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
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 Bahamian Contractors. Show all posts
Showing posts with label Bahamian Contractors. Show all posts
Monday, November 22, 2010
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
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
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
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
Tuesday, November 9, 2010
PLP leader Perry Christie is at odds with Prime Minister Hubert Ingraham over Baha Mar Resort construction phases
Christie at odds with PM over six planned Baha Mar hotels
tribune242
PLP leader Perry Christie is at odds with Prime Minister Hubert Ingraham over his belief that the six hotels which are to be built as part of the Baha Mar Resort should be built or opened in phases.
Mr Christie said it would only increase the cost of the project to break down the construction into phases, and would make little sense for the resort developers not to open all of the hotels at the same time if they were all constructed simultaneously.
Information reaching The Tribune is that Prime Minister Hubert Ingraham may have asked the Chinese if the hotels could be built in phases rather than all at once or that if this could not be accommodated, that they would open in a phased manner.
But Mr Christie said that considering the fact that so much money was being borrowed to fund the hotels' construction it would "not make sense to have hotels sitting there that they couldn't sell", referring to the ability to sell rooms within the hotels once they are completed.
And he added that the size of the Baha Mar development was one of the reasons for the re-development of the Lynden Pindling International Airport.
Studies
"Don't forget, Baha Mar engaged a company to do studies which concluded that both the Baha Mar development and Atlantis can co-exist/be developed at the same time," said Mr Christie.
Meanwhile, Mr Christie also told The Tribune that he understands that coming out of the Prime Minister's meetings with Baha Mar financiers, China Export Import Bank and the China State Construction Company, its general contractor, an arrangement may have been reached whereby the Bahamian labour component on the construction project would be increased by ten per cent, with 40 per cent Bahamian and 60 per cent Chinese labour.
Some sources had suggested Mr Ingraham had sought to negotiate a $200million increase in the amount of funding that will go to Bahamian contractors in connection with the project.
"The Prime Minister, I presume upon his return, will advise the country as to whether or not he was able to succeed in these discussions," said Mr Christie last week.
Stephen Wrinkle, President of the Bahamas Contractors Association, said yesterday that prior to Mr Ingraham leaving for China he told the BCA in a meeting that he would seek to increase the Bahamian content of the labour force and get more work for Bahamian contractors as part of the Baha Mar project.
"We have to ensure we've got the quantity of the workers and the dollar value comes to the contractors and not just payrolls," said Mr Wrinkle yesterday.
The contractor added that as the industry awaits an announcement on what was the outcome of any efforts on behalf of Mr Ingraham to achieve this end, the BCA continues to dialogue with Baha Mar and BTVI on training workers so they are prepared "at such time as when the facts and figures emerge".
"We know there will be a Bahamian content in the labour force and the project and we are continuing to focus our efforts on preparing our workers and contractors so if the work the Prime Minister is doing comes to fruition we will be able to presentable work force for project," said Mr Wrinkle.
November 08, 2010
tribune242
tribune242
PLP leader Perry Christie is at odds with Prime Minister Hubert Ingraham over his belief that the six hotels which are to be built as part of the Baha Mar Resort should be built or opened in phases.
Mr Christie said it would only increase the cost of the project to break down the construction into phases, and would make little sense for the resort developers not to open all of the hotels at the same time if they were all constructed simultaneously.
Information reaching The Tribune is that Prime Minister Hubert Ingraham may have asked the Chinese if the hotels could be built in phases rather than all at once or that if this could not be accommodated, that they would open in a phased manner.
But Mr Christie said that considering the fact that so much money was being borrowed to fund the hotels' construction it would "not make sense to have hotels sitting there that they couldn't sell", referring to the ability to sell rooms within the hotels once they are completed.
And he added that the size of the Baha Mar development was one of the reasons for the re-development of the Lynden Pindling International Airport.
Studies
"Don't forget, Baha Mar engaged a company to do studies which concluded that both the Baha Mar development and Atlantis can co-exist/be developed at the same time," said Mr Christie.
Meanwhile, Mr Christie also told The Tribune that he understands that coming out of the Prime Minister's meetings with Baha Mar financiers, China Export Import Bank and the China State Construction Company, its general contractor, an arrangement may have been reached whereby the Bahamian labour component on the construction project would be increased by ten per cent, with 40 per cent Bahamian and 60 per cent Chinese labour.
Some sources had suggested Mr Ingraham had sought to negotiate a $200million increase in the amount of funding that will go to Bahamian contractors in connection with the project.
"The Prime Minister, I presume upon his return, will advise the country as to whether or not he was able to succeed in these discussions," said Mr Christie last week.
Stephen Wrinkle, President of the Bahamas Contractors Association, said yesterday that prior to Mr Ingraham leaving for China he told the BCA in a meeting that he would seek to increase the Bahamian content of the labour force and get more work for Bahamian contractors as part of the Baha Mar project.
"We have to ensure we've got the quantity of the workers and the dollar value comes to the contractors and not just payrolls," said Mr Wrinkle yesterday.
The contractor added that as the industry awaits an announcement on what was the outcome of any efforts on behalf of Mr Ingraham to achieve this end, the BCA continues to dialogue with Baha Mar and BTVI on training workers so they are prepared "at such time as when the facts and figures emerge".
"We know there will be a Bahamian content in the labour force and the project and we are continuing to focus our efforts on preparing our workers and contractors so if the work the Prime Minister is doing comes to fruition we will be able to presentable work force for project," said Mr Wrinkle.
November 08, 2010
tribune242
Saturday, October 23, 2010
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
Tuesday, October 12, 2010
Stephen Wrinkle - Bahamas Contractors Association (BCA) President says: It is time for industry involvement in the Baha Mar negotiations
Call for more industry input in Baha Mar negotiations
NOELLE NICOLLS
Tribune Staff Reporter
nnicolls@tribunemedia.net
IT IS time for industry involvement in the Baha Mar negotiations, according to the Bahamas Contractors Association.
Since the BCA submitted its position paper to the government in August it has received no response. Association president Stephen Wrinkle said "it seems to be the typical way of doing business" that industry stakeholders are not consulted.
Mr Wrinkle's comments came in the wake of Prime Minister Hubert Ingraham making his strongest personal statements yet on the Baha Mar issue.
Now that the financial hurdles have been overcome, Mr Wrinkle said he hopes the major stakeholders - Baha Mar, government and industry - will be brought together to iron out the remaining kinks.
"I would have thought more industry consultation would have taken place. They certainly have access to people in the industry through the Ministry of Works, but then again that is a government ministry," said Mr Wrinkle.
"We met with the opposition party and their caucus; we briefed them on our position paper and had discussions. We have met with Baha Mar and had discussions with them, but we have had absolutely no response from the government. I couldn't elaborate any further on what their position is because we don't know," he said.
Last week Mr Ingraham suggested Baha Mar may have to review the labour component of its proposal as well as plans for a "single-phased development" in order to satisfy the government's concerns.
One of the main concerns of industry, according to Mr Wrinkle, is the involvement of Bahamian contractors and the transfer of knowledge.
"These big international contracts are extremely difficult to micro-manage at a small level. It will take additional resources on their part to include more Bahamian contractors. It will take more oversight, more management, more participation from the project management team. We understand that," said Mr Wrinkle.
"I think there are concessions that have been given and others that are available to offset this added expense. The tradeoff is well worth it," he said.
On the matter of transferring knowledge, Mr Wrinkle said foreign contractors are not interested in transferring knowledge at the level of labour.
If the focus is only on supplying labour, he said, there would likely be little transfer of knowledge.
"How do you transfer knowledge on how to drive a shovel? That is nothing. We don't need that type of transfer of knowledge. We need to capitalise on techniques and technologies that are unavailable to us on the local market.
"There is not transfer at knowledge at the labour level. It is the duty of the government, the responsibility of government to put in place measures to ensure participation of the local industry. We cannot do it on our own," he said.
So far, Baha Mar has been responsive to the concerns of industry representatives, according to Mr Wrinkle.
However, there are currently no pledges on the table for money to be allocated for training and no stipulations requiring Baha Mar to integrate Bahamian contractors and their crews into the Baha Mar project.
October 09, 2010
tribune242
NOELLE NICOLLS
Tribune Staff Reporter
nnicolls@tribunemedia.net
IT IS time for industry involvement in the Baha Mar negotiations, according to the Bahamas Contractors Association.
