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 Sol Kerzner. Show all posts
Showing posts with label Sol Kerzner. Show all posts
Monday, November 22, 2010
Saturday, November 20, 2010
Perry Christie - Opposition Leader says: ... if the government considers itself a partner in the deal with Baha Mar, it should have dealt with the alleged breach with Kerzner outside of the House of Assembly
Christie: Issues with Kerzner should have been resolved first
By CHESTER ROBARDS
Guardian Staff Reporter
chester@nasguard.com
Leader of the Opposition Perry Christie admonished the government during his contribution to debate in the House of Assembly yesterday, for not moving to resolve their apparent breach of a ‘Most Favored Nation’ (MFN) clause with Kerzner International, before bringing the Baha Mar resolution to Parliament for a vote.
Christie said if the government considers itself a partner in the deal with Baha Mar, it should have dealt with the alleged breach with Kerzner outside of the House of Assembly.
According to him, when the government was made aware that Kerzner considered the allowance of 8,000 Chinese workers for the Baha Mar project a violation of MFN, the prime minister should have met with them to resolve the issue before yesterday.
“It looks like there is antagonism in the product, serious difficulties in the product, where the government is making a decision to breach an agreement,” said Christie.
“Because, if we are saying that we are going to approve it (Baha Mar) and he (Sol Kerzner) is saying we are in breach of it (MFN), Parliament should suspend itself, since we have been asked to come to this point to have a determination made as to whether or not we are in breach.”
According to him, the matter of a breach of contract is “a matter to do with partners” and “not to do with public relations of a government”.
He said he was taken aback when Member of Parliament for Marco City, Zhivargo Laing read the press statement in the House of Assembly that was issued by Kerzner International outlining what it considered to be a breach of MFN.
“I was shocked yesterday,” he said. “This (MFN breach) is essentially a major legal matter that has exercised the minds of lawyers here in the attorney general’s office and the Queens Counsel of England.”
Christie also used much of the beginning of his alloted time in the House to respond to the government’s accusations that his party was not an effective government when they were in power and with regard to the Baha Mar agreement.
He got extremely testy with his colleagues across the floor yesterday, reminding them to act like parliamentarians while addressing the House and each other, as Bahamians look to them as a good example.
“We are coming to a time in the country where we have to be careful that we do not begin applying in our country retribution and reaction,” he said.
“That is not good for this country and our leadership in this country must exercise the greatest care as we move forward, dealing with people's reputations.
“Recognize that as best we can, we will try to avoid the snaring remarks and try to focus on the issues at hand.”
11/19/2010
thenassauguardian
By CHESTER ROBARDS
Guardian Staff Reporter
chester@nasguard.com
Leader of the Opposition Perry Christie admonished the government during his contribution to debate in the House of Assembly yesterday, for not moving to resolve their apparent breach of a ‘Most Favored Nation’ (MFN) clause with Kerzner International, before bringing the Baha Mar resolution to Parliament for a vote.
Christie said if the government considers itself a partner in the deal with Baha Mar, it should have dealt with the alleged breach with Kerzner outside of the House of Assembly.
According to him, when the government was made aware that Kerzner considered the allowance of 8,000 Chinese workers for the Baha Mar project a violation of MFN, the prime minister should have met with them to resolve the issue before yesterday.
“It looks like there is antagonism in the product, serious difficulties in the product, where the government is making a decision to breach an agreement,” said Christie.
“Because, if we are saying that we are going to approve it (Baha Mar) and he (Sol Kerzner) is saying we are in breach of it (MFN), Parliament should suspend itself, since we have been asked to come to this point to have a determination made as to whether or not we are in breach.”
According to him, the matter of a breach of contract is “a matter to do with partners” and “not to do with public relations of a government”.
He said he was taken aback when Member of Parliament for Marco City, Zhivargo Laing read the press statement in the House of Assembly that was issued by Kerzner International outlining what it considered to be a breach of MFN.
“I was shocked yesterday,” he said. “This (MFN breach) is essentially a major legal matter that has exercised the minds of lawyers here in the attorney general’s office and the Queens Counsel of England.”
Christie also used much of the beginning of his alloted time in the House to respond to the government’s accusations that his party was not an effective government when they were in power and with regard to the Baha Mar agreement.
He got extremely testy with his colleagues across the floor yesterday, reminding them to act like parliamentarians while addressing the House and each other, as Bahamians look to them as a good example.
