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 China Export-Import Bank. Show all posts
Showing posts with label China Export-Import Bank. Show all posts
Monday, November 22, 2010
Friday, October 8, 2010
Prime Minister Hubert Ingraham: It's not in our interest to have a Baha Mar - four years single-phased development
PM: BAHA MAR DEAL MUST CHANGE
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
The government is unwilling to back down from its position that the plans for the $2.6 billion Baha Mar project at Cable Beach be adjusted in major ways, Prime Minister Hubert Ingraham said yesterday.
His strongest public comments to date on the controversial project came during a sitdown interview at the House of Assembly late yesterday afternoon.
Speaking of the financing being provided by the China Export-Import Bank, Ingraham said,"Attached to their funding are conditions that are onerous, burdensome and unacceptable insofar as the labor content is concerned and the government is therefore asking that some adjustment be made with respect to the labor content of the deal.
"...There are two things that stick in our claw and we want to be able to digest the project and it is difficult to digest it with these things sticking across here."
Apart from the labor issue, Ingraham referred to Baha Mar's plan to build the massive project at Cable Beach in one phase with a planned 2014 completion.
He said those are "major issues, like a big bone". The prime minister added,"It has to be fixed."
"To do the project in a one, single-phased development is not in our interest, and it's in our interest to have the development but not as a single-phased development. Regrettably, that is the position,"he said.
The prime minister was repetitive in many respects as he sought to stress the government's position on this matter.
"What is going to happen to the hundreds of people who are working in those towers that are going to be demolished(at the Wyndham)while it's going to take four years for the project to be completed?" he questioned.
"They are going to be twiddling their thumbs while foreign workers are constructing the place."
Baha Mar has requested 8,150 work permits for the project.
Ingraham said yesterday,"There is more than enough land between the Nassau Beach(Hotel)and the land owned by Baha Mar east of the Nassau Beach for them to construct their 1,000 room hotel, their casino and whatever else they want to construct and open it.
"And nothing prevents them from building the others at the same time. There's no need whatsoever for all to be built and opened at the same time. That is not in our interest. That may well be in the interest of the financiers, the construction company and the owners of the project, but what about our interest? It is not in our interest."
Ingraham said that given persistent criticisms in the media he has faced over the government's handling of the Baha Mar deal he thought it was important for him to "put his anchor down".
"And it is now down," he said.
The prime minister also said there are a number of conditions that Baha Mar must meet, noting that even if the government said yes to the project, it would not necessarily mean it would start tomorrow.
"I have told the Chinese State Construction Company on two occasions, the most recent of which was when we signed the loan for the Airport Gateway(last week), that it is next to impossible for The Bahamas to approve 8,000 or so Chinese workers constructing a resort in The Bahamas with no Bahamian workers on the site at the same time and no transfer of skills to Bahamians at the same time.
"And I've asked them to go back and review their proposition so that the Government of The Bahamas can take a decision, but it is not possible for a resort to be built in The Bahamas with exclusive foreign labor. That's not possible."
He added,"They are in America. They are building lots of things in the United States of America. They're not using all Chinese labor on those projects. I don't expect all Chinese labor to be used on a project in The Bahamas, period.
"This is my country and this is yours."
Ingraham said,"I'm not now putting to them a percentum. We told Kerzner 70 percent of the workers had to be Bahamian. At the airport where the Canadian company is building the new US Departure Terminal, 75 percent or so percent of the workers are Bahamians.
"We understand the nature and complexity of this project. We understand the finances being provided by the Chinese Export-Import Bank. So we accept that the percentum of labor is going to be higher on such a project than it would be on other projects, but we cannot accept a 100 percent foreign labor content on the project, that's not possible."
Regarding the timing of the approval process, he said,"I don't want to be pressured by anybody."
Ingraham then emphasized that he was "sick and tired"of certain stories related to Baha Mar that were "being peddled every day, putting in people's heads things that are not true."
"This was a deal structured by Baha Mar and the Chinese. That's fine. They have come to us. We're not rubber stamps. We have to have our input, our say, before we make a determination. I think the Bahamian people expect no less of me and the Government of The Bahamas,"he said.
"I spoke, I believe very clearly in the House the other day when I said that firstly we would not consider the resolution on the agenda of the House until we get written confirmation that Baha Mar has settled its loan with Scotia[bank], and that two, we would not deal with the matter of the resolution in the House before I go away(to China)on October 22.
"Nothing has transpired to change those two."
He added"I tried to deal with this before. I scheduled my time to deal with it on two occasions. I don't now want to be pressured by anybody as to when I would do so. When I was ready others were not. In due time I will and it will be announced. So there will be no surprise as to when it is going to be dealt with.
