By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
Baha Mar’s financier has “totally discredited” the Prime Minster’s statements insisting that a resolution for the $3.5 billion project is imminent, the Opposition’s deputy leader is arguing.
K P Turnquest told Tribune Business that last week’s statement by the China Export-Import Bank confirmed that Baha Mar’s fate will “be a long haul”, and not determined overnight.
This, he added, was “the complete opposite” of what Mr Christie has been saying to the Bahamian people, namely that he is ‘optimistic’ that a resolution to the Baha Mar impasse - and its associated economic misery - is imminent.
Baha Mar’s $2.45 billion financier, pointing out that the project’s sheer scale “takes time to market”, gave no hint that the search for a purchaser may be close to completion.
It also made no mention about providing the estimated $600 million required to complete Baha Mar’s construction itself, something the Government appears to be hoping for, based on the contents of an affidavit sworn by its director of legal affairs.
“It totally discredits the statements the Prime Minister has been making,” Mr Turnquest said of the China Export-Import Bank’s statement.
“The bank, I presume as a result of appointing receivers, would have some intimate knowledge if a deal was imminent, and would not have made the statement they have made if that was the case.
“They seem to be warning that this is a complex matter, not as easy as some people think, and while there may be parties interested in this project, they’re trying to get it at a steal,” the Opposition’s deputy leader added.
“The bank is saying, from what I’m reading, that it’s not interested in that; it wants full value for the dollar.”
Tribune Business has repeatedly reported that the China Export-Import Bank’s main objective, that of being ‘made whole’ and recovering 100 per cent of its outlay, is at odds with the goals of potential Western buyers, who will be looking to acquire Baha Mar at a discount price for ‘cents on the dollar’.
The incompatibility of these objectives is thus providing the platform for a protracted ‘work out’, a development that will aid neither the Prime Minister’s political agenda nor Bahamian society and the economy, especially the 2,000 laid-off employees and numerous local creditors.
“They may take a bit longer than the Government would wish,” Mr Turnquest said, alluding to the Government’s obvious desire to have Baha Mar completed and open before the upcoming general election.
He added, though, that the China Export-Import Bank had clearly recognised it was in its own interests to move as rapidly as possible, given that Baha Mar’s value was decreasing with every passing day.
“They’re saying it’s going to take a while, although it’s in their interests this is done as soon as possible, it seems” Mr Turnquest told Tribune Business.
“It’s the complete opposite of what the Prime Minister has been saying about an imminent resolution.
“Again, if we read between the lines, the bank is saying: ‘We’re not putting more money into this, we’re interested in getting rid of the property, but want the full value of what we put into it.”
Antoinette Bonamy, director of legal affairs in the Attorney General’s Office, recently swore an affidavit setting out the Government’s hopes that China Export-Import Bank’s discussions with the main Baha Mar contractor, China Construction America (CCA), over remobilising to complete the convention centre would ultimately lead to work resuming on the wider project.
But China Export-Import Bank’s statement made no mention of this possibility, and Mr Turnquest said the state-owned lender was instead “bemoaning” the cost of having to finance Deloitte & Touche’s activities as receivers - a financing that had pushed all Bahamian creditors further down the queue.
“Based upon what the bank is saying, they are prepared for a long-term work-out, and the Prime Minister’s expressions of ‘optimism’ seem to be misleading and premature,” he told Tribune Business.
“We all have to be very concerned. The bank is signalling there is no deal imminent, and it’s going to be a long haul. The consequences of that being so, to the economy and the nation, are relatively significant.”
Comments
John 8 years, 2 months ago
Take a look of china's performance around the world.: . .Sri Lanka revives stalled Chinese-funded projects - .Nigeria's Buhari to Ask China's Xi to Restart Stalled Rail Work . "Delayed Indian, Chinese loans stall massive road projects" Nigeria and China deals: what's the benefit for us . "Rise and stall: China's stepping stone to nowhere - African" . China could be back in frame for stalled Mexico rail project ...
. "Stalled Chinese project in Colombo to start again" . NINE Stalled Skyscrapers That Might Have Been | SkyriseCities . . " China and Russia have discussed dozens of large projects that Beijing..." . . "China's top auditor flags stalled projects . Ya tink Bah Mar gern anywhere soon...I have a theory.. any questions?
paul_vincent_zecchino 8 years, 2 months ago
Sure looks like a pattern, doesn't it? All these 'stalled projects', surely must be mere 'coincidences'.
What is your theory about all these coincidentally 'stalled' projects? Seems like clawprints around the globe, all to do with creating economic instability; asymmetrical warfare?
"A coincidence is just a coincidence. Two are a pattern. Three? Conspiracy." - timeless Cuban proverb
banker 8 years, 2 months ago
Watch this video from Goldman Sachs about the deceleration of the Chinese economy:
http://www.goldmansachs.com/our-think...">http://www.goldmansachs.com/our-think...
The Chinese are transitioning from credit-intensive investment in their economy, to a consumer and services based economy, and the deceleration is going to be "bumpy". The debt load of China has to be reduced, and as a result, many projects, including Baha Mar will be left to languish. They are not going to finance the additional $600 million, and they will just hold on waiting for a potential buyer that will pay the most. They are at this point, not willing to take a financial haircut, so Baha Mar will continue to languish.
sansoucireader 8 years, 2 months ago
They only wanted the land--and now Bahamians have even less beaches to call their own.
John 8 years, 2 months ago
They are also preparing for the long anticipated crash of the US dollar. When the US dollar crashes it is expect that the Chinese currency will become the currency for international trade . The Chinese will use the monies owing on these stalled projects around the world as a hedge against its own currency collapsing due to the huge debt the US owes it, along with other countries, that they may be unable to repay, due to the collapsed US $. Basically China will have the entire world by its testicles.
John 8 years, 2 months ago
so now you know what the military gift is for. To protect Chinese assets when this happens. And it may just be a start of military preparedness.
Godson 8 years, 2 months ago
And if you'll think all those Chinese men who are employed now throughout The Bahamas are typically 'career construction workers' - who are not capable and positioned to take up arms against the Bahamians for their interests, then your official language sounds like 'HE HAW'....
John 8 years, 2 months ago
Watch the US presidential race closely. The concern around the world grows as Donald Trump makes his way closer to the White House. His hot headedness, loose lips, offending of entire races and nationalities and policy of exclusion is cause for concern and his election will definitely have an impact on the world economy and social stability
sealice 8 years, 2 months ago
come on tribune we don't need you to tell us the Perry lied to everyone again over this one.....I still wanna know who's paying the bill for all those damn lights on every day and night?
Sickened 8 years, 2 months ago
The lights are on so the illegal Chinese immigrants living in there can stay up late reading their "How to take over the world" manifesto (Chapter 1,369... The Bahamas).
Godson 8 years, 2 months ago
If any of us thinks that all of those Chinese men/women, who are employed now throughout The Bahamas, are typically 'career construction workers' - and that they are incapable and ill positioned to take up arms against the Bahamians for their interests, then your official language sounds like 'HE HAW'....
sheeprunner12 8 years, 2 months ago
We betta get used to looking at the empty rooms and the chain link fence on our beautiful sea front .............. its like when the white people speculate on our Crown land and hoard it for later sale ........... its just the Chinese turn now
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