“We are coming to a time in the country where we have to be careful that we do not begin applying in our country retribution and reaction,” he said.
“That is not good for this country and our leadership in this country must exercise the greatest care as we move forward, dealing with people's reputations.
“Recognize that as best we can, we will try to avoid the snaring remarks and try to focus on the issues at hand.”
11/19/2010
thenassauguardian
Friday, November 19, 2010
Sir Sol Kerzner says: The proposed deal between the Government of The Bahamas and Baha Mar violates previous agreements between the government and Kerzner International
Sol Kerzner hits out on Baha Mar
By BRENT DEAN
The Nassau Guardian
Deputy News Editor
brentldean@nasguard.com
Says Baha Mar deal violates agreements made with his company
The proposed deal between the Government of The Bahamas and Baha Mar violates previous agreements between the government and Kerzner International, charged Sir Sol Kerzner yesterday.
“Baha Mar proposes employing thousands of foreign Chinese workers, which would represent far more than 30 percent of the total labor force.
Approval of this arrangement by government would be a clear breach of an investment agreement with a developer that has become its largest private employer, and an investor who took a risk on The Bahamas when its economy was struggling far more than it is today,” said Sir Sol Kerzner, chairman and chief executive officer of Kerzner International in a statement.
The House of Assembly is scheduled to conclude debate on the Baha Mar resolution today. The company is seeking 8,150 work permits for Chinese workers to help construct the $2.6 billion resort. The government is seeking the blessing of the House as it grants the work permits. The opposition has said it supports the deal.
In previous heads of agreements between Kerzner and the government, it pledged to grant Kerzner most favored nation status, meaning no investor would be granted concessions greater than Kerzner.
However, in a rare public statement, Kerzner, who is the largest private sector employer in the country, said Baha Mar is being granted much more than his company received.
“When we made our largest single investment of approximately $1 billion for Phase III, we did so based on a heads of agreement signed with the PLP government in 2003. Among the many requirements that government imposed on Kerzner under this and prior agreements was a strict rule that at least 70 percent of the total construction labor force would be Bahamian,” said Kerzner.
“As was the case with the two previous agreements with government, our 2003 agreement included a most favored nation provision that assured Kerzner that our investments would be protected from subsequent investors receiving more favorable terms. These agreements represented a solemn promise by The Bahamas to us that any subsequent investor would only compete against us on a level playing field.”
Prime Minister Hubert Ingraham said on Sunday that the Baha Mar deal would be approved by the end of the month. It is unclear if Kerzner’s intervention will have any effect on that pronouncement.
Yesterday Baha Mar was not pleased with Kerzner’s public intervention.
“We are not going to comment on Mr. Kerzner’s public relations statement. The Baha Mar project has been well vetted with the public, the government and its investors. We are happy the Baha Mar resolution is being debated in Parliament today,” said the company in response to Kerzner.
Kerzner International said it intends to discuss with the government how to address its concerns. As a result of the deal, Baha Mar is to receive on the labor and land components of the proposed deal, Kerzner can argue it is entitled to the same.
The government is transfering 265 acres of public land at Cable Beach to Baha Mar as a part of the deal.
Kerzner International emphasized that the heads of agreement for each of the three phases of development on Paradise Island required that at least 70 percent of the total construction labor force had to be Bahamian.
Bahamian labor is more expensive than labor from countries such as China and Mexico.
The company and its chairman argued that the deal Baha Mar is to receive “would represent a material breach” of its agreement with the government.
“When Kerzner first invested in The Bahamas by acquiring what is now the Coral and Beach Towers out of bankruptcy in May 1994, we made our investment on the basis of agreements with the government that gave us contractual assurances regarding our investment. Although we were confident in our abilities to re-establish the Bahamian tourism industry at that time, we did so in the face of truly dire economic conditions,” said Kerzner in his remarks.
“Accordingly, we insisted upon most favored nation treatment, which would ensure that no subsequent investor would be given advantages that we never enjoyed. Since our first investment, we have always found government – irrespective of the party in office – to be a faithful partner who has justified our initial and subsequent confidence in The Bahamas as an investor. We have invested more than $2.3 billion over the course of our build-out of the three phases of Atlantis, increasing our room count from approximately 1,100 in 1994 to over 4,000 today.