"...We have been more than willing to facilitate and accommodate Baha Mar. It is not our fault that it took all this time for them to come to terms about the loan. It is not our fault. We had two separate meetings of the House of Assembly scheduled for that purpose. They were not in a position to do so."
Asked whether he thought the decision by the Chinese partners to invest in Baha Mar was a vote of confidence in The Bahamas, Ingraham said,"If the Chinese didn't have confidence in The Bahamas they wouldn't even talk to Baha Mar. I wouldn't talk about invest, so the investment's in The Bahamas.
"And we are deeply appreciative for the Chinese willingness to invest that kind of money in The Bahamas. We are deeply appreciative and would wish for the project to go ahead.
"We know what the Chinese interest is in terms of what benefits they get out of the deal...There must be some interest on the part of The Bahamas and The Bahamas'interest is to maximize the benefits which may be derived for The Bahamas from this investment and to ensure that when the project is complete, that the project advances us, enhances our tourism and does not drag us down."
10/6/2010
thenassauguardian
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
The government is unwilling to back down from its position that the plans for the $2.6 billion Baha Mar project at Cable Beach be adjusted in major ways, Prime Minister Hubert Ingraham said yesterday.
His strongest public comments to date on the controversial project came during a sitdown interview at the House of Assembly late yesterday afternoon.
Speaking of the financing being provided by the China Export-Import Bank, Ingraham said,"Attached to their funding are conditions that are onerous, burdensome and unacceptable insofar as the labor content is concerned and the government is therefore asking that some adjustment be made with respect to the labor content of the deal.
"...There are two things that stick in our claw and we want to be able to digest the project and it is difficult to digest it with these things sticking across here."
Apart from the labor issue, Ingraham referred to Baha Mar's plan to build the massive project at Cable Beach in one phase with a planned 2014 completion.
He said those are "major issues, like a big bone". The prime minister added,"It has to be fixed."
"To do the project in a one, single-phased development is not in our interest, and it's in our interest to have the development but not as a single-phased development. Regrettably, that is the position,"he said.
The prime minister was repetitive in many respects as he sought to stress the government's position on this matter.
"What is going to happen to the hundreds of people who are working in those towers that are going to be demolished(at the Wyndham)while it's going to take four years for the project to be completed?" he questioned.
"They are going to be twiddling their thumbs while foreign workers are constructing the place."
Baha Mar has requested 8,150 work permits for the project.
Ingraham said yesterday,"There is more than enough land between the Nassau Beach(Hotel)and the land owned by Baha Mar east of the Nassau Beach for them to construct their 1,000 room hotel, their casino and whatever else they want to construct and open it.
"And nothing prevents them from building the others at the same time. There's no need whatsoever for all to be built and opened at the same time. That is not in our interest. That may well be in the interest of the financiers, the construction company and the owners of the project, but what about our interest? It is not in our interest."
Ingraham said that given persistent criticisms in the media he has faced over the government's handling of the Baha Mar deal he thought it was important for him to "put his anchor down".
"And it is now down," he said.
The prime minister also said there are a number of conditions that Baha Mar must meet, noting that even if the government said yes to the project, it would not necessarily mean it would start tomorrow.
"I have told the Chinese State Construction Company on two occasions, the most recent of which was when we signed the loan for the Airport Gateway(last week), that it is next to impossible for The Bahamas to approve 8,000 or so Chinese workers constructing a resort in The Bahamas with no Bahamian workers on the site at the same time and no transfer of skills to Bahamians at the same time.
"And I've asked them to go back and review their proposition so that the Government of The Bahamas can take a decision, but it is not possible for a resort to be built in The Bahamas with exclusive foreign labor. That's not possible."
He added,"They are in America. They are building lots of things in the United States of America. They're not using all Chinese labor on those projects. I don't expect all Chinese labor to be used on a project in The Bahamas, period.
"This is my country and this is yours."
Ingraham said,"I'm not now putting to them a percentum. We told Kerzner 70 percent of the workers had to be Bahamian. At the airport where the Canadian company is building the new US Departure Terminal, 75 percent or so percent of the workers are Bahamians.
"We understand the nature and complexity of this project. We understand the finances being provided by the Chinese Export-Import Bank. So we accept that the percentum of labor is going to be higher on such a project than it would be on other projects, but we cannot accept a 100 percent foreign labor content on the project, that's not possible."
Regarding the timing of the approval process, he said,"I don't want to be pressured by anybody."
Ingraham then emphasized that he was "sick and tired"of certain stories related to Baha Mar that were "being peddled every day, putting in people's heads things that are not true."
