Work to restart on Bankrupt Baha Mar Project

Nassau, The Bahamas (hospitalitybusinessnews.com) According to Nassau’s Tribune newspaper, “PRIME Minister Perry Christie yesterday touted the government’s success in negotiations with the Export Import Bank of China (EXIM) and China State Construction Engineering Corporation (CSCEC) over the stalled Baha Mar resort, saying all parties have entered into a “framework agreement” to complete the project “as expeditiously as possible”.

Yesterday in Parliament the Prime Minister stated “I am satisfied based on the statement and the assurances given in Beijing that every effort is being made to enable an earliest possible re-mobilisation and that adequate funding is in place to provide for the completion of the project and the satisfaction of the legitimate claims of Bahamian contractors and suppliers.”

The Prime Minister went on to say,

“When CSCEC was hired, when China Export Import Bank came into the financing, the Progressive Liberal Party was in opposition. This was a matter superintended by the FNM and the PLP government inherited it.

“Following two days of successful meetings between representatives of the government of the Bahamas, the Export Import Bank of China and China State Construction Engineering Corporation, we are pleased to confirm that EXIM and CSCEC, the lender to Baha Mar and the parent company of the resort’s general contractor respectfully, have entered into a framework agreement which provides a pathway forward for the completion of the Baha Mar resort.

“The arrangement provides for a framework for putting in place the financing required for completing the project and for CSCEC’s indirect subsidiary CCA Bahamas to re-mobilise and restart construction to finish the project as expeditiously as possible.”

He added: “Negotiations between CCA Bahamas and the receivers appointed by EXIM are underway to agree appropriate terms for construction to recommence and to prepare a construction agreement which will provide the schedule timeline for completion of the project. It is expected that many contractors who have participated in the construction of the project will be reengaged in this process.

“The requirement of the unsecured Bahamian creditors will also be considered during the re-mobilisation and Mr Speaker what I am so happy about (is) EXIM, CSCEC and CCA Bahamas will work closely with the Bahamian government with a view to see the Baha Mar resort project through to 100 per cent completion so that Baha Mar can achieve its true purpose providing thousands of high quality jobs to the Bahamian people and ongoing economic boom to The Bahamas.

“The Bahamian government is fully committed to provide all necessary assistance and cooperation required for the early completion and opening of the project.”

The Baha Mar project has been in the works for some time now. The entire project consists of the Melia Cable Beach, The Wyndham (closed), and 4 new hotels – Baha Mar Casino, Rosewood, Hyatt, and SLX. Since the bankruptcy filing Rosewood has sued to cancel their management agreement. No word on whether Hyatt and SLX will be on board when the hotels eventually open.

Now we will wait and see if it ever gets a new owner.

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