The Tribune

IN JANUARY, Prime Minister Perry Christie announced his intention to request funding from China to support the Bahamas’ national budget, and refinance and restructure the country’s debt.

He made this announcement during the first ministerial meeting of CELAC-CHINA (Community of Latin American and Caribbean States) Forum in Beijing, China.

The CELAC-China Forum was established to “promote political, economic, trade, people-to-people, social and foreign co-operation” between China and the Caribbean and Latin American countries.

The establishment of this fund – a $3bn dollar commitment by China for investment on concessional terms – was announced last year at the heads of government meeting in Port of Spain, Trinidad, between China and CELAC. This is the fund from which Mr Christie intends to borrow in the name of the Bahamian people.

By the end of the same month, the senior vice-president of China Construction Company (CCC), which is both investor and general contractor of Baha Mar, was urging the Bahamas government to “make a decision” quickly on his company’s proposed masterplan to revitalise the whole of downtown Nassau, suggesting that the area could become a “Bahamian Riviera”. China Construction had just completed the $60m purchase of the landmark British Colonial Hotel with its vacant six acres immediately west of the property.

It is ironic that this gentleman wants a quick decision to get on with the take over and reconstruction of Bay Street when his company has missed all the completion dates for the opening of Baha Mar — the one project on which this government has depended to solve most of this country’s economic problems. If the foot-dragging of CCC at Baha Mar is indicative of the company’s attitude to obligations, then instead of hiring more Bahamians, lay offs will probably be inevitable.

We suggest that the delay — and persistent reluctance of China Construction to give a closing date for completion of the $3.5bn Baha Mar resort— should send red warning flags up for the Christie government. It is time for Mr Christie to call in his deputy prime minister to account for his recent CCA promotion trip to Panama where surprisingly he praised a company for its superior construction work, knowing that that same company had not completed its “superior work” at Baha Mar. Instead it left an embarrassed Bahamas to make national headlines for missing several dates for the much heralded grand opening of a resort that was to end all resorts.

Mr Christie, Deputy Prime Minister “Brave” Davis and the full cabinet should decide that any further business transactions with China would be unwise. Remember China State Construction Engineering Corporation — as its name implies — is not privately owned. It is state owned, and already a partner in the Baha Mar development. In other words we would be signing the future of this country over to Beijing if we get any further into China’s deep pockets.

Also full non-payment by the Bahamas government of its agreed financial obligation for the diversion of West Bay Street has added to the discord. Mr Davis, as Minister of Works, was government’s chief negotiator to settle this sum. Although the amount had already been contractually agreed by the previous government, Mr Davis said he had to talk with the investor before payment as he was “talking about the public’s funds”.

We don’t know if he is still talking, but we understand that the matter is yet to be settled.

However, not only do we think that whatever is owed should be paid to Baha Mar, the public is also entitled to an explanation for what Mr Davis has admitted is public funds.

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

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 full sum was never paid to Baha Mar to satisfy the debt.

Last year, government paid Baha Mar $30m on the agreement. Recently, Mr Davis confirmed that no further payment had been made. Bahamians are entitled to know – if not, why not. It is obviously one of the many sticking points in the current Baha Mar dispute.

Sarkis Izmirlian, Baha Mar’s chairman and chief executive officer, has promised The Bahamas a resort that will match — if not exceed the world’s best. He is not satisfied that he is getting the best in certain areas and is determined not to open the resort until he does. It is believed that the Chinese, to “save face”, want to ignore the problems for now, and deal with the matter after the resort has been opened.

It is understood that Baha Mar is CAC’s first project of this magnitude. Baha Mar was to be the company’s show piece to attract additional contracts and launch it into the resort business in the Americas.

The opening of Latin American Regional Headquarters in Panama City was obviously a part of the plan to mark ”a new milestone in the company’s 30-year history of offering superior construction and real estate services in the Americas”.

And Mr Davis, according to the PRWeb report, was in Panama not only to be among those who cut the ribbon for this expansion, but to acknowledge “CCA’s contribution to the Bahamian economy and commend CCA for its resourcefulness”.

As one good turn deserves another, maybe Mr Davis will now get his good friends to complete their contract here so that the Bahamas can also have its long overdue ribbon-cutting ceremony. And while he is about it he can also honour the road building contract by paying the remainder of what is still owed on the $47.8m debt.