The Tribune

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

A DISAGREEMENT between the government and Baha Mar officials over money owed to the company for building one mile of rerouted West Bay Street is nearing an end, according to Works Minister Philip “Brave” Davis.

Mr Davis said that officials at Baha Mar had made a proposition to the 
government, one which he planned to present to his Cabinet colleagues when they meet. However, Mr Davis would not say how much Baha Mar expected the government to pay for the work.

But Mr Davis did confirm to reporters outside the Cabinet office that officials at Works, after completing their assessment, determined that Baha Mar spent more than $100 million.

“The next step is validating,” he said, “whether or not they are admissible spending for the project that was contemplated by the agreement – the road diversion and the corridor seven– that is where the challenge has been with us. It now boils down to an interpretative approach and that’s what we are doing.

“We now have what we believe to be a proper interpretative approach which I hope to put to Cabinet.

“I think some funding was identified for the payment. But as we were not satisfied with the amount I don’t think that it was properly allocated in the budget but arrangements will be made via supplementary appropriation if necessary. Once we agree on what we are doing.”

Nearly two weeks ago, it was suggested that the relationship between the government and Baha Mar was strained as neither entity could agree on the road project’s worth. But Tourism Minister Obie Wilchcombe denied that a rift existed.

Prime Minister Perry Christie insisted that the government was only interested in protecting the best interests of Bahamians. Fred Mitchell, Minister of Foreign Affairs, later said that the government would not “pay one red cent more than it should” for the work.

Later, former Prime Minister Hubert Ingraham in an open letter to Baha Mar officials published on August 12, 2013 criticised the Christie administration for haggling over the matter.

He said the government had created what he called an embarrassing situation with the potential to damage the Bahamas’ reputation.

Under the previous Ingraham administration, the government agreed it would pay $48.1 million towards road works that were expected to cost around $90 million in total.

It was also outlined that the government would pay half the cost, if the work ended up costing less than $70 million.

Baha Mar officials claim the road cost $118 million, but the government at the time argued that the figure was only $58 million.