PM: Baha Mar not running out of cash

As of Thursday, May 14, 2015

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

PRIME Minister Perry Christie yesterday denied that Baha Mar is running out of the cash needed to finish its multi-billion dollar project.

However, Mr Christie yesterday said the disputing parties involved in the matter – the Izmirlian family and China Construction America (CCA) – are “very close to a settlement.”

In terms of the nature of the dispute between the parties, he said that the contractor wants “instalment payments” while the Izmirlian family is eager to know when the resort will be completed and available to open.

He said that what the disputing parties needed to arrive at a resolution was an intermediary. It was a role into which he stepped as the “representative of the Bahamian people.”

Mr Christie said he has emphasized to the parties involved that the completion and opening of the resort is important to the interests of the Bahamian people.

This comes days after a well-placed source in his administration told The Tribune that Baha Mar does “not have the cash to finish the project or pay the contractor”.

The source said relevant parties connected to the project were attempting to work out a deal to finish the resort before year’s end, a task the source called “unlikely.”

In a statement yesterday, Baha Mar officials also denied claims that the resort is strapped for cash and unlikely to open this year. Baha Mar’s Public Relations Director Paul Turnquest said: “Recent Bahamian news reports attributed to unnamed sources asserting that Baha Mar is ‘unlikely to open this year’ and stating Baha Mar ‘is likely to run out of cash’ are inaccurate.

“While Baha Mar will not speculate on the apparent self-serving agenda of such unnamed sources, such statements could not have been made by any person with direct day-to-day knowledge of Baha Mar.”

Mr Christie also commented on the harsh assessment Baha Mar CEO Sarkis Izmirlian recently had for successive governments that he said have failed to fulfil its promises to reduce crime and improve the country’s energy provision and education systems.

Responding to this, Mr Christie said Mr Izmirlian’s criticism reflected his frustration, adding that he would not speak out against him for voicing his concerns.

Mr Christie suggested that an “enormous undertaking” like Baha Mar exacts a toll on those involved.

According to a previous report by Tribune Business, China Construction America has admitted “slowing down” the work pace in the key weeks leading up to the planned March 27 opening, due to a payment dispute with Baha Mar.

There have also been suggestions that Baha Mar may have exhausted its construction financing credit, and now has to find new funding lines to complete the development, Tribune Business reported.

Baha Mar was originally scheduled to open in December 2014. The resort subsequently set a soft opening for March 27.

After that date was delayed days before the planned opening, Baha Mar officials said they were aiming for an early May opening, however a new date has not been set.

Last week, Mr Christie said he fears more delays would cause job losses for Bahamians.

Well_mudda_take_sic 9 years, 7 months ago

Of course the developers do not want it known that they are now strapped for the cash necessary to complete the project! After all, this would have a negative impact on the cost of any additional financing being sought from financial institutions and would also have a negative impact on the value received by the developers from the sale to others of any portion of their existing equity interest in the project in an effort to raise additional cash to complete the project and mitigate their losses. But Christie's earlier public remarks have let the cat out of the bag when it comes to the project's urgent need for additional cash. Knowing Christie, he probably 'inadvertently' breached a covenant made by his government not to disclose anything about the financial affairs of the project that could easily be construed in a negative light thereby causing material financial harm to the project's existing developers and financial backers. As we all know only too well, Christie has a great tendency to waffle on and on with his mouth quite often racing way ahead, leaving his brain far behind!

judes 9 years, 7 months ago

Name: Kenny Judes Laguerre Number: +1 242 448 6430 Facebook.com/Judewar242 Twitter.com/jobo1 Email: itsupto1@gmail.com Age: 21 Haitian Bahamian

Right here look for Job thats why i put up all my info .messsage me back for any type job that could host a family of 3 father the son and the wife.

SP 9 years, 7 months ago

.................................... Here's A Job For You ....................................

http://haitiantimes.com/careers/

Real Bahamians don't stand a chance at survival in the job market against these aggressive Haitians!

duppyVAT 9 years, 7 months ago

................... but he is running out of political friends ................ that is more critical now

John 9 years, 7 months ago

Like Carnival, Bah Mar will have its share of persons who want to see the project fail, for various reasons, none good as you may guess. But no one will benefit from the demise of the project.

duppyVAT 9 years, 7 months ago

JOHN............ Bahamar cannot fail!!!!!!! Too much is riding on Bahamar .......... Izzie has his family's fortune in it ............ Perry has his legacy in it ..... and Bahamians have their livelihoods in it .......... The only ones who can walk away from this is the Chinese ...... if they get the rest of their money from a buyout ............. But the Chinese are too cunning to quit ...... they are used to these kind of "survival-of-the-fittest" games ........... and they usually WIN

Well_mudda_take_sic 9 years, 7 months ago

That's what they said about Coral Harbour nearly 50 years ago. Now look at it today......the ghost of a monsterous cocrete hotel remains standing, the Coral Harbour hotel, marina and pool area are now defense force barracks, the 18 hole professional golf is fully grown over with giant pine trees, and low cost homes are everywhere with the occasional odd looking palatial drug, gun or human smugglers home here and there. Yes, large scale property development projects that turnout to be financial debacles do leave a horrible footprint for decades to come. We could rename the area: "Christie's Legacy."

duppyVAT 9 years, 7 months ago

The one with the deeper pockets will eventually rise up to own this monstrosity .......... will it be successful????????? We sure hope that it will ................ but the history of Cable Beach shows that smaller hotels did better ............ we all remember the 1980s experiment with the rainbow hotel on the strip and its eventual demise

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