parliamentary opposite should work together – united in service and love – for the achievement of the common good.
We make these few comments as prologue and preface to a more nuanced comment on the current debate concerning the Baha Mar project; with such a commentary coming in when the dust has settled, so to speak.
At that juncture, Baha Mar would be consigned to the category: Done Deal. And yet again, we insist that this project is a good one for the Bahamas, for Baha Mar’s investors and for the governing Free National Movement and Her Majesty’s Loyal Opposition, the Progressive Liberal Party.
November 19th, 2010
The Bahama Journal Editorial
That we live in a time and in a place where some who lead can be petty; can be vindictive and where there is more bile spewing than even the law should allow is today self-evident.
And for sure, that we also live in a time when Bahamians should come together in order to pull themselves up from under is also as clear as day. But as clear happens to be the fact that, there are still so very many Bahamians who – for whatever reason – relish in the politics of personal destruction.
As a direct result of this penchant to see politics as some kind of infernal blood-sport, there are those in parliament who routinely hurl invective and slander-tainted innuendoes at others; all in aid of supposedly winning in a debate.
Much of this is rooted in the fact that some of these people are simply ignorant of the fact that this is just not the way it should be in Parliament.
Here we take some little comfort in the fact that, where ignorance is bliss; ‘tis folly to be wise.
Notwithstanding our current chagrin, there is –yet- some comfort to be found in some of what is about to happen in the House of Assembly.
Here, the good news we have today concerns what seems a dawning consensus to the effect that, the Baha Mar Project should proceed.
We suspect that it will proceed precisely because it seemingly has the potential to help the Bahamas in this dread hour; when things are clearly set to pose any number of other challenges.
Evidently, the principals behind this Baha Mar project are to be given their kudos for having the fortitude to persist in a time and in a place where the going –as they say- was rough.
But yet again, in a world where all’s well that ends well, we are happy to report that, the Rt. Hon. Hubert A. Ingraham seems agreed that the Baha Mar project should and indeed, will proceed.
As this nation’s Chief notes: “...As a result of candid discussions with the Chinese Export Import Bank, the China State Construction Company, and following upon discussions between those companies and their partner, Baha Mar, I can advise that consensus has been reached on a number of significant issues related to the proposed Baha Mar Cable Beach Development...”
And as Mr. Ingraham went on to explain, “First, the construction value of works to be subcontracted to Bahamian contractors and subcontractors has been doubled from $200 million to $400 million. Bahamians will also work on elements of the Core Project... Second, China State Construction and Baha Mar have agreed to an extensive and comprehensive training and retraining programme...”
We also note that, “ Baha Mar has also agreed to establish a Training and Service Academy which will provide extensive training prior to the opening of the various hotels and other amenities. The Academy will be permanent, offering ongoing training opportunities for employees and prospective employees...”
This is surely some very good news for the Bahamian people, writ large. But even while all of this is well and good, we wonder why this eminently worthy project attracted so much venom and so much bile from so very many quarters.
Indeed, even as we send out praise-thanks for what has transpired concerning Baha Mar in the aftermath of the prime minister’s Asian foray and in particular, his visit to Beijing, we remain discomfited by some of what now emanates from Parliament as this matter is debated and digested by the nation’s law-makers.
Indeed, like lots of other Bahamians who routinely tune into some of what passes for debate in parliament; we are not impressed. Like others who believe that the people’s business should be handled with the highest degree of decorum and civility; we are just not impressed with speakers who believe that the essence of debate is to be found in making personal attacks.
And for sure, like lots of other Bahamians who seriously believe that there are times in life when the governing party and its parliamentary opposite should work together – united in service and love – for the achievement of the common good.
We make these few comments as prologue and preface to a more nuanced comment on the current debate concerning the Baha Mar project; with such a commentary coming in when the dust has settled, so to speak.
At that juncture, Baha Mar would be consigned to the category: Done Deal. And yet again, we insist that this project is a good one for the Bahamas, for Baha Mar’s investors and for the governing Free National Movement and Her Majesty’s Loyal Opposition, the Progressive Liberal Party.
November 19th, 2010
The Bahama Journal Editorial
Sir Sol Kerzner says: The proposed deal between the Government of The Bahamas and Baha Mar violates previous agreements between the government and Kerzner International
Sol Kerzner hits out on Baha Mar
By BRENT DEAN
The Nassau Guardian
Deputy News Editor
brentldean@nasguard.com
Says Baha Mar deal violates agreements made with his company
The proposed deal between the Government of The Bahamas and Baha Mar violates previous agreements between the government and Kerzner International, charged Sir Sol Kerzner yesterday.
“Baha Mar proposes employing thousands of foreign Chinese workers, which would represent far more than 30 percent of the total labor force.
Approval of this arrangement by government would be a clear breach of an investment agreement with a developer that has become its largest private employer, and an investor who took a risk on The Bahamas when its economy was struggling far more than it is today,” said Sir Sol Kerzner, chairman and chief executive officer of Kerzner International in a statement.
The House of Assembly is scheduled to conclude debate on the Baha Mar resolution today. The company is seeking 8,150 work permits for Chinese workers to help construct the $2.6 billion resort. The government is seeking the blessing of the House as it grants the work permits. The opposition has said it supports the deal.
In previous heads of agreements between Kerzner and the government, it pledged to grant Kerzner most favored nation status, meaning no investor would be granted concessions greater than Kerzner.
However, in a rare public statement, Kerzner, who is the largest private sector employer in the country, said Baha Mar is being granted much more than his company received.
“When we made our largest single investment of approximately $1 billion for Phase III, we did so based on a heads of agreement signed with the PLP government in 2003. Among the many requirements that government imposed on Kerzner under this and prior agreements was a strict rule that at least 70 percent of the total construction labor force would be Bahamian,” said Kerzner.
“As was the case with the two previous agreements with government, our 2003 agreement included a most favored nation provision that assured Kerzner that our investments would be protected from subsequent investors receiving more favorable terms. These agreements represented a solemn promise by The Bahamas to us that any subsequent investor would only compete against us on a level playing field.”
Prime Minister Hubert Ingraham said on Sunday that the Baha Mar deal would be approved by the end of the month. It is unclear if Kerzner’s intervention will have any effect on that pronouncement.
Yesterday Baha Mar was not pleased with Kerzner’s public intervention.
“We are not going to comment on Mr. Kerzner’s public relations statement. The Baha Mar project has been well vetted with the public, the government and its investors. We are happy the Baha Mar resolution is being debated in Parliament today,” said the company in response to Kerzner.
Kerzner International said it intends to discuss with the government how to address its concerns. As a result of the deal, Baha Mar is to receive on the labor and land components of the proposed deal, Kerzner can argue it is entitled to the same.
The government is transfering 265 acres of public land at Cable Beach to Baha Mar as a part of the deal.
Kerzner International emphasized that the heads of agreement for each of the three phases of development on Paradise Island required that at least 70 percent of the total construction labor force had to be Bahamian.
Bahamian labor is more expensive than labor from countries such as China and Mexico.
The company and its chairman argued that the deal Baha Mar is to receive “would represent a material breach” of its agreement with the government.
“When Kerzner first invested in The Bahamas by acquiring what is now the Coral and Beach Towers out of bankruptcy in May 1994, we made our investment on the basis of agreements with the government that gave us contractual assurances regarding our investment. Although we were confident in our abilities to re-establish the Bahamian tourism industry at that time, we did so in the face of truly dire economic conditions,” said Kerzner in his remarks.
“Accordingly, we insisted upon most favored nation treatment, which would ensure that no subsequent investor would be given advantages that we never enjoyed. Since our first investment, we have always found government – irrespective of the party in office – to be a faithful partner who has justified our initial and subsequent confidence in The Bahamas as an investor. We have invested more than $2.3 billion over the course of our build-out of the three phases of Atlantis, increasing our room count from approximately 1,100 in 1994 to over 4,000 today.
“We have grown the Bahamian workforce from approximately 1,200 employees when we commenced operations in 1994 to nearly 8,000 full-time employees today, not to mention the indirect employment that our investment has generated in the community. Furthermore, we have spent millions on training programs to develop and improve the skills and professionalism of our work force, which has allowed Atlantis to be rated among the top resorts in the world.”
Both the governing Free National Movement and opposition Progressive Liberal Party support the Baha Mar deal.
11/18/2010
thenassauguardian
By BRENT DEAN
The Nassau Guardian
Deputy News Editor
brentldean@nasguard.com
Says Baha Mar deal violates agreements made with his company
The proposed deal between the Government of The Bahamas and Baha Mar violates previous agreements between the government and Kerzner International, charged Sir Sol Kerzner yesterday.
“Baha Mar proposes employing thousands of foreign Chinese workers, which would represent far more than 30 percent of the total labor force.
Approval of this arrangement by government would be a clear breach of an investment agreement with a developer that has become its largest private employer, and an investor who took a risk on The Bahamas when its economy was struggling far more than it is today,” said Sir Sol Kerzner, chairman and chief executive officer of Kerzner International in a statement.
The House of Assembly is scheduled to conclude debate on the Baha Mar resolution today. The company is seeking 8,150 work permits for Chinese workers to help construct the $2.6 billion resort. The government is seeking the blessing of the House as it grants the work permits. The opposition has said it supports the deal.
In previous heads of agreements between Kerzner and the government, it pledged to grant Kerzner most favored nation status, meaning no investor would be granted concessions greater than Kerzner.
However, in a rare public statement, Kerzner, who is the largest private sector employer in the country, said Baha Mar is being granted much more than his company received.