“We have grown the Bahamian workforce from approximately 1,200 employees when we commenced operations in 1994 to nearly 8,000 full-time employees today, not to mention the indirect employment that our investment has generated in the community. Furthermore, we have spent millions on training programs to develop and improve the skills and professionalism of our work force, which has allowed Atlantis to be rated among the top resorts in the world.”
Both the governing Free National Movement and opposition Progressive Liberal Party support the Baha Mar deal.
11/18/2010
thenassauguardian
By BRENT DEAN
The Nassau Guardian
Deputy News Editor
brentldean@nasguard.com
Says Baha Mar deal violates agreements made with his company
The proposed deal between the Government of The Bahamas and Baha Mar violates previous agreements between the government and Kerzner International, charged Sir Sol Kerzner yesterday.
“Baha Mar proposes employing thousands of foreign Chinese workers, which would represent far more than 30 percent of the total labor force.
Approval of this arrangement by government would be a clear breach of an investment agreement with a developer that has become its largest private employer, and an investor who took a risk on The Bahamas when its economy was struggling far more than it is today,” said Sir Sol Kerzner, chairman and chief executive officer of Kerzner International in a statement.
The House of Assembly is scheduled to conclude debate on the Baha Mar resolution today. The company is seeking 8,150 work permits for Chinese workers to help construct the $2.6 billion resort. The government is seeking the blessing of the House as it grants the work permits. The opposition has said it supports the deal.
In previous heads of agreements between Kerzner and the government, it pledged to grant Kerzner most favored nation status, meaning no investor would be granted concessions greater than Kerzner.
However, in a rare public statement, Kerzner, who is the largest private sector employer in the country, said Baha Mar is being granted much more than his company received.
“When we made our largest single investment of approximately $1 billion for Phase III, we did so based on a heads of agreement signed with the PLP government in 2003. Among the many requirements that government imposed on Kerzner under this and prior agreements was a strict rule that at least 70 percent of the total construction labor force would be Bahamian,” said Kerzner.
“As was the case with the two previous agreements with government, our 2003 agreement included a most favored nation provision that assured Kerzner that our investments would be protected from subsequent investors receiving more favorable terms. These agreements represented a solemn promise by The Bahamas to us that any subsequent investor would only compete against us on a level playing field.”
Prime Minister Hubert Ingraham said on Sunday that the Baha Mar deal would be approved by the end of the month. It is unclear if Kerzner’s intervention will have any effect on that pronouncement.
Yesterday Baha Mar was not pleased with Kerzner’s public intervention.
“We are not going to comment on Mr. Kerzner’s public relations statement. The Baha Mar project has been well vetted with the public, the government and its investors. We are happy the Baha Mar resolution is being debated in Parliament today,” said the company in response to Kerzner.
Kerzner International said it intends to discuss with the government how to address its concerns. As a result of the deal, Baha Mar is to receive on the labor and land components of the proposed deal, Kerzner can argue it is entitled to the same.
The government is transfering 265 acres of public land at Cable Beach to Baha Mar as a part of the deal.
Kerzner International emphasized that the heads of agreement for each of the three phases of development on Paradise Island required that at least 70 percent of the total construction labor force had to be Bahamian.
Bahamian labor is more expensive than labor from countries such as China and Mexico.
The company and its chairman argued that the deal Baha Mar is to receive “would represent a material breach” of its agreement with the government.
“When Kerzner first invested in The Bahamas by acquiring what is now the Coral and Beach Towers out of bankruptcy in May 1994, we made our investment on the basis of agreements with the government that gave us contractual assurances regarding our investment. Although we were confident in our abilities to re-establish the Bahamian tourism industry at that time, we did so in the face of truly dire economic conditions,” said Kerzner in his remarks.
“Accordingly, we insisted upon most favored nation treatment, which would ensure that no subsequent investor would be given advantages that we never enjoyed. Since our first investment, we have always found government – irrespective of the party in office – to be a faithful partner who has justified our initial and subsequent confidence in The Bahamas as an investor. We have invested more than $2.3 billion over the course of our build-out of the three phases of Atlantis, increasing our room count from approximately 1,100 in 1994 to over 4,000 today.
“We have grown the Bahamian workforce from approximately 1,200 employees when we commenced operations in 1994 to nearly 8,000 full-time employees today, not to mention the indirect employment that our investment has generated in the community. Furthermore, we have spent millions on training programs to develop and improve the skills and professionalism of our work force, which has allowed Atlantis to be rated among the top resorts in the world.”
Both the governing Free National Movement and opposition Progressive Liberal Party support the Baha Mar deal.
