By KHRISNA VIRGIL
Tribune Staff Reporter
kvirgil@tribunemedia.net
PRIME Minister Perry Christie yesterday touted the government’s success in negotiations with the Export Import Bank of China (EXIM) and China State Construction Engineering Corporation (CSCEC) over the stalled Baha Mar resort, saying all parties have entered into a “framework agreement” to complete the project “as expeditiously as possible”.
However he gave no concrete resolution on the issue of payment to unsecured Bahamian creditors, only saying they would be “considered” during the re-mobilisation process, adding that negotiations were underway to agree to appropriate timelines and a schedule for completion.
Mr Christie further addressed concerns over whether new contractors would be hired to complete Baha Mar. He said court-appointed receiver managers confirmed that CSCEC and China Construction America (CCA) Bahamas are contracted to, and will remain in place to, finish the resort.
However, according to a statement released by BMD Holdings - the developer of Baha Mar - this defies the sensibility of all Bahamians who toiled so hard in the belief that the $3.5bn hotel would be opened in a timely manner as a world-class destination.
The developer said it is very discouraging that the EXIM Bank, knowing full well the serious irregularities already demonstrated by its sister company CSCEC, would now turn to this very same entity to complete the work which its subsidiary CCA has failed to do time and again on previous schedules that it has provided.
During his lengthy 2016/2017 Budget Communication, the Prime Minister said the new framework agreement was the result of two days of “successful meetings” between Bahamian government officials, the EXIM Bank and CSCEC.
He told Parliament that late last week, the government was invited by the EXIM Bank to Beijing, China, with a view to resolving pertinent issues to enable the early remobilisation and completion of the project, including addressing the legitimate interests of Bahamian creditors.
Attorney General Allyson Maynard-Gibson and Sir Baltron Bethel, senior policy advisor in the Office of the Prime Minister, led the delegation that represented government interests in Beijing.
The announcement was a point of contention during the budget presentation with seated opposition members shouting “shameful” and “sell out” as Mr Christie spoke.
“Mr Speaker, it is always shocking when you see people who are elected to Parliament to represent the Bahamian people wishing and hoping that something would not happen but it has happened,” he said in response to jeering from the side opposite.
“I am satisfied based on the statement and the assurances given in Beijing that every effort is being made to enable an earliest possible re-mobilisation and that adequate funding is in place to provide for the completion of the project and the satisfaction of the legitimate claims of Bahamian contractors and suppliers.”
Negotiations
While reading a joint statement on behalf of the EXIM Bank and CSCEC, Mr Christie maintained his optimism saying the framework agreement provided a pathway forward for the completion of the resort.
He said the arrangement provided a framework for putting in place the financing required to complete Baha Mar and for CSCEC’s indirect subsidiary CCA Bahamas to re-mobilise and restart construction to finish the project as expeditiously as possible.
“When CSCEC was hired, when China Export Import Bank came into the financing, the Progressive Liberal Party was in opposition. This was a matter superintended by the FNM and the PLP government inherited it.
“Following two days of successful meetings between representatives of the government of the Bahamas, the Export Import Bank of China and China State Construction Engineering Corporation, we are pleased to confirm that EXIM and CSCEC, the lender to Baha Mar and the parent company of the resort’s general contractor respectfully, have entered into a framework agreement which provides a pathway forward for the completion of the Baha Mar resort.
“The arrangement provides for a framework for putting in place the financing required for completing the project and for CSCEC’s indirect subsidiary CCA Bahamas to re-mobilise and restart construction to finish the project as expeditiously as possible.”
He added: “Negotiations between CCA Bahamas and the receivers appointed by EXIM are underway to agree appropriate terms for construction to recommence and to prepare a construction agreement which will provide the schedule timeline for completion of the project. It is expected that many contractors who have participated in the construction of the project will be reengaged in this process.