“When we made our largest single investment of approximately $1 billion for Phase III, we did so based on a heads of agreement signed with the PLP government in 2003. Among the many requirements that government imposed on Kerzner under this and prior agreements was a strict rule that at least 70 percent of the total construction labor force would be Bahamian,” said Kerzner.
“As was the case with the two previous agreements with government, our 2003 agreement included a most favored nation provision that assured Kerzner that our investments would be protected from subsequent investors receiving more favorable terms. These agreements represented a solemn promise by The Bahamas to us that any subsequent investor would only compete against us on a level playing field.”
Prime Minister Hubert Ingraham said on Sunday that the Baha Mar deal would be approved by the end of the month. It is unclear if Kerzner’s intervention will have any effect on that pronouncement.
Yesterday Baha Mar was not pleased with Kerzner’s public intervention.
“We are not going to comment on Mr. Kerzner’s public relations statement. The Baha Mar project has been well vetted with the public, the government and its investors. We are happy the Baha Mar resolution is being debated in Parliament today,” said the company in response to Kerzner.
Kerzner International said it intends to discuss with the government how to address its concerns. As a result of the deal, Baha Mar is to receive on the labor and land components of the proposed deal, Kerzner can argue it is entitled to the same.
The government is transfering 265 acres of public land at Cable Beach to Baha Mar as a part of the deal.
Kerzner International emphasized that the heads of agreement for each of the three phases of development on Paradise Island required that at least 70 percent of the total construction labor force had to be Bahamian.
Bahamian labor is more expensive than labor from countries such as China and Mexico.
The company and its chairman argued that the deal Baha Mar is to receive “would represent a material breach” of its agreement with the government.
“When Kerzner first invested in The Bahamas by acquiring what is now the Coral and Beach Towers out of bankruptcy in May 1994, we made our investment on the basis of agreements with the government that gave us contractual assurances regarding our investment. Although we were confident in our abilities to re-establish the Bahamian tourism industry at that time, we did so in the face of truly dire economic conditions,” said Kerzner in his remarks.
“Accordingly, we insisted upon most favored nation treatment, which would ensure that no subsequent investor would be given advantages that we never enjoyed. Since our first investment, we have always found government – irrespective of the party in office – to be a faithful partner who has justified our initial and subsequent confidence in The Bahamas as an investor. We have invested more than $2.3 billion over the course of our build-out of the three phases of Atlantis, increasing our room count from approximately 1,100 in 1994 to over 4,000 today.
“We have grown the Bahamian workforce from approximately 1,200 employees when we commenced operations in 1994 to nearly 8,000 full-time employees today, not to mention the indirect employment that our investment has generated in the community. Furthermore, we have spent millions on training programs to develop and improve the skills and professionalism of our work force, which has allowed Atlantis to be rated among the top resorts in the world.”
Both the governing Free National Movement and opposition Progressive Liberal Party support the Baha Mar deal.
11/18/2010
thenassauguardian
Tuesday, November 16, 2010
Baha Mar project is good for The Bahamas
Forward with Baha Mar
The Bahama Journal Editorial
By way of this commentary, we reiterate a point previously made to the effect that this Baha Mar project is good for the Bahamas and that as such, its approval should be put on the fast track.
We base our conclusion in our conviction that –as designed- this project promises to double the marketing this country now enjoys.
This in turn, promises any number of ancillary benefits.
As Stephen Wrinkle, Bahamas Contractors Association underscores: "Remember what an impact we had when they built phase three of Atlantis. What they’re doing with Baha Mar is equal to all of the phases they did at Atlantis and they’re doing it one phase. This is a big deal…"
As regards the question concerning labor and its role in the realization of the Baha Mar project, Mr. Wrinkle said they were sorely needed.
Here Wrinkle notes that, “…They are calling for 8,000 workers out there; 4,000 workers have got to be found; we can’t provide 4,000 workers. We’d be hard pressed to provide half of that. On these big international projects it’s just a fact of life. We’ve sat at the table; the BCA has tried to represent the interests of Bahamian contractors and workers and we’ve had some success with Baha Mar; they’ve been receptive."
For our part, then, we are very optimistic concerning the goods that come packaged in with this initiative. And so today, we can go no further except to note that, Baha Mar is apparently well on its way to becoming a done deal; this because the current administration has apparently been satisfied with the outcome of prime minister Ingraham’s talks in Beijing on the matter in hand.
This is eminently good news for the Bahamian people.
We wish all well who worked so long and so hard to bring this matter to this state of high resolution. Parenthetically so to speak, this venture yet owes a debt of gratitude not only to the current administration; but also to its predecessor.
And so today we note that, time, reason and commonsense having been congealed into something akin to real understanding are apparently working their magic in a Bahamas where petulance, spite and nit-picking sometimes wreak havoc.
And for sure, as we have consistently lamented, these are surely some of the hardest days experienced by most Bahamians alive in what some of them might deem a ‘modern’ Bahamas.
It is just as true that, some of these Bahamians –having grown accustomed to relatively prosperous times – are beside themselves in distress.
While these hard times might well persist for an indefinite length of time, there is reason for some optimism as certain storm clouds recede; with some of these once shadowing the Baha Mar project with a veil of uncertainty.
Mercifully, things seem to be going in the right direction as the government now signals its intention to move forward with this singularly important venture.
Yet again, we reiterate that, we would very much like both the governing party and its Opposition to know that each has done itself a world of good by working together so as to bring about an optimal resolution as regards this Chinese funded initiative.
Incidentally, all of these groups and interests support the Baha Mar project and recognize the immediate and real benefits they will gain from its going forward.
Here we are also quite certain that, in the fullness of time, both parties would come to the conclusion that, each was guilty of making a mountain of a mole-hill as regards the Chinese request for thousands of expatriate workers who would assist in constructing the resort complex.
In this regard, we advise all and sundry that, this matter is not the biggest in the world and that, we all stand to gain tremendously once the Baha Mar project is off and running.
As we have previously suggested and explained, “…Let there be no mistake about the matter at hand – the Baha Mar project is a very big deal; it is not only a big deal to the investors who are putting their money on the line; but for sure, it is a huge deal for both the government and the people of The Bahamas.”
And we also went on to explain, “…“And here, let there be no mistake about another aspect of the matter involving this project – this project brings with it a large chance that – once completed – tens of thousands of Bahamians will benefit, either directly or indirectly…”
This remains our view.
November 17, 2010
The Bahama Journal Editorial
The Bahama Journal Editorial
By way of this commentary, we reiterate a point previously made to the effect that this Baha Mar project is good for the Bahamas and that as such, its approval should be put on the fast track.
We base our conclusion in our conviction that –as designed- this project promises to double the marketing this country now enjoys.
This in turn, promises any number of ancillary benefits.
As Stephen Wrinkle, Bahamas Contractors Association underscores: "Remember what an impact we had when they built phase three of Atlantis. What they’re doing with Baha Mar is equal to all of the phases they did at Atlantis and they’re doing it one phase. This is a big deal…"
As regards the question concerning labor and its role in the realization of the Baha Mar project, Mr. Wrinkle said they were sorely needed.
Here Wrinkle notes that, “…They are calling for 8,000 workers out there; 4,000 workers have got to be found; we can’t provide 4,000 workers. We’d be hard pressed to provide half of that. On these big international projects it’s just a fact of life. We’ve sat at the table; the BCA has tried to represent the interests of Bahamian contractors and workers and we’ve had some success with Baha Mar; they’ve been receptive."
For our part, then, we are very optimistic concerning the goods that come packaged in with this initiative. And so today, we can go no further except to note that, Baha Mar is apparently well on its way to becoming a done deal; this because the current administration has apparently been satisfied with the outcome of prime minister Ingraham’s talks in Beijing on the matter in hand.
This is eminently good news for the Bahamian people.
We wish all well who worked so long and so hard to bring this matter to this state of high resolution. Parenthetically so to speak, this venture yet owes a debt of gratitude not only to the current administration; but also to its predecessor.
And so today we note that, time, reason and commonsense having been congealed into something akin to real understanding are apparently working their magic in a Bahamas where petulance, spite and nit-picking sometimes wreak havoc.
And for sure, as we have consistently lamented, these are surely some of the hardest days experienced by most Bahamians alive in what some of them might deem a ‘modern’ Bahamas.
It is just as true that, some of these Bahamians –having grown accustomed to relatively prosperous times – are beside themselves in distress.
While these hard times might well persist for an indefinite length of time, there is reason for some optimism as certain storm clouds recede; with some of these once shadowing the Baha Mar project with a veil of uncertainty.
Mercifully, things seem to be going in the right direction as the government now signals its intention to move forward with this singularly important venture.
Yet again, we reiterate that, we would very much like both the governing party and its Opposition to know that each has done itself a world of good by working together so as to bring about an optimal resolution as regards this Chinese funded initiative.
Incidentally, all of these groups and interests support the Baha Mar project and recognize the immediate and real benefits they will gain from its going forward.
Here we are also quite certain that, in the fullness of time, both parties would come to the conclusion that, each was guilty of making a mountain of a mole-hill as regards the Chinese request for thousands of expatriate workers who would assist in constructing the resort complex.
In this regard, we advise all and sundry that, this matter is not the biggest in the world and that, we all stand to gain tremendously once the Baha Mar project is off and running.
As we have previously suggested and explained, “…Let there be no mistake about the matter at hand – the Baha Mar project is a very big deal; it is not only a big deal to the investors who are putting their money on the line; but for sure, it is a huge deal for both the government and the people of The Bahamas.”
And we also went on to explain, “…“And here, let there be no mistake about another aspect of the matter involving this project – this project brings with it a large chance that – once completed – tens of thousands of Bahamians will benefit, either directly or indirectly…”
This remains our view.