11/18/2010
thenassauguardian
Monday, November 15, 2010
Sir Sol Kerzner - Kerzner International Chairman and CEO - has concerns about the terms of the Baha Mar deal
Kerzner concerned about terms of Baha Mar deal
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
Kerzner International Chairman and CEO Sir Sol Kerzner has concerns about some of the terms of the $2.6 billion Baha Mar deal, Prime Minister Hubert Ingraham said yesterday.
Ingraham told reporters at a meet the press event that he met with Kerzner yesterday morning to discuss those concerns.
“There are some concerns on the part of Kerzner as to the extent to which Baha Mar is getting a deal from The Bahamas that is more favorable to them than Kerzner got,” Ingraham said.
“In 2003 when the government of the day signed an agreement for Kerzner to do its phase three, it agreed that nobody would get a better deal in The Bahamas for any development than Kerzner got.”
He added, “They are concerned about the extent to which they themselves had to pay huge sums of money for property to do their development and Baha Mar was given property at [concessionary] prices. Secondly, they were required to hire 70 percent (Bahamian) workers on their job, and only 30 percent foreigners and we are considering giving Baha Mar these 5,000 to 8,000 Chinese workers.”
Ingraham said Kerzner International officials will get back to the government on the extent to which they have justifiable reasons for their concerns.
“And we will review their concerns and make determinations, but in the meantime it will not interfere with our intention to approve the Baha Mar project by the end of this month,” he said.
Asked whether Kerzner International plans to pursue a phase four of its development, Ingraham said, “The reality is even if they had the money and even if they had the will, the desire, nobody would do a phase four at Atlantis if you’re going to put down on Cable Beach another 2,600 hotel rooms and all the facilities.
“The reality is that there is only one market. Nassau is only just one place and airlift and business and profitability and room rates and the whole host of things (come into play). So it isn’t likely that they are going to do another phase at the moment. That’s not likely.”
Ingraham said Kerzner told him yesterday that there is no truth to rumors that he is considering selling the Atlantis Resort on Paradise Island.
“He said absolutely not,” Ingraham said. “I believe him.”
11/15/2010
thenassauguardian
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
Kerzner International Chairman and CEO Sir Sol Kerzner has concerns about some of the terms of the $2.6 billion Baha Mar deal, Prime Minister Hubert Ingraham said yesterday.
Ingraham told reporters at a meet the press event that he met with Kerzner yesterday morning to discuss those concerns.
“There are some concerns on the part of Kerzner as to the extent to which Baha Mar is getting a deal from The Bahamas that is more favorable to them than Kerzner got,” Ingraham said.
“In 2003 when the government of the day signed an agreement for Kerzner to do its phase three, it agreed that nobody would get a better deal in The Bahamas for any development than Kerzner got.”
He added, “They are concerned about the extent to which they themselves had to pay huge sums of money for property to do their development and Baha Mar was given property at [concessionary] prices. Secondly, they were required to hire 70 percent (Bahamian) workers on their job, and only 30 percent foreigners and we are considering giving Baha Mar these 5,000 to 8,000 Chinese workers.”
Ingraham said Kerzner International officials will get back to the government on the extent to which they have justifiable reasons for their concerns.
“And we will review their concerns and make determinations, but in the meantime it will not interfere with our intention to approve the Baha Mar project by the end of this month,” he said.
Asked whether Kerzner International plans to pursue a phase four of its development, Ingraham said, “The reality is even if they had the money and even if they had the will, the desire, nobody would do a phase four at Atlantis if you’re going to put down on Cable Beach another 2,600 hotel rooms and all the facilities.
“The reality is that there is only one market. Nassau is only just one place and airlift and business and profitability and room rates and the whole host of things (come into play). So it isn’t likely that they are going to do another phase at the moment. That’s not likely.”
Ingraham said Kerzner told him yesterday that there is no truth to rumors that he is considering selling the Atlantis Resort on Paradise Island.
“He said absolutely not,” Ingraham said. “I believe him.”
11/15/2010
thenassauguardian
Monday, October 25, 2010
Opposition Leader Perry Christie called on Prime Minister Hubert Ingraham to treat Baha Mar developer Sarkis Ismirlian as well as he treats Atlantis Boss Sol Kerzner
Christie: Baha Mar developer should get same treatment as Atlantis boss
tribune242
OPPOSITION LEADER Perry Christie called on Hubert Ingraham to treat Baha Mar developer Sarkis Ismirlian as well as he treats Atlantis Boss Sol Kerzner.