“The requirement of the unsecured Bahamian creditors will also be considered during the re-mobilisation and Mr Speaker what I am so happy about (is) EXIM, CSCEC and CCA Bahamas will work closely with the Bahamian government with a view to see the Baha Mar resort project through to 100 per cent completion so that Baha Mar can achieve its true purpose providing thousands of high quality jobs to the Bahamian people and ongoing economic boom to The Bahamas.
“The Bahamian government is fully committed to provide all necessary assistance and cooperation required for the early completion and opening of the project.”
Following the Prime Minister’s revelations, BMD Holdings said there is nothing in CCA’s past performance at the West Bay Street development that lent confidence that it would complete the resort on any schedule they provide.
The statement read: “Today’s statement by CEXIM and CSCEC defies the sensibility of all Bahamians who toiled so hard in the belief that Baha Mar would be opened in a timely manner as a world-class destination. It is very discouraging that China EXIM Bank, knowing full well the serious irregularities already demonstrated by its sister company China State Construction Engineering Corp, would now turn to this very same entity to complete the work which its subsidiary CCA has failed to do time and again on previous schedules that it has provided.
“What we now have is The Bahamas being forced to witness to its potential detriment, as the former great baseball star Yogi Berra said, ‘déjà vu all over again’ at the hands of CCA.
“... This is of particular concern if CCA is to undertake the completion absent of independent testing and supervision such as that provided by the original developer. The possible ramifications of all of this include fatal impairment to the unsecured creditors, the depriving of much needed work for Bahamian contractors, and increased risk with respect to whether or not the resort will indeed ever open.”
It continued: “We once again urge China EXIM Bank, for the sake of the Bahamas, and for its own economic self-interests, to enter into discussions with us with respect to our offer, which would allow the unsecured creditors to be paid, the bank to not to have to incur a discount on the monies it is owed, and which would facilitate the return of many Bahamians to work. We also look forward to a full hearing in the Bahamian court on the claims against CCA and CSCEC for their lack of performance.”
Baha Mar announced that it was filing for Chapter 11 bankruptcy protection on June 29, 2015 in a US court. However the cases for the resort’s Bahamian properties were thrown out.
Last October, the Supreme Court placed the resort into receivership at the request of the EXIM Bank.
A formal sale process for the $3.5 billion project began last month, when Baha Mar’s court appointed receivers hired a Canadian real estate firm to market the project to potential buyers.
The resort was initially slated to open December 2014, but faced a series of delays, which it blamed on CCA.
Comments
Honestman 8 years, 6 months ago
Ok, so the Chinese will complete Baha Mar at some point in the future in accordance with their own dubious standards and some "framework agreement" which is really no agreement at all. No timeline for completion of course, just as "expeditiously as possible". Bahamian creditors will be "considered" in the finalisation of the Agreement which means that if creditors are to be made whole then, in all likelihood, the Bahamian Tax payer will end up footing the bill (in the form of generous government concessions to CCA). As the previous poster suggests completing the construction is one thing, getting to the stage where the resort can open is quite another. After opening how long will it take before the resort begins to even break even? Another five years? We could therefore be looking at ten years from now before the resort starts to make a profit! Who, other than the Chinese, is going to purchase on that basis? So does the Prime Minister expect us to be excited by yesterday's totally underwhelming announcement? Nothing has changed except that we now know for sure that the PLP has colluded with the Chinese to force Izmirlian out of his investment. What an absolute disgrace. What an act of treachery against a major overseas investor and the people of The Bahamas. Payback time is surely only 12 months away.
Wideawake 8 years, 5 months ago
Agree absolutely!! Total sell-out, Sarkis getting shafted, Baha Mar staff getting shafted, Bahamian contractors getting shafted, PGC doing a sad and desperate shuffle in order to find a few crumbs to throw to the Bahamian electorate. Shameful, utterly and completely shameful.
