The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government last night unveiled a renewed bid to spark economic activity in Mayaguana and the south-eastern Bahamas via a public-private partnership (PPP) billed as ultimately creating “2,000 full-time jobs” by developing a maritime port and logistics facility on that island.

The Prime Minister’s Office, in a statement, said the Davis administration is partnering with Global Lead Consultant, which appears to be a newly-formed company describing itself as “a Bahamian consulting firm providing design, development and management services” specifically for this project, in an effort to exploit Mayaguana’s strategic location close to major international shipping lanes.

Describing the ‘Port at Mayaguana’ as “a major maritime and logistics project intended to strengthen economic activity in Mayaguana and across the south-east Bahamas”, the Government said the development - if successful - would develop transhipment and storage facilities for container shipping and bulk cargo, along with the necessary support services and utilities.

“Mayaguana sits close to strategic shipping lanes used by vessels transiting toward the Panama Canal and other major ports, placing the island at a crossroads between the Americas and Europe. This PPP positions Mayaguana to play a stronger role in regional trade, cruise activity and related services,” the Prime Minister’s Office said in explaining the project’s rationale.

“Under the PPP, Global Lead Consultant Group, together with its team, will work alongside the Government to develop a project that includes port and land side works, a transshipment and storage port for containers and bulk cargo, excavation, housing and supporting facilities, and upgrades to utilities. The private partners referenced by the project team include 77 Construction UK, among others.” An Internet search yielded few details on 77 Construction UK.

However, the Prime Minister’s Office said the Mayaguana port project is being structured as a joint venture between the Government and its private sector partners in the PPP, although the precise terms and ownership percentages were not disclosed. “The project is to be jointly owned by the Government of The Bahamas, the Mayaguana Island Development Fund, and Global Lead Consultant Group,” it added.

“The operating entity will be Mayaguana Port Group Ltd (MPGL). The Mayaguana Island Development Fund component is intended for the direct benefit of Mayaguana, and the partners have indicated an intention to engage the community on the use of those funds.” That indicates Mayaguana Island Development Fund is being created solely to hold the interest of, and provide benefits to, island residents.

Global Lead Consultant Group’s website names Vincent McDonald, a 35-year hospitality entrepreneur who owns Curly’s Group of Companies - the parent of Curly’s Bar on Cable Beach and Curly’s Restaurant on Arawak Cay - and is a partner in Bahamas Renewable Energy Company (BREC).

Other principals include its chief executive, Winfield ‘Johnny’ Outten, a former banker who founded Tiffany Marble Products, which later became Bahamas Kitchen and Bath, and also Countrywide Builders. He is currently a director of the Bahamas Entrepreneurial Venture Capital fund.

Leslie Hutchison, an engineer and project manager, is named as Global Lead Consultant Group’s chief operations officer, and is said to have worked on New Providence’s $200m road improvement project as well as the upgrades to water and sewerage and road infrastructure in downtown Nassau.

Also named is Junardo Hall as the project’s financial consultant, while Global Lead Consultant’s attorney is Owen Wells, the McKinney, Turner & Company partner, who The Tribune today reports is being asked by the governing Progressive Liberal Party (PLP) to stand as its general election candidate in the newly-created St James constituency.

The Prime Minister’s Office said the Mayaguana port project will be developed in three phases, with the first involving construction of a “temporary marine offloading facility” and a deep water port. The second stage will see the construction of a cruise ship terminal, and the final phase involves developing a “deep water transshipment port and terminal for larger vessels, plus adjacent land development and handling components”.

“Over the coming months, work will move into detailed planning, including economic and environmental assessments, stakeholder engagement, regulatory approvals and detailed designs. The project team’s preliminary estimate anticipates approximately 2,000 full-time jobs over the life of the project,” the Government statement added. No mention was made on whether the necessary financing has yet been secured.

This is also not the first time that the Government has sought to create, and stimulate, economic activity on Mayaguana via a PPP focused on major infrastructure developments such as a shipping port and enhanced airport. A similar effort, which saw the Christie administration partner with the Boston-based I-Group, fizzled out with little to none of the promised development and economic activity ever emerging.

The original deal, signed back in 2006 for a $1.8bn development, was structured as a 50/50 joint venture between the Government, via the Hotel Corporation, and the I-Group, with both parties owning the development project under the umbrella of the Mayaguana Development Company. The original deal included 9,999 acres, but this was revised by the Ingraham administration.

It was scaled back to 5,825 acres, with the developers to start with 2,912 acres. The first phase of the I-Group’s Mayaguana development called for the construction of an airstrip to accommodate Dash-8 traffic, an airport terminal, a marina and construction of a 25-room boutique hotel. This phase was anticipated to be an investment of between $24-$32m, with the next phase intended to see the construction of a $50-$75m high end luxury resort in Mayaguana.