Prime Minister and Minister of Finance the Rt. Hon. Perry Christie announced, during a Communication to the House of Assembly, that the Baha Mar Resort is being sold to a "world-class" hotel owner, property developer, and business conglomerate, CTF BM Holdings Ltd., a subsidiary of the Hong Kong conglomerate – Chow Tai Fook Enterprises Ltd.

"The executed Sale and Purchase Agreement represents a significant achievement for The Bahamas, and a milestone in the troubled history of the Baha Mar Resort," Prime Minister Christie said, on December 12, 2016.

After giving a detailed chronological account into the background and negotiations of the Baha Mar Resort saga, Prime Minister Christie said that the Joint Receiver Managers, with the assistance of Colliers Macaulay Nicholls Inc. as their global real estate agent, were charged with pursuing a thorough marketing and sales process designed to identify an optimal purchaser for Baha Mar.

"We were advised that all of the bids were evaluated and rejected and that as a result EximBank (Export-Import Bank of China) subsequently entered into negotiations with other interested parties," Prime Minister Christie said. "We were subsequently advised by EximBank that after careful consideration, CTF emerged as the best and most qualified buyer."

He pointed out that much had been made of the fact that the arrangements remain under Seal in the Supreme Court of The Bahamas, and that the application to have the documents sealed was made by the Export-Import Bank of China.

"As I have advised in a previous Communication, a request for documents of this nature to remain sealed is not unusual, particularly in transaction of this complexity, scale, and most importantly, international market sensitivity," Prime Minister Christie said.

He added that the Bahamian Supreme Court approved the sealing of the documents to assist in ensuring that the parties secure the best outcome for the Property.

"A Sale and Purchase Agreement has been executed; however, there still remains outstanding conditions precedent and negotiations between the Bank and CTF for various ancillary agreements," Prime Minister Christie noted. "Maintaining all court filed documents under seal enables the Bank and CTF to finalize these sensitive negotiations with the normal business confidences that one would expect."

"I take this opportunity to nullify any suggestions that the Government has provided unusual concessions to conclude this deal," he added. "It is not unique to The Bahamas to provide concessions to attract and encourage investment; and it is not unique to this Project, that concessions will be provided on a proportionate basis to the development."

Prime Minister Christie noted that most countries offer concessions, trade agreements contemplate concessions, and further, Bahamian laws provide for concessions to all qualifying investors. The previous Government also granted concessions to investors, including Baha Mar, he noted.

"To reiterate what I have already cited, much of the detailed information surrounding this acquisition remains sealed and I am only able to speak within the confines of the Court Order," he stated. "I can, however, disclose that the construction concessions provided to CCA (China Construction America) by my Government; are identical to those provided by the former administration.

"Further, I can state unequivocally that successive Governments of The Bahamas are constrained and bound by the Heads of Agreements provided with respect to the Atlantis Resort."

Prime Minister Christie said that it is contemplated that CTF will receive the concessions provided to Baha Mar, as applicable. The Government, he added, intends to enter into a Heads of Agreement with CTF to outline all obligations, and concessions provided.

"It is fair to say that the categories of concessions being considered are not different than those offered by the previous Government, the FNM (Free National Movement) government," Prime Minister Christie said. "This Heads of Agreement -- the main terms of which have been agreed -- will shortly be completed, and will not be shrouded in mystery and speculation, as once executed, it will be tabled in this House, to ensure transparency and accountability."

Prime Minister Christie said that he seized the opportunity to make all Bahamians aware that his Government is not deaf to the gossip and speculation and "downright false allegations" that have been concocted surrounding the Baha Mar dispute, its history, and its progress.

Amidst such sensitive negotiations, Prime Minister Christie noted, his Government thought it wise not to offer a "running commentary" on the discussions, and moreover, not to say anything that might put the future of the project in jeopardy.

"It’s a shame that so many uninformed views were promoted," Prime Minister Christie said. "The last few weeks have involved a herculean effort and everyone involved did what it took to dive across the finish line."

By Eric Rose

Bahamas Information Services