HarryWyckoff 8 years, 6 months ago
Hey, Tribune Peeps - shouldn't the headline read:
"PM Gives Bahamas to Chinese in Desperate Attempt to Look Good for Upcoming Election"
paul_vincent_zecchino 8 years, 5 months ago
Mr. Wyckoff -
SIr, well said. Thank you.
Sickened 8 years, 6 months ago
How many gangsters can you get in one picture?
gkeato 8 years, 5 months ago
Is this the Bahamian Mafia? They all look so angry as well, collectively they have ruined the country and this is their final march. So much crookedness and waste of the now "Un-commonwealth" of the Bahamas. The people really do deserve better and I hope that they do but a solution is required immediately without "framework'? How do you get to framework after billions of dollars spent?
BoopaDoop 8 years, 5 months ago
They dressed for they fruneral.
Sickened 8 years, 6 months ago
Is Deloitte going to refund all that money to the bidders who took so much time and money to deliver a proposal all while the Chinese already decided that they we going to do it themselves? Sounds like a scam to raise some petty cash.
PKMShack 8 years, 5 months ago
The guys in the picture win again. who you voting for?
Emac 8 years, 5 months ago
This man dyes his hair as much as he lies to the public. Anyone who thinks he is improving his appearance by getting rid of his grey hair every week is certainly delusional and this same facade is certainly spilling over to his public life.
TalRussell 8 years, 5 months ago
Oh Comrades
TalRussell 8 years, 5 months ago
Comrades in the beginning and at the end, shouldn't there be some expected measure of accountability for the Billion dollars, that a combined combination of prime ministers Christie and Papa Hubert's regimes, "donated" using state moneys to Izmarlian's eventual to be padlocked from, Baha Mar?
Obviously, the billion dollars donation neither obtained zilch back to the taxpayers, nor is there any reasonable expectation it ever will return the state's Billion in part, much less to make taxpayers whole.
Nor thwarted Izmirlian's secretly devised and executed beyond the eyes and ears of the locals, when the entire Cable Beach Resort filed under Delaware’s Bankruptcy Protection.
Comrades do you know that a Billion Dollars could be better invested to provide tourism opportunities for locals to better position Bahamaland to tackle Cuba’s aggressively developing tourism market?
Comrades do you know a Billion Dollars could have created a special Hotel Mortgage Lending Corporation, a hotel Co-Op Construction Company and a Hotel Management Corporation to have designed, built and furnished "100" locally owned and operated 50 rooms hotels, villas, tourism condo rental complexes, etc., stretched across Nassau Town, Long Island, Crooked Island, Abaco, Eleuthera, Grand Bahama, and on every other populated Out island.
As the Billion in tourism loans were being repaid, the moneys would have been re loaned back out to locals to fund new and an expanded range tourism opportunities.
Cuba most definitely would have stood up to pay close attention to what the natives were up to in tourism.
PM’s Christie and Papa Hubert. the Izmirlian’s and the Chinese got their crown lands, 8100 work permits, concessions, and everything they asked for and more. Isn’t it time to do the same for the natives, also wishing to help to create Bahamaland’s own generation of native tourism entrepreneurs?
PM's if only you'd find the heart be as appreciative of the other natives as both you have been toward the numbers man's? True, one PM has taken greater liking for numbers the previous PM but both were enablers.
DDK 8 years, 5 months ago
They rightly look like they are attending a funeral. Is it the funeral of the Bahamian people?
What a crying shame that a Government of the Bahamas has stooped so very, very low. They do not even consider the investor. After quite a few decades of running out foreign investors, they have hit the big one!
Hogfish 8 years, 5 months ago
noone ever said the Chinese was dumb. but us niggas is dumb. and the king of dumbest is that ogly fat wutless perry.
The Chinese played him good from the go!!
then wait till election year till he was desperate then bend him (and us the Bahamian people!) over and bungy us good.
Just like the Chinese bungy Africa. They pay a couple crooked head niggas then bungy and rape the rest of the country.
I ask God to help us but then why should he.!
