While no formal announcement has as yet been made, Prime Minister Perry Christie and China State Construction Engineering Company (CSCEC) Chairman Jun Yi have both given strong indications that much-rumored plans presented by the Chinese state-owned company for the redevelopment of Downtown Nassau have been accepted by the government, and that the purchase of the British Colonial Hilton hotel will anchor that redevelopment. Strengthening this probability is the indication by the prime minister that his administration is working "resolutely" to firm ties between China and The Bahamas.
China continues to increase its stake in The Bahamas, with its forays into the Bahamian tourism sector marking the most ambitious projects undertaken overseas by CSCEC, according to Chairman Yi. Through its subsidiary, China Construction America (CCA), the CSCEC is building the mega-resort Baha Mar. The company also has a $150 million stake in the project, and the resort development is being funded to the tune of more than $2.5 billion by the Chinese state-owned Export-Import (Exim) Bank. Add to this the purchase of the Hilton and the development of the six acres adjacent to the hotel - acquired as part of the deal, which will include another hotel downtown - along with the size and importance of the stake China holds in The Bahamas tourism product coming more clearly into focus. In fact, Yi said the purchase of the Hilton is the company's first acquisition of a hotel property in the Caribbean.
At a ceremony Friday evening marking the signing of the purchase agreement, Christie's remarks conveyed a very strong suggestion that CSCEC is to engage in revitalizing downtown.
"This ambitious project by [CSCEC] will become the anchor property in the west to jumpstart the downtown redevelopment," Christie said. "The developer has indicated its willingness to join in a public/private sector partnership with the government and other stakeholders along Bay Street to implement an overall plan for redevelopment extending from Arawak Cay in the west to Potter's Cay in the east."
Christie announced that designer Todd Hill and architect Michael Foster, who worked with the original EDAW City of Nassau Redevelopment Master Plan, had been "engaged to work with local professionals and a steering committee to establish guidelines and a framework for systematic implementation".
Christie noted that the purchase represents China's second major investment in Bahamian tourism, following the Baha Mar deal. He placed the purchase of the hotel, however, in the context of the overall redevelopment of downtown.
"I should mention that the Hilton and downtown redevelopment projects represent the second major investment of CSCEC in The Bahamas," Christie said. "[CSCEC] has put down substantial investment stakes in The Bahamas, while at the same time benefiting economically. We therefore look forward to this conglomerate becoming a leading corporate citizen with meaningful contributions to the local economy."
To date, no official announcement has been made about the selection of a company to oversee the Nassau downtown redevelopment project. It is a process surrounded by rumor and innuendo. Christie's statements on Friday are the closest thing yet to transparency in this process.
China and The Bahamas
Veering from his printed remarks, Christie made an observation; he said that when he was discussing China's investment in The Bahamas with the Chinese premier on a previous occasion, he had pressed for an agreement that, with investments such as the purchase of the Hilton by a Chinese state-owned company, employees would have their continuity from the previous owners. He said this was agreed to by the premier. The prime minister's remarks, which were added to the comments by CSCEC Chairman Yi and those by Chinese Ambassador to The Bahamas Yuan Guisen, signify a deepening of ties between The Bahamas and China.
It was noted on a number of occasions on Friday night that the government had been instrumental in ensuring that China could purchase the Hilton, and that Chinese investment in the Bahamian economy can only be expected to grow.
It will be interesting to note whether Christie articulates an investment strategy for his administration centered on the Chinese.

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