The Tribune

EDITOR, The Tribune.

We all hope in much anticipation that in the near future Baha Mar will be completed and opened, however, in the meantime I suggest we are hearing all kinds of rather interesting comments which I have to challenge and test.

History? Do we remember when Phil Ruffin sold to Izmerlian – purchase price said to be just over $165m .... he then acquired the then Radisson from the Hotel Corporation for some $35-40m then add stamp tax and contract costs.

To complete this purchase a few years later right weeks before the Harrah’s - Baha Mar deal was announced now in the time of the FNM-Ingraham the bankers for Izmerlian seemed to have be very close to foreclosing Baha Mar then before one shovel was moved before one cubic yard of rem-mix was poured – remember?

In the Harrah deal we saw that Scotia Bank suddenly took an equity position amounting to the debt which seemingly was almost in foreclosure so that the Harrah deal could fly - remember the words of Mr Ingraham in the House “for sure I know one party that could complete this but I am unsure of the other” - the for sure party seems to have been Harrah’s obvious who he was unsure about.

This was the critical moment when if there was true economic leadership and sense Mr Ingraham and the FNM should have paused, waited and asked certain direct questions to Baha Mar - show 100% proof that you have the financial capability.

Well if this had been asked there would have been no need for Harrah’s to comply with terms of their agreement and ask the same, not just once but at least twice and got no satisfaction so they walked.

Drag this unfortunate issue on - the FNM had not cancelled all standing agreements which they should have we suddenly hear that Izmerlian had been able to obtain $2.25 billion from EXIM China and had proposed a construction contract with China State America and build the mega complex at one time.

Three-four years later, further impasse and credible position that Izmerlian cannot complete the project as their finances had run out although they had been telling us – on budget on time for opening.

We are told to complete they need $300m - then $400m then $600m to complete and open ...... proposed deal and Mr Sarkis refuses to give the guarantee EXIM required this is today’s position except there is a provisional liquidator.

The liquidator does not have the authority to borrow the amount of millions needed so what we hear that China State who is since January 15 owed over $200m who owes Bahamians some $100m can say all they like that ship ain’t sailing, as who is going to guarantee the additional loan? $600m is no sneeze.

Split the development up - the Hyatt part and the Rosewood part sold off and get them open? Sounds good but that sale has to realise the equivalent to cover the debt which Baha Mar has to EXIM and anyway the utilities are integrated.

If Mr Sarkis refuses to give the security guarantee pre-November 2nd, then clearly the project goes to full winding-up and sale - I suggest the quicker the better - really if we can jump any unnecessary steps, then let’s do it.

A tale of a project started under one Rt Hon Perry Christie - eventually signed off on by Rt Hon Hubert Ingraham and now stands on Cable Beach looking like an enormous white elephant project - 97% ready and no one can get things going.

It is too late by far to adjudicate should we or shouldn’t we - for sure it is there and no one is not going to open it. We have to learn that pretty architect’s drawings do not always make any sense especially when the past financial performance of the most important party, Baha Mar, had a past record of not meeting their bank payments - now that is an undisputed fact. We need not have ever been dragged to this point but egos and politics blinds.

C ARCHER

Nassau,

September 28, 2015.