CCA breaks ground on $250m Bay Street development

Friday, August 7, 2015

By AVA TURNQUEST

Tribune Chief Reporter

aturnquest@tribunemedia.net

CHINA Construction America yesterday broke ground on its $250m Bay Street luxury development with no end in sight to its dispute with mega-resort Baha Mar over the completion of the $3.5bn Cable Beach project.

In an interview with The Tribune on the sidelines of the event, Prime Minister Perry Christie said construction of The Pointe was not intended to start before Baha Mar was completed; however, the resort’s extensive delays had now forced both developments to overlap.

Mr Christie insisted that the Bay Street development will not overshadow Baha Mar, nor was there a conflict or cause for concern that The Pointe would impact the stalled Cable Beach resort.

“No,” he told The Tribune, “I think they’re (CCA) waiting on negotiations to be completed. It was always intended for this to start when Baha Mar was completed, but in the meantime they had a date to start in the contract and they had to start because they have supplies and people.”

Baha Mar has been locked in a bitter dispute with CCA over the project with both parties blaming each other for the project’s missed deadlines and cost overruns.

Up to yesterday, there was no indication that the pair had brokered an agreement with the resort’s lender China Import Export Bank over the terms of funding to finish the project, which was said to be more than 90 per cent complete.

CCA Chairman Ning Yuan told those attending that the proposed world-class lifestyle and residential development was a “substantial milestone” for the company that was “different” from its other project in the Bahamas. Mr Yuan said purchase of the British Colonial Hilton and the adjacent harbour front property represented CCA’s first hotel and development acquisition in the Caribbean.

Mr Yuan said: “CCA will be the sole investor, developer and contractor for The Pointe project. This will allow us to directly translate our commitment and vision for this entertainment destination to the Bahamian people.”

“It will also ensure that The Pointe is completed on time and according to the highest standards,” he added.

Mr Yuan pointed to the company’s 40 per cent annual growth rate over the past decade, and 2014 revenues of $1.7 billion - it was later revealed that its parent company, China State Construction Engineering Corporation, earned $150bn in revenue last year.

He pledged the company’s commitment to bring its 30-years of experience, global resources and talented team of local and international experts to the project.

Scheduled for a 2017 launch, the Bay Street project is expected to provide 250 construction jobs for Bahamian workers, and some 500 jobs within the 200-room entertainment hotel, oceanfront residences and 80-slip marina. The development also boasts a 1,000-car garage, a bowling alley, and movie theatre.

A highly touted element of the project is the proposed boardwalk that will connect the resort to the Woodes Rogers Wharf.

During his remarks at the groundbreaking ceremony, Mr Christie suggested that contractor Jim Mosko would be involved in the Bay Street development; however when pressed further, Mr Christie later said that he was advised that CCA had not made that decision.

Mr Mosko’s company, Bahamas Marine Construction Company Limited, was among the list of Bahamian contractors hired to work on the Baha Mar development.

“Apparently it was not Mosko, not yet,” Mr Christie said, when asked about his earlier statement. “I guessed but they told me no, they had not made a decision. What they will do is hire a Bahamian contractor to hire labour and subcontract.”

Comments

Craig says...

It looks like the same Chinese team that attempted to to build Baha Mar are going to attempt to build this project. I hope there will be independent people monitoring the quality of work and making sure they meet the schedule. God help them!!

Posted 7 August 2015, 12:41 p.m. Suggest removal

jackbnimble says...

They won't screw it up, Craig. They are the "sole investor, developer and contractor".

Posted 7 August 2015, 2:22 p.m. Suggest removal

Even with all the construction oversight Baha Mar had on the Chinese they still major issues with quality. Can you imagine the quality issues they will have on this project if they have no one to account to.

Posted 7 August 2015, 7:18 p.m. Suggest removal

Zakary says...

<ul style="list-style-type:none">
<li>They are the "sole investor, developer and contractor".</li>
</ul>

That doesn’t sound too much different than the setup at Baha Mar, where the Chinese stand as the “main investors” and “sole contractors”.

And when you really think about it, the Chinese are quite shrewd in the way they do business. By having the investments and contraction generally under their framework, they are able to passively route capital to satisfy their interests. A significant portion of that money naturally flows from main investor to main contractor, who are basically under the same umbrella.

It’s almost like a bank that also does construction work. You go to the bank agent to borrow money, dish out a down payment, and then go to the next desk to have them build your house.