November 17, 2010
The Bahama Journal Editorial
Monday, November 15, 2010
Sir Sol Kerzner - Kerzner International Chairman and CEO - has concerns about the terms of the Baha Mar deal
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
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
Prime Minister Hubert Ingraham confirmed that the Baha Mar project would likely be approved by the government ...
Govt to approve Baha Mar
By BRENT DEAN
Deputy News Editor - The Nassau Guardian
brentldean@nasguard.com
As a result of negotiations between Prime Minister Hubert Ingraham and the Chinese, and subsequent negotiations between the Chinese and Baha Mar, subcontracts to Bahamians in connection with the Baha Mar project will increase from $200 million to $400 million.
“This will be the largest award of contracts to Bahamian contractors on a single project. Contracts will be awarded to large, medium, small-scale and individual contractors. This is in keeping with my government’s commitment to deepening and broadening economic opportunities for all Bahamians,” said Ingraham yesterday at a news conference at the British Colonial Hilton.
Ingraham used the news conference to update the country on his recent visit to China. During the trip, he met with Baha Mar’s partners – China Export-Import Bank (China Eximbank) and China State Construction Engineering Corporation (CSCEC) – about potential changes to the $2.6 billion Cable Beach development.
Before those meetings, Ingraham had expressed concern about several components of the project. These concerns included the resort being built in one phase; Baha Mar needing equity partners; and that under the plan, Bahamians would not work on the hotel core.
Ingraham was not able to win concessions based on all of his concerns. He said there has been no final agreement on the phased entry of rooms at the resort into the marketplace.
However, along with the increase in subcontracted work to local firms, Bahamians will now work on the hotel core, according to Ingraham.
The prime minister also confirmed that he has been advised by Baha Mar and the China Eximbank that Hyatt will invest $40 million into the development. Rosewood Hotels and Resorts and Morgans Hotel Group will invest $10 million each, he added.
CSCEC will invest $150 million into Baha Mar.
One of the early hurdles to approval of the project by the government was the resolution of Baha Mar’s loan payment to Scotiabank. The bank and developer recently settled.
Yesterday Ingraham revealed Scotiabank’s equity stake in the project.
“The Bank of Nova Scotia is leaving in its unpaid balance of its loan to the extent of 12 percent of the project,” he said.
China Eximbank is extending a $2.45 billion loan to the developers.
Baha Mar and its Chinese partners have also agreed to significant training opportunities for Bahamians, Ingraham said.
This will include the establishment of a training and service academy.
“The academy will be permanent, offering ongoing training opportunities for employees and prospective employees,” Ingraham explained.
According to the prime minister, Baha Mar has confirmed that in the 12 to 24 months before the resort’s opening, which is projected for early 2014, high performance individuals would be selected by the hotel operators and placed within their hotel systems throughout the world.
“These individuals will be placed in job shadowing programs, on the job training programs, and hotel specific systems training programs. Baha Mar will also be hiring executive staff and training individuals who will staff the anticipated job fairs and will be conducting employment interviews,” Ingraham said.
During the 12 months before the resort opens, it is projected that the hiring and job fairs would begin at Baha Mar.
“Baha Mar anticipates hiring and training approximately 7,000 employees during this period,” Ingraham said. “It is also expected that a number of the Bahamian construction workers in a variety of trades will be interested in filling ongoing maintenance positions since they will be very familiar with the project’s mechanical, electrical and plumbing infrastructure.”
The training initiative is expected to continue after the resort opens.
The Baha Mar resolution is scheduled to be debated in the House of Assembly on Wednesday and Thursday of this week.
The prime minister confirmed that the project would likely be approved by the government by the end of November. Contracts for Bahamian firms could be issued as early as December, with work beginning in January 2011, Ingraham confirmed.
He added that it is likely to take CSCEC three months to mobilize. Construction on the hotel core could start by the second quarter of 2011, according to the prime minister.
Ingraham did not specify a number, but he said that as a result of the changes to the development, the number of Bahamians employed would increase by thousands.
The Progressive Liberal Party (PLP) issued a response last night to Ingraham’s statements on Baha Mar.
“If the PM's apparent big accomplishment from his trip to China was increasing Bahamian participation in the Baha Mar project from $200 million to $400 million, then he in essence admitted that his recent trip to China was futile, a failure and a waste of public funds,” said the PLP.
Though the $400 million allocation of work to subcontractors is a new component of the deal, the PLP said Bahamian participation “was always substantially greater than $200 million, so the PM broke no new ground on this.”
The opposition party also criticized Ingraham for not having reached agreement to reduce the number of foreign workers helping to build the resort.
“Notwithstanding the PM’s public pronouncement that he did not agree with the large number of work permits required for this project, the numbers he affirmed today remain at a maximum of 8,150 permits over the scope of the project,” said the PLP.
11/15/2010
thenassauguardian
By BRENT DEAN
Deputy News Editor - The Nassau Guardian
brentldean@nasguard.com
As a result of negotiations between Prime Minister Hubert Ingraham and the Chinese, and subsequent negotiations between the Chinese and Baha Mar, subcontracts to Bahamians in connection with the Baha Mar project will increase from $200 million to $400 million.
“This will be the largest award of contracts to Bahamian contractors on a single project. Contracts will be awarded to large, medium, small-scale and individual contractors. This is in keeping with my government’s commitment to deepening and broadening economic opportunities for all Bahamians,” said Ingraham yesterday at a news conference at the British Colonial Hilton.
Ingraham used the news conference to update the country on his recent visit to China. During the trip, he met with Baha Mar’s partners – China Export-Import Bank (China Eximbank) and China State Construction Engineering Corporation (CSCEC) – about potential changes to the $2.6 billion Cable Beach development.
Before those meetings, Ingraham had expressed concern about several components of the project. These concerns included the resort being built in one phase; Baha Mar needing equity partners; and that under the plan, Bahamians would not work on the hotel core.
Ingraham was not able to win concessions based on all of his concerns. He said there has been no final agreement on the phased entry of rooms at the resort into the marketplace.
However, along with the increase in subcontracted work to local firms, Bahamians will now work on the hotel core, according to Ingraham.
The prime minister also confirmed that he has been advised by Baha Mar and the China Eximbank that Hyatt will invest $40 million into the development. Rosewood Hotels and Resorts and Morgans Hotel Group will invest $10 million each, he added.
CSCEC will invest $150 million into Baha Mar.
One of the early hurdles to approval of the project by the government was the resolution of Baha Mar’s loan payment to Scotiabank. The bank and developer recently settled.
Yesterday Ingraham revealed Scotiabank’s equity stake in the project.
“The Bank of Nova Scotia is leaving in its unpaid balance of its loan to the extent of 12 percent of the project,” he said.
China Eximbank is extending a $2.45 billion loan to the developers.
Baha Mar and its Chinese partners have also agreed to significant training opportunities for Bahamians, Ingraham said.
This will include the establishment of a training and service academy.
“The academy will be permanent, offering ongoing training opportunities for employees and prospective employees,” Ingraham explained.
According to the prime minister, Baha Mar has confirmed that in the 12 to 24 months before the resort’s opening, which is projected for early 2014, high performance individuals would be selected by the hotel operators and placed within their hotel systems throughout the world.
“These individuals will be placed in job shadowing programs, on the job training programs, and hotel specific systems training programs. Baha Mar will also be hiring executive staff and training individuals who will staff the anticipated job fairs and will be conducting employment interviews,” Ingraham said.
During the 12 months before the resort opens, it is projected that the hiring and job fairs would begin at Baha Mar.
“Baha Mar anticipates hiring and training approximately 7,000 employees during this period,” Ingraham said. “It is also expected that a number of the Bahamian construction workers in a variety of trades will be interested in filling ongoing maintenance positions since they will be very familiar with the project’s mechanical, electrical and plumbing infrastructure.”
The training initiative is expected to continue after the resort opens.
The Baha Mar resolution is scheduled to be debated in the House of Assembly on Wednesday and Thursday of this week.
The prime minister confirmed that the project would likely be approved by the government by the end of November. Contracts for Bahamian firms could be issued as early as December, with work beginning in January 2011, Ingraham confirmed.
He added that it is likely to take CSCEC three months to mobilize. Construction on the hotel core could start by the second quarter of 2011, according to the prime minister.
Ingraham did not specify a number, but he said that as a result of the changes to the development, the number of Bahamians employed would increase by thousands.
The Progressive Liberal Party (PLP) issued a response last night to Ingraham’s statements on Baha Mar.
“If the PM's apparent big accomplishment from his trip to China was increasing Bahamian participation in the Baha Mar project from $200 million to $400 million, then he in essence admitted that his recent trip to China was futile, a failure and a waste of public funds,” said the PLP.
Though the $400 million allocation of work to subcontractors is a new component of the deal, the PLP said Bahamian participation “was always substantially greater than $200 million, so the PM broke no new ground on this.”
The opposition party also criticized Ingraham for not having reached agreement to reduce the number of foreign workers helping to build the resort.
“Notwithstanding the PM’s public pronouncement that he did not agree with the large number of work permits required for this project, the numbers he affirmed today remain at a maximum of 8,150 permits over the scope of the project,” said the PLP.
11/15/2010
thenassauguardian
Thursday, November 11, 2010
Bahamas Contractors' Association 'eagerly' awaiting word from the prime minister on his high-level meetings with the Chinese financiers of the $2.6 billion Baha Mar project
Contractors 'eagerly' awaiting word from PM on Baha Mar
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net
THE Bahamas Contractors' Association is "eagerly" awaiting word from the prime minister on his high-level meetings with the Chinese financiers of the $2.6 billion Baha Mar project.
