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
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 construction workers. Show all posts
Showing posts with label Bahamian construction workers. Show all posts
Monday, November 15, 2010
Saturday, October 23, 2010
The Progressive Liberal Party (PLP) supports the $2.6 billion Baha Mar project
PLP SUPPORTS BAHA MAR
By KEVA LIGHTBOURNE
Guardian Senior Reporter
kdl@nasguard.com
Progressive Liberal Party (PLP)Leader Perry Christie last night threw his party's support behind the $2.6 billion Baha Mar project, while accusing Prime Minister Hubert Ingraham of seeking to negotiate a new Cable Beach deal on his upcoming trip to China.
At an hour-and-a-half news conference held at the PLP's Farrington Road headquarters, Christie stressed that the current economic conditions in the country call for the project to be embraced.
"It is in a very real sense, the only new substantial ray of sunshine that has presented itself. Nothing else holds out the kind of promise that Baha Mar does,"said Christie.
"It is not so much that it is the best big project that is available right now, the reality is that it is the only big project that is available to us right now. We do not have a choice. We do not have the luxury of choosing between the Baha Mar project and some other big project. Baha Mar is the only one that has the capacity right now to inject some desperately needed adrenaline into this anemic economy that is ailing us now."
Christie said it would be useless for Ingraham to negotiate a new deal with the Chinese without project developer Sarkis Izmirlian and his group at the same negotiating table.
"There needs to be a tripartite approach to this. Simple logic and plain, good sense demand it,"said the PLP leader.
"Suppose the prime minister negotiates a new deal that the Izmirlians cannot or will not live with? What then? What would he have accomplished then?" Christie asked." In that case, one foot forward would have been taken followed by two steps backward. That makes no kind of sense."
Ingraham is scheduled to leave for China today. He said earlier this week he would be meeting with China State Construction Engineering Corporation and the China Export-Import Bank to discuss the project the proposed contractor and financier of the project.
"I therefore call upon the prime minister to invite representatives of the Baha Mar group to join his meeting with the Chinese in China. It is, after all, Baha Mar's project. It seems only sensible and logical and appropriate to have the project owners at the table too so that everything can be settled all at the same time,"Christie said.
The opposition leader also criticized Ingraham for, what he described as, changing the requirements the developers must satisfy before the deal reaches Parliament.
"We don't have a hope in hell of being taken seriously by investors, especially in these very difficult times, if we continue to have a prime minister who keeps on changing the rules of engagement with investors, and who on top of that, believes in negotiation by press conferences,"Christie said.
"You cannot be calling press conferences to tell investors what they must do in order to win your favor. You cannot be telling them one thing in private and then call a press conference to lay down a whole new set of conditions."
Baha Mar's vision is to create a world-class resort destination, which represents the largest single-phase resort in the Caribbean.
Baha Mar has requested 8,150 work permits for the project. It is expected that the majority of the foreign workers helping to construct the project will be Chinese. The current deal requires that the core of the project be exclusively built by foreign labor.
The PLP's official 38-page position on Baha Mar was delivered by Bain and Grants Town MP Dr. Bernard Nottage.
While stating that the PLP supports the project, Dr. Nottage said they expect any deal would:
- Maximize the participation of Bahamian construction and related labor content, including both skilled and unskilled workers.
- Minimize the foreign construction labor content to that which is required for the successful completion and implementation of the project.
- Ensure training and skills transfer for Bahamian construction workers during the course of the entire project.
- Ensure that Bahamians are trained and available for permanent jobs in the operation of the resort.
- Ensure that there will be a myriad of opportunities for Bahamian entrepreneurs to benefit from in the resort when completed.
"The size and scope of this project represent the magnitude of what is needed to provide jobs for the vast number of Bahamian citizens who emerge onto the job market on an annual basis,"said Dr. Nottage.
10/22/2010
thenassauguardian
By KEVA LIGHTBOURNE
Guardian Senior Reporter
kdl@nasguard.com
Progressive Liberal Party (PLP)Leader Perry Christie last night threw his party's support behind the $2.6 billion Baha Mar project, while accusing Prime Minister Hubert Ingraham of seeking to negotiate a new Cable Beach deal on his upcoming trip to China.
At an hour-and-a-half news conference held at the PLP's Farrington Road headquarters, Christie stressed that the current economic conditions in the country call for the project to be embraced.
"It is in a very real sense, the only new substantial ray of sunshine that has presented itself. Nothing else holds out the kind of promise that Baha Mar does,"said Christie.
"It is not so much that it is the best big project that is available right now, the reality is that it is the only big project that is available to us right now. We do not have a choice. We do not have the luxury of choosing between the Baha Mar project and some other big project. Baha Mar is the only one that has the capacity right now to inject some desperately needed adrenaline into this anemic economy that is ailing us now."
Christie said it would be useless for Ingraham to negotiate a new deal with the Chinese without project developer Sarkis Izmirlian and his group at the same negotiating table.
"There needs to be a tripartite approach to this. Simple logic and plain, good sense demand it,"said the PLP leader.
"Suppose the prime minister negotiates a new deal that the Izmirlians cannot or will not live with? What then? What would he have accomplished then?" Christie asked." In that case, one foot forward would have been taken followed by two steps backward. That makes no kind of sense."
Ingraham is scheduled to leave for China today. He said earlier this week he would be meeting with China State Construction Engineering Corporation and the China Export-Import Bank to discuss the project the proposed contractor and financier of the project.