John 8 years, 5 months ago
Persons out West are wondering if a web shop is invading their quiet, residential area. A building is going up using materials (steel framing) that is commonly used by a popular web shop in the West Ridge area. And concern is it may be a web shop. Say it ain't so.
sheeprunner12 8 years, 5 months ago
The PLP has sold our country, economy, citizens and our independence to the Chinese ..... there is only one solution for these PLP politicians now ........... capital punishment
realfreethinker 8 years, 5 months ago
Just look at the crooks and swindlers
C2B 8 years, 5 months ago
Look what else cost about the same money....
http://www.wsj.com/articles/SB100014240…
THE WORLD TRADE CENTRE!!!!!!!
For the same money the Chinese company nearly built this piece of $%^&, the americans build the crown jewel of the NY skyline. What is wrong with this picture?????
TalRussell 8 years, 5 months ago
Comrades, arguments will soon become diluted and diminished with each labeling of others as gangsters, mafioso's, crooks, funeral marchers, scammers, foreign investment destroyers, dumb niggers, ugly, fat, worthless, rapists, swindlers, etc, etc.
Bahamaland needs new ideas if we are to reaffirm to be a nation of prosperity. To reject anything and anyone who are not supportive to a nation being built collectively, by whites and blacks, as equal opportunity partners.
We must drop with the defining of our Bahamaland, as a black nation.
Amen!
banker 8 years, 5 months ago
I wonder if Fairy Perry knows that the precursor to the China State Construction Engineering Corporation (CSCEC), was a company called the China Communications Construction Company (CCCC) Limited. The reason why they changed their name, was that in July 29, 2011, The World Bank announced the debarment of China Communications Construction Company (CCCC) Limited, and all its subsidiaries, for fraudulent practices under Phase 1 of the Philippines National Roads Improvement and Management Project. Under the sanction, CCCC is ineligible to engage in any road and bridge projects financed by the World Bank Group until January 12, 2017. This action was based on recent changes in the World Bank sanctions system to clarify that successor organizations – through purchase or reorganization – will be subject to the same sanctions applied to the original firm. As a result, the CSCEC is also ineligible to participate in World Bank funded projects. The World Bank announced the debarment of seven firms — including the China State Construction Engineering Corporation, the China Road and Bridge Corporation, and the China Geo-Engineering Corporation — and one individual on suspicion of engaging in collusive practices under a major Bank-financed roads projects. Two of the debarments are permanent, the strongest possible sanction.
Of course, the PLP (Putrid Larcenous Pricks) and PM Crisco-Butt never checked up on that.
sheeprunner12 8 years, 5 months ago
We, the Bahamian people, will soon debar the PLP ............... permanently
paul_vincent_zecchino 8 years, 5 months ago
Very interesting intel, most enlightening. Thank you.
SP 8 years, 5 months ago
They didn't have to check it out as World Bank routinely update governments globally on such matters.They knew all about it and decided the crooked Chinese were a perfect fit for their pirate model of governance.
paul_vincent_zecchino 8 years, 5 months ago
Do these men look victorious? Happy? Relieved?
Nope. They look as if they've just learned that in the globalist sausage factory, their assigned job is that of pig.
Sound to you as if the chicoms endgame is taking hold? They got what they wanted, didn't they, takeover of the Bahamas?
"Without a shot fired, we communists will bury you." - Nikita S. Kruschev, speech to the UN, 1956
TalRussell 8 years, 5 months ago
Comrade Nikitai in a subsequent speech also declared: "We must take a shovel and dig a deep grave, and bury 'colonialism' as deep as we can."
On that point we still have unfinished business to do 44 years since we become a Commonwealth realm, retaining Queen Elizabeth II, as Bahamalanders Royal monarch.
God God, Comrades, we still showing off Queen Victoria's statute posing for we tourists cameras - and the woman's been dead since like what May 1, 1876?