Head of the association Stephen Wrinkle was hopeful that the matter would be discussed at length in the House of Assembly today. However a clerk in Parliament told The Tribune that the House of Assembly will not meet again until November 17.
"I guess everyone is eagerly awaiting his report. Once Cabinet is advised I would assume they would make their findings known in House of Assembly (today)," said BCA president Wrinkle yesterday.
The prime minister met with members of the BCA a day before he left for his official visit to China and took stock of their group's concerns, especially their push for increased Bahamian labour incorporated into Baha Mar, transfer of knowledge from skilled Chinese workers to Bahamian labourers and greater funding allocated to train locals working on the project.
"He took those along with him and hopefully he brings back good news," said Mr Wrinkle.
Mr Ingraham returned from his trip to China - after stopping in Barbados to attend the funeral of Prime Minister David Thompson - last Friday.
He has been quiet on what transpired during that trip.
However, Mr Wrinkle expects to hear positive news.
"We always expect to hear good news, we're hopeful, I know the prime minister and his delegation did his best to (negotiate) the best deal possible and whatever he's done, we'll take it and run with it," he said.
The Tribune understands that compromises "may have been reached" between Mr Ingraham and the Chinese over the concerns he has voiced about the level of Chinese labour participation in the Baha Mar project and the single phase of construction involved.
According to information reaching The Tribune last week, there were three "points of compromise" arrived at between Mr Ingraham during meetings with the China State Construction Company - the general contractor for the $2.6 billion Baha Mar resort development - and officials from the China Import Export Bank in Beijing.
One of these compromises is said to be that a larger quantity of construction work and related dollars will go to Bahamian contractors.
Two other negotiated points were that more funding - in the hundreds of millions of dollars - would be allocated towards the training of Bahamian workers and the transferring of skills/knowledge during the project and the proposal that while it would be built in one phase, the resort's six hotels would "open in phases."
November 10, 2010
tribune242
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net
THE Bahamas Contractors' Association is "eagerly" awaiting word from the prime minister on his high-level meetings with the Chinese financiers of the $2.6 billion Baha Mar project.
Head of the association Stephen Wrinkle was hopeful that the matter would be discussed at length in the House of Assembly today. However a clerk in Parliament told The Tribune that the House of Assembly will not meet again until November 17.
"I guess everyone is eagerly awaiting his report. Once Cabinet is advised I would assume they would make their findings known in House of Assembly (today)," said BCA president Wrinkle yesterday.
The prime minister met with members of the BCA a day before he left for his official visit to China and took stock of their group's concerns, especially their push for increased Bahamian labour incorporated into Baha Mar, transfer of knowledge from skilled Chinese workers to Bahamian labourers and greater funding allocated to train locals working on the project.
"He took those along with him and hopefully he brings back good news," said Mr Wrinkle.
Mr Ingraham returned from his trip to China - after stopping in Barbados to attend the funeral of Prime Minister David Thompson - last Friday.
He has been quiet on what transpired during that trip.
However, Mr Wrinkle expects to hear positive news.
"We always expect to hear good news, we're hopeful, I know the prime minister and his delegation did his best to (negotiate) the best deal possible and whatever he's done, we'll take it and run with it," he said.
The Tribune understands that compromises "may have been reached" between Mr Ingraham and the Chinese over the concerns he has voiced about the level of Chinese labour participation in the Baha Mar project and the single phase of construction involved.
According to information reaching The Tribune last week, there were three "points of compromise" arrived at between Mr Ingraham during meetings with the China State Construction Company - the general contractor for the $2.6 billion Baha Mar resort development - and officials from the China Import Export Bank in Beijing.
One of these compromises is said to be that a larger quantity of construction work and related dollars will go to Bahamian contractors.
Two other negotiated points were that more funding - in the hundreds of millions of dollars - would be allocated towards the training of Bahamian workers and the transferring of skills/knowledge during the project and the proposal that while it would be built in one phase, the resort's six hotels would "open in phases."
November 10, 2010
tribune242
Wednesday, November 10, 2010
The Baha Mar project hangs in the balance
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
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
Monday, November 8, 2010
The $2.6 billion Baha Mar project will call for tens of millions of dollars in public infrastructure changes
High Baha Mar taxpayer costs...
Utilities prepare to carry out millions in work
By CANDIA DAMES Guardian News Editor
candia@nasguard.com
The planned $2.6 billion Baha Mar project will call for tens of millions of dollars in public infrastructure changes in a massive effort that is already being coordinated with the involvement of utility companies in The Bahamas.
The Bahamas Telecommunications Company (BTC), the Bahamas Electricity Corporation (BEC), the Water and Sewerage Corporation and Cable Bahamas are all in discussions with Baha Mar on how to handle the significant and costly rerouting the project would necessitate.
According to Prime Minister Hubert Ingraham, the government would need to borrow $50 million for its share of infrastructure costs connected to the project.
The 11th revision of the Baha Mar infrastructure designs show West Bay Street being rerouted at the Gaming Board with a new roundabout to be constructed at the Breezes SuperClubs hotel.
It also calls for the construction of several more roundabouts along the new West Bay Street, including a roundabout at Baha Mar’s golf course, one at a new road linking John F. Kennedy Drive to West Bay Street, another at Baha Mar’s commercial center and one at the Sheraton Resort.
The area now known as Cable Beach has a long history of involvement with local utilities. In fact, it is a landmark location for telecommunications infrastructure in The Bahamas.
In 1892, a telegraph cable connecting Jupiter, Florida to Goodman’s Bay was completed at a cost of 30,000 pounds in a joint venture between the Bahamas Government and Marconi Communications.
That cable gave Cable Beach its name during what was the start of telecommunications in The Bahamas. To this date, there remains much fiber optic cables in that area, including BDSNi, Bahamas 2, Acros interconnecting all telecommunications to the southeast islands in The Bahamas and also Haiti.
All these years after the first cable was laid, Cable Beach is not known for the cable laid from 1892. It is known for its upscale neighborhoods and for the current Baha Mar properties that line the strip.
The massive project would significantly impact the current telecommunications infrastructure in the area, but also other utilities like electricity, water and sewerage and cable (Cable Bahamas).`
The median along what is known as the strip is not just an area with aesthetic value. It is home to much of BTC’s infrastructure in that area. And all of that copper and fiber cable would have to be relocated.
Kirk Griffin, acting president and CEO of BTC, said the company also has three cell cites in the area that would be impacted.
“We pretty much know if there are no changes to what their (Baha Mar’s) proposals are what it is we have to do,” said Griffin, noting that this would cost “a few” million dollars.
Griffin said BTC is looking at different options for rerouting.
One is rerouting around the Prospect Ridge area.
While indicating that the undertaking would be significant, Griffin said it is nothing that BTC cannot handle.
“This is something that we are very much accustomed to and quite capable of doing,” he said.
Griffin added that BTC views the Baha Mar opportunity as beneficial because the company would be able to generate additional revenue.
He said BTC does not expect to have to pay for the work that must take place, but stressed that the company was awaiting final details on if and how the development would proceed.
BEC’s General Manager Kevin Basden said his corporation estimates that its work connected to the Baha Mar project could cost between $30 million and $40 million.
“We’re prepared to meet whatever is required,” Basden said. “We have the resources in house and we will couple that with where necessary.”
Baha Mar has reportedly requested that the planned two-lane road known as Corridor 7, linking John F. Kennedy Drive to West Bay Street, be developed as four lanes and all high voltage cables be buried.
Basden said BEC’s approach to the project would depend on whether it is a phased development.
“What I can say is the first order of business more than likely will be the construction of the new roadway and provision of a utility corridor,” he said.
“[What we would have to do is implement] new cables along the new road. Those new cables will then be utilized to replace existing cables along West Bay Street.”
BEC currently has high voltage cables that run along West Bay Street servicing customers in the area.
Basden said the important thing is going to be to maintain supplies for customers.
“Based on the information that we have received thus far all of our cables along West Bay Street will have to be relocated,” he said.
Additionally, BEC has two major transformers along the Cable Beach median that will also have to be relocated, as will a major primary substation at Cable Beach east of the Cable Beach Police Station, Basden pointed out.
According to Basden, the work would call for a generator upgrade to factor in load growth.
“So, it’s going to call for major works on the part of BEC,” he said.
Robert Sands, Baha Mar’s senior vice president of governmental and external affairs, said the developers are satisfied that they are advancing the planning of the infrastructure element of the project.
“We see this as a very seamless transition,” Sands said. “The development of the new West Bay Street does not impact the current West Bay Street.
“In fact, the new West Bay Street has to be totally completed before we begin to close a portion of the existing West Bay Street.”
Making a point that was also made by Griffin and Basden, Sands said residents do not have to be concerned about any disruptions associated with the development.
“We’re very happy,” he said.
“We’ve had excellent cooperation from the various government ministries, from the utility corporations and we’re advancing our work.”
11/8/2010
thenassauguardian
Utilities prepare to carry out millions in work
By CANDIA DAMES Guardian News Editor
candia@nasguard.com
The planned $2.6 billion Baha Mar project will call for tens of millions of dollars in public infrastructure changes in a massive effort that is already being coordinated with the involvement of utility companies in The Bahamas.
The Bahamas Telecommunications Company (BTC), the Bahamas Electricity Corporation (BEC), the Water and Sewerage Corporation and Cable Bahamas are all in discussions with Baha Mar on how to handle the significant and costly rerouting the project would necessitate.
According to Prime Minister Hubert Ingraham, the government would need to borrow $50 million for its share of infrastructure costs connected to the project.
The 11th revision of the Baha Mar infrastructure designs show West Bay Street being rerouted at the Gaming Board with a new roundabout to be constructed at the Breezes SuperClubs hotel.