"I therefore call upon the prime minister to invite representatives of the Baha Mar group to join his meeting with the Chinese in China. It is, after all, Baha Mar's project. It seems only sensible and logical and appropriate to have the project owners at the table too so that everything can be settled all at the same time,"Christie said.
The opposition leader also criticized Ingraham for, what he described as, changing the requirements the developers must satisfy before the deal reaches Parliament.
"We don't have a hope in hell of being taken seriously by investors, especially in these very difficult times, if we continue to have a prime minister who keeps on changing the rules of engagement with investors, and who on top of that, believes in negotiation by press conferences,"Christie said.
"You cannot be calling press conferences to tell investors what they must do in order to win your favor. You cannot be telling them one thing in private and then call a press conference to lay down a whole new set of conditions."
Baha Mar's vision is to create a world-class resort destination, which represents the largest single-phase resort in the Caribbean.
Baha Mar has requested 8,150 work permits for the project. It is expected that the majority of the foreign workers helping to construct the project will be Chinese. The current deal requires that the core of the project be exclusively built by foreign labor.
The PLP's official 38-page position on Baha Mar was delivered by Bain and Grants Town MP Dr. Bernard Nottage.
While stating that the PLP supports the project, Dr. Nottage said they expect any deal would:
- Maximize the participation of Bahamian construction and related labor content, including both skilled and unskilled workers.
- Minimize the foreign construction labor content to that which is required for the successful completion and implementation of the project.
- Ensure training and skills transfer for Bahamian construction workers during the course of the entire project.
- Ensure that Bahamians are trained and available for permanent jobs in the operation of the resort.
- Ensure that there will be a myriad of opportunities for Bahamian entrepreneurs to benefit from in the resort when completed.
"The size and scope of this project represent the magnitude of what is needed to provide jobs for the vast number of Bahamian citizens who emerge onto the job market on an annual basis,"said Dr. Nottage.
10/22/2010
thenassauguardian
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
Sunday, September 5, 2010
Bahamian Contractors' Association fears inadequate funding for a national training programme to certify Bahamian construction workers for jobs on the Baha Mar project
Funding fears over Baha Mar construction training
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:
THE Bahamian Contractors' Association fears that a national training programme needed to certify construction workers for employment on the Baha Mar development will be impeded by inadequate funding.
The organisation is calling for a tangible commitment from the developers before work begins on the $2.6 billion Cable Beach redevelopment to fund the training programme - a joint venture of the association and trade school BTVI.
"While they (Baha Mar) appear to be genuinely interested in both the short and long term success of the project and the country, they have informed us that presently there is no funding allocated for any training of construction personnel," according to the BCA's position paper on the project, which was recently given to government and the developers.
"We find the fact that a $2.6 billion project is proceeding with no training programme, or responsibility for one, incomprehensible. They have assured us that under their Heads of Agreement (with the government) there is apparently no stipulation for this critical and necessary component," said the BCA, in part.
As a non-profit organisation that operates primarily on membership dues, the BCA cannot fund the initiative at BTVI, an institution that relies on government subsidies. So far, nearly 500 tradesmen and contractors have registered for enrolment at BTVI's training programme.
"One of the possibilities we have discussed with Baha Mar is collecting a percentage of every contract awarded to be allocated for the training of Bahamian workers."
The Baha Mar project has yet to be formally approved by government. A labour resolution on the thousands of work permits the developers are seeking in Chinese labour will be brought to Parliament next week.
The peak period for Baha Mar's construction is between month 24 and month 36 of the project, and at that time there also will be more than 2,500 Bahamian construction workers employed.
Total employment at the peak of the project will be close to 7,500 foreign and Bahamian workers. The China Export-Import Bank and China State Construction are Baha Mar's financing and equity/project manager partners.
September 04, 2010
tribune242
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:
THE Bahamian Contractors' Association fears that a national training programme needed to certify construction workers for employment on the Baha Mar development will be impeded by inadequate funding.
The organisation is calling for a tangible commitment from the developers before work begins on the $2.6 billion Cable Beach redevelopment to fund the training programme - a joint venture of the association and trade school BTVI.
"While they (Baha Mar) appear to be genuinely interested in both the short and long term success of the project and the country, they have informed us that presently there is no funding allocated for any training of construction personnel," according to the BCA's position paper on the project, which was recently given to government and the developers.
"We find the fact that a $2.6 billion project is proceeding with no training programme, or responsibility for one, incomprehensible. They have assured us that under their Heads of Agreement (with the government) there is apparently no stipulation for this critical and necessary component," said the BCA, in part.
As a non-profit organisation that operates primarily on membership dues, the BCA cannot fund the initiative at BTVI, an institution that relies on government subsidies. So far, nearly 500 tradesmen and contractors have registered for enrolment at BTVI's training programme.
"One of the possibilities we have discussed with Baha Mar is collecting a percentage of every contract awarded to be allocated for the training of Bahamian workers."
The Baha Mar project has yet to be formally approved by government. A labour resolution on the thousands of work permits the developers are seeking in Chinese labour will be brought to Parliament next week.
The peak period for Baha Mar's construction is between month 24 and month 36 of the project, and at that time there also will be more than 2,500 Bahamian construction workers employed.
Total employment at the peak of the project will be close to 7,500 foreign and Bahamian workers. The China Export-Import Bank and China State Construction are Baha Mar's financing and equity/project manager partners.
September 04, 2010
tribune242
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