Robert Sands, Baha Mar’s vice president of Administra-tion and External Affairs recently told members of the Rotary Club of Nassau Sunrise that the “cost of Phase One is now approaching $2 billion”.
However, on February 8, 2006 Baha Mar issued a statement based on “a study conducted by Global Insight” which determined that the “short-term and long-term impact” on The Bahamas was “greater than had been previously anticipated”.
In that release Baha Mar stated that “between 2005 and 2007” it had “committed $85 million in capital investments to the existing Wyndham, Radisson and Nassau Beach resorts”.
The current release states, however, that since the “Radisson Cable Beach Resort, the Wyndham Nassau Resort and Crystal Palace Casino and the Nassau Beach Resort were seamlessly integrated into the Cable Beach Resorts, Baha Mar, the development company, began a $15 million capital investment programme that arrested the further decline of the properties”.
The February release had not only referred to the “committed $85 million between 2005 and 2007”, it also detailed where and how the money was being spent.
Then it was stated that during this three-year period “more than $30 million” would go to “wages and salaries” to cover “an average of 350 jobs over three-year period”.
The release also referred to a “peak period of development” during which the Baha Mar project would “sustain employment of 550 jobs” including “more than 380 in construction”.
As to how the “capital investments” was being spent, the February release stated that “the scope of the plan calls for a complete $62 million renovation of the Radisson” which would become a Sheraton; “room and property-wide renovations at the Wyndham” would cost $27 million.
This total of $89 million appears to be at odds with the “committed $85 million between 2005 and 2007”.
From both releases on the Baha Mar project, it appears that the only money that to have been spent on the “billion-dollar resort” is the $15 million “capital investment programme that arrested the further decline of the properties”. And from this it is assumed are both labour and materials.
Mr Sands explained, “We committed ourselves to improving the standards and service to our guests and opened up an exciting array of cross-property amenities.
We are quite pleased to add that we were able to make this process a smooth and uninterrupted transition for our employees as well.”
Mr Sands’ comment would appear to support the observation that the bulk of the transformation of the resorts was substantially completed and that for $15 million.
The statement covering Mr. Sands’ Rotary Club address does not indicate a time period for Phase One. Could the $85 million in capital investment to “the existing…resorts” be Phase One?
The Rotary release quoted Mr Sands: “It means that within its first full year of operation, the resort will contribute nearly $400 million to GDP, equivalent to some 6.5 percent above the current GDP figure.” Mr Sands is then quoted as stating that “This is a direct result of just over twelve months of continuous planning, upgrading and a competitive drive to expand the vision for the benefit of all.”
No basis was given for how the first year of operation would be contributing “nearly $400 million to GDP”.
The release also mentions “over 5,000 direct permanent jobs at full operation” as well as the “indirect” generation of “another 2,525 jobs for suppliers and other economic sectors”.
Mr Sands also referred to the portion of the plan that calls for the re-routing of West Bay Street and the demolition of the group of buildings across from the resorts.
According to the release “project works will include the demolition of existing buildings, site clearance, non-public utility diversions, road construction and associated landscaping”.
Mr Sands stated that “we have done what we have said we’d do, and more”.
Adding that “We have lots more to do. But with our partners, both public and private, we are guaranteed a world class product that our guests will love and one that Bahamians will be proud to claim as their own”.
The Nassau Guardian