It also calls for the construction of several more roundabouts along the new West Bay Street, including a roundabout at Baha Mar’s golf course, one at a new road linking John F. Kennedy Drive to West Bay Street, another at Baha Mar’s commercial center and one at the Sheraton Resort.
The area now known as Cable Beach has a long history of involvement with local utilities. In fact, it is a landmark location for telecommunications infrastructure in The Bahamas.
In 1892, a telegraph cable connecting Jupiter, Florida to Goodman’s Bay was completed at a cost of 30,000 pounds in a joint venture between the Bahamas Government and Marconi Communications.
That cable gave Cable Beach its name during what was the start of telecommunications in The Bahamas. To this date, there remains much fiber optic cables in that area, including BDSNi, Bahamas 2, Acros interconnecting all telecommunications to the southeast islands in The Bahamas and also Haiti.
All these years after the first cable was laid, Cable Beach is not known for the cable laid from 1892. It is known for its upscale neighborhoods and for the current Baha Mar properties that line the strip.
The massive project would significantly impact the current telecommunications infrastructure in the area, but also other utilities like electricity, water and sewerage and cable (Cable Bahamas).`
The median along what is known as the strip is not just an area with aesthetic value. It is home to much of BTC’s infrastructure in that area. And all of that copper and fiber cable would have to be relocated.
Kirk Griffin, acting president and CEO of BTC, said the company also has three cell cites in the area that would be impacted.
“We pretty much know if there are no changes to what their (Baha Mar’s) proposals are what it is we have to do,” said Griffin, noting that this would cost “a few” million dollars.
Griffin said BTC is looking at different options for rerouting.
One is rerouting around the Prospect Ridge area.
While indicating that the undertaking would be significant, Griffin said it is nothing that BTC cannot handle.
“This is something that we are very much accustomed to and quite capable of doing,” he said.
Griffin added that BTC views the Baha Mar opportunity as beneficial because the company would be able to generate additional revenue.
He said BTC does not expect to have to pay for the work that must take place, but stressed that the company was awaiting final details on if and how the development would proceed.
BEC’s General Manager Kevin Basden said his corporation estimates that its work connected to the Baha Mar project could cost between $30 million and $40 million.
“We’re prepared to meet whatever is required,” Basden said. “We have the resources in house and we will couple that with where necessary.”
Baha Mar has reportedly requested that the planned two-lane road known as Corridor 7, linking John F. Kennedy Drive to West Bay Street, be developed as four lanes and all high voltage cables be buried.
Basden said BEC’s approach to the project would depend on whether it is a phased development.
“What I can say is the first order of business more than likely will be the construction of the new roadway and provision of a utility corridor,” he said.
“[What we would have to do is implement] new cables along the new road. Those new cables will then be utilized to replace existing cables along West Bay Street.”
BEC currently has high voltage cables that run along West Bay Street servicing customers in the area.
Basden said the important thing is going to be to maintain supplies for customers.
“Based on the information that we have received thus far all of our cables along West Bay Street will have to be relocated,” he said.
Additionally, BEC has two major transformers along the Cable Beach median that will also have to be relocated, as will a major primary substation at Cable Beach east of the Cable Beach Police Station, Basden pointed out.
According to Basden, the work would call for a generator upgrade to factor in load growth.
“So, it’s going to call for major works on the part of BEC,” he said.
Robert Sands, Baha Mar’s senior vice president of governmental and external affairs, said the developers are satisfied that they are advancing the planning of the infrastructure element of the project.
“We see this as a very seamless transition,” Sands said. “The development of the new West Bay Street does not impact the current West Bay Street.
“In fact, the new West Bay Street has to be totally completed before we begin to close a portion of the existing West Bay Street.”
Making a point that was also made by Griffin and Basden, Sands said residents do not have to be concerned about any disruptions associated with the development.
“We’re very happy,” he said.
“We’ve had excellent cooperation from the various government ministries, from the utility corporations and we’re advancing our work.”
11/8/2010
thenassauguardian
Wednesday, November 3, 2010
Hubert Ingraham versus Perry Christie - and the emerging Chinese superpower
Another Watershed for Ingraham & Christie
by Simon
bahamapundit
Hubert Ingraham arrived in China in a strong and enviable position. Much of this comes from the office he holds as Prime Minister of a strategically-located Bahamas with diverse and impressive assets relative to our size.
Moreover, a considerable amount of the Prime Minister’s strengthened position is rooted in his character and experience, including a combination of international experience and domestic credibility.
The posture with which Mr. Ingraham has travelled to the emerging Chinese superpower is in obvious and stark contrast to the posture with which former Prime Minister Perry Christie would have made this journey.
Mr. Christie would have gone in a considerably weaker position for reasons rooted in his political character, including an operating style marked by indecision and pandering.
Whereas Mr. Ingraham enters into a negotiation with some inscrutability and poker-faced, Mr. Christie is generally an easy mark, easy to read and easy to push over. Bahamians know that Mr. Ingraham will always drive a harder bargain while Mr. Christie is prone to give away the store.
Domestic Credibility: On the eve of his departure for China, Mr. Ingraham and his predecessor, Opposition Leader, Perry Christie each held a press conference. In tone and substance they were a study in contrast.
Mr. Ingraham noted that Baha Mar was among one of a wide range of issues on the agenda during his trip. The Leader of the Opposition’s press conference focused almost exclusively on Baha Mar, with little reference to various other bilateral matters. Yet, what they both said about Baha Mar was revealing.
WATERSHED
The debate over Baha Mar has been another watershed for these former law partners and cabinet colleagues. The current debate is etching into the national consciousness the essential differences between the men in terms of vision, character and governance.
In his brief statement at a press conference in which Dr. Bernard Nottage took the lead in outlining the PLP’s position on Baha Mar, Mr. Christie left little doubt that he would have headed to China mostly as the gushing representative of Baha Mar.
In one of the most disturbing public performances by someone who served as prime minister, Mr. Christie all but abandoned the national interest in the favour of a private interest. It is an interest that has repeatedly demonstrated that it lacked the vision, track record and wherewithal to redevelop Cable Beach. Indeed, Baha Mar has repeatedly failed to meet various deadlines over the course of several years.
Just in September, Mr. Sarkis Izmirlian, the Chairman and Chief Executive Officer of Baha Mar spoke at a 25th anniversary event marking the China State Construction and Engineering Company’s presence in the United States.
“As some of you may know, my family and I have a vision for the country of The Bahamas, and its huge potential for tourism. We were approached by the Bahamian Government to consider redeveloping a beautiful area of Nassau called Cable Beach.”
Mr. Izmirlian also spoke glowingly that a successful Baha Mar project would “showcase to the world China State’s ability to deliver an intricately designed, and complex, resort metropolis on a somewhat remote island in The Caribbean.”
So, what exactly is Mr. Izmirilian’s vision for The Bahamas, and when exactly did we outsource that vision to a private developer? And, when did New Providence become a “somewhat remote island in the Caribbean?”
Mr. Izmirlian may want to check this bit of condescension and take note that many Bahamians do not find his vision for Cable Beach in the country’s broader interest. But it is not primarily Mr. Izmirlian who the Bahamian people are questioning.
EQUITABLE DEAL
Bahamians continue to wonder why Mr. Christie and the PLP chose the family in question to redevelop one of the more valued tourism sites in the country. Whatever the reasons, the PLP cannot shirk responsibility for the fact that it is because of that choice that we are in the position we are today. Because of Baha Mar’s lack of resources, the company turned to China for financing.
The genesis and convoluted nature of the Baha Mar project rest with Mr. Christie. As the drama at Baha Mar continues to unfold, Mr. Christie and the PLP have delivered a series of mixed and often incoherent messages. This rambling has damaged their domestic credibility on Baha Mar and related matters.
While Mr. Ingraham has repeatedly stressed that his overriding concern is an equitable deal for The Bahamas, the PLP and Mr. Christie have shown divided loyalties on the Baha Mar project. Sometimes, their posturing and pandering has been comical.
Having agreed to Chinese workers building the new National Stadium and signalling that they would agree to a considerable Chinese presence to build Baha Mar, the PLP voted against allowing Chinese workers to construct the Gateway Road Project.
Never mind that there would be Bahamian workers on the road project and that the terms of the loan were quite generous. The PLP sought to score a political brownie point and ride a wave of hysteria about a Chinese takeover. Not only did most Bahamians see through such an obvious ploy, so did the Chinese Government.
In striking contrast, Ingraham has demonstrated to the Chinese that while he is prepared to do business with them, that it must be mutually beneficial to both countries. He has refrained from any China-bashing in order to pander to some elements of the populace. Undoubtedly, the Chinese have taken note.
The Chinese must also be bemused and amused by Mr. Christie’s chest-thumping on the National Stadium. The stadium is a typical gift of the Chinese Government after the launch of diplomatic relations with a developing country.
In this case, those relations were established during a previous Ingraham administration. Moreover, even after the offer of a national stadium, the Christie administration, in typical fashion, failed to get the construction started.
FAVOURABLE COMMENTARY
The Prime Minister’s tough pre-trip stance to the Chinese Government of what may be acceptable regarding Baha Mar has earned him favourable commentary in various quarters in the Caribbean. Most Bahamians are relieved that it is Mr. Ingraham and not Mr. Christie who has journeyed to China to negotiate on the country’s behalf.
International Experience: Mr. Ingraham’s domestic credibility boosts and mirrors his credibility with the Chinese Government. That credibility is reinforced by Mr. Ingraham’s decisiveness. Reportedly, the Chinese were as frustrated by Mr. Christie’s late-again manner as were the Bahamian people.