"This was a deal structured by Baha Mar and the Chinese. That's fine. They have come to us. We're not rubber stamps. We have to have our input, our say, before we make a determination. I think the Bahamian people expect no less of me and the Government of The Bahamas,"he said.
"I spoke, I believe very clearly in the House the other day when I said that firstly we would not consider the resolution on the agenda of the House until we get written confirmation that Baha Mar has settled its loan with Scotia[bank], and that two, we would not deal with the matter of the resolution in the House before I go away(to China)on October 22.
"Nothing has transpired to change those two."
He added"I tried to deal with this before. I scheduled my time to deal with it on two occasions. I don't now want to be pressured by anybody as to when I would do so. When I was ready others were not. In due time I will and it will be announced. So there will be no surprise as to when it is going to be dealt with.
"...We have been more than willing to facilitate and accommodate Baha Mar. It is not our fault that it took all this time for them to come to terms about the loan. It is not our fault. We had two separate meetings of the House of Assembly scheduled for that purpose. They were not in a position to do so."
Asked whether he thought the decision by the Chinese partners to invest in Baha Mar was a vote of confidence in The Bahamas, Ingraham said,"If the Chinese didn't have confidence in The Bahamas they wouldn't even talk to Baha Mar. I wouldn't talk about invest, so the investment's in The Bahamas.
"And we are deeply appreciative for the Chinese willingness to invest that kind of money in The Bahamas. We are deeply appreciative and would wish for the project to go ahead.
"We know what the Chinese interest is in terms of what benefits they get out of the deal...There must be some interest on the part of The Bahamas and The Bahamas'interest is to maximize the benefits which may be derived for The Bahamas from this investment and to ensure that when the project is complete, that the project advances us, enhances our tourism and does not drag us down."
10/6/2010
thenassauguardian
Saturday, October 2, 2010
Baha Mar project is a political hot potato
Baha Mar project still needs consideration
tribune242 editorial
THE BAHA MAR development is not one of easy solution -- politically it is a hot potato. The only reason it is being considered is that many Bahamians believe that in these economic hard times a big project is needed to get Bahamians back to work -- and Baha Mar happens to be that big project.
Prime Minister Hubert Ingraham does not necessarily agree. One day the Bahamas is going to run out of big projects -- certainly the need for them in New Providence. There are still the Family Islands to develop, but as time moves forward the Bahamas will have to find something other than "big projects" to sustain growth.
Nor does the Prime Minister believe that Baha Mar, even at this time, is the "saviour for the Bahamas."
However, what appears to many Bahamians to be an answer to prayers could present enormous problems in the future. Certainly enormous political problems.
For example, if government agrees to allow the Chinese to employ over the period of the $2.6 billion contract, 8,100 of their countrymen with Bahamians only on the periphery of construction, then future investors can expect the same. Certainly Kerzner International, which has preferred investor status, has every right in future to ask for the same concessions. And don't forget local business people, who should be entitled to employ the best talent for their businesses, will also expect to have more freedom to go abroad if the required talent cannot be found here. This is something that Bahamians should ponder very seriously. At the pace at which this country is developing -- especially with the unlimited vistas being opened by new technology -- there will be no place for D grade students. Of course, this is something for students and their parents to come to grips with now. They have to settle down to reality -- government can no longer protect them. They have not had to make the effort because their mediocrity has been protected by Immigration restrictions for too long.
But there are other worries. As Mr Ingraham pointed out, if Baha Mar is completed as planned will the investors be able to fill the added 3,500 rooms when many hotel rooms already here are empty?
"We will be building the largest single resort development in the country with exclusively foreign labour, foreign labour where there is no transfer of any knowledge to locals," Mr Ingraham said. "At the same time be putting a number of rooms that is larger than any we've got in the country, without any major hotelier being involved to date."
"Well if I have difficulty dealing with less than 1,800 rooms what is it likely to be the case if I put 3,500 rooms there? What makes me feel and what gives me the level of confidence that all of a sudden I've become a magician in terms of the management of a hotel and I'm going to have a very successful operation with high levels of occupancy and good levels of revenue to repay the loan of $2.4 billion?"
Added to which the Chinese now have a hotel in Freeport which they cannot fill.
"And if I am having discussions about the question of repaying a loan of $200 million that is dragging on and on, does that raise any question that I ought to be concerned with? These are all matters that the government has to be concerned with," Mr Ingraham said.
What is now exercising the minds of many Bahamians is what happens to the large resort and the land on which it sits if the land is transferred in fee simple to Baha Mar, which in future might default on the loan to the China Export-Import Bank. Does the bank, and eventually the Beijing government become landlords of 1,000 acres of Cable Beach? This is of great concern to many Bahamians.