Posted 7 August 2015, 5:28 p.m. Suggest removal

jackflash says...

I heard that Baha Mar could not pass the fire code/inspection.

Not sure if true but was told that there are a number of bridges that pass over roads to get to various parts(buildings) that a fire truck can not pass under and the fire inspection failed because of it.

Again, I just heard it and while it came from a reputable source it is still just hearsay.

Does anyone know anything about this?

Posted 7 August 2015, 1:45 p.m. Suggest removal

Sickened says...

I hope that on this project our people at the ministry of works will be able to do their checks and signs off's without much political intervention.

Posted 7 August 2015, 1:48 p.m. Suggest removal

realityisnotPC says...

CCA seems to admit that they only care about completing projects on time and to high standards if THEY are the ones who own the development. No wonder they performed so appallingly on Baha Mar...they didn't have the ownership incentive (although they are now getting their pals in the PLP to try to sort that out for them). Now that CCA has skin in the game on Bay Street, the Government should turn the screw and tell them they will cancel all their permits if CCA doesn't pull its finger out and get Baha Mar finished first.

Posted 7 August 2015, 3:30 p.m. Suggest removal

asiseeit says...

Funny how when a Bahamian group want to do something the permits take years to get sorted. The Chinese got sorted in what, 6 months? Where are all the reports. Did antiquities check out the grounds of former Fort Nassau? Did BEST do a report? I mean the hoops that a Bahamian has to jump through just do not seem to be present when the Chinese are involved, wonder why that is?

Posted 8 August 2015, 8:21 a.m. Suggest removal

ThisIsOurs says...

The designs look awfully NOT historic Nassau. I'm still trying to figure out how they got permission to replace the hilton with this shiny Tokyo/palm beach style glass filled structure.

Posted 10 August 2015, 5:08 a.m. Suggest removal

Of greater concern to me is whether or not the developer was 'psychologically evaluated'.

Posted 10 August 2015, 1:11 p.m. Suggest removal

MonkeeDoo says...

http://gizmodo.com/5304233/entire-new-1…
Older story than past Saturday: Got to be seen to be believed. Can easily picture Baha Mar Towers face down on Cable Beach Strip.

This past Saturday, an entire apartment building in Shanghai collapsed. To be fair, the building was under construction and thus unoccupied, but it's still a minor miracle that there was only one fatality.

Sounds like there was a problem with some nearby flood prevention walls at the Dianpu River, but there's no hard evidence as to why this huge building simply fell over. Anyway, here are some sweet pictures of the architectural carnage. [Cellar.org via Twitter]

Posted 8 August 2015, 8:50 a.m. Suggest removal

I think the Punch is saying that the Chinese Government is looking for some of the people named in this picture. Something to do with some missing funds. 800 Mil.

Posted 8 August 2015, 9:57 a.m. Suggest removal

What is the point of including Marguerite in this photo. They really must be trying to get diehard PLP support.

Posted 8 August 2015, 12:14 p.m. Suggest removal

TalRussell says...

http://tribune242.com/users/photos/2015…

Posted 8 August 2015, 2:11 p.m. Suggest removal

proudloudandfnm says...

This is without a doubt the dumbest government we have ever had. Letting the same contractor that can't finish Bahamar start another hotel in Nassau is just flat out stupid.....

Obviously Perry is now owned by the Chinese......

Posted 9 August 2015, 4:32 p.m. Suggest removal

Only the PLP can hold a ground breaking ceremony for a large hotel project and it turns out to be bad news......

We are being governed by morons....

Posted 9 August 2015, 4:34 p.m. Suggest removal

This will be competition for Bahamar no? Great break in their luck that their opening likely precedes Bahamar.'s And even better luck! having internal knowledge of amenities at the other resort allows them to do one better. Wonderful news!

Posted 10 August 2015, 4:57 a.m. Suggest removal

Well_mudda_take_sic says...

I cringed when I saw Lady Poodling in the above photo. PLP business woman Patricia Mortimer who purportedly is a best friend and business partner of Lady Poodling and the owner of several shops at Nassau International Airport has no doubt again been handsomely rewarded with shop leases at both Baha Mar and The Pointe thanks in large part to her very influential friend in government whom Lady Poodling's husband once likened to "vomit." One cannot help but wonder how much Patricia Mortimer now owes Bank of The Bahamas!

Posted 10 August 2015, 9:40 p.m. Suggest removal