Each year since 2000, Sun International has paid nearly $3 million dollars to The Bahamas’ treasury for “neglecting” to replace the total 650 rooms it removed from the Holiday Inn and Paradise Paradise hotels that were demolished during constructionof its first phase in 1993.
“When they tell you they will build 1,200 rooms, it is only 500 and some additional rooms over what they had done before.
“And they are going to reduce the $3 million they are paying you now when they start the new hotel and you (the government) will say we are going to stop charging you this penalty,” former prime minister Hubert Ingraham told the House of Assembly, Thursday.
In his 27th consecutive budget debate, the North Abaco MP said some of the many developments included in Sun International’s third-phase agreement with the government had already been included in its phase-two agreement, including the expansion of the Ocean Club, a boat house, shops surrounding the marina and new restaurants to replace Caf� Martinique.
“Don’t try and tell people that you did a better deal, because you did not, but I am not interested in who did a better deal, but what is best for The Bahamas,” he said.
In response, Minister of Financial Services and Investments, Allyson Maynard Gibson, said that when the Free National Movement imposed a penalty on Sun International for failing to live up to its commitments, it in turn “forgave” Sun.
“Sun, as astute business persons and we Bahamians who wish to have those investments in The Bahamas, agreed that they (investments) should be continued in phase three, but the fact of the matter is that they were forgiven,” she said.
Mr. Ingraham continued to say that the many developments outlined in Sun International’s phase-three agreement, were already envisioned in the initial 1993 agreement and further expanded in 1995 and 1997.
He said the latest agreement, like the 1993 agreement, provides for the use of Bahamian materials and service in the construction project, for the engagement of expatriates in the construction and operation of the resort only to the degree that suitably qualified, skilled and or experienced Bahamians are not available, and makes mandatory completion of an environmental-impact-assessment study to ensure any required action be implemented during construction.
The 1995 agreement, he said, contained an obligation on the part of Sun International to maximise employment of Bahamian musicians and entertainers to participate with the government in introducing a skills-training programme for Bahamians at BTVI and in secondary schools, while the 1997 agreement saw expansion of environmental-protection requirements, resulting in engagement of an engineer to supervise and monitor environmental concerns throughout construction.
“Associated with phase-two construction, Kerzner International also funded the construction of the new police station on Paradise Island, a project which is now being expanded in phase three to include a fire station and ambulance bay,” Mr. Ingraham said.
The North Abaco MP said he was surprised the PLP, which since 1993 conveyed strong disapproval of the level of concessions extended to Sun, has now “unceremoniously” extended similar, if not identical concessions for the phase three construction and in some cases, extended even more generous concessions to facilitate the phase-three development on Paradise Island, including a 20-year extension of the terms and conditions to the casino license.
“I note also that the concession which my government removed from Sun International, following its failure to meet set deadlines, are being restored to Kerzner International, commensurate with the commencement of construction of phase three,” he said.
Overall Mr. Ingraham said he was pleased the PLP finally came to accept the tremendous good that international investment has done for The Bahamas over the years and what Sun International has accomplished.
“It may appear that the days of PLP-bashing of the largest tourism investor in our country may be a thing of the past. We in the FNM are pleased that the seed that we planted and tended since 1993 are being carefully reaped by our successors in office. We do not expect recognition of our achievement, nor do we expect that the unfounded allegations that the FNM has sold the country out to Sun will be retracted,” he said.
By Tamara McKenzie, The Nassau Guardian