Speaking at the presentation of the PLP's position-paper on Baha Mar, Mr Christie said the two men are deserving of the same level of respect.
He said: "I do not know what Sarkis Ismirlian ever did to the prime minister to deserve the kind of humiliating treatment that has been meted out to him in public, time and time again, by Prime Minister Ingraham. It is wrong.
"Mr Ismirlian is deserving of respect, even when we have to disagree with him. It is high time, then, that the prime minister starts talking to Sarkis Ismirlian the same way he always talks to Sol Kerzner."
Mr Christie went on to say that the Bahamas doesn't have "a hope in hell" of being taken seriously by investors, especially in very difficult times, if Mr Ingraham continues to change the "rules of engagement" with investors and continues to believes in "negotiation-by-press-conference".
He said: "You cannot be calling press conferences to tell investors what they must do in order to win your favour. You cannot be telling them one thing in private and then call a press conference to lay down a whole new set of conditions they have to meet, and then when they meet those conditions, you then call yet another press conference to lay down a whole new set of pre-conditions yet again. That is harmful our country's reputation. It is not a wise way to conduct diplomacy. Besides it is a fundamentally unfair way to treat those who are attempting in good faith to make a major investment in our country."
Mr Christie added that there is no use in Prime Minister Ingraham, who left for China on Friday, trying to negotiate a new deal with the Chinese government, which through the China Export-Import Bank is funding the Baha Mar deal, unless Mr Ismirlian and his group are at the same negotiating table.
"There needs to be a tripartite approach to this. Simple logic and plain, good sense demand it. Suppose the PM negotiates a new deal that the Ismirlians cannot or will not live with. What then? What would he have accomplished then? In that case, one foot forward would have been taken followed by two steps backward. That makes no kind of sense.
"I therefore call upon the PM to invite representatives of the Baha Mar Group to join his meeting with the Chinese in China. It is, after all, Baha Mar's project. It seems only sensible and logical and appropriate to have the project owners at the table too so that everything can be settled all at the same time.
Mr Christie went on to say that the Baha Mar project cannot be evaluated in isolation from the "extremely difficult economic circumstances" in which the country finds itself at the moment.
"This is the worst it has been in decades. The level of human suffering is intolerable and threatens the social stability of our country. Unemployment, in particular, is at a painfully high level. Capital inflows have been extremely sparse and spare in recent times, especially in the tourism sector.
"As a result, new employment opportunities for displaced workers, recent secondary school-leavers and college graduates are few and far between. These conditions of acute distress in our country oblige us to embrace the Baha Mar Project. It is, in a very real sense, the only new substantial ray of sunshine that has presented itself."
October 23, 2010
tribune242
tribune242
OPPOSITION LEADER Perry Christie called on Hubert Ingraham to treat Baha Mar developer Sarkis Ismirlian as well as he treats Atlantis Boss Sol Kerzner.
Speaking at the presentation of the PLP's position-paper on Baha Mar, Mr Christie said the two men are deserving of the same level of respect.
He said: "I do not know what Sarkis Ismirlian ever did to the prime minister to deserve the kind of humiliating treatment that has been meted out to him in public, time and time again, by Prime Minister Ingraham. It is wrong.
"Mr Ismirlian is deserving of respect, even when we have to disagree with him. It is high time, then, that the prime minister starts talking to Sarkis Ismirlian the same way he always talks to Sol Kerzner."
Mr Christie went on to say that the Bahamas doesn't have "a hope in hell" of being taken seriously by investors, especially in very difficult times, if Mr Ingraham continues to change the "rules of engagement" with investors and continues to believes in "negotiation-by-press-conference".
He said: "You cannot be calling press conferences to tell investors what they must do in order to win your favour. You cannot be telling them one thing in private and then call a press conference to lay down a whole new set of conditions they have to meet, and then when they meet those conditions, you then call yet another press conference to lay down a whole new set of pre-conditions yet again. That is harmful our country's reputation. It is not a wise way to conduct diplomacy. Besides it is a fundamentally unfair way to treat those who are attempting in good faith to make a major investment in our country."
Mr Christie added that there is no use in Prime Minister Ingraham, who left for China on Friday, trying to negotiate a new deal with the Chinese government, which through the China Export-Import Bank is funding the Baha Mar deal, unless Mr Ismirlian and his group are at the same negotiating table.
