The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A top private sector executive yesterday urged the Government to be more consistent with the incentives and support it provided to major development projects.

 Gowon Bowe, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman, said the absence of a National Development Plan, land and investment strategies had likely  contributed to what he described as “belaboured and delayed” decisions regarding the $3.5 billion Baha Mar development.

He was speaking after Baha Mar’s chairman and chief executive, Sarkis Izmirlian, last week slammed successive governments for 12 years of unmet promises on energy and education reform.

  And, addressing the same Chambers of Commerce conclave last week, Prime Minister Perry Christie, using the three-phase Atlantis development as an example, acknowledged the different incentives granted by his and the Ingraham administrations to facilitate the developer.

“While one would fully expect that there would be some differences between one development to the next, we really should see a consistency in terms of level of concessions, types of concessions, as well as support by government and the Bahamian people in these various projects,” said Mr Bowe.

“When we have a hodgepodge of various contracts and agreements, sometimes it becomes difficult to enforce them and we run the risk of damaging investor relations.”

    He added: “Sometimes it’s a sort of ‘lost in communication’ challenge, and the real issue is bring able to strip out poor relations versus poor communication and dialogue. We certainly are concerned on both fronts, but if there is poor communication and dialogue that is an easier fix.

“I think that the development [Baha Mar] has seen  number of changes, and a number of changes in partners and players, as well as a number of changes to the actual Heads of Agreement. Certainly the lack of a National Development Plan, land strategy and investment strategy has probably contributed to what I would consider to be belaboured and delayed decisions, as well as honouring the commitments made as a part of this process.

“It has actually gone through numerous government administrations since its inception, and I think that what is important is that we have continuity in government,” said Mr Bowe.

This goal, he added, would only be realised when there was a proper National Development  Plan, policy and strategy as it relates to foreign direct investment, as opposed to each investment being negotiated and agreed upon in isolation.

“That only causes confusion as to who committed to what, and who has a different philosophy and perspective as to what should be agreed,” Mr Bowe said.

“We certainly don’t like, as a private sector, any indication of years’ long disputes and lack of co-operation, but in reality we have seen that come out in the Ease of Doing Business with the enforcement of contracts rating, where it was indicated that it takes several years to enforce  contracts because of the civil courts and the backlog etc.

“ When we are dealing with such large investments we really don’t want them to have to resort to arbitration and the courts because we know that that takes an extended period of time, and those are the things we have to work on so relations and communication remain positive,” he added.

“I think there is always going to be a difference of philosophy as it relates to who should get what between a private investor and the Government, because the Government has the concerns and well-being of a nation to consider, whereas an investor is focused on profitability and viability of a project. Sometimes those things will have conflicts between them.”

Mr Bowe said the Government must ensure that it is a facilitator and not a prohibitor, and provide an investment-friendly environment.

This, he said, does not mean giving away sovereignty, rights or natural assets, but giving priority to ensure that negotiations are done in good faith and commitments honoured.