The Government will recommend approval of a revised, amended and restated Heads of Agreement (HOA) with Mayaguana developers the I-Group, Guardian Business can confirm. Chairman of the Hotel Corporation of The Bahamas (HCB), Michael Scott, told this newspaper yesterday that while there were certain observations and qualifications to be met, the conclusion of cabinet was to approve the deal in principal.
Guardian Business reported that the amended and restated HOA was headed to Cabinet for approval early this month. With one of the key features of the new HOA being the return of nearly half of the land granted under the previous HOA, Scott said the new HOA was a remarkable outcome to the negotiations.
"Never in recent memory has a government been able to persuade a developer in the interest of a better relationship with existing and future governments to voluntarily give up land [granted as a result of) a Heads of Agreement with a previous government," Scott said.
With approval in principal in place, the agreement is headed to the Attorney General's office en route to the floor of the House of Assembly for debate. The initial agreement, signed in 2006 under the Christie administration, included a transfer of 9,999 acres to Mayaguana Island Developers - a joint venture between the government via the HCB and the Boston-based I-Group. The land under that provision was prime developable property, according to Scott leaving no prime waterfront for future Bahamian developers save land in Mayaguana's existing three settlements.
Under the HOA just green-lighted by cabinet, the joint venture disappears and the I-Group would get 2,913 acres for the first phase of development. Once specific "milestones for development" are achieved, the developers would get another 2,912 acres for the second phase of development. Prime developable land is available for Bahamians under the amended and restated HOA, Scott had told this newspaper.
According to Scott, beyond the fact that the Government would be getting land back, the policy shift manifested in the new HOA separated the government's role of regulator from that of equity partner - a situation he said would create an inherent conflict of interest. In an earlier interview with Guardian Business, Scott estimated the Mayaguana project would be worth between $30-to$100 million built-out. With the agreement now approved in principal once all supporting legislation is in place, a new 5,000 foot airstrip could happen within 18 months, and vertical construction of a boutique hotel should commence.
The HCB Chairman credited the "tireless" efforts of the Minister of Tourism and Aviation, Vincent Vanderpool-Wallace, as well as his own, with the new HOA.
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