Mr. Ingraham appointed two senior figures as Bahamian Ambassador to China, including Sir Arthur Foulkes who was non-resident and former cabinet minister Elma Chase Campbell, the first resident Ambassador. While the PLP did eventually send a resident diplomat to China, it took a while and he was a relatively junior civil servant.
It is a no-brainer for the Chinese which Bahamian leader they trust to talk straight to them. It is the man and the leader of the party which, in 1997, inaugurated diplomatic relations with the most populous country on earth. It decidedly is not the leader of the party that was about to send an ambassador to Taiwan if it had won re-election.
The Chinese also respect seniority. This is the Prime Minister’s second official visit to China, his first having occurred 13 years ago. Mr. Ingraham’s international resume is extensive as a senior head of government in the Americas. He has served as Chairman of Caricom on various occasions, where he is the senior leader in the regional grouping.
Prime Minister Ingraham has overseen the bilateral interests of The Bahamas with three American Presidents from Bill Clinton to George W. Bush to Barack Obama. Recently, he was elected to chair the Boards of Governors of the International Monetary Fund and World Bank Group.
One of the press reports following Mr. Ingraham’s election noted: “The chairman’s country should also be in good standing in the international community, and the person selected to be chairman is expected to be widely respected among finance and development officials.”
The Chinese will have all of this information in their briefing notes on Mr. Ingraham as he and his delegation travel from Hong Kong to Beijing to Shanghai and are hosted at various meals.
They will find in Hubert Ingraham an appreciative guest. Yet, they will also discover, like Mr. Izmirlian, that the current Bahamian Prime Minister will not be swayed by pomp and circumstance or flattery and a few nice meals.
bahamapundit
by Simon
bahamapundit
Hubert Ingraham arrived in China in a strong and enviable position. Much of this comes from the office he holds as Prime Minister of a strategically-located Bahamas with diverse and impressive assets relative to our size.
Moreover, a considerable amount of the Prime Minister’s strengthened position is rooted in his character and experience, including a combination of international experience and domestic credibility.
The posture with which Mr. Ingraham has travelled to the emerging Chinese superpower is in obvious and stark contrast to the posture with which former Prime Minister Perry Christie would have made this journey.
Mr. Christie would have gone in a considerably weaker position for reasons rooted in his political character, including an operating style marked by indecision and pandering.
Whereas Mr. Ingraham enters into a negotiation with some inscrutability and poker-faced, Mr. Christie is generally an easy mark, easy to read and easy to push over. Bahamians know that Mr. Ingraham will always drive a harder bargain while Mr. Christie is prone to give away the store.
Domestic Credibility: On the eve of his departure for China, Mr. Ingraham and his predecessor, Opposition Leader, Perry Christie each held a press conference. In tone and substance they were a study in contrast.
Mr. Ingraham noted that Baha Mar was among one of a wide range of issues on the agenda during his trip. The Leader of the Opposition’s press conference focused almost exclusively on Baha Mar, with little reference to various other bilateral matters. Yet, what they both said about Baha Mar was revealing.
WATERSHED
The debate over Baha Mar has been another watershed for these former law partners and cabinet colleagues. The current debate is etching into the national consciousness the essential differences between the men in terms of vision, character and governance.
In his brief statement at a press conference in which Dr. Bernard Nottage took the lead in outlining the PLP’s position on Baha Mar, Mr. Christie left little doubt that he would have headed to China mostly as the gushing representative of Baha Mar.
In one of the most disturbing public performances by someone who served as prime minister, Mr. Christie all but abandoned the national interest in the favour of a private interest. It is an interest that has repeatedly demonstrated that it lacked the vision, track record and wherewithal to redevelop Cable Beach. Indeed, Baha Mar has repeatedly failed to meet various deadlines over the course of several years.
Just in September, Mr. Sarkis Izmirlian, the Chairman and Chief Executive Officer of Baha Mar spoke at a 25th anniversary event marking the China State Construction and Engineering Company’s presence in the United States.
“As some of you may know, my family and I have a vision for the country of The Bahamas, and its huge potential for tourism. We were approached by the Bahamian Government to consider redeveloping a beautiful area of Nassau called Cable Beach.”
Mr. Izmirlian also spoke glowingly that a successful Baha Mar project would “showcase to the world China State’s ability to deliver an intricately designed, and complex, resort metropolis on a somewhat remote island in The Caribbean.”
So, what exactly is Mr. Izmirilian’s vision for The Bahamas, and when exactly did we outsource that vision to a private developer? And, when did New Providence become a “somewhat remote island in the Caribbean?”
Mr. Izmirlian may want to check this bit of condescension and take note that many Bahamians do not find his vision for Cable Beach in the country’s broader interest. But it is not primarily Mr. Izmirlian who the Bahamian people are questioning.
EQUITABLE DEAL
Bahamians continue to wonder why Mr. Christie and the PLP chose the family in question to redevelop one of the more valued tourism sites in the country. Whatever the reasons, the PLP cannot shirk responsibility for the fact that it is because of that choice that we are in the position we are today. Because of Baha Mar’s lack of resources, the company turned to China for financing.
The genesis and convoluted nature of the Baha Mar project rest with Mr. Christie. As the drama at Baha Mar continues to unfold, Mr. Christie and the PLP have delivered a series of mixed and often incoherent messages. This rambling has damaged their domestic credibility on Baha Mar and related matters.
While Mr. Ingraham has repeatedly stressed that his overriding concern is an equitable deal for The Bahamas, the PLP and Mr. Christie have shown divided loyalties on the Baha Mar project. Sometimes, their posturing and pandering has been comical.
Having agreed to Chinese workers building the new National Stadium and signalling that they would agree to a considerable Chinese presence to build Baha Mar, the PLP voted against allowing Chinese workers to construct the Gateway Road Project.
Never mind that there would be Bahamian workers on the road project and that the terms of the loan were quite generous. The PLP sought to score a political brownie point and ride a wave of hysteria about a Chinese takeover. Not only did most Bahamians see through such an obvious ploy, so did the Chinese Government.
In striking contrast, Ingraham has demonstrated to the Chinese that while he is prepared to do business with them, that it must be mutually beneficial to both countries. He has refrained from any China-bashing in order to pander to some elements of the populace. Undoubtedly, the Chinese have taken note.
The Chinese must also be bemused and amused by Mr. Christie’s chest-thumping on the National Stadium. The stadium is a typical gift of the Chinese Government after the launch of diplomatic relations with a developing country.
In this case, those relations were established during a previous Ingraham administration. Moreover, even after the offer of a national stadium, the Christie administration, in typical fashion, failed to get the construction started.
FAVOURABLE COMMENTARY
The Prime Minister’s tough pre-trip stance to the Chinese Government of what may be acceptable regarding Baha Mar has earned him favourable commentary in various quarters in the Caribbean. Most Bahamians are relieved that it is Mr. Ingraham and not Mr. Christie who has journeyed to China to negotiate on the country’s behalf.
International Experience: Mr. Ingraham’s domestic credibility boosts and mirrors his credibility with the Chinese Government. That credibility is reinforced by Mr. Ingraham’s decisiveness. Reportedly, the Chinese were as frustrated by Mr. Christie’s late-again manner as were the Bahamian people.
Mr. Ingraham appointed two senior figures as Bahamian Ambassador to China, including Sir Arthur Foulkes who was non-resident and former cabinet minister Elma Chase Campbell, the first resident Ambassador. While the PLP did eventually send a resident diplomat to China, it took a while and he was a relatively junior civil servant.
It is a no-brainer for the Chinese which Bahamian leader they trust to talk straight to them. It is the man and the leader of the party which, in 1997, inaugurated diplomatic relations with the most populous country on earth. It decidedly is not the leader of the party that was about to send an ambassador to Taiwan if it had won re-election.
The Chinese also respect seniority. This is the Prime Minister’s second official visit to China, his first having occurred 13 years ago. Mr. Ingraham’s international resume is extensive as a senior head of government in the Americas. He has served as Chairman of Caricom on various occasions, where he is the senior leader in the regional grouping.
Prime Minister Ingraham has overseen the bilateral interests of The Bahamas with three American Presidents from Bill Clinton to George W. Bush to Barack Obama. Recently, he was elected to chair the Boards of Governors of the International Monetary Fund and World Bank Group.
One of the press reports following Mr. Ingraham’s election noted: “The chairman’s country should also be in good standing in the international community, and the person selected to be chairman is expected to be widely respected among finance and development officials.”
The Chinese will have all of this information in their briefing notes on Mr. Ingraham as he and his delegation travel from Hong Kong to Beijing to Shanghai and are hosted at various meals.
They will find in Hubert Ingraham an appreciative guest. Yet, they will also discover, like Mr. Izmirlian, that the current Bahamian Prime Minister will not be swayed by pomp and circumstance or flattery and a few nice meals.
bahamapundit
Monday, October 25, 2010
Opposition Leader Perry Christie called on Prime Minister Hubert Ingraham to treat Baha Mar developer Sarkis Ismirlian as well as he treats Atlantis Boss Sol Kerzner
Christie: Baha Mar developer should get same treatment as Atlantis boss
tribune242
OPPOSITION LEADER Perry Christie called on Hubert Ingraham to treat Baha Mar developer Sarkis Ismirlian as well as he treats Atlantis Boss Sol Kerzner.
Speaking at the presentation of the PLP's position-paper on Baha Mar, Mr Christie said the two men are deserving of the same level of respect.
He said: "I do not know what Sarkis Ismirlian ever did to the prime minister to deserve the kind of humiliating treatment that has been meted out to him in public, time and time again, by Prime Minister Ingraham. It is wrong.
"Mr Ismirlian is deserving of respect, even when we have to disagree with him. It is high time, then, that the prime minister starts talking to Sarkis Ismirlian the same way he always talks to Sol Kerzner."
