The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Investment projects are being denied approval because they conflict with the Government’s National Investment Policy, a private sector group has said, with investors also frustrated by “communication breakdowns” between different agencies.

The Bahamas’ chapter of the Caribbean Growth Forum (CGF), via its investment climate working group, said investment projects that could create Bahamian jobs were being refused or held-up by bureaucratic ‘red tape’.

“In review of the proposals that are currently being presented to the Bahamas government for consideration, there is a clear indication that the areas that are targeted for foreign investors and those exclusively reserved for Bahamians are becoming intertwined due to the changing market conditions,”the working group’s report said.

“We are advised that new projects are being refused due to the restriction in the National Investment Policy. Projects that might have been beneficial to the local economy with respect to job creation, skills training and, eventually, spin-off opportunities, are being denied.”

While the CGF report did not identify any specific projects that had fallen victim to this, it recommended that the National Investment Policy be reviewed - especially those areas where ‘protectionism’ was in force.

Elsewhere, the report effectively backed the Government’s strategy to create a National Economic Development Plan, labelling the current ‘reactive’ approach to investor projects as “haphazard”.

Arguing that this benefited investors and not necessarily the Bahamian people, the report added: “Bottom line: The Government must no longer ‘sit back’ and wait for investors to bring it projects to approve as invariably it must grant significant concessions to secure the investment.

“Instead, by proactively identifying and promoting investment projects for each (major) island, government may attract multiple investors who effectively compete to participate in the investment.

“Thus, instead of giving concessions to investors to secure a project, government may receive concessions from investors competing to make an investment.”

The CGF report said that too often, investors were left “at the mercy” of various Bahamian government ministries and agencies, “and their constantly changing regulations”.

These requirements sometime changed from project to project; investors had to meet with agencies individually; and the National Economic Council (NEC) failed to meet regularly - all of which delayed the approvals process.

To eliminate such problems, the report called for the Bahamas Investment Authority (BIA) to create a manual detailing the requirements of every agency.