PRIME Minister Perry Christie hinted yesterday that the government does not yet know who the prospective buyer for the stalled $3.5 billion Baha Mar resort is.
In fact, while appearing as a guest on ZNS Radio’s “Darold Miller Live” Monday morning, Mr Christie said it is the “bank’s decision” - referring to the Export-Import Bank of China (CEXIM) - to whom Baha Mar is sold and then the government will completely vet the purchaser to ensure they have the “means and fitness” to own property in the Bahamas and operate a casino.
Last week, Mr Christie announced that construction on the stalled Baha Mar resort is expected to resume in September in a move to have the project open no later than the end of the 2016/2017 winter season.
“We have done our very best to protect the interest of all employees who worked and suffered and be able to return to them their due rights and the contractors and sub contractors,” Mr Christie said yesterday.
“We have made provisions to help them and those Bahamians that invested millions to develop their franchises and stores and restaurants. We are trying to keep in touch with all the affected persons so they are aware of the stages we are going through.
“We can tell you we have reached an agreement, the agreement will benefit every single Bahamian involved, that is the intention. We have been able to take into consideration the interest of all Bahamians and negotiate a final solution and quite frankly the solution will ultimately be known to the public as it will be known to all parties concerned.
“There will be full and frank disclosure. There was never an intention to have the (court) documents sealed. The government has to be the beneficiary of the decision of the bank because the bank stands to lose a substantial sum of money and it is the bank’s decision to whom they sell.
“That is a company with the capacity to meet the price that the bank has established. The government will then approve that purchaser. That purchaser will own and operate a casino and the government must determine the fitness of the group to be able to own property in the Bahamas and to administer the property, particularly when it comes to casinos.
“We will have investigators who will do everything they can to ensure that the recommendation we have to approve is based on a very, very, very full investigation of the applicant and its business affairs worldwide.”
Last Monday, after a two-month review process that involved meeting with leading government figures in the capital, international credit rating agency Moody’s announced that it had downgraded the Bahamas’ credit rating by one notch mainly because of the country’s “low medium-term growth” prospects and limited fiscal space compared to similar countries.
Moody’s previously opened the door to the possibility of downgrading the country’s sovereign credit worthiness by “one or more notches,” with a two-notch slash taking the country’s rating to “junk” status.
However, yesterday Mr Christie said he hopes the news of an agreement and eventual opening of Baha Mar, will “result in a new review” of the Bahamas’ economy.
“We are therefore very hopeful and optimistic that the announcement and the following action that we will take to recommence construction and completion and opening of Baha Mar will result in a new evaluation in the economy of the Bahamas and positive impact that will flow to the economy by both Moody’s and Standard and Poor’s,” the prime minister said.
While remaining tight-lipped on which “world-class hotel and casino operator” would purchase the Cable Beach development and the concessions granted in exchange for arriving at a deal, last Monday Mr Christie said that an agreement had been reached between the government and CEXIM.
Under the terms of the agreement, Bahamian contractors still owed money will receive a significant portion, if not all, of their claims, while thousands of former Baha Mar employees will receive outstanding amounts due to them, he said.
On Sunday, the government expressed “hope” that the claims of former Bahamian workers at Baha Mar will be settled by the end of next month, with all other claims to be dealt with by year-end.
In a statement, the Christie administration also revealed the establishment of a stakeholder committee to administer creditor claims; however, there was no information given on how the process would be conducted, its timeline, or the amount of funding allocated for claims.
Baha Mar was first scheduled for a December 2014 opening, but was delayed to March 2015 and then to May 2015.
The property was placed into receivership last October.
By Sancheska Brown, Tribune Staff Reporter
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