The Tribune

THE CHRISTIE government seems to have put all of its eggs for the country’s economic recovery into Baha Mar’s large basket.

However, unless Deputy Prime Minister Philip “Brave” Davis settles the non-negotiable $45.3m that government owes Baha Mar before the hotel’s March 27th opening, smashed eggs could be their welcome mat on arrival.

Mr Davis, who last May was described as government’s chief negotiator to settle the sum government still owed Baha Mar for the diversion of West Bay Street, said at the time that the talks with the investor were important as he was “talking about the public’s funds.”

Said Mr Davis: “I’m talking about my money, your money and the people’s money and I want to ensure that when I pay the people’s money I’m getting value for my money and living up to the commitments that the government made once I’m satisfied of that and what that amount is we will pay.”

What Mr Davis seems to have forgotten is that what the PLP had made negotiable when it entered into the first Baha Mar contract was renegotiated by the Ingraham government when the investors wanted to enlarge their investment and change its terms. This greatly benefitted the Bahamas.

We were told that the investors had done so much for the Bahamas that in consideration of their increased investment, it was agreed that the Bahamas would pay a non-negotiable flat fee of $45.3m towards the construction of the diversion of Bay Street.

The new agreement stated:

“There is no provision for negotiation of the cost. Payment is … ”

It then clearly sets out the conditions of Government’s financial contribution of $45.3m, which hinged on the investor’s completion of the 1,000 room casino hotel’s construction 100 feet above grade.

The JFK Connector Road (now Baha Mar Boulevard) was completed to a standard not equalled by any other roadway in New Providence and anyone who has seen it will agree that its landscape is unmatched. It was now time for government to pay the Baha Mar investors.

The PLP government obviously recognised this obligation because provision was made in its 2012-2013 Budget to borrow $47.8m specifically for the Baha Mar payment. Although government borrowed the money, the agreed sum was never paid to Baha Mar.

Last year, government paid Baha Mar $30m on the agreement. Recently Mr Davis confirmed that no further payment had been made. According to Mr Davis the improvement of West Bay Street should be valued per mile at the same rate as the airport connector road, despite the fact that there is no comparison between the two roads. Under the agreement this question should never arise. Regardless of anything else a flat fee was agreed, and the remainder of the flat fee is all that the investor expects. Any honourable government should have no difficulty honouring its contracts, regardless of which government finally agreed that contract.

However, during the 2013-2014 Budget debate, St Anne’s MP Hubert Chipman demanded to know where the $47.8m had gone. We hope that Mr Chipman, in his capacity as head of the Public Accounts Committee, will follow the paper trail.

This money belongs to the Bahamian people. They also want to know how their money has been spent. If $30m has been paid to Baha Mar, then where is the remaining $17.8m of which $15.3m is still owed to the Baha Mar investors?

If this matter is not settled before opening day then the Christie government is in for a rude awakening.

We are told that when the world’ press is here for the grand opening, the Prime Minister can decide what the narrative will be. Either it will be said that this world-class resort was such a major success due to the continued partnership and cooperation of the Government of the Bahamas; or that the resort was still an amazing success, despite the government’s efforts to ruin the development.

The choice will be his. So we hope that Mr Davis will hurry and step up to the plate as he has been acknowledged as the chief negotiator.

We understand that Baha Mar has reached the point with the Government over the reimbursement for the West Bay corridor that they are considering by-passing arbitration and going straight to open court. This will undoubtedly expose the government’s actions, unfulfilled promises and failings throughout this protracted affair for the world to see.

We are certain that Prime Minister Christie won’t want to take that kind of gamble – not with the world watching to see how one of this country’s principal employers, who has invested billions of dollars in this country, is treated by his government.