A senior official at the United States Embassy on Tuesday called on the Bahamas government to establish a clear timeframe within which it will consider proposals by prospective investors, such as those interested in building a liquefied natural gas (LNG) facility in the Bahamas.
Dr. Brent Hardt, Charges d’Affaires at the U.S. Embassy in Nassau, spoke at the Bahamas Chamber of Commerce’s inaugural Globalization Conference.
While addressing the group of entrepreneurs on how America sees the Bahamas, he mentioned the importance of a transparent process for prospective investors into the Bahamian economy.
“The important thing is the predictability of the process. In fact, I was speaking with some energy investors in recent months; one of the things they have said is that the process in the United States is predictable,” he explained.
“At the time of application they know, whether the decision is for or against, how long it will take, unless there’s some sort of unexpected public occurrence, they have that knowledge, and that’s what they feel is important (in the Bahamas).”
Dr. Hardt told the gathering it is important for governments to establish clear timelines for investors, so that they have certainty one way or the other.
“I think the worst thing for investors is to continue month after month without clarity,” he said.
“So with (the LNG proposals) and with other investments I would think it would be in the interest of the government to establish clear timelines and to give investors a clear sense of direction so that they can know (whether they should pursue their potential investments in the Bahamas or pursue other options).”
The companies proposing LNG projects in the Bahamas have been waiting more than four years for answers now. One of the companies recently shelved its Bahamas proposal and has decided instead to take its project strictly off the coast of Florida because of frustrations in waiting on an answer from the Bahamas government.
Dr. Hardt noted the potential importance of LNG to Florida, which