Since the BCA submitted its position paper to the government in August it has received no response. Association president Stephen Wrinkle said "it seems to be the typical way of doing business" that industry stakeholders are not consulted.
Mr Wrinkle's comments came in the wake of Prime Minister Hubert Ingraham making his strongest personal statements yet on the Baha Mar issue.
Now that the financial hurdles have been overcome, Mr Wrinkle said he hopes the major stakeholders - Baha Mar, government and industry - will be brought together to iron out the remaining kinks.
"I would have thought more industry consultation would have taken place. They certainly have access to people in the industry through the Ministry of Works, but then again that is a government ministry," said Mr Wrinkle.
"We met with the opposition party and their caucus; we briefed them on our position paper and had discussions. We have met with Baha Mar and had discussions with them, but we have had absolutely no response from the government. I couldn't elaborate any further on what their position is because we don't know," he said.
Last week Mr Ingraham suggested Baha Mar may have to review the labour component of its proposal as well as plans for a "single-phased development" in order to satisfy the government's concerns.
One of the main concerns of industry, according to Mr Wrinkle, is the involvement of Bahamian contractors and the transfer of knowledge.
"These big international contracts are extremely difficult to micro-manage at a small level. It will take additional resources on their part to include more Bahamian contractors. It will take more oversight, more management, more participation from the project management team. We understand that," said Mr Wrinkle.
"I think there are concessions that have been given and others that are available to offset this added expense. The tradeoff is well worth it," he said.
On the matter of transferring knowledge, Mr Wrinkle said foreign contractors are not interested in transferring knowledge at the level of labour.
If the focus is only on supplying labour, he said, there would likely be little transfer of knowledge.
"How do you transfer knowledge on how to drive a shovel? That is nothing. We don't need that type of transfer of knowledge. We need to capitalise on techniques and technologies that are unavailable to us on the local market.
"There is not transfer at knowledge at the labour level. It is the duty of the government, the responsibility of government to put in place measures to ensure participation of the local industry. We cannot do it on our own," he said.
So far, Baha Mar has been responsive to the concerns of industry representatives, according to Mr Wrinkle.
However, there are currently no pledges on the table for money to be allocated for training and no stipulations requiring Baha Mar to integrate Bahamian contractors and their crews into the Baha Mar project.
October 09, 2010
tribune242
Sunday, October 10, 2010
Stephen Wrinkle, Bahamas Contractors Association (BCA) president said the Baha Mar project could drain the country of workers in a "New York minute", and leave Bahamian contractors "left on the side lines."
Fears Baha Mar could drain country of workers
By NOELLE NICOLLS
Tribune Staff Reporter
nnicolls@tribunemedia.net
If Baha Mar drains the labour pool of Bahamian workers then contractors will be left twiddling their thumbs, according to the Bahamas Contractors Association.
Stephen Wrinkle, BCA president said the project could drain the country of workers in a "New York minute", and leave Bahamian contractors "left on the side lines." It has happened before and it could happen again, he said. "(Atlantis) drained our labour pool and caused the labour rates to go up; the supply of skilled labour was at a bare minimum for local contractors. It was that experience that caused us to learn you cannot just take the labour. Otherwise what is the point of having Bahamian contractors. Why not just have a labour agent," said Mr Wrinkle.
The situation will not be different this time around unless the government requires Baha Mar to insert specific language in any final agreement mandating the participation of Bahamian contractors and funding to train Bahamians.
His comments came in the wake of Prime Minister Hubert Ingraham calling the labour component of Baha Mar "onerous, burdensome and unacceptable."
Baha Mar has requested work permits for 8150 foreign workers over the life span of the $2.6 billion project and pledged $60 million in the first instance for Bahamian contractors two work on phase one.
"There are very few contractors poised to participate in the scope of work. We are trying to press the point that they need to employ contractors who would be able to bring their crew and the full resources of the company to the project. Otherwise we are going to have a whole bunch of contractors standing around with no crew," said Mr Wrinkle.
In the long run, he said, the direct trickle down effect from employing Bahamian contractors will be significantly higher than with foreign contractors.
"They have no need to inject money into our local economy. Their priority is to take our labour. What we continue to say is this is the wrong approach, because all we are doing is providing maids and spades. That cannot work; our economy cannot work in a labour only supply environment. We need to see the mandatory inclusion and provision of Bahamian contractors rather than simply bringing in foreign contractors to suck up our labour supply," said Mr Wrinkle.
There were many lessons learned by the industry from the "Kerzner experience." Tribune sources say the number of Mexican and Filipino workers hired to build Atlantis reached the thousands, although Atlantis is often referenced as the poster child for employing Bahamian construction workers.
Mr Wrinkle said that is a fair assessment. It is a well known fact that the Bahamas does not have a sufficient number of workers to fill the labour needs of large foreign direct investment (FDI) projects like Atlantis and Baha Mar, he said.
Mr Wrinkle speculated that is why the Prime Minister "was hoping Baha Mar could be phased, so we wouldn't need that tremendous injection of foreign labour."
That is why it is important for the government to ensure the participation of Bahamian contractors and not just labourers on FDI projects, he said.
In the case of Atlantis, Mr Wrinkle said it was only because of the persistence of the BCA that Bahamian contractors got a piece of the Atlantis pie.
"It took us until phase three to have substantial participation on that project. We fought long and hard against Atlantis before we finally got a piece of the pie over there. It was not a gift. Mr Kerzner did not voluntarily employ Bahamians.
"At the end of the day we were successful at negotiating with them for the participation of Bahamian contractors," he said.
October 09, 2010
tribune242
By NOELLE NICOLLS
Tribune Staff Reporter
nnicolls@tribunemedia.net
If Baha Mar drains the labour pool of Bahamian workers then contractors will be left twiddling their thumbs, according to the Bahamas Contractors Association.
Stephen Wrinkle, BCA president said the project could drain the country of workers in a "New York minute", and leave Bahamian contractors "left on the side lines." It has happened before and it could happen again, he said. "(Atlantis) drained our labour pool and caused the labour rates to go up; the supply of skilled labour was at a bare minimum for local contractors. It was that experience that caused us to learn you cannot just take the labour. Otherwise what is the point of having Bahamian contractors. Why not just have a labour agent," said Mr Wrinkle.
The situation will not be different this time around unless the government requires Baha Mar to insert specific language in any final agreement mandating the participation of Bahamian contractors and funding to train Bahamians.
His comments came in the wake of Prime Minister Hubert Ingraham calling the labour component of Baha Mar "onerous, burdensome and unacceptable."
Baha Mar has requested work permits for 8150 foreign workers over the life span of the $2.6 billion project and pledged $60 million in the first instance for Bahamian contractors two work on phase one.
"There are very few contractors poised to participate in the scope of work. We are trying to press the point that they need to employ contractors who would be able to bring their crew and the full resources of the company to the project. Otherwise we are going to have a whole bunch of contractors standing around with no crew," said Mr Wrinkle.
In the long run, he said, the direct trickle down effect from employing Bahamian contractors will be significantly higher than with foreign contractors.
"They have no need to inject money into our local economy. Their priority is to take our labour. What we continue to say is this is the wrong approach, because all we are doing is providing maids and spades. That cannot work; our economy cannot work in a labour only supply environment. We need to see the mandatory inclusion and provision of Bahamian contractors rather than simply bringing in foreign contractors to suck up our labour supply," said Mr Wrinkle.
There were many lessons learned by the industry from the "Kerzner experience." Tribune sources say the number of Mexican and Filipino workers hired to build Atlantis reached the thousands, although Atlantis is often referenced as the poster child for employing Bahamian construction workers.
Mr Wrinkle said that is a fair assessment. It is a well known fact that the Bahamas does not have a sufficient number of workers to fill the labour needs of large foreign direct investment (FDI) projects like Atlantis and Baha Mar, he said.
Mr Wrinkle speculated that is why the Prime Minister "was hoping Baha Mar could be phased, so we wouldn't need that tremendous injection of foreign labour."
That is why it is important for the government to ensure the participation of Bahamian contractors and not just labourers on FDI projects, he said.
In the case of Atlantis, Mr Wrinkle said it was only because of the persistence of the BCA that Bahamian contractors got a piece of the Atlantis pie.
"It took us until phase three to have substantial participation on that project. We fought long and hard against Atlantis before we finally got a piece of the pie over there. It was not a gift. Mr Kerzner did not voluntarily employ Bahamians.