Mr Christie went on to say that the Bahamas doesn't have "a hope in hell" of being taken seriously by investors, especially in very difficult times, if Mr Ingraham continues to change the "rules of engagement" with investors and continues to believes in "negotiation-by-press-conference".
He said: "You cannot be calling press conferences to tell investors what they must do in order to win your favour. You cannot be telling them one thing in private and then call a press conference to lay down a whole new set of conditions they have to meet, and then when they meet those conditions, you then call yet another press conference to lay down a whole new set of pre-conditions yet again. That is harmful our country's reputation. It is not a wise way to conduct diplomacy. Besides it is a fundamentally unfair way to treat those who are attempting in good faith to make a major investment in our country."
Mr Christie added that there is no use in Prime Minister Ingraham, who left for China on Friday, trying to negotiate a new deal with the Chinese government, which through the China Export-Import Bank is funding the Baha Mar deal, unless Mr Ismirlian and his group are at the same negotiating table.
"There needs to be a tripartite approach to this. Simple logic and plain, good sense demand it. Suppose the PM negotiates a new deal that the Ismirlians cannot or will not live with. What then? What would he have accomplished then? In that case, one foot forward would have been taken followed by two steps backward. That makes no kind of sense.
"I therefore call upon the PM to invite representatives of the Baha Mar Group to join his meeting with the Chinese in China. It is, after all, Baha Mar's project. It seems only sensible and logical and appropriate to have the project owners at the table too so that everything can be settled all at the same time.
Mr Christie went on to say that the Baha Mar project cannot be evaluated in isolation from the "extremely difficult economic circumstances" in which the country finds itself at the moment.
"This is the worst it has been in decades. The level of human suffering is intolerable and threatens the social stability of our country. Unemployment, in particular, is at a painfully high level. Capital inflows have been extremely sparse and spare in recent times, especially in the tourism sector.
"As a result, new employment opportunities for displaced workers, recent secondary school-leavers and college graduates are few and far between. These conditions of acute distress in our country oblige us to embrace the Baha Mar Project. It is, in a very real sense, the only new substantial ray of sunshine that has presented itself."
October 23, 2010
tribune242
tribune242
OPPOSITION LEADER Perry Christie called on Hubert Ingraham to treat Baha Mar developer Sarkis Ismirlian as well as he treats Atlantis Boss Sol Kerzner.
Speaking at the presentation of the PLP's position-paper on Baha Mar, Mr Christie said the two men are deserving of the same level of respect.
He said: "I do not know what Sarkis Ismirlian ever did to the prime minister to deserve the kind of humiliating treatment that has been meted out to him in public, time and time again, by Prime Minister Ingraham. It is wrong.
"Mr Ismirlian is deserving of respect, even when we have to disagree with him. It is high time, then, that the prime minister starts talking to Sarkis Ismirlian the same way he always talks to Sol Kerzner."
Mr Christie went on to say that the Bahamas doesn't have "a hope in hell" of being taken seriously by investors, especially in very difficult times, if Mr Ingraham continues to change the "rules of engagement" with investors and continues to believes in "negotiation-by-press-conference".
He said: "You cannot be calling press conferences to tell investors what they must do in order to win your favour. You cannot be telling them one thing in private and then call a press conference to lay down a whole new set of conditions they have to meet, and then when they meet those conditions, you then call yet another press conference to lay down a whole new set of pre-conditions yet again. That is harmful our country's reputation. It is not a wise way to conduct diplomacy. Besides it is a fundamentally unfair way to treat those who are attempting in good faith to make a major investment in our country."
Mr Christie added that there is no use in Prime Minister Ingraham, who left for China on Friday, trying to negotiate a new deal with the Chinese government, which through the China Export-Import Bank is funding the Baha Mar deal, unless Mr Ismirlian and his group are at the same negotiating table.
"There needs to be a tripartite approach to this. Simple logic and plain, good sense demand it. Suppose the PM negotiates a new deal that the Ismirlians cannot or will not live with. What then? What would he have accomplished then? In that case, one foot forward would have been taken followed by two steps backward. That makes no kind of sense.
"I therefore call upon the PM to invite representatives of the Baha Mar Group to join his meeting with the Chinese in China. It is, after all, Baha Mar's project. It seems only sensible and logical and appropriate to have the project owners at the table too so that everything can be settled all at the same time.
Mr Christie went on to say that the Baha Mar project cannot be evaluated in isolation from the "extremely difficult economic circumstances" in which the country finds itself at the moment.
"This is the worst it has been in decades. The level of human suffering is intolerable and threatens the social stability of our country. Unemployment, in particular, is at a painfully high level. Capital inflows have been extremely sparse and spare in recent times, especially in the tourism sector.
"As a result, new employment opportunities for displaced workers, recent secondary school-leavers and college graduates are few and far between. These conditions of acute distress in our country oblige us to embrace the Baha Mar Project. It is, in a very real sense, the only new substantial ray of sunshine that has presented itself."
October 23, 2010
tribune242
Saturday, October 23, 2010
The Progressive Liberal Party (PLP) supports the $2.6 billion Baha Mar project
PLP SUPPORTS BAHA MAR
By KEVA LIGHTBOURNE
Guardian Senior Reporter
kdl@nasguard.com
Progressive Liberal Party (PLP)Leader Perry Christie last night threw his party's support behind the $2.6 billion Baha Mar project, while accusing Prime Minister Hubert Ingraham of seeking to negotiate a new Cable Beach deal on his upcoming trip to China.
At an hour-and-a-half news conference held at the PLP's Farrington Road headquarters, Christie stressed that the current economic conditions in the country call for the project to be embraced.
"It is in a very real sense, the only new substantial ray of sunshine that has presented itself. Nothing else holds out the kind of promise that Baha Mar does,"said Christie.
"It is not so much that it is the best big project that is available right now, the reality is that it is the only big project that is available to us right now. We do not have a choice. We do not have the luxury of choosing between the Baha Mar project and some other big project. Baha Mar is the only one that has the capacity right now to inject some desperately needed adrenaline into this anemic economy that is ailing us now."
Christie said it would be useless for Ingraham to negotiate a new deal with the Chinese without project developer Sarkis Izmirlian and his group at the same negotiating table.
"There needs to be a tripartite approach to this. Simple logic and plain, good sense demand it,"said the PLP leader.
"Suppose the prime minister negotiates a new deal that the Izmirlians cannot or will not live with? What then? What would he have accomplished then?" Christie asked." In that case, one foot forward would have been taken followed by two steps backward. That makes no kind of sense."
Ingraham is scheduled to leave for China today. He said earlier this week he would be meeting with China State Construction Engineering Corporation and the China Export-Import Bank to discuss the project the proposed contractor and financier of the project.
"I therefore call upon the prime minister to invite representatives of the Baha Mar group to join his meeting with the Chinese in China. It is, after all, Baha Mar's project. It seems only sensible and logical and appropriate to have the project owners at the table too so that everything can be settled all at the same time,"Christie said.
The opposition leader also criticized Ingraham for, what he described as, changing the requirements the developers must satisfy before the deal reaches Parliament.
"We don't have a hope in hell of being taken seriously by investors, especially in these very difficult times, if we continue to have a prime minister who keeps on changing the rules of engagement with investors, and who on top of that, believes in negotiation by press conferences,"Christie said.
"You cannot be calling press conferences to tell investors what they must do in order to win your favor. You cannot be telling them one thing in private and then call a press conference to lay down a whole new set of conditions."
Baha Mar's vision is to create a world-class resort destination, which represents the largest single-phase resort in the Caribbean.
Baha Mar has requested 8,150 work permits for the project. It is expected that the majority of the foreign workers helping to construct the project will be Chinese. The current deal requires that the core of the project be exclusively built by foreign labor.
The PLP's official 38-page position on Baha Mar was delivered by Bain and Grants Town MP Dr. Bernard Nottage.
While stating that the PLP supports the project, Dr. Nottage said they expect any deal would:
- Maximize the participation of Bahamian construction and related labor content, including both skilled and unskilled workers.
- Minimize the foreign construction labor content to that which is required for the successful completion and implementation of the project.
- Ensure training and skills transfer for Bahamian construction workers during the course of the entire project.
- Ensure that Bahamians are trained and available for permanent jobs in the operation of the resort.
- Ensure that there will be a myriad of opportunities for Bahamian entrepreneurs to benefit from in the resort when completed.
"The size and scope of this project represent the magnitude of what is needed to provide jobs for the vast number of Bahamian citizens who emerge onto the job market on an annual basis,"said Dr. Nottage.
10/22/2010
thenassauguardian
By KEVA LIGHTBOURNE
Guardian Senior Reporter
kdl@nasguard.com
Progressive Liberal Party (PLP)Leader Perry Christie last night threw his party's support behind the $2.6 billion Baha Mar project, while accusing Prime Minister Hubert Ingraham of seeking to negotiate a new Cable Beach deal on his upcoming trip to China.
At an hour-and-a-half news conference held at the PLP's Farrington Road headquarters, Christie stressed that the current economic conditions in the country call for the project to be embraced.
"It is in a very real sense, the only new substantial ray of sunshine that has presented itself. Nothing else holds out the kind of promise that Baha Mar does,"said Christie.
"It is not so much that it is the best big project that is available right now, the reality is that it is the only big project that is available to us right now. We do not have a choice. We do not have the luxury of choosing between the Baha Mar project and some other big project. Baha Mar is the only one that has the capacity right now to inject some desperately needed adrenaline into this anemic economy that is ailing us now."
Christie said it would be useless for Ingraham to negotiate a new deal with the Chinese without project developer Sarkis Izmirlian and his group at the same negotiating table.
