By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

PRIME Minister Perry Christie yesterday touted the government’s success in negotiations with the Export Import Bank of China (EXIM) and China State Construction Engineering Corporation (CSCEC) over the stalled Baha Mar resort, saying all parties have entered into a “framework agreement” to complete the project “as expeditiously as possible”.

However he gave no concrete resolution on the issue of payment to unsecured Bahamian creditors, only saying they would be “considered” during the re-mobilisation process, adding that negotiations were underway to agree to appropriate timelines and a schedule for completion.

Mr Christie further addressed concerns over whether new contractors would be hired to complete Baha Mar. He said court-appointed receiver managers confirmed that CSCEC and China Construction America (CCA) Bahamas are contracted to, and will remain in place to, finish the resort.

However, according to a statement released by BMD Holdings - the developer of Baha Mar - this defies the sensibility of all Bahamians who toiled so hard in the belief that the $3.5bn hotel would be opened in a timely manner as a world-class destination.

The developer said it is very discouraging that the EXIM Bank, knowing full well the serious irregularities already demonstrated by its sister company CSCEC, would now turn to this very same entity to complete the work which its subsidiary CCA has failed to do time and again on previous schedules that it has provided.

During his lengthy 2016/2017 Budget Communication, the Prime Minister said the new framework agreement was the result of two days of “successful meetings” between Bahamian government officials, the EXIM Bank and CSCEC.

He told Parliament that late last week, the government was invited by the EXIM Bank to Beijing, China, with a view to resolving pertinent issues to enable the early remobilisation and completion of the project, including addressing the legitimate interests of Bahamian creditors.

Attorney General Allyson Maynard-Gibson and Sir Baltron Bethel, senior policy advisor in the Office of the Prime Minister, led the delegation that represented government interests in Beijing.

The announcement was a point of contention during the budget presentation with seated opposition members shouting “shameful” and “sell out” as Mr Christie spoke.

“Mr Speaker, it is always shocking when you see people who are elected to Parliament to represent the Bahamian people wishing and hoping that something would not happen but it has happened,” he said in response to jeering from the side opposite.

“I am satisfied based on the statement and the assurances given in Beijing that every effort is being made to enable an earliest possible re-mobilisation and that adequate funding is in place to provide for the completion of the project and the satisfaction of the legitimate claims of Bahamian contractors and suppliers.”

Negotiations

While reading a joint statement on behalf of the EXIM Bank and CSCEC, Mr Christie maintained his optimism saying the framework agreement provided a pathway forward for the completion of the resort.

He said the arrangement provided a framework for putting in place the financing required to complete Baha Mar and for CSCEC’s indirect subsidiary CCA Bahamas to re-mobilise and restart construction to finish the project as expeditiously as possible.

“When CSCEC was hired, when China Export Import Bank came into the financing, the Progressive Liberal Party was in opposition. This was a matter superintended by the FNM and the PLP government inherited it.

“Following two days of successful meetings between representatives of the government of the Bahamas, the Export Import Bank of China and China State Construction Engineering Corporation, we are pleased to confirm that EXIM and CSCEC, the lender to Baha Mar and the parent company of the resort’s general contractor respectfully, have entered into a framework agreement which provides a pathway forward for the completion of the Baha Mar resort.

“The arrangement provides for a framework for putting in place the financing required for completing the project and for CSCEC’s indirect subsidiary CCA Bahamas to re-mobilise and restart construction to finish the project as expeditiously as possible.”

He added: “Negotiations between CCA Bahamas and the receivers appointed by EXIM are underway to agree appropriate terms for construction to recommence and to prepare a construction agreement which will provide the schedule timeline for completion of the project. It is expected that many contractors who have participated in the construction of the project will be reengaged in this process.

“The requirement of the unsecured Bahamian creditors will also be considered during the re-mobilisation and Mr Speaker what I am so happy about (is) EXIM, CSCEC and CCA Bahamas will work closely with the Bahamian government with a view to see the Baha Mar resort project through to 100 per cent completion so that Baha Mar can achieve its true purpose providing thousands of high quality jobs to the Bahamian people and ongoing economic boom to The Bahamas.

“The Bahamian government is fully committed to provide all necessary assistance and cooperation required for the early completion and opening of the project.”

Following the Prime Minister’s revelations, BMD Holdings said there is nothing in CCA’s past performance at the West Bay Street development that lent confidence that it would complete the resort on any schedule they provide.

The statement read: “Today’s statement by CEXIM and CSCEC defies the sensibility of all Bahamians who toiled so hard in the belief that Baha Mar would be opened in a timely manner as a world-class destination. It is very discouraging that China EXIM Bank, knowing full well the serious irregularities already demonstrated by its sister company China State Construction Engineering Corp, would now turn to this very same entity to complete the work which its subsidiary CCA has failed to do time and again on previous schedules that it has provided.

“What we now have is The Bahamas being forced to witness to its potential detriment, as the former great baseball star Yogi Berra said, ‘déjà vu all over again’ at the hands of CCA.

“... This is of particular concern if CCA is to undertake the completion absent of independent testing and supervision such as that provided by the original developer. The possible ramifications of all of this include fatal impairment to the unsecured creditors, the depriving of much needed work for Bahamian contractors, and increased risk with respect to whether or not the resort will indeed ever open.”

It continued: “We once again urge China EXIM Bank, for the sake of the Bahamas, and for its own economic self-interests, to enter into discussions with us with respect to our offer, which would allow the unsecured creditors to be paid, the bank to not to have to incur a discount on the monies it is owed, and which would facilitate the return of many Bahamians to work. We also look forward to a full hearing in the Bahamian court on the claims against CCA and CSCEC for their lack of performance.”

Baha Mar announced that it was filing for Chapter 11 bankruptcy protection on June 29, 2015 in a US court. However the cases for the resort’s Bahamian properties were thrown out.

Last October, the Supreme Court placed the resort into receivership at the request of the EXIM Bank.

A formal sale process for the $3.5 billion project began last month, when Baha Mar’s court appointed receivers hired a Canadian real estate firm to market the project to potential buyers.

The resort was initially slated to open December 2014, but faced a series of delays, which it blamed on CCA.