"At the end of the day we were successful at negotiating with them for the participation of Bahamian contractors," he said.
October 09, 2010
tribune242
Saturday, October 9, 2010
Baha Mar says: $60 million allocated to Bahamian contractors is only a portion of the overall direct benefit earmarked for Bahamians
$60m 'only a portion' of overall benefit for Bahamians
By NOELLE NICOLLS
Tribune Staff Reporter
nnicolls@tribunemedia.net:
BAHA MAR executives say the $60 million allocated to Bahamian contractors is only a portion of the overall direct benefit earmarked for locals.
Robert Sands, Baha Mar's senior vice-president for governmental and external affairs, said it is "erroneous" to portray the initial $60 million being allocated as the total direct benefit to Bahamians.
He said the company's pledge to award all contracts for the $200 million first phase construction of the $2.6 billion Cable Beach redevelopment is still current. And the figure released to the public represents those initial works the company has quantified.
"Our position has not in fact changed. We have always said in the first phase the value of the works was around $200 million. The first part of that $200 million is $60 million; that is what we have announced and put a value on immediately," said Mr Sands.
The work scheduled for phase one includes the road re-routing, the building of the Commercial Village and the Pompey Village Straw Market.
There "absolutely" will be additional money to be earned by Bahamians in the remaining phases of the project, whether through direct contracts with local companies, the employment for tradesmen or the purchase of local goods and materials, he said.
October 08, 2010
tribune242
By NOELLE NICOLLS
Tribune Staff Reporter
nnicolls@tribunemedia.net:
BAHA MAR executives say the $60 million allocated to Bahamian contractors is only a portion of the overall direct benefit earmarked for locals.
Robert Sands, Baha Mar's senior vice-president for governmental and external affairs, said it is "erroneous" to portray the initial $60 million being allocated as the total direct benefit to Bahamians.
He said the company's pledge to award all contracts for the $200 million first phase construction of the $2.6 billion Cable Beach redevelopment is still current. And the figure released to the public represents those initial works the company has quantified.
"Our position has not in fact changed. We have always said in the first phase the value of the works was around $200 million. The first part of that $200 million is $60 million; that is what we have announced and put a value on immediately," said Mr Sands.
The work scheduled for phase one includes the road re-routing, the building of the Commercial Village and the Pompey Village Straw Market.
There "absolutely" will be additional money to be earned by Bahamians in the remaining phases of the project, whether through direct contracts with local companies, the employment for tradesmen or the purchase of local goods and materials, he said.
October 08, 2010
tribune242
Wednesday, September 29, 2010
Foreign Workers on Bahamian Construction Sites
Foreigners on Bahamian construction sites
tribune242 editorial
THE DEBATE on the number of Chinese to be employed on the construction of the Baha Mar Cable Beach project -- six hotels, about a 100,000-square foot casino, a 200,000 square-foot convention centre, 20-acre beach and pool, 18-hole golf course and a 60,000-square foot retail village with additional residential products -- is going to be interesting, if and when it takes place on the floor of the House.
The number of foreign workers required by the Chinese as part of the deal is unusually large. But it is well known that the Chinese do not approve foreign loans unless their workforce is employed as a major part of the loan project. In the case of Baha Mar -- valued at about $2.5 billion - $1.918,965,693 billion has been negotiated with the China Construction Company as primary contractors. With that financial outlay it is amazing that government was able to negotiate any Bahamian presence. As Mr Ingraham said in presenting his resolution for this project to the House "the foreign labour component intended during the construction for the resort exceeds levels ever experienced in the Bahamas and is beyond anything ever contemplated by my government."
Under the UBP, construction up to a certain value was reserved for Bahamian contractors. Over that value it was agreed that Bahamians did not yet have the expertise or equipment to handle very large jobs and so those were left to foreign contractors, such as McAlpine, Balfour Beatty and others. In the 1950s, said Mr Ingraham, the government permitted 25 per cent of the labour force in construction and/or the operation of tourism development to be foreign.
During the Pindling era, however, the foreign labour component increased and newspaper articles recorded protests, either by foreign workers complaining of working conditions, or Bahamians questioning their presence in the Bahamas. For example, in 1988, 600 angry Indians went on hunger strike on the construction site of the Crystal Palace Hotel, Cable Beach. They accused the foreign contractor, Balfour Beatty, of treating them as slaves. Earlier - in 1981 - the Construction and Civil Engineering Union picketed the construction site of government's $66.5 million Cable Beach Hotel. "They import Filipinos to shovel sand. You tell me no Bahamans can do that?" complained a Bahamian worker. There were 40 Filipinos on that job site.
But the 1990 demonstration to protest the employment of common labourers -- truck drivers for example -- from Brazil on government's $55 million Nassau International Airport expansion was particularly interesting. The ratio of foreigners to Bahamians was 70 per cent on that construction site with government having to pay a large penalty if the number of Bahamians went over the agreed 139 or 30 per cent of the total work force. This prompted the carrying of placards that read: "It's Better in the Bahamas for Brazilians!"
At one point during the contract there were more than 340 Brazilians at the construction site, bringing the Brazilian count to 71 per cent compared to the 139 Bahamians that the company had agreed to use during this period.
The Pindling government had agreed that for every five Bahamians hired by the Brazilian company over the agreed 139 Bahamian workers, the government would have to pay $88,000 or $17,000 for each worker.
In the House on April 30, 1990, then Opposition Leader Hubert Ingraham revealed that the Pindling government had also agreed to pay all of the Brazilian company's Customs and stamp duties, work permit fees for their workers, and building fees on mechanical and electrical permits. In addition government was to pay all public utility fees -- connections and the like -- except for the actual electrical consumption.
The FNM found it preposterous that government would be penalised if more than 139 Bahamians were hired at the airport. "It is incredible that the Government has agreed to pay extra monies for Bahamians to work in their own country," said the FNM.
When the Ingraham government came to power its policy on foreign labour was established on the resort properties of Kerzner International -- the ratio of Bahamians to non-Bahamians on that site was not to exceed 30 per cent foreign to 70 per cent Bahamian.
And now here were the Chinese financially backing the transformation of Cable Beach into a mega tourist resort and asking for 8,150 of their countrymen to be engaged on the "core project". The projection is that some 1,200 Bahamians will be engaged in construction of the non-core projects.
Because of the unusual request for foreign labour -- 71 per cent foreign to 29 per cent Bahamian -- Prime Minister Ingraham has brought the matter to the House to give the Opposition an opportunity to express the opinions of their constituents on the matter. Both sides have to determine - in the words of Mr Ingraham - "whether this invaluable benefit of skills transfer and improved exposure to new technologies can or will occur in a project where contact between Bahamians and foreign experts is likely to be limited." Bahamians also have to decide whether in these lean years this project, with its foreign labour, is what they believe will jump start their economy.
September 28, 2010
tribune242 editorial
tribune242 editorial
THE DEBATE on the number of Chinese to be employed on the construction of the Baha Mar Cable Beach project -- six hotels, about a 100,000-square foot casino, a 200,000 square-foot convention centre, 20-acre beach and pool, 18-hole golf course and a 60,000-square foot retail village with additional residential products -- is going to be interesting, if and when it takes place on the floor of the House.
The number of foreign workers required by the Chinese as part of the deal is unusually large. But it is well known that the Chinese do not approve foreign loans unless their workforce is employed as a major part of the loan project. In the case of Baha Mar -- valued at about $2.5 billion - $1.918,965,693 billion has been negotiated with the China Construction Company as primary contractors. With that financial outlay it is amazing that government was able to negotiate any Bahamian presence. As Mr Ingraham said in presenting his resolution for this project to the House "the foreign labour component intended during the construction for the resort exceeds levels ever experienced in the Bahamas and is beyond anything ever contemplated by my government."
Under the UBP, construction up to a certain value was reserved for Bahamian contractors. Over that value it was agreed that Bahamians did not yet have the expertise or equipment to handle very large jobs and so those were left to foreign contractors, such as McAlpine, Balfour Beatty and others. In the 1950s, said Mr Ingraham, the government permitted 25 per cent of the labour force in construction and/or the operation of tourism development to be foreign.
