Major capital projects in Abaco, Exuma and N.P. included

By TAMARA McKENZIE, Assistant News Editor, tamara@nasguard.com

The Free National Movement government has approved $9.1 billion dollars in capital investments, which come in the form of various heads of agreements for touristic and other business developments, during the 10-month period from May 2007 to March 2008. In fact, an additional $900 million was recently approved by the National Economic Council for an investment in the purchase of the BORCO [the Bahamas Oil Refining Company] facility in Grand Bahama.

Speaking in his capacity as a member of the Bahamas Economic Council, Seabreeze MP Carl Bethel also revealed that the stamp duty of $40 million payable on this BORCO transaction would now be paid to the government "upfront."

"Further, the buyers have committed to investing an additional $300 to $600 million dollars in redeveloping the BORCO facility," Bethel said. "The closing will take place, God's willing, by the 30th of this month. All of these approvals will hopefully auger very well for the further growth and development of the Bahamian economy from Abaco to Inagua, from Andros to Eleuthera and not missing out New Providence and Long Island. I do wish every investor every success, as we all continue to develop our beloved country."

Bethel said it took the former government five years to bring in $29 billion in foreign direct investment, while the present government - in less than 10 months - was able to bring $9,119,693,462.00 . "We did in 10 months, one-third of what it took them five years to bring in," Bethel said.

He charged that contrary to talks of economic doom and gloom, and the naysayers who sit in Opposition, The Bahamas continues to be an attractive place for the world to invest and place its trust.

"These investments throughout the length and breath of The Bahamas, will do much to cushion the country during the uncertain years ahead as the United States and world economies go through a slow down and readjustment, caused by the United States' sub-prime mortgage crisis, and the skyrocketing oil prices," Bethel said.

"We are doing everything in our power to help the investors, because we have faith that they are committed to The Bahamas. They know that The Bahamas is an excellent place to invest in, they are committing their money, their time and their treasure and they will do it."

Some of the major capital projects listed by Bethel include: The Balmoral residences, a 22-million dollar residential community on Cable Beach; the Hermitage Estate, a 428-million dollar investment to construct a 200-room five-star hotel in Exuma; and the South Abaco Land Development, a more than $1 billion investment to construct a 250-room hotel in Conch Sound Point, South Abaco.

By TAMARA McKENZIE, Assistant News Editor, tamara@nasguard.com

Opposition Leader Perry Christie said while the government might tout its approval of more than $9 billion in capital investments, secured over a 10-month period, many Bahamians remain in an economic crisis. The investments - some spin-offs from when his government was in office - could take 18 months or longer to come to fruition.

"These investments are simply to cause the Bahamian people to have a better feeling than they have now about the economy, but we are in a crisis and the government has to really continue to address how they will help these Bahamians to overcome this," Christie told The Guardian after yesterday's sitting of the House of Assembly.

Before the suspension of the House, Sea Breeze MP Carl Bethel told parliamentarians that the government had approved more than $9 billion in capital investments and an additional $900 million was recently approved by the National Economic Council for an investment in the purchase of BORCO [the Bahamas Oil Refining Company] facility in Grand Bahama.

But according to Christie, the government, now taking into consideration the possibility of a recession in the United States, is only trying to "make up, post-haste" for the "major" mistakes they made when they initially took office last May.

"The FNM (Free National Movement) today [Wednesday] capitulated what they criticized me for in articulating, which was the vision of investments and the impact it would have on the economy," Christie said.

"When they [the FNM] came to power and brought their first budget in May of last year, the budget forecast, based on International Monetary Fund estimates, showed that our economy would grow by 4.5 percent," Christie explained. "That growth was predicated on capital inflows coming in as a result of investments that we knew were in the pipeline. The great part of those investments were articulated today by Carl Bethel, obviously with the view of trying to get confidence to investors and the financial community on the basis of what is happening in the country, by and on behalf of the FNM government."

Christie said because the FNM was only focused on preparing for a general election, they did not prepare for governance and as a result, are still trying to put together a vision of governance and the actual strategies and programs to support their vision.

"The great difficulty is that the most fundamental mistake was made when they decided to review major contracts entered into by my government for whatever reason," Christie said. "Some of those contracts were canceled, others were delayed. Our economy could not withstand that shock, which came about as a result of there not being any continuity in the construction industry, which drives the economy and employment. They are now trying to start it up and are facing the consequences at a time when the American economy is on a slow-down."

The Progressive Liberal Party (PLP) leader reiterated that the government is faced with an enormous difficulty when it comes to identifying strategies to assist Bahamians in need. He stressed, however, that this is where the priority lies.

West End and Bimini MP Obie Wilchcombe said he was happy to know that work that started while the PLP was in office, especially that related to the BORCO facility in Grand Bahama, is near conclusion. He charged that governments were continuous and government MPs should not walk around touting their work, while hitting the efforts of the former administration.

The former tourism minister also said that while the government had received investment approvals amounting to billions of dollars in recent months, the existing and future economic climate will be the determining factor of whether these investments will become a reality.

"During difficult times people get their approvals but they hold on to them," Wilchcombe said. "They don't invest their money and they are very concerned. The question is, what has started and what will start [of these investments?] If it has not started now, then when will it start?"