Don't you thinks our elected representatives extending 500 citizenship to the Chinese, is the least we colonial holdovers?
paul_vincent_zecchino 8 years, 5 months ago
Chicom colonialism makes the British version seem like a Soho picnic.
Official chicom state policy of the Peoples' Republic of China:
"Use capitalism to build communism to destroy the west."
SEEKJESUSPLEASE 8 years, 5 months ago
How is progress defined?a movement toward a goal or to a further or higher stage /developmental activity in science, technology, etc., especially with reference to the commercial opportunities created thereby or to the promotion of the material well-being of the public through the goods, techniques, or facilities created/advancement in general/ growth or development; continuous improvement/the development of an individual or society in a direction considered more beneficial than and superior to the previous level/forward or onward movement:the progress of the planets, in this case "Our Nation"
It is clear and evident that we are followers not leaders. Everyone knows about how the Chinese Operates you just need to see these articles or youtube videos to prove it:
https://www.youtube.com/watch?v=1ButKxc… https://www.youtube.com/watch?v=f8XzR-v…
Politics is the order of the day, Power and greed is the order of day, I do not need to post any further articles or videos, you can just eduate yourself and read and look at the poverty in China, IF THEY DO NOT TAKE CARE OF THEIR OWN, DO YOU THINK THEY WILL CARE ABOUT US BAHAMIANS" All ulterior motives, and the Govt. of The Bahamas should be impeached NOW!
Now read this from the following video:
https://www.youtube.com/watch?v=0muPcoH…
"Few people know of the "so-call" trade policies that China transacts with developing nations that allows China to pay big bucks to the country leaders while it ships out valuable resources. For example, China invested in Senegal with construction projects and road building. However, it brought in a Chinese labor force and hired only a few Senegalese laborers. The road built allowed China to ships its goods across barren lands to shipping ports that take resources out of Africa to China. The money has not filtered down to the people. In Jamaica, it is taking out the bauxite, but the money is not filtering down to the poor people. China's foreign aid benefits only China."
So as not to be one sided or bias, ask the Chinese Government why they are not helping their own poor citizens instead of putting money into other countries abroad, why?!!! Every single move by the Chinese has a motive. Same for USA, why are they pumping so much millions of dollars into other economies, when they have such high poverty rates too?
WAKE UP BAHAMAS....To be continued....
SEEKJESUSPLEASE 8 years, 5 months ago
Sure most countries economies are built on Foreign Investments, but why is it that most Governments do not even empower their own to become local entrepreneurs. Investors get oconcessions and all kinds of perks just to make themselves look good. Consumers have to be one step ahead at all times, but instead they are their own worst enemies. Wake up Bahmas!
SEEKJESUSPLEASE 8 years, 5 months ago
Banker is spot on!
sheeprunner12 8 years, 5 months ago
Fweddy is upset because Bahamians are mockingly/sarcastically reacting to the PLP sell-out of Bahamar to the Chinese ............. why is he upset???? .......... is he upset because we have pricked his conscience about the PLP evil deeds??????? ............ each of those PLPs in the picture should have been dressed in Chinese attire with the matching Chinese hat to parade across Rawson Square ............. Bahamians know that they have sold us out to the Chinese ........ THE PLP CABINET ARE TRAITORS ......... THEY HAVE TO GO!!!!!!!!!
SP 8 years, 5 months ago
..............Watch and LEARN How the Chinese traditionally view people of color............
http://www.mirror.co.uk/news/world-news…
Pirates of the Caribbean sold us out to the pirates of Asia
sheeprunner12 8 years, 5 months ago
SP is right ..........
The Chinese have never been friends of black people ........... check out what they have done in Africa and SE Asia ........ they have raped, pillaged and exploited those countries for themselves ........... and Chinese are the most clannish, homogeneous race on Earth
Honestman 8 years, 5 months ago
The Chinese are expert at playing greedy, corrupt Third World politicians. The Bahamas was a perfect playground for them.
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