During the Pindling era, however, the foreign labour component increased and newspaper articles recorded protests, either by foreign workers complaining of working conditions, or Bahamians questioning their presence in the Bahamas. For example, in 1988, 600 angry Indians went on hunger strike on the construction site of the Crystal Palace Hotel, Cable Beach. They accused the foreign contractor, Balfour Beatty, of treating them as slaves. Earlier - in 1981 - the Construction and Civil Engineering Union picketed the construction site of government's $66.5 million Cable Beach Hotel. "They import Filipinos to shovel sand. You tell me no Bahamans can do that?" complained a Bahamian worker. There were 40 Filipinos on that job site.
But the 1990 demonstration to protest the employment of common labourers -- truck drivers for example -- from Brazil on government's $55 million Nassau International Airport expansion was particularly interesting. The ratio of foreigners to Bahamians was 70 per cent on that construction site with government having to pay a large penalty if the number of Bahamians went over the agreed 139 or 30 per cent of the total work force. This prompted the carrying of placards that read: "It's Better in the Bahamas for Brazilians!"
At one point during the contract there were more than 340 Brazilians at the construction site, bringing the Brazilian count to 71 per cent compared to the 139 Bahamians that the company had agreed to use during this period.
The Pindling government had agreed that for every five Bahamians hired by the Brazilian company over the agreed 139 Bahamian workers, the government would have to pay $88,000 or $17,000 for each worker.
In the House on April 30, 1990, then Opposition Leader Hubert Ingraham revealed that the Pindling government had also agreed to pay all of the Brazilian company's Customs and stamp duties, work permit fees for their workers, and building fees on mechanical and electrical permits. In addition government was to pay all public utility fees -- connections and the like -- except for the actual electrical consumption.
The FNM found it preposterous that government would be penalised if more than 139 Bahamians were hired at the airport. "It is incredible that the Government has agreed to pay extra monies for Bahamians to work in their own country," said the FNM.
When the Ingraham government came to power its policy on foreign labour was established on the resort properties of Kerzner International -- the ratio of Bahamians to non-Bahamians on that site was not to exceed 30 per cent foreign to 70 per cent Bahamian.
And now here were the Chinese financially backing the transformation of Cable Beach into a mega tourist resort and asking for 8,150 of their countrymen to be engaged on the "core project". The projection is that some 1,200 Bahamians will be engaged in construction of the non-core projects.
Because of the unusual request for foreign labour -- 71 per cent foreign to 29 per cent Bahamian -- Prime Minister Ingraham has brought the matter to the House to give the Opposition an opportunity to express the opinions of their constituents on the matter. Both sides have to determine - in the words of Mr Ingraham - "whether this invaluable benefit of skills transfer and improved exposure to new technologies can or will occur in a project where contact between Bahamians and foreign experts is likely to be limited." Bahamians also have to decide whether in these lean years this project, with its foreign labour, is what they believe will jump start their economy.
September 28, 2010
tribune242 editorial
Monday, September 27, 2010
The Opposition Progressive Liberal Party (PLP) rejected a resolution to borrow nearly $58 million from a Chinese bank to construct a new highway - because of its requirement to hire twice as many foreigners as Bahamians
PLP rejects loan resolution
By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com:
The opposition last night rejected a resolution to borrow nearly $58 million from a Chinese bank to construct a new highway, saying the loan requirement to bring in 200 Chinese workers to build a road is something the Progressive Liberal Party cannot accept.
Minister of State for Finance Zhivargo Laing moved the resolution yesterday in the House of Assembly to borrow $57,999,966 from the Export-Import Bank of China for the development of the airport road project.
He said the nature of the China capital export policy provides for the inclusion of Chinese labor and material. Approximately 120 Bahamians will be engaged for the project.
PLP Leader Perry Christie said given the extraordinarily hard times, it is unacceptable for the government to approve a public project that would require it to hire twice as many foreigners as Bahamians.
"Is there something in this four-lane highway that the Bahamians cannot do?Is there some component?"Christie asked.
Pointing to the Tonique Williams-Darling Highway, the opposition leader said Bahamians have demonstrated in the past their ability to build roads.
The plans include the realignment of the existing John F. Kennedy Drive to create a four-lane highway from Windsor Field Road to the new six-legged roundabout.
"We gave them the work, they did a splendid job on Tonique Williams-Darling Highway,"Christie said of the Bahamian contractors.
"They did the work and they were Bahamian. So the question for me is whether or not the government considered the option of giving the Bahamians the work even though the[overall cost]of the work would have been higher."
He said at the end of the day more Bahamians would have jobs and as a result it would have a greater impact on the economy.
"This is not a private sector project like Baha Mar where the development would not take place[unless the foreign labor component is extended],"Christie said."This is a public sector project where the Government of The Bahamas has control."
Laing pointed to the low interest rate on the loan, which he said will save the government substantial sums of money.
He said the interest rate attached to the Chinese loan is two percent compared to the seven percent minimum that the government would have gotten on the open market.
Laing said if the government were to accept a loan with a seven percent interest rate, the government would have to pay $43 million in interest alone. By comparison the Chinese loan would attract $10.7 in interest.
But Christie said the government made the"wrong decision".
"We have given close consideration to this resolution. We understand the dynamics. We feel that the best decision would have been to have Bahamian contractors to build and we also believe that the economy would be impacted greater than the impact it would have with the Chinese,"Christie said.
Prime Minister Hubert Ingraham pointed out that under the Christie administration 60 work permits were granted to Chinese to assist with the construction of T.G. Glover Primary School.
However, Christie said the circumstances were vastly different.
For example, he said the economy at that time was growing and the unemployment level was nowhere near where it is now.
"At the same time, we had a sector where construction jobs, where a contractor, had the right to make a case to the immigration department for work permits, and at a time when jobs were not the question,"he said.
"At the time the immigration department gave work permits to a Bahamian contractor to help with construction but today the government has total control over the work that is being done. The Bahamas government is issuing the work itself."
9/23/2010
thenassauguardian
By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com:
The opposition last night rejected a resolution to borrow nearly $58 million from a Chinese bank to construct a new highway, saying the loan requirement to bring in 200 Chinese workers to build a road is something the Progressive Liberal Party cannot accept.
Minister of State for Finance Zhivargo Laing moved the resolution yesterday in the House of Assembly to borrow $57,999,966 from the Export-Import Bank of China for the development of the airport road project.
He said the nature of the China capital export policy provides for the inclusion of Chinese labor and material. Approximately 120 Bahamians will be engaged for the project.
PLP Leader Perry Christie said given the extraordinarily hard times, it is unacceptable for the government to approve a public project that would require it to hire twice as many foreigners as Bahamians.
"Is there something in this four-lane highway that the Bahamians cannot do?Is there some component?"Christie asked.
Pointing to the Tonique Williams-Darling Highway, the opposition leader said Bahamians have demonstrated in the past their ability to build roads.
The plans include the realignment of the existing John F. Kennedy Drive to create a four-lane highway from Windsor Field Road to the new six-legged roundabout.
"We gave them the work, they did a splendid job on Tonique Williams-Darling Highway,"Christie said of the Bahamian contractors.
"They did the work and they were Bahamian. So the question for me is whether or not the government considered the option of giving the Bahamians the work even though the[overall cost]of the work would have been higher."
He said at the end of the day more Bahamians would have jobs and as a result it would have a greater impact on the economy.
"This is not a private sector project like Baha Mar where the development would not take place[unless the foreign labor component is extended],"Christie said."This is a public sector project where the Government of The Bahamas has control."
Laing pointed to the low interest rate on the loan, which he said will save the government substantial sums of money.
He said the interest rate attached to the Chinese loan is two percent compared to the seven percent minimum that the government would have gotten on the open market.
Laing said if the government were to accept a loan with a seven percent interest rate, the government would have to pay $43 million in interest alone. By comparison the Chinese loan would attract $10.7 in interest.
But Christie said the government made the"wrong decision".
"We have given close consideration to this resolution. We understand the dynamics. We feel that the best decision would have been to have Bahamian contractors to build and we also believe that the economy would be impacted greater than the impact it would have with the Chinese,"Christie said.
Prime Minister Hubert Ingraham pointed out that under the Christie administration 60 work permits were granted to Chinese to assist with the construction of T.G. Glover Primary School.
However, Christie said the circumstances were vastly different.
For example, he said the economy at that time was growing and the unemployment level was nowhere near where it is now.
"At the same time, we had a sector where construction jobs, where a contractor, had the right to make a case to the immigration department for work permits, and at a time when jobs were not the question,"he said.