Mr Ingraham said he would feel more confident about the development, if like Atlantis, it were brought on stream in stages, opening only 1,000 rooms to start with. Atlantis developed its mega project in three stages. The fourth stage is being held until the Baha Mar resort is resolved. Obviously, the Kerzners -- experts in the resort business --also believe that the Bahamas cannot fill the rooms of two mega resorts operating on one island at the same time.
However, Mr Ingraham believes the Baha Mar project and Atlantis can co-exist without one being detrimental to the other if the phased approach to development is taken.
If one kills off the other by over reaching it is the Bahamas and its people who will suffer. As each resort fights for guests, room rates will fall and so will local employment.
Mr Ingraham and his government -- and the Opposition if it will take its responsibilities seriously -- have a lot to think about as they do their best to protect the future of the country and its people.
October 01, 2010
tribune242 editorial
tribune242 editorial
THE BAHA MAR development is not one of easy solution -- politically it is a hot potato. The only reason it is being considered is that many Bahamians believe that in these economic hard times a big project is needed to get Bahamians back to work -- and Baha Mar happens to be that big project.
Prime Minister Hubert Ingraham does not necessarily agree. One day the Bahamas is going to run out of big projects -- certainly the need for them in New Providence. There are still the Family Islands to develop, but as time moves forward the Bahamas will have to find something other than "big projects" to sustain growth.
Nor does the Prime Minister believe that Baha Mar, even at this time, is the "saviour for the Bahamas."
However, what appears to many Bahamians to be an answer to prayers could present enormous problems in the future. Certainly enormous political problems.
For example, if government agrees to allow the Chinese to employ over the period of the $2.6 billion contract, 8,100 of their countrymen with Bahamians only on the periphery of construction, then future investors can expect the same. Certainly Kerzner International, which has preferred investor status, has every right in future to ask for the same concessions. And don't forget local business people, who should be entitled to employ the best talent for their businesses, will also expect to have more freedom to go abroad if the required talent cannot be found here. This is something that Bahamians should ponder very seriously. At the pace at which this country is developing -- especially with the unlimited vistas being opened by new technology -- there will be no place for D grade students. Of course, this is something for students and their parents to come to grips with now. They have to settle down to reality -- government can no longer protect them. They have not had to make the effort because their mediocrity has been protected by Immigration restrictions for too long.
But there are other worries. As Mr Ingraham pointed out, if Baha Mar is completed as planned will the investors be able to fill the added 3,500 rooms when many hotel rooms already here are empty?
"We will be building the largest single resort development in the country with exclusively foreign labour, foreign labour where there is no transfer of any knowledge to locals," Mr Ingraham said. "At the same time be putting a number of rooms that is larger than any we've got in the country, without any major hotelier being involved to date."
"Well if I have difficulty dealing with less than 1,800 rooms what is it likely to be the case if I put 3,500 rooms there? What makes me feel and what gives me the level of confidence that all of a sudden I've become a magician in terms of the management of a hotel and I'm going to have a very successful operation with high levels of occupancy and good levels of revenue to repay the loan of $2.4 billion?"
Added to which the Chinese now have a hotel in Freeport which they cannot fill.
"And if I am having discussions about the question of repaying a loan of $200 million that is dragging on and on, does that raise any question that I ought to be concerned with? These are all matters that the government has to be concerned with," Mr Ingraham said.
What is now exercising the minds of many Bahamians is what happens to the large resort and the land on which it sits if the land is transferred in fee simple to Baha Mar, which in future might default on the loan to the China Export-Import Bank. Does the bank, and eventually the Beijing government become landlords of 1,000 acres of Cable Beach? This is of great concern to many Bahamians.
Mr Ingraham said he would feel more confident about the development, if like Atlantis, it were brought on stream in stages, opening only 1,000 rooms to start with. Atlantis developed its mega project in three stages. The fourth stage is being held until the Baha Mar resort is resolved. Obviously, the Kerzners -- experts in the resort business --also believe that the Bahamas cannot fill the rooms of two mega resorts operating on one island at the same time.
However, Mr Ingraham believes the Baha Mar project and Atlantis can co-exist without one being detrimental to the other if the phased approach to development is taken.
If one kills off the other by over reaching it is the Bahamas and its people who will suffer. As each resort fights for guests, room rates will fall and so will local employment.
Mr Ingraham and his government -- and the Opposition if it will take its responsibilities seriously -- have a lot to think about as they do their best to protect the future of the country and its people.
October 01, 2010
tribune242 editorial
Subscribe to:
Posts (Atom)