Wednesday, March 31, 2010Baha Mar Deal Signed

Scott Armstrong$2.6 Billion Baha Mar Project Resurrected

After two years fighting to resurrect the $2.6 billion Baha Mar project - following a pull out by American investors Harrah's Entertainment - the mega resort is back in business as Chinese partners have signed on the dotted line.

The signing of the contract took place in Miami, Florida between Baha Mar Resort's Chairman and CEO Sarkis Izmirlian, Vice President of the Export-Import Bank of China Li Jun; and China State Construction Engineering Corporation's Vice President Liu Jinzhang.

It means that the 1,000-acre Cable Beach site will soon give way to huge construction, much of it done by China State Construction Engineering Corporation, which has been officially given the contract.

March 2008 saw American investors Harrah's Entertainment pull out and

seemingly take the hope of 8,800 jobs with them, but now that dream has been resurrected.

Vice President of External Affairs for Baha Mar Robert 'Sandy' Sands said: "Baha Mar Resorts has announced that it has signed formal facility and investors agreements with Export-Import Bank of China and China State Construction Engineering Corporation for the development of the multi-billion dollar Baha Mar resort on Nassau's famed Cable Beach.

"The agreements include financing arrangements of $2.6 billion by Export-Import Bank of China, with construction accords designating China State Construction Engineering Corporation as the project's general contractor; and an investor agreement between Baha Mar and the China State Construction Engineering Corporation, which will assume a minority equity interest.

"Baha Mar is an unprecedented resort development in The Bahamas that captures the true spirit of the island and the region, while bringing together the most prestigious collection of hospitality brands in the world to create a leading resort destination."

Widespread building can begin after the loan agreement between the parties is submitted to the government, which has to give its final blessing. When complete the resort will provide 6,500 direct jobs for Bahamians and a further 1,500 jobs in related industries. This will put some $7 billion in wages into the pockets of Bahamians.

The mega resort is expected to plough some $24.5 billion extra in visitor spending over a 20-year period, through spending and direct taxes, taking the total contribution for the resort to $33.6 billion over the next two decades

Phase one will involve re-routing West Bay Street, followed by the expected demolition of the closed Nassau Beach resort. That will be followed by the demolition of two towers at the Wyndham, which will remain as a smaller "boutique" hotel.

Electricity connections, water, sewerage, CCTV and lighting will all be upgraded in the Cable Beach area.

In January 2007 when the project was first announced with Harrah's Entertainment as an investor, it was billed as a "direct challenge to Kerzner International Holdings Ltd.'s Atlantis on nearby Paradise Island".

Recently Hu Dingxian, Ambassador to The Bahamas for the People's Republic of China said: "Baha Mar is an important project for the long-term benefit of The Bahamas.

"It is exciting that two Chinese companies, China's Exim Bank and China State Construction, are participating with Baha Mar to bring this project to fruition."

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