"There needs to be a tripartite approach to this. Simple logic and plain, good sense demand it,"said the PLP leader.
"Suppose the prime minister negotiates a new deal that the Izmirlians cannot or will not live with? What then? What would he have accomplished then?" Christie asked." In that case, one foot forward would have been taken followed by two steps backward. That makes no kind of sense."
Ingraham is scheduled to leave for China today. He said earlier this week he would be meeting with China State Construction Engineering Corporation and the China Export-Import Bank to discuss the project the proposed contractor and financier of the project.
"I therefore call upon the prime minister to invite representatives of the Baha Mar group to join his meeting with the Chinese in China. It is, after all, Baha Mar's project. It seems only sensible and logical and appropriate to have the project owners at the table too so that everything can be settled all at the same time,"Christie said.
The opposition leader also criticized Ingraham for, what he described as, changing the requirements the developers must satisfy before the deal reaches Parliament.
"We don't have a hope in hell of being taken seriously by investors, especially in these very difficult times, if we continue to have a prime minister who keeps on changing the rules of engagement with investors, and who on top of that, believes in negotiation by press conferences,"Christie said.
"You cannot be calling press conferences to tell investors what they must do in order to win your favor. You cannot be telling them one thing in private and then call a press conference to lay down a whole new set of conditions."
Baha Mar's vision is to create a world-class resort destination, which represents the largest single-phase resort in the Caribbean.
Baha Mar has requested 8,150 work permits for the project. It is expected that the majority of the foreign workers helping to construct the project will be Chinese. The current deal requires that the core of the project be exclusively built by foreign labor.
The PLP's official 38-page position on Baha Mar was delivered by Bain and Grants Town MP Dr. Bernard Nottage.
While stating that the PLP supports the project, Dr. Nottage said they expect any deal would:
- Maximize the participation of Bahamian construction and related labor content, including both skilled and unskilled workers.
- Minimize the foreign construction labor content to that which is required for the successful completion and implementation of the project.
- Ensure training and skills transfer for Bahamian construction workers during the course of the entire project.
- Ensure that Bahamians are trained and available for permanent jobs in the operation of the resort.
- Ensure that there will be a myriad of opportunities for Bahamian entrepreneurs to benefit from in the resort when completed.
"The size and scope of this project represent the magnitude of what is needed to provide jobs for the vast number of Bahamian citizens who emerge onto the job market on an annual basis,"said Dr. Nottage.
10/22/2010
thenassauguardian
Baha Mar, Yea or Nay!
By Felix Bethel
Rough Cut
jonesbahamas
While we recognize that some of our fellow-Bahamians might cower in the face of opposition, we will not be deterred by some of the noise in the market that emanates from some of our brothers and sisters who are apparently opposed to the Baha Mar project.
So, today, with our eyes are focused on the price of the fish; we reiterate our support for the self-same Bahama Mar project.
And for sure, we hope and pray that the current administration will – yet- throw their support behind the venture; thus bringing to an amicable conclusion negotiations that have gone on for far too long.
In addition, we are fairly sure that there are other investors who are watching closely as one administration continues with a project initiated by its predecessor – watching to see the extent to which “politics” must be factored into their calculus of costs versus benefits of doing business in the Bahamas.
Here let there be no mistake about the importance of this matter; one that brings with it some very high stakes for the entire nation.
As we have previously suggested and explained, “…Let there be no mistake about the matter at hand – the Baha Mar project is a very big deal; it is not only a big deal to the investors who are putting their money on the line; but for sure, it is a huge deal for both the government and the people of The Bahamas.
“And here, let there be no mistake about another aspect of the matter involving this project – this project brings with it a large chance that – once completed – tens of thousands of Bahamians will benefit, either directly or indirectly…”
This remains our view; thus today, we find ourselves [for better or worse and thus like a host of other right-thinking Bahamians] in a most unlikely position; this being that while we are all fulsome in our support of the Baha Mar investment project, we are apparently at loggerheads with the nation’s chief.
We are now left to wonder why Mr. Ingraham apparently sees things so very differently; and in our wonderment, we note that while it was Mr. Ingrham himself who personally tabled the resolution in Parliament, with 100% support from the FNM MPs, approving the labor permits for the required skilled expatriate labor force necessary to help build Baha Mar; today it is the prime minister himself who now decries the Chinese labor requirements.
And for sure, there is more.
Here we note another reversal; this one concerning the time when the Ingraham administration itself somehow or the other, forced the Baha Mar project to enter into a Supplemental Heads of Agreement; this one requiring the entire project to be built in one phase, and imposing penalties if it is not.
Now that things have apparently changed or gone sour; we note that the prime minister has completely reversed himself and that he now demands that the project should be constructed in multiple phases.
Here the implication is clear; such a move would incur more costs to the investor and commensurately, reduced economic and job benefits to the Bahamas.
In this latter instance of losses projected, we can recite some who stand to lose most: Bahamian contractors and their employees; the Bahamian labor unions; community leaders; and countless Bahamian businesses, including the Chamber of Commerce.
In light of the foregoing, we reiterate a point previously made to the effect that this Baha Mar project is good for the Bahamas and that as such, its approval should be put on the fast track.
In addition, we would very much like both the governing party and its Opposition to know that each would do itself a world of good by working together so as to bring about an optimal resolution as regards the same Chinese funded initiative.
Incidentally, all of these groups and interests support the Baha Mar project and recognize the immediate and real benefits they will gain from its going forward.
As we have previously framed the issue at hand; so today we reiterate our view to the effect that, “…Those law-makers who mean this country and its people well should – as a matter of the most urgent priority – cease and desist from any tricks or shenanigans which might either detract from or otherwise distract them from supporting the Baha Mar venture.
Yet again, we make this plea to these men and women because of some of what we perceive as little more than pious nit-picking on the part of some politicians who are making – as far as we are concerned – a mountain of what is surely a very real mole-hill; that being with the Chinese request for thousands of expatriate workers who would assist in constructing the resort complex.
Evidently, now is the time for a yea or a nay on that matter involving Baha Mar and its myriad of opportunities for the Bahamian people.
jonesbahamas
Rough Cut
jonesbahamas
While we recognize that some of our fellow-Bahamians might cower in the face of opposition, we will not be deterred by some of the noise in the market that emanates from some of our brothers and sisters who are apparently opposed to the Baha Mar project.
So, today, with our eyes are focused on the price of the fish; we reiterate our support for the self-same Bahama Mar project.
And for sure, we hope and pray that the current administration will – yet- throw their support behind the venture; thus bringing to an amicable conclusion negotiations that have gone on for far too long.
In addition, we are fairly sure that there are other investors who are watching closely as one administration continues with a project initiated by its predecessor – watching to see the extent to which “politics” must be factored into their calculus of costs versus benefits of doing business in the Bahamas.
Here let there be no mistake about the importance of this matter; one that brings with it some very high stakes for the entire nation.
As we have previously suggested and explained, “…Let there be no mistake about the matter at hand – the Baha Mar project is a very big deal; it is not only a big deal to the investors who are putting their money on the line; but for sure, it is a huge deal for both the government and the people of The Bahamas.
“And here, let there be no mistake about another aspect of the matter involving this project – this project brings with it a large chance that – once completed – tens of thousands of Bahamians will benefit, either directly or indirectly…”
This remains our view; thus today, we find ourselves [for better or worse and thus like a host of other right-thinking Bahamians] in a most unlikely position; this being that while we are all fulsome in our support of the Baha Mar investment project, we are apparently at loggerheads with the nation’s chief.
We are now left to wonder why Mr. Ingraham apparently sees things so very differently; and in our wonderment, we note that while it was Mr. Ingrham himself who personally tabled the resolution in Parliament, with 100% support from the FNM MPs, approving the labor permits for the required skilled expatriate labor force necessary to help build Baha Mar; today it is the prime minister himself who now decries the Chinese labor requirements.
And for sure, there is more.
Here we note another reversal; this one concerning the time when the Ingraham administration itself somehow or the other, forced the Baha Mar project to enter into a Supplemental Heads of Agreement; this one requiring the entire project to be built in one phase, and imposing penalties if it is not.
Now that things have apparently changed or gone sour; we note that the prime minister has completely reversed himself and that he now demands that the project should be constructed in multiple phases.
Here the implication is clear; such a move would incur more costs to the investor and commensurately, reduced economic and job benefits to the Bahamas.
In this latter instance of losses projected, we can recite some who stand to lose most: Bahamian contractors and their employees; the Bahamian labor unions; community leaders; and countless Bahamian businesses, including the Chamber of Commerce.
In light of the foregoing, we reiterate a point previously made to the effect that this Baha Mar project is good for the Bahamas and that as such, its approval should be put on the fast track.
In addition, we would very much like both the governing party and its Opposition to know that each would do itself a world of good by working together so as to bring about an optimal resolution as regards the same Chinese funded initiative.
Incidentally, all of these groups and interests support the Baha Mar project and recognize the immediate and real benefits they will gain from its going forward.
As we have previously framed the issue at hand; so today we reiterate our view to the effect that, “…Those law-makers who mean this country and its people well should – as a matter of the most urgent priority – cease and desist from any tricks or shenanigans which might either detract from or otherwise distract them from supporting the Baha Mar venture.
Yet again, we make this plea to these men and women because of some of what we perceive as little more than pious nit-picking on the part of some politicians who are making – as far as we are concerned – a mountain of what is surely a very real mole-hill; that being with the Chinese request for thousands of expatriate workers who would assist in constructing the resort complex.
Evidently, now is the time for a yea or a nay on that matter involving Baha Mar and its myriad of opportunities for the Bahamian people.
jonesbahamas
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