"At the time the immigration department gave work permits to a Bahamian contractor to help with construction but today the government has total control over the work that is being done. The Bahamas government is issuing the work itself."
9/23/2010
thenassauguardian
Friday, September 10, 2010
Baha Mar deciding factors
The deciding factors for Baha Mar
tribune242 editorial
IT IS understandable why former Prime Minister Perry Christie was still haggling over the BahaMar deal up to two days before the 2007 election, which he lost.
Not only was he concerned about whether the developer had enough finances to see the project through, but he certainly did not want the "secret" clauses involving prime land in the agreement to be exposed on the floor of the House. Just before an election an admission that government was prepared to transfer 264,965 acres of public land on Cable Beach to a foreign investor could have scuttled his election.
Likewise, Prime Minister Ingraham is taking no chances in the new Baha Mar deal with a new partner. The request for work permits for foreign labourers -- 8,150 with the peak number at any given time being 5,000 -- is unprecedented. This is one decision that his government is not going to make alone. The Bahamian people -- through their duly elected representatives -- will now have to join government in saying aye or nay to the $2.5 billion project.
If either of these proposals -- the land deal or the labour request -- had been presented to the Bahamian people in 2007, there would have been a loud bellow: "Hell, no!"
But times have changed. Too many Bahamians are jobless. In 2007 no one could predict the world's economic collapse. Today suffering from that collapse, Bahamians need jobs. They have to educate their children and pay their bills. And so they will probably agree to the project provided all foreign workers on completion of their work are repatriated. Also if the developers do not live up to their agreement, all public land will revert to the government.
We certainly understand the position of the Chinese. Wherever they do similar projects, they use their own material and labour. Not only do they understand what they are dealing with and know how to cost it, but it is their money, and their policy is to invest it in their people. And so the concessions that they are now prepared to make to Bahamians from their point of view would be a considerable bending of their own rules to accommodate Bahamians.
It is said that all Chinese workers, 8,150 of them, will be engaged on Baha Mar's "Core" projects, while some 1,200 Bahamians will be employed in the non-"Core" projects. Mr Ingraham said that the Baha Mar principals are in discussion with their Chinese partners to also engage Bahamian contractors in a number of "trade packages" related to the Core project, totalling about $40 million. It is expected that this might engage about 3,300 Bahamians at the height of construction of the Core projects.
Mr Ingraham said that in the 1950s the law and the government permitted as high as 25 per cent of the labour force in construction and/or operation of tourism development to be foreign. Beginning in the 1980s, said Mr Ingraham, the practice evolved where large foreign components were engaged in the construction of hotels, and a smaller number of foreigners were allowed to work in the hotel upon completion.
He reminded House members of the substantial foreign work force engaged to construct the Crystal Palace Resort and Casino, the Wyndham Crystal Palace Resort and the US Departure Terminal at the then Nassau International Airport. He said at those two projects there were Indians, Brazilians and other foreigners who far outnumbered the Bahamian work force.
When in 1992 his party became the government, it was decided to discontinue the PLP employment practices. In 1993, he said, on agreeing the terms of the redevelopment of Kerzner's Paradise Island, "notwithstanding the demonstrable need for the engagement of large numbers of expatriate experts and labour for the timely completion of the project," the ratio of Bahamians to non-Bahamians on the construction site was not to exceed 30 per cent foreign to 70 per cent Bahamian, increasing on the required Bahamian component above the 1954 statutory base of 25 per cent.
However, he pointed out that when the PLP succeeded his government, they did not adhere to this employment ratio on the construction of the Bimini Bay resort at North Bimini. As a result, foreign workers, mainly Mexican, far exceeded the number of Bahamians engaged on that project.
And now they are faced with the Baha Mar project: a 71 per cent foreign work force to a 29 per cent Bahamian work force.
The legislators now have to decide on behalf of their constituents: Will this revive employment and will the transfer of technology and skills to the Bahamian work force make this project not only viable, but also attractive?
This will be debated and decided in the House on Wednesday or Thursday, September 22 and 23.
In the meantime Baha Mar has to satisfy the Scotia Bank loan before it can conclude a deal with the Chinese bank. And so the two deciding factors- the Bahamian people on the one side, and Scotia Bank on the other before Baha Mar and their Chinese partners can turn the first sod of Bahamian soil.
September 09, 2010
tribune242 editorial
tribune242 editorial
IT IS understandable why former Prime Minister Perry Christie was still haggling over the BahaMar deal up to two days before the 2007 election, which he lost.
Not only was he concerned about whether the developer had enough finances to see the project through, but he certainly did not want the "secret" clauses involving prime land in the agreement to be exposed on the floor of the House. Just before an election an admission that government was prepared to transfer 264,965 acres of public land on Cable Beach to a foreign investor could have scuttled his election.
Likewise, Prime Minister Ingraham is taking no chances in the new Baha Mar deal with a new partner. The request for work permits for foreign labourers -- 8,150 with the peak number at any given time being 5,000 -- is unprecedented. This is one decision that his government is not going to make alone. The Bahamian people -- through their duly elected representatives -- will now have to join government in saying aye or nay to the $2.5 billion project.
If either of these proposals -- the land deal or the labour request -- had been presented to the Bahamian people in 2007, there would have been a loud bellow: "Hell, no!"
But times have changed. Too many Bahamians are jobless. In 2007 no one could predict the world's economic collapse. Today suffering from that collapse, Bahamians need jobs. They have to educate their children and pay their bills. And so they will probably agree to the project provided all foreign workers on completion of their work are repatriated. Also if the developers do not live up to their agreement, all public land will revert to the government.
We certainly understand the position of the Chinese. Wherever they do similar projects, they use their own material and labour. Not only do they understand what they are dealing with and know how to cost it, but it is their money, and their policy is to invest it in their people. And so the concessions that they are now prepared to make to Bahamians from their point of view would be a considerable bending of their own rules to accommodate Bahamians.
It is said that all Chinese workers, 8,150 of them, will be engaged on Baha Mar's "Core" projects, while some 1,200 Bahamians will be employed in the non-"Core" projects. Mr Ingraham said that the Baha Mar principals are in discussion with their Chinese partners to also engage Bahamian contractors in a number of "trade packages" related to the Core project, totalling about $40 million. It is expected that this might engage about 3,300 Bahamians at the height of construction of the Core projects.
Mr Ingraham said that in the 1950s the law and the government permitted as high as 25 per cent of the labour force in construction and/or operation of tourism development to be foreign. Beginning in the 1980s, said Mr Ingraham, the practice evolved where large foreign components were engaged in the construction of hotels, and a smaller number of foreigners were allowed to work in the hotel upon completion.
He reminded House members of the substantial foreign work force engaged to construct the Crystal Palace Resort and Casino, the Wyndham Crystal Palace Resort and the US Departure Terminal at the then Nassau International Airport. He said at those two projects there were Indians, Brazilians and other foreigners who far outnumbered the Bahamian work force.
When in 1992 his party became the government, it was decided to discontinue the PLP employment practices. In 1993, he said, on agreeing the terms of the redevelopment of Kerzner's Paradise Island, "notwithstanding the demonstrable need for the engagement of large numbers of expatriate experts and labour for the timely completion of the project," the ratio of Bahamians to non-Bahamians on the construction site was not to exceed 30 per cent foreign to 70 per cent Bahamian, increasing on the required Bahamian component above the 1954 statutory base of 25 per cent.
However, he pointed out that when the PLP succeeded his government, they did not adhere to this employment ratio on the construction of the Bimini Bay resort at North Bimini. As a result, foreign workers, mainly Mexican, far exceeded the number of Bahamians engaged on that project.
And now they are faced with the Baha Mar project: a 71 per cent foreign work force to a 29 per cent Bahamian work force.
The legislators now have to decide on behalf of their constituents: Will this revive employment and will the transfer of technology and skills to the Bahamian work force make this project not only viable, but also attractive?
This will be debated and decided in the House on Wednesday or Thursday, September 22 and 23.
In the meantime Baha Mar has to satisfy the Scotia Bank loan before it can conclude a deal with the Chinese bank. And so the two deciding factors- the Bahamian people on the one side, and Scotia Bank on the other before Baha Mar and their Chinese partners can turn the first sod of Bahamian soil.
