Baha Mar can be completed with Bahamian contractors, says Izmirlian

Thu, Jul 30th 2015, 11:45 AM

Baha Mar could “easily complete” construction work on the stalled mega resort with Bahamian contractors, as the resort’s developers seek to cut ties with general contractor China Construction America (CCA) and find “reliable” contractors, according to Baha Mar CEO Sarkis Izmirlian.

Speaking in a pre-recorded interview with Jeffrey Lloyd, host of the Star 106.5 FM radio talk show “Jeffrey” on Tuesday, Izmirlian stated that a switch to Bahamian contractors is not intended as “revenge” against CCA, despite numerous costly delays to the resort that have led to a flurry of harsh words between the parties in both U.S. and Bahamian courts.

“We need to complete Baha Mar, it’s plain and simple. I need people that I can rely on, that can do quality work, and the Bahamian contractors have been our most reliable contractors since Baha Mar started. The quality of their work has been excellent, they’ve done what they were supposed to do when they were supposed to do it, and they’ve done it within their budget.

“So I believe that today if China State Construction is unwilling to complete Baha Mar, we could easily complete it with Bahamian contractors and with international consultants and engineers to help finish the project. This is not about pushing China State out, and this is not about taking some kind of revenge against them. This is simply about getting Baha Mar done, and done quickly,” said Izmirlian.

In a letter to the Export-Import Bank of China (CEXIM Bank) President Liu Liange on July 23, Izmirlian said that he intended to use a share of a $400 million financing package intended to complete the project and keep it afloat during its opening months to hire Bahamian contractors to complete CCA’s work on the resort, adding that Baha Mar remained in negotiations for Chinese general contractors “to assist if needed”.

However, negotiations surrounding that $400 million deal fell through earlier this week, which the Bahamian government attributed to Baha Mar Ltd.’s refusal to meet a $100 million personal guarantee.

In discussing the timeline of events that lead to Baha Mar’s current woes, Izmirlian said that he and others within Baha Mar Ltd. have expressed serious concerns about CCA’s performance, particularly its failure, to meet any of its self-imposed construction deadlines.

“They have missed every single labor projection they have produced; not me, they have produced. These repeated failures have led us to where we are today. For two years now, we have been telling the bank and senior management in China of China State Construction that they need to make changes, otherwise we are going to have the problem we have today,” said Izmirlian.

“In the past 18 months, I have written nine times to the chairman of EXIM Bank and to the chairman of China State Construction, asking for their help. And not once did they follow our recommendation,” he added.

Baha Mar is said to owe joint venture construction firm Osprey-Yates $5.28 million.

Numerous local subcontractors remain on Baha Mar’s extensive creditors list following the developers’ decision to file for Chapter 11 bankruptcy protection in Delaware on June 29, 2015. In local courts, the Bahamian Supreme Court is due to hear a winding-up petition for the resort’s developers on Friday, leaving Baha Mar Ltd.’s future uncertain.

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