The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Bahamian Contractors Association’s (BCA) president yesterday said construction activity could soon experience a major rebound with several major developments in the pipeline.

Michael Pratt told Tribune Business that several new projects, such as Sterling Global Financial’s $250m Hurricane Hole redevelopment, were “coming on stream”. His comments came after the Department of Statistics found that despite an increase in the number of construction projects underway during the 2018 third quarter, fewer dollars were being invested overall.

“Baha Mar is pretty much wrapped up. The Pointe is still out there. There aren’t really any new projects online at this time but I do know that very soon several will be coming on stream,” said Mr Pratt. “Permits are being sought for those right now, so in time that trend could very well be reversed. In another quarter the value of the projects may go up with some of these major developments such as the Disney project on Eleuthera.”

The number of new construction permits issued by the Ministry of Public Works increased by 37.2 percent during the 2018 third quarter compared to the same period the previous year. “The number of new construction permits issued in the third quarter of 2018 (413) was higher than in the third quarter 2017 by 112 or 37.2 percent,” the Department of Statistics said.

“In contrast, the value of permits issued over this period decreased from $137.7m in 2017 to $118.8m in 2018. The main reason for this decrease in value was a $43.3m drop in the value of permits issued for the private sector in New Providence.”

Mr Pratt added: “We are heavily dependent on FDI projects, and the construction sector is still being adversely impacted by the banks and their lending practices. The banks are not really lending right now, and perhaps people are having a hard time qualifying. That is impacting the construction sector.

“I can’t say what the end game will be, but we remain positive. We have to remain positive and ensure that the money from these FDI projects continues to flow through the economy and get more of our contractors involved.”

Mr Pratt continued: “Bahamians must be able to have more than a car and a TV. We have to be able to convince the banks to assist them in building their businesses. If banks allow us to properly invest in construction we believe there can be a major improvement in the Bahamian economy.

“A lot of these banks have wound down and taken their activity abroad. There is a disconnect there where they may only be thinking about the bottom line and a quick turnover to repatriate profits. We have to address that attitude.”