September 09, 2010
tribune242 editorial
Tuesday, September 7, 2010
The $2.6 billion Baha Mar development set to get approval
Baha Mar set to get approval
By ERICA WELLS
NG Managing Editor
ewells@nasguard.com:
The billion-dollar Baha Mar development looks set to get the approval of the Bahamian government.
As reported over the weekend inThe Nassau Guardian, Leader of Government Business in the House of Assembly Tommy Turnquest said it is a given that the governing side intends to support its Baha Mar labor resolution that will be debated in Parliament.
Opposition House Leader Obie Wilchcombe has also said that the PLP supports the deal, with several caveats.
The $2.6 billion Baha Mar deal, which is projected to pump millions and millions of dollars into the local economy, is sorely needed at this time of economic turmoil.
In fact, the most recent Central Bank of The Bahamas report said as much. In its monthly report for July, the bank indicated that "large-scale hotel investment projects" - such as Baha Mar and Atlantis'$100 million investment - could be key to The Bahamas not continuing in recession.
"Domestic economic conditions are expected to remain mild over the remaining months of 2010, although the outlook for 2011 is less certain than in prior months, due to mounting evidence of increased fragility in the U.S. growth momentum. This could dampen the short-to medium-term performance of the tourism sector, and the timing for a turnaround in domestic demand and an improvement in employment conditions,"said the report.
"However, upside benefits could accrue to the economy if the proposed large-scale hotel investment projects gain traction in the coming months."
While there is a general consensus that the $2 billion deal will provide the Bahamian economy with a much-needed infusion, it is the labor issue that has put a damper on the prospect of the project, and in some respects has become a political hot potato.
Baha Mar developers want to bring in 5,000-7,000 Chinese workers to help build the mega resort.
This proposal has been met with much skepticism and in some cases high emotion.
The Bahamian Contractors Association supports the project, but wants the government to make provision for the training of contractors and tradesmen to participate on the project, and the inclusion of the BCA as a focal point for training recruitment.
"If the assurances that the training and maximum utilization of Bahamian contractors are not put into place, we will undermine the industry as well as the Bahamian consumers and developers who have existing or proposed projects,"said the association in a position paper on the proposed project.
"The BCA feels that in conjunction with our association initiatives, government has the opportunity and authority to address this situation. With funding and technical expertise we can maximize significant Bahamian contractor participation through our training and certification programs and through discussion with stakeholders we can reach workable relationships."
The Progressive Liberal Party has laid out a similar case, at least when it comes to training.
Wilchcombe told The Guardian on Friday that the PLP supports the project, but several objectives must be met in order to maximize its benefits to the Bahamian people.
He said that Bahamians must be given opportunities; there must be job training to ensure locals can be employed in skilled areas; current workers at the company should be looked after; there should be a role for the national airline to assist with airlift; there should be consideration of the position of the taxi union; and it is essential that there be an investigation about the energy requirement to power such a large scale development.
The agreement on the Baha Mar development was announced in March. The project will be financed by the Export-Import Bank of China, while construction will be performed by China State Construction Engineering Corporation. At one point the project had been virtually given up on when Harrah's Entertainment, one of the original joint venture partners of the project pulled out in 2008.
It is being billed as an unprecedented resort development in The Bahamas that captures the true spirit of the island and the region.
The 1,000-acre Baha Mar project may start construction before the end of the year if given approval by the Bahamian government. The project has already received approval from the Chinese government. It is scheduled for completion in early 2014.
The project, according to developers, represents the largest single-phase hospitality investment in the Caribbean and a one-of-a-kind destination resort experience in its operation, range of top-shelf accommodations, services and amenities, and"true-to-The Bahamas setting and design".
The development definitely lives up to its description as"mega".
Plans for Baha Mar's first phase include approximately 3,000 rooms; a 100,000 square foot casino; two signature spas and a third world-class destination spa; and an 18-hole championship Jack Nicklaus Signature Golf Course; 200,000 square feet of meeting space; 3,000 feet of continuous beachfront; a 20-acre beach and pool experience; and a 35,000-square-foot retail village with upscale shopping, chef-branded restaurants, and entertainment venues.
A report by the Oxford Economics company set out some of the key economic benefits of Baha Mar, including, 6,500 Bahamians directly employed by Baha Mar by 2014; a further 2,000 jobs indirectly created by the project, totalling 8,500; $5.5 billion in direct wages going straight into the pockets of Bahamian families; a further $1.5 billion in salaries for those indirectly employed; a $14.8 billion contribution to The Bahamas'GDP; $24.5 billion extra in visitor spending over a 20-year period, and; an extra $6.2 billion in government revenues over 25 years.
If approved, this project represents a massive boost to the country's struggling economy. It also represents a delicate balancing act.
According to the Baha Mar project management team, Phase one involves the construction of the commercial village and road re-alignment, which is slated to be awarded to Bahamian contractors and is valued at around $60 million.
Beyond the first phase of construction, the BCA in its position paper accepts that there is a limited pool of skilled construction worker resources in the country, and at any given time the majority of these workers or tradesmen are normally employed by practicing Bahamian contractors.
The BCA says it is primarily concerned with three issues: That the country does not have 4,000 skilled and non-skilled workers ready to participate on the Baha Mar or any project in The Bahamas; the standards which are being used to validate the number of skilled Bahamian workers; and if the requisite number of workers can be trained in time to meet the requirements of the project.
"No one definitively knows how many skilled construction workers are currently in the field. One critical component of this scenario is that if Baha Mar is permitted to hire workers from the existing pool, they will in effect be depleting the pool of skilled workers that Bahamian contractors have paid to train and have kept employed all year round,"says the association.
"Obviously, with a project the size of Baha Mar, in a very short time the skilled and non-skilled workforce will be depleted from the local sector leaving small, medium and large contractors alike with little to no labor resources for the duration of the Baha Mar project."
The BCA fears that this dynamic will have a particularly dramatic and negative impact on the small contractor who may employ only a few workers."When he(or she)loses those workers to Baha Mar, it will possibly cripple this important segment of our industry."
"Since we are pinning our economic recovery hopes not eh turnaround that will be created, it is imperative that we protect and nurture the independent small business growth potential,"says the association.
The BCA is also asking about the possibility of importing other nationalities for labor requirements to the project. According to the BCA, indications are that European, Indian and Mexican contractors, sub-contractors and tradesmen may supplement the Chinese component, particularly in some of the specialty trades.
It is unclear exactly when the Baha Mar resolution will be debated in Parliament and when the project will receive final approval from the Bahamian government.
The Guardian understands that there is a major hurdle preventing that approval from being handed down. It's the debate over the payment of an outstanding loan the company has with Scotiabank, worth around $160 million. It is unclear how long it will take the bank and developers to come to an agreement.
It is understood that Baha Mar has offered the bank, and its partners, a combination of cash and equity in the Cable Beach project, but so far Scotiabank has not accepted.
Bahamians eagerly await the outcome of the proposal that some have said always seemed almost too good to be true.
9/4/2010
thenassauguardian
By ERICA WELLS
NG Managing Editor
ewells@nasguard.com:
The billion-dollar Baha Mar development looks set to get the approval of the Bahamian government.
As reported over the weekend inThe Nassau Guardian, Leader of Government Business in the House of Assembly Tommy Turnquest said it is a given that the governing side intends to support its Baha Mar labor resolution that will be debated in Parliament.
Opposition House Leader Obie Wilchcombe has also said that the PLP supports the deal, with several caveats.
The $2.6 billion Baha Mar deal, which is projected to pump millions and millions of dollars into the local economy, is sorely needed at this time of economic turmoil.
In fact, the most recent Central Bank of The Bahamas report said as much. In its monthly report for July, the bank indicated that "large-scale hotel investment projects" - such as Baha Mar and Atlantis'$100 million investment - could be key to The Bahamas not continuing in recession.
"Domestic economic conditions are expected to remain mild over the remaining months of 2010, although the outlook for 2011 is less certain than in prior months, due to mounting evidence of increased fragility in the U.S. growth momentum. This could dampen the short-to medium-term performance of the tourism sector, and the timing for a turnaround in domestic demand and an improvement in employment conditions,"said the report.
"However, upside benefits could accrue to the economy if the proposed large-scale hotel investment projects gain traction in the coming months."
While there is a general consensus that the $2 billion deal will provide the Bahamian economy with a much-needed infusion, it is the labor issue that has put a damper on the prospect of the project, and in some respects has become a political hot potato.
