No public access to Baha Mar docs

Tue, Aug 30th 2016, 01:46 PM


Ray Winder

At the request of the government and the Export-Import Bank of China (CEXIM), the Supreme Court sealed documents relating to the agreement the parties signed on Monday to get Baha Mar completed and opened, preventing public access to the deal, according to Baha Mar's receiver-manager Ray Winder, managing partner of Deloitte & Touche.

"We have information in there that we don't think should be in the public stage," Winder told The Nassau Guardian.

Explaining why the parties made the request to have the documents sealed, Winder said, "It is for commercial reasons and I can't discuss it any further".

Pressed on the matter, he said, "Until we have completed the process, I don't think it would be correct to have the information in the public domain."

Winder indicated that the public should appreciate there are many stakeholders involved and numerous moving parts to make the project happen.

At a packed press conference at the Cabinet Office on Monday night, Prime Minister Perry Christie announced the government and CEXIM signed an agreement that will see the bank put up the capital to complete the project and pay the former employees and unsecured creditors money owed to them. But Christie took no questions from the media. He said under the agreement, remobilization at Baha Mar "will commence immediately" with China Construction resuming construction next month.

According to Christie, China Construction will also resolve outstanding claims with its suppliers and subcontractors, an announcement that was applauded by the dozens of local contractors in the room. He said the project will be completed before the end of the 2016/2017 winter season, approximately March 2017, before being sold to a hotel and casino operator. But Christie did not reveal any details on who the potential buyer is.

Although he acknowledged concessions were made, Christie did not provide specifics. He also did not say how much the project will cost to complete, when the unsecured creditors and former employees will be paid and how many former employees will be reengaged.

"As it has been done with all major investments, the government will extend the appropriate concessions to facilitate the construction and promote the successful future operation of the resort," Christie said. "The completed project will then be sold to a qualified world-class operator."

There has been widespread speculation in recent months that the government was planning to give exorbitant concessions, including 500 Bahamian citizenship approvals to Chinese investors in exchange for restarting the stalled mega project, but Christie has dismissed this.

Christie has acknowledged that the public will have many questions on the details of what has been agreed. He said in the coming days the government will make available "all of the key items of information" to the public. He added that there was a lot of paperwork still to be completed to implement the agreement, but did not provide specifics.

Asked yesterday what will happen next, Winder said, "You will know in due time".

In May, Christie announced that CEXIM and China State Construction and Engineering Corporation (CSCEC) entered into a "framework agreement" to remobilize construction to complete Baha Mar. It is unclear if the deal announced on Monday differs from that framework agreement. No details were provided on the framework agreement when Christie announced it in Parliament.

As a part of the agreement announced on Monday, the government and utility companies, including Bahamas Power and Light (BPL), will receive "some" of their outstanding claims against Baha Mar. Baha Mar owes the government more than $58 million. It owes BPL approximately $24 million.

"The lease holders will also be allowed to maintain their contracts," Christie said.

Royston Jones Jr., Guardian Staff Reporter

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