The Tribune

By AVA TURNQUEST

Tribune Staff Reporter

aturnquest@tribunemedia.net

MINISTER of Works Philip Davis said the infrastructure costs associated with Baha Mar may be lower that expected.

Mr Davis said technical teams expect to conclude negotiations with the mega resort over costing for roadworks before the end of the month.

“What was negotiated was that the government would be obligated to pay $45 million plus $2.8 million if the cost of the re-configuration of West Bay Street exceeded $70 million,” Mr Davis explained. “If it was less than that the government only has to pay 50 per cent.

“We have undertaken an assessment of the expenses and the cost for the construction of those roads and we are now going to settle and determine what that is to make what we believe is our fair portion of the cost for that diversion and that connecting road to Gladstone Road.”

Speaking to media outside Cabinet yesterday, Mr Davis said technical workers from Baha Mar and the Ministry of Works have been in talks over costing since earlier this year.

He said: “It entails Baha Mar identifying what it believes to be the true cost and our technical team examining it and reviewing it to determine whether those costs are properly attributed to the works that we have obligated ourselves to pay for.

“Preliminary indications from my team suggest that we may not be obligated to pay the $45 million, but we are still negotiating.”

Mr Davis said the work will be paid for within the existing budget if a determination is made before July, when the new fiscal year begins.

He said the ministry has not started any additional road works.

Mr Davis said: “We are still assessing, we’re in the defect/liability period if any defects are discovered by December or January of next year it will still have to be corrected.

“[Workers] had discovered breakages in the water lines so that is being corrected and assessed to determine how many of those have been breached.”