Baha Mar developers want to bring in 5,000-7,000 Chinese workers to help build the mega resort.
This proposal has been met with much skepticism and in some cases high emotion.
The Bahamian Contractors Association supports the project, but wants the government to make provision for the training of contractors and tradesmen to participate on the project, and the inclusion of the BCA as a focal point for training recruitment.
"If the assurances that the training and maximum utilization of Bahamian contractors are not put into place, we will undermine the industry as well as the Bahamian consumers and developers who have existing or proposed projects,"said the association in a position paper on the proposed project.
"The BCA feels that in conjunction with our association initiatives, government has the opportunity and authority to address this situation. With funding and technical expertise we can maximize significant Bahamian contractor participation through our training and certification programs and through discussion with stakeholders we can reach workable relationships."
The Progressive Liberal Party has laid out a similar case, at least when it comes to training.
Wilchcombe told The Guardian on Friday that the PLP supports the project, but several objectives must be met in order to maximize its benefits to the Bahamian people.
He said that Bahamians must be given opportunities; there must be job training to ensure locals can be employed in skilled areas; current workers at the company should be looked after; there should be a role for the national airline to assist with airlift; there should be consideration of the position of the taxi union; and it is essential that there be an investigation about the energy requirement to power such a large scale development.
The agreement on the Baha Mar development was announced in March. The project will be financed by the Export-Import Bank of China, while construction will be performed by China State Construction Engineering Corporation. At one point the project had been virtually given up on when Harrah's Entertainment, one of the original joint venture partners of the project pulled out in 2008.
It is being billed as an unprecedented resort development in The Bahamas that captures the true spirit of the island and the region.
The 1,000-acre Baha Mar project may start construction before the end of the year if given approval by the Bahamian government. The project has already received approval from the Chinese government. It is scheduled for completion in early 2014.
The project, according to developers, represents the largest single-phase hospitality investment in the Caribbean and a one-of-a-kind destination resort experience in its operation, range of top-shelf accommodations, services and amenities, and"true-to-The Bahamas setting and design".
The development definitely lives up to its description as"mega".
Plans for Baha Mar's first phase include approximately 3,000 rooms; a 100,000 square foot casino; two signature spas and a third world-class destination spa; and an 18-hole championship Jack Nicklaus Signature Golf Course; 200,000 square feet of meeting space; 3,000 feet of continuous beachfront; a 20-acre beach and pool experience; and a 35,000-square-foot retail village with upscale shopping, chef-branded restaurants, and entertainment venues.
A report by the Oxford Economics company set out some of the key economic benefits of Baha Mar, including, 6,500 Bahamians directly employed by Baha Mar by 2014; a further 2,000 jobs indirectly created by the project, totalling 8,500; $5.5 billion in direct wages going straight into the pockets of Bahamian families; a further $1.5 billion in salaries for those indirectly employed; a $14.8 billion contribution to The Bahamas'GDP; $24.5 billion extra in visitor spending over a 20-year period, and; an extra $6.2 billion in government revenues over 25 years.
If approved, this project represents a massive boost to the country's struggling economy. It also represents a delicate balancing act.
According to the Baha Mar project management team, Phase one involves the construction of the commercial village and road re-alignment, which is slated to be awarded to Bahamian contractors and is valued at around $60 million.
Beyond the first phase of construction, the BCA in its position paper accepts that there is a limited pool of skilled construction worker resources in the country, and at any given time the majority of these workers or tradesmen are normally employed by practicing Bahamian contractors.
The BCA says it is primarily concerned with three issues: That the country does not have 4,000 skilled and non-skilled workers ready to participate on the Baha Mar or any project in The Bahamas; the standards which are being used to validate the number of skilled Bahamian workers; and if the requisite number of workers can be trained in time to meet the requirements of the project.
"No one definitively knows how many skilled construction workers are currently in the field. One critical component of this scenario is that if Baha Mar is permitted to hire workers from the existing pool, they will in effect be depleting the pool of skilled workers that Bahamian contractors have paid to train and have kept employed all year round,"says the association.
"Obviously, with a project the size of Baha Mar, in a very short time the skilled and non-skilled workforce will be depleted from the local sector leaving small, medium and large contractors alike with little to no labor resources for the duration of the Baha Mar project."
The BCA fears that this dynamic will have a particularly dramatic and negative impact on the small contractor who may employ only a few workers."When he(or she)loses those workers to Baha Mar, it will possibly cripple this important segment of our industry."
"Since we are pinning our economic recovery hopes not eh turnaround that will be created, it is imperative that we protect and nurture the independent small business growth potential,"says the association.
The BCA is also asking about the possibility of importing other nationalities for labor requirements to the project. According to the BCA, indications are that European, Indian and Mexican contractors, sub-contractors and tradesmen may supplement the Chinese component, particularly in some of the specialty trades.
It is unclear exactly when the Baha Mar resolution will be debated in Parliament and when the project will receive final approval from the Bahamian government.
The Guardian understands that there is a major hurdle preventing that approval from being handed down. It's the debate over the payment of an outstanding loan the company has with Scotiabank, worth around $160 million. It is unclear how long it will take the bank and developers to come to an agreement.
It is understood that Baha Mar has offered the bank, and its partners, a combination of cash and equity in the Cable Beach project, but so far Scotiabank has not accepted.
Bahamians eagerly await the outcome of the proposal that some have said always seemed almost too good to be true.
9/4/2010
thenassauguardian
Monday, August 23, 2010
The Progressive Liberal Party (PLP) change of heart on the Baha Mar deal and work permits for as many as 8,000 Chinese workers
PLP MAY CHANGE STANCE ON BAHA MAR
By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com:
The Progressive Liberal Party(PLP)may have had a change of heart as it relates to its stance on the controversial foreign work component issue surrounding the Baha Mar deal - which could result in as many as 8,000 Chinese workers being granted work permits.
Yesterday PLP Leader Perry Christie said despite indicating in June that the party would not involve itself in the decision to allow thousands of Chinese workers to receive work permits, he would do what is best for the country.
"We have since met with the principle shareholder of Baha Mar and we were briefed by the top executives of the company, Christie said. "We are meeting this afternoon to consider our position on the matter in anticipation of going back to Parliament.
"The Progressive Liberal Party is absolutely aware of the state of our economy--the deteriorated state of our economy and the urgency for there to be some kind of development.
"In that regard we are going to take a position based on the needs of the country. And we're not going to be tied to anything that I may have said in the past in regards to the work permits. We want to be able to provide a very concerted view on the matter. We(the PLP)begin meeting on the matter at our parliamentary meeting today(yesterday).
In June, Prime Minister Hubert Ingraham said the approval of the "extraordinary" number of Chinese workers required to help construct the resort development would not be given without opposition support.
But at that time, Christie said the prime minister is "on his very own" as it regards deciding on the Baha Mar labor issue.
He said the PLP had not been given sufficient information on the deal and therefore would not involve itself. When speaking with The Nassau Guardian yesterday, Christie said he still has not spoken to the prime minister yet.
"I know representatives have met with the Chinese ambassador, and I don't know if the prime misinter has some special information to provide me with, but I anticipate that if he has new information that would be provided to me prior to our going to Parliament. I have not heard from him yet."
Ingraham met with Chinese Ambassador Hu Dingxian at the Office of the Prime Minister in Cable Beach on Thursday, to discuss the Baha Mar project.
Last week The Guardian also spoke to Leader of Government Business in the House of Assembly Tommy Turnquest, who confirmed that the Ingraham administration intends to bring the labor resolution to Parliament on September 8.
The Guardian understands that since the announcement from the Cabinet Office late last month that the government of the People's Republic of China had approved the Baha Mar deal, Baha Mar officials have been meeting with officials from the prime minister's office to answer questions about the project.
Turnquest said the MPs would be allowed to express their views on the labor issue before the government makes a final determination.
If a majority of MPs take issue with that component, he said the government would have to take that into consideration prior to making its decision.
Turnquest said publicly that at the height of construction Baha Mar could have up to 8,000 foreign workers on the project.
Baha Mar has said that out of the 10,000 proposed construction jobs the project will create, at least 3,300 will be set aside for Bahamians. Eight thousand permanent jobs are also projected once the resort is completed.
The proposed Cable Beach development would be financed by the Export-Import Bank of China and constructed by the China State Construction Engineering Corporation.
