The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Opposition’s finance spokesman yesterday said it would be “a bit obscene” for any foreign entity or government to control downtown Nassau’s redevelopment, reiterating that the Bahamas needed to guard against “FDI concentration”.

Responding to Tribune Business revelations that Chinese state-owned interests had presented a ‘master plan’ for Bay Street’s redevelopment to Prime Minister Perry Christie and the Government, K P Turnquest questioned whether this showed a lack of confidence in Bahamians to do the same.

And, given the extensive interests that Chinese government-owned and private business interests already have in the Bahamas, Mr Turnquest asked whether this nation would one day realise it might be handing control of its economy to a foreign power.

‘The idea seems a bit obscene to me,” Mr Turnquest told Tribune Business of the plan, understood to have been presented by China State Construction. “Why would we want any foreigner to control downtown?

“We’re about Bahamians, and putting Bahamians first, and you’re telling me now we can’t even redevelop the downtown area, a project that’s been going on for some time and had a measure of success? And that we can’t support the businesses downtown and come up a common vision to redevelop it?

“Why do we need a foreign entity? Give our professionals an opportunity to do the job and do it right, and do it in a style that befits our Bahamian culture and traditions.”

Highly-placed sources confirmed to this newspaper that China State Construction has developed its own EDAW-style comprehensive plan to revitalise the city of Nassau - involving their own real estate acquisitions and developments - and quietly presented this to the Government.

Tribune Business contacts close to the administration confirmed that talks between the Chinese state-owned interests and the Government have taken place, but the discussions are at an early stage and nothing has been agreed or decided.

“Discussions have taken place, but where they will go, I can’t say,” one source confirmed to this newspaper. “It’s still early.”

This came after other contacts disclosed to this newspaper the extent of the Chinese proposals for Bay Street’s potential revival, which has been slow to build momentum despite more than a decade of efforts, and both the provision of extensive investment incentives and the removal of the shipping industry to Arawak Cay.

Mr Turnquest yesterday disagreed with this position, telling Tribune Business there had been “some movement” since the Downtown Nassau Partnership (DNP) had been formed. He added that the 2008-2009 recession, and its aftermath, had blunted progress.

“I’m certainly not in favour of any foreign control of what’s happening downtown,” he told Tribune Business. “I wonder what the end game is.”

Mr Turnquest had previously told Tribune Business that the Bahamas needed to guard against foreign entities, which were controlled by a single sovereign state, gaining too much control and influence over the economy and key sectors.

China State Construction, apart from being the main contractor for the $2.6 billion Baha Mar project, also has a $150 million equity stake in the project. And the Beijing-controlled China Export-Import Bank is Baha Mar’s main debt financier, having provided at least $1.9 billion to the development.

This effectively makes China owner, financier and contractor for the Bahamas’ second mega resort/casino development, which is being counted on to play the lead role in turning around this nation’s moribund economy and high unemployment rate.

Along with China State Construction’s interest in the British Colonial Hilton, it is also one of the remaining bidders on the Bahamas Electricity Corporation (BEC) restructuring. If successful, it would be a major player in the utilities and hotel industries - two of the major sectors of the Bahamian economy.

Other Chinese interests include China Harbour and Engineering Company’s role as the contractor for the $39 million Abaco port and, on the private sector side, Hutchison Whampoa’s investments in Freeport.

“How much are we going to allow them to control before we realise they will control the economics of this country?” Mr Turnquest asked.

“We need foreign direct investment, but we have to be concerned about the concentration.”