"There needs to be a tripartite approach to this. Simple logic and plain, good sense demand it. Suppose the PM negotiates a new deal that the Ismirlians cannot or will not live with. What then? What would he have accomplished then? In that case, one foot forward would have been taken followed by two steps backward. That makes no kind of sense.
"I therefore call upon the PM to invite representatives of the Baha Mar Group to join his meeting with the Chinese in China. It is, after all, Baha Mar's project. It seems only sensible and logical and appropriate to have the project owners at the table too so that everything can be settled all at the same time.
Mr Christie went on to say that the Baha Mar project cannot be evaluated in isolation from the "extremely difficult economic circumstances" in which the country finds itself at the moment.
"This is the worst it has been in decades. The level of human suffering is intolerable and threatens the social stability of our country. Unemployment, in particular, is at a painfully high level. Capital inflows have been extremely sparse and spare in recent times, especially in the tourism sector.
"As a result, new employment opportunities for displaced workers, recent secondary school-leavers and college graduates are few and far between. These conditions of acute distress in our country oblige us to embrace the Baha Mar Project. It is, in a very real sense, the only new substantial ray of sunshine that has presented itself."
October 23, 2010
tribune242
Tuesday, January 13, 2004
The Bahamas Prime Minister, Perry Christie in Talks with Investor Interested in Pumping $1 Billion into Cable Beach
The Bahamas Government and The Investor are Reportedly in The Final Stages of Negotiations for Cable Beach Properties
Big Money For Cable Beach
13/01/2004
Prime Minister Perry Christie is expected to spend some time in Monterrey, Mexico negotiating for the redevelopment of the Cable Beach Strip, while attending a special Summit of the Americas.
Government officials, including the prime minister, have recently been pointing to the urgent need to improve conditions at properties on Cable Beach.
Mr. Christie announced recently that he is talking to an investor interested in pumping $1 billion into Cable Beach.
The government and the investor are reportedly in the final stages of negotiations and a heads of agreement was being prepared for signature for a development along the Strip.
Meanwhile, saying that he has no immediate plans to sell his resort, owner of the Wyndham Nassau Resort and Crystal Palace Casino Phil Ruffin said Monday that he is taking out a new loan on the property to carry out much needed upgrades.
Mr. Ruffin, in an interview with the Bahama Journal from Wichita, Kansas, said he is aware that the Cable Beach Strip needs to be revitalized and refinancing would help his company secure the cash it needs for the improvements to take place.
"It will give us $25 million in surplus cash to upgrade the property," he said.
The Wyndham is in deep debt and in an apparent bid to get value on his property; Mr. Ruffin wants to invest millions of dollars into it.
Some sources insist the government is in the process of forcing Mr. Ruffin out and he is said to be looking for the best deal to get out.
Mr. Ruffin, one of the richest people in America with an estimated net worth of $750 million, said the new loan should be in place by the end of the month.
His hotel continues to face crushing competition from the Atlantis Paradise Island Resort, owned by hotel mogul, Sol Kerzner.
Mr. Ruffin said he is aware of such competition and that business has been "horrible" over the last couple years.
Meanwhile, Atlantis, which is now undergoing a $600 million expansion, has been reporting record profits.
Mr. Ruffin told the Journal that things are finally beginning to pick up.
"It's coming back," Mr. Ruffin said. "I think sales are up 32 points in 2004 and the bookings look good. That's when you start doing things."
Speculation has been rife about the planned sale of the Wyndham, but Mr. Ruffin said no contracts to that effect have been signed.
"We have a couple of people kicking the tires, different companies," he said. "But at this time there is no formal offer."
But Mr. Ruffin added, "We're always open to the sale of any of our assets if the price is right."
He also responded to an exclusive report in the Bahama Journal several months ago revealing that his hotel owes the government more than $10 million in casino taxes.
When asked when he intended to pay, Mr. Ruffin said he didn't think that was a relevant question to be asked of him.
But he did say, "It'll be corrected."
Mr. Ruffin then added, "We paid full taxes for 10 years, while Atlantis paid half. They had a significant advantage over us."
The Ruffin name is also a big name in gaming circles in Las Vegas. He told a local paper there that he favours the argument that gaming has carried the bulk of the tax load for too long.
Mr. Ruffin also reportedly owes the Bahamas Electricity Corporation millions of dollars in unpaid bills.
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