If the project receives Bahamas government approval, Baha Mar's first course of action would be to award nearly $60 million of construction contracts to six Bahamian contractors, representing early infrastructure works needed to prepare the site, Baha Mar's Chairman and Chief Executive Officer Sarkis Izmirlian said in a press statement last month.
8/22/2010
thenassauguardian
By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com:
The Progressive Liberal Party(PLP)may have had a change of heart as it relates to its stance on the controversial foreign work component issue surrounding the Baha Mar deal - which could result in as many as 8,000 Chinese workers being granted work permits.
Yesterday PLP Leader Perry Christie said despite indicating in June that the party would not involve itself in the decision to allow thousands of Chinese workers to receive work permits, he would do what is best for the country.
"We have since met with the principle shareholder of Baha Mar and we were briefed by the top executives of the company, Christie said. "We are meeting this afternoon to consider our position on the matter in anticipation of going back to Parliament.
"The Progressive Liberal Party is absolutely aware of the state of our economy--the deteriorated state of our economy and the urgency for there to be some kind of development.
"In that regard we are going to take a position based on the needs of the country. And we're not going to be tied to anything that I may have said in the past in regards to the work permits. We want to be able to provide a very concerted view on the matter. We(the PLP)begin meeting on the matter at our parliamentary meeting today(yesterday).
In June, Prime Minister Hubert Ingraham said the approval of the "extraordinary" number of Chinese workers required to help construct the resort development would not be given without opposition support.
But at that time, Christie said the prime minister is "on his very own" as it regards deciding on the Baha Mar labor issue.
He said the PLP had not been given sufficient information on the deal and therefore would not involve itself. When speaking with The Nassau Guardian yesterday, Christie said he still has not spoken to the prime minister yet.
"I know representatives have met with the Chinese ambassador, and I don't know if the prime misinter has some special information to provide me with, but I anticipate that if he has new information that would be provided to me prior to our going to Parliament. I have not heard from him yet."
Ingraham met with Chinese Ambassador Hu Dingxian at the Office of the Prime Minister in Cable Beach on Thursday, to discuss the Baha Mar project.
Last week The Guardian also spoke to Leader of Government Business in the House of Assembly Tommy Turnquest, who confirmed that the Ingraham administration intends to bring the labor resolution to Parliament on September 8.
The Guardian understands that since the announcement from the Cabinet Office late last month that the government of the People's Republic of China had approved the Baha Mar deal, Baha Mar officials have been meeting with officials from the prime minister's office to answer questions about the project.
Turnquest said the MPs would be allowed to express their views on the labor issue before the government makes a final determination.
If a majority of MPs take issue with that component, he said the government would have to take that into consideration prior to making its decision.
Turnquest said publicly that at the height of construction Baha Mar could have up to 8,000 foreign workers on the project.
Baha Mar has said that out of the 10,000 proposed construction jobs the project will create, at least 3,300 will be set aside for Bahamians. Eight thousand permanent jobs are also projected once the resort is completed.
The proposed Cable Beach development would be financed by the Export-Import Bank of China and constructed by the China State Construction Engineering Corporation.
If the project receives Bahamas government approval, Baha Mar's first course of action would be to award nearly $60 million of construction contracts to six Bahamian contractors, representing early infrastructure works needed to prepare the site, Baha Mar's Chairman and Chief Executive Officer Sarkis Izmirlian said in a press statement last month.
8/22/2010
thenassauguardian
Friday, July 30, 2010
Concerns over Bahamian participation in the proposed $2.6 billion Baha Mar development
Concerns over Bahamian participation in Baha Mar raised at BCA meeting
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:
CONSTRUCTION industry stakeholders yesterday questioned how the Bahamas Contractors' Association would ensure that small operators get a fair share of work on the proposed $2.6 billion Baha Mar development and similar projects.
These concerns were raised yesterday at a luncheon held by the BCA at the Wyndham Crystal Palace Resort and Casino in Cable Beach to inform the industry of impending changes the local construction sector must adopt to qualify for work on massive foreign investment projects such as Baha Mar.
Baha Mar's developers will introduce $60 million worth of contracts to begin the first phase of the project, which will only be awarded to Bahamian contractors, in the coming weeks.
BCA President Stephen Wrinkle assured the crowd of construction workers, contractors and tradesmen that his organisation would find ways to help create the "maximum Bahamian participation" in the development.
"The reason we're here today is to try to get the little man onboard with these projects. Let's face it – the big fellas, they fight their battles too but they're going to be here whether Baha Mar goes (forward) or not but the little man needs a lil' leg up right now to get along with this project and that's all we're trying to do," he said in a response to a question from the crowd.
The changes, which will allow the local construction sector to meet the expectations of the international market are separated into three parts: Creating a jobs skills bank for the sector; adopting an internationally recognised system of identifying classifications for division contractors; and launching a construction seminar series to help contractors meet the pre-qualification, tendering and administrative requirements of large scale developers.
Courses will then be held at the Bahamas Technical and Vocational Institute (BTVI) to certify these workers, and allow them to received advanced certification.
The skills bank will be of use to contractors and sub-contractors, allowing them to draw from a pool of qualified workers. It also will establish, for the first time according to Mr Wrinkle, national standards for those in the industry, "So that when a carpenter comes looking for work and he shows the certificate you will have some assurance that they have attained the basic, minimum skills required for each level.”
The crowd was also briefed on the most recent developments in the progress of Baha Mar's proposed transformation of the Cable Beach strip, which got a boost this week after the government of the People's Republic of China formally approved the joint venture.
The first phase requires the removal of government and other buildings adjacent to the Sheraton Nassau Beach and Wyndham Crystal Palace hotels, as well as the rerouting of West Bay Street for one and a half miles to skirt Baha Mar’s build site.
Vice president of construction for the project, Tom Dunlap, said the first phase could take 9-18 months.
The development is expected to create 11,000 jobs for Bahamians and add $1 billion to the local economy in the first year after completion. However the future of the project faces another hurdle – final approval from the Bahamas government.
July 29, 2010
tribune242
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:
CONSTRUCTION industry stakeholders yesterday questioned how the Bahamas Contractors' Association would ensure that small operators get a fair share of work on the proposed $2.6 billion Baha Mar development and similar projects.
These concerns were raised yesterday at a luncheon held by the BCA at the Wyndham Crystal Palace Resort and Casino in Cable Beach to inform the industry of impending changes the local construction sector must adopt to qualify for work on massive foreign investment projects such as Baha Mar.
Baha Mar's developers will introduce $60 million worth of contracts to begin the first phase of the project, which will only be awarded to Bahamian contractors, in the coming weeks.
BCA President Stephen Wrinkle assured the crowd of construction workers, contractors and tradesmen that his organisation would find ways to help create the "maximum Bahamian participation" in the development.
"The reason we're here today is to try to get the little man onboard with these projects. Let's face it – the big fellas, they fight their battles too but they're going to be here whether Baha Mar goes (forward) or not but the little man needs a lil' leg up right now to get along with this project and that's all we're trying to do," he said in a response to a question from the crowd.
The changes, which will allow the local construction sector to meet the expectations of the international market are separated into three parts: Creating a jobs skills bank for the sector; adopting an internationally recognised system of identifying classifications for division contractors; and launching a construction seminar series to help contractors meet the pre-qualification, tendering and administrative requirements of large scale developers.
Courses will then be held at the Bahamas Technical and Vocational Institute (BTVI) to certify these workers, and allow them to received advanced certification.
The skills bank will be of use to contractors and sub-contractors, allowing them to draw from a pool of qualified workers. It also will establish, for the first time according to Mr Wrinkle, national standards for those in the industry, "So that when a carpenter comes looking for work and he shows the certificate you will have some assurance that they have attained the basic, minimum skills required for each level.”
The crowd was also briefed on the most recent developments in the progress of Baha Mar's proposed transformation of the Cable Beach strip, which got a boost this week after the government of the People's Republic of China formally approved the joint venture.
The first phase requires the removal of government and other buildings adjacent to the Sheraton Nassau Beach and Wyndham Crystal Palace hotels, as well as the rerouting of West Bay Street for one and a half miles to skirt Baha Mar’s build site.
Vice president of construction for the project, Tom Dunlap, said the first phase could take 9-18 months.
The development is expected to create 11,000 jobs for Bahamians and add $1 billion to the local economy in the first year after completion. However the future of the project faces another hurdle – final approval from the Bahamas government.
July 29, 2010
tribune242
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