The Tribune

By NATARIO McKENZIE

Tribune Business

Reporter

nmckenzie@tribunemedia.net

The Bahamas Chamber of Commerce’s chairman yesterday said the China Export-Import (CEXIM) Bank and Baha Mar’s receivers are the “only voices that matter right now”, as speculation surrounding the $3.5 billion project’s fate reaches fever pitch.

Gowon Bowe, told Tribune Business that while there was high anticipation over the mega resort’s completion, “we have to be careful of the noise in the market”.

“We want to see shovels in the ground and an agreement signed,” he emphasised. “The receivers have made it clear that they are going to follow the auction process.

“If they are going to do that, all of the other conversations are just noise. We have to be careful of how much attention we give to that because it may be all for naught. In reality, it may not even be a real opportunity to do anything because the receivership process is under court supervision.”

The Government has pinned its hopes on the China Export-­Import Bank reaching an agreement with China Construction America (CCA) to complete Baha Mar’s construction, prior to the project’s sale to a new buyer.

Tribune Business sources have confirmed that the Deloitte & Touche receivers have been working on a ‘twin track’ process to resolve Baha Mar’s fate - the sales process to find a new buyer, and the resumption of construction work.

“While the receivers are certainly representative of the EXIM Bank, they are still officers of the court and so they cannot circumvent the court process,” Mr Bowe emphasised.

“The only thing that can happen is if the actual financier comes to terms outside the receivership process and say they can end their receivership.

“From that perspective, I think we have to be careful as to how much of this peripheral noise is really being listened to, and wait for official comment - either from the CEXIM bank itself or the receivership process through the court.

“Their voices are the only voices that matter. In all frankness, the Government’s voice is irrelevant, the developer’s voice is irrelevant at this stage, and the contractor’s voice is irrelevant at this stage. At the end of the day, we want to see shovels in the ground and a contract or agreement signed.”

Mr Bowe questioned how much work would go to Bahamian sub-contractors if CCA were allowed to complete the project.

“There were Bahamian contractors on-site when CCA was the lead contractor, and so the question is how much labour would go to Bahamian sub-contractors versus their own labour,” the Chamber chair said.

“If it is sub-contracted, that may be positive. No Bahamian contractor would be prepared to do work without being made whole, or at least paid for previous work.

“I believe that with cooler heads and mature minds sitting down, the question is whether the lead contractor’s best suited to lead because they have an understanding of what is necessary to complete it, and how you marry that with your Immigration policies to allow for the local construction industry to put their expertise into it,” Mr Bowe added.

“They are probably amongst the best the best in the world in terms of workmanship and quality. What is most important is to understand how the auction process has played itself out and, to be honest, it’s only noise when you start talking about all of these side deals and proposals.”

It was suggested that as many as 16 potential bidders had shown interest in Baha Mar. The project’s original developer, Sarkis Izmirlian, has declined to enter the formal Baha Mar sales process, telling the Deloitte & Touche receivership team in a letter that it “makes no sense” for him to enter the process.

He blasted the sales process as “opaque” and “surreptitious”, arguing that it could undermine the “legal rights” enjoyed by himself and his bid vehicle, BMD Holdings.

Mr Izmirlian said he was unsure how bids submitted via the sales process would be evaluated, and whether a buyer would even be selected. The Baha Mar bidding process closed two weeks ago.