The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunmedia.net

IF elected to office, the Free National Movement’s approach to negotiating heads of agreements with foreign investors will follow proper protocol and be more transparent than the current government, FNM Chairman Michael Pintard said yesterday.

While there is no appetite in the FNM to do away with the practice of heads of agreement, Mr Pintard said before negotiating them with investors, a Minnis administration would engage Bahamians through public consultations.

He said the FNM would also work with stakeholders to determine the cost-benefit of proposed developments and strengthen the ability of public servants to oversee approvals processes in accordance with the law without fear of repercussions.

Mr Pintard’s comments come as proposed developments near Bimini are arousing concern among residents and stakeholders who have repeatedly said they wish the government would consult them before negotiating heads of agreement with investors.

Prime Minister Perry Christie and members of his Cabinet are in the process of negotiating a heads of agreement with the Mediterranean Shipping Company (MSC) in connection with a $200m cruise project proposed for Ocean Cay, just off Bimini.

Details of the proposal have not been disclosed.

After meeting with MSC officials yesterday, Tourism Minister Obie Wilchcombe told The Tribune: “The prime minister will address the details of meeting with MSC. The proposal seeks to transfer Ocean Cay from resource exploration to resource conservation. The island has been used for sand and aragonite mining. Transforming the cay would be amazing from what it is today to a paradise tomorrow.”

Although details of the project have not yet been revealed, Dougan Clarke, the American CEO of TUCCI, a furniture manufacturing company with a global footprint, wrote The Tribune this week to express concern about the potentially negative environmental impact of the development.

Gowon Bowe, chairman of the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), also told The Nassau Guardian recently that before negotiating concessions with MSC, the government should produce for Bahamians a cost-benefit analysis of the project that considers the employment opportunities it will provide, its GDP impact and the overall contribution it will have to the Bahamian society.

While HOAs are non-binding and investment applications are subject to approvals under law, concerns have been raised over the years that the agreements supersede approval processes, exerting pressure on local bodies to approve applications regardless of the results of community consultations and environmental impact assessments.

With some success, activist groups have taken the government to court numerous times after complaining that proper approval and permit processes had been usurped because agreements between governments and investors had been treated as official approvals for projects.

“In the FNM, when the government is satisfied that an investor with the wherewithal to complete and sustain a project is genuinely interested, the government will begin to engage in discussions with members of the public,” Mr Pintard added yesterday. “Secondly, we will clearly indicate to potential investors that going to the Ministry of Works and ensuring you meet all environmental requirements is absolutely necessary. We will insist that measures are in place to ensure that public servants in these ministries and offices have a sense of comfort in approving or rejecting applications in accordance with the law.”

He continued: “A number of Bahamians over the years have raised concerns about the way in which the government has used heads of agreements, which, to the average foreign investor, is as if they have been given carte blanche to continue with their developments in a way that gives the impression that all approval is automatic once they have signed an agreement with the government. It is important that the government clarify to investors that all other requirements must be approved and met at each stage along the way, whether a resort or some other form of development.

“Furthermore, one big concern residents have is that when a development is approved in principle through heads of agreement, they are seldom involved in talks. It’s not a courtesy to engage or consult Bahamians. It is required by law. This is precisely why there are a number of court cases that seek to compel investors to hold town hall meetings in advance of proceeding with their developments.”

“Furthermore, governments should discuss these proposals in the Parliament of The Bahamas so they could benefit from the broadest possible ideas and advice from members of the back bench, from the opposition and from others. The government robs itself of some of the best ideas that come from Bahamians when only a small group sits and makes these decisions.”