The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Government should have “greater flexibility” to reveal the terms being negotiated for Baha Mar’s purchase, including investment incentives and tax breaks, after the buyer identified itself, the Chamber’s chairman believes.

Gowon Bowe said: “A private company would have to apply to the Bahamas Investment  Authority. When you have investors before the Authority, that’s when the Government would have the flexibility to speak about the types of negotiations going on.

“Now that a formal announcement has been made by this private enterprise, the Government would have greater flexibility to speak to the types of negotiation they are having and the things they have to consider to approve them as the investor group.”

Given that details of the Government’s ‘Heads of Terms’ agreement with the China Export-Import Bank for Baha Mar’s construction completion remain sealed by Supreme Court Order, and the administration’s liking for secrecy, whether this will happen remains questionable.

Chow Tai Fook Enterprises (CTFE), the conglomerate formed by the late billionaire, Cheng Yu Tung, which has extremely close ties to the Beijing government, confirmed last week that it was the prospective purchaser for the stalled $3.5 billion Baha Mar resort.

It added that it had submitted the necessary permit and approval applications to the Bahamian Government for the acquisition of Perfect Luck Holdings, the special purpose vehicle (SPV) established by China Export-Import Bank, Baha Mar’s secured creditor.

“I think that all parties have indicated that they are still under the non-disclosure agreement, and until they have sealed the deal with the EXIM Bank they would probably be under the same restriction,” Mr Bowe added.

“But now that there has been an announcement by the applicant, it’s up to the Government to determine the details that they disclose. They should be in a position to start advising the public on what elements they are considering to get the deal done.”