By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

THE purchase price of the 56-acre beachfront Grand Lucayan resort along with the adjacent 160-acre Reef Golf Course was $120m, according to the Office of the Prime Minister’s communication director Latrae Rahming, who said Ancient Waters Bahamas Limited, a Bahamian subsidiary of US-based Concord Wilshire Capital (CWC), was the purchaser.

In a statement following the heads of agreement (HOA) signing last Thursday, Mr Rahming said construction of the project will be phased with the first expected to begin within 90 days of securing all necessary approvals.

“Under the terms of the agreement, the government of The Bahamas has agreed to sell the Grand Lucayan property including the 56-acre beachfront resort and the adjacent 160-acre Reef Golf Course for $120m to Ancient Waters Bahamas Limited, a wholly owned Bahamian subsidiary of Concord Wilshire Capital (CWC),” said Mr Rahming.

“The project will be rolled out in phases, with construction scheduled to begin within ninety days of obtaining all necessary permits and approvals.”

Mr Rahming said all expenses associated with the Grand Lucayan will be transferred from the government to the developers, which is a “significant shift” as the government has paid about $1.5m per month on the upkeep of the resort over the past three years.

“From this point forward, all expenses associated with the property will be assumed by the developer. This is a significant shift in fiscal responsibility, as the government had been paying approximately $1.5m per month over the past three years—amounting to an estimated $63m in holding costs,” said Mr Rahming.

“The agreement also includes a retention framework to support oversight, collaboration, and timely execution throughout the life of the project.”

He also revealed that employees and the developer will enter a “retention agreement” under which they will receive a portion of their salaries and agree to remain available for callbacks.

The employees may seek other employment during this period but if they are unavailable to developers when called, this payment will be discontinued.

“In addition, the developer will enter into a retention arrangement with employees to ensure continuity and institutional knowledge during the transition. Under this arrangement, eligible individuals will receive a portion of their compensation in exchange for remaining available to be called back for specific duties as needed,” said Mr Rahming.

“They will be permitted to seek and accept other employment during the retention period. However, if they are no longer available for recall when required, the retention payment will cease. This approach ensures operational flexibility while respecting the right of individuals to pursue other opportunities.”

Developers say the new property will feature seven major resort components, including three new hotel buildings and branded timeshare units.

Other features include a 35-acre cruise destination open to all cruise lines and guests, a 25,000-square-foot indoor-outdoor casino, the conversion of the Reef Golf course to a 160-acre Greg Norman signature golf course, and a 16-slip mega-yacht marina.

Mr Rahming said the project is expected to create 1,320 construction jobs and 1,750 permanent jobs once the resort is fully operational.

Developers have pledged that 80 percent of employees will be Bahamian and the use of local contractors, suppliers and service providers is encouraged.

“Construction-related employment will include 450 jobs for the hotel, 300 for the timeshare development, 350 for the cruise ship resort, 75 for the casino, 60 for the marina, and 85 for the golf course,” said Mr Rahming.

“The developer has committed to a workforce comprising at least 80 percent Bahamian employees, subject to the availability of qualified candidates. The agreement further encourages the use of Bahamian contractors, suppliers, and service providers wherever possible, and supports the formation of joint ventures with qualified local firms.”

He added that the agreement is part of the Davis administration’s broader plan for Grand Bahama and the government is in “advanced stages” of the redevelopment of the Grand Bahama International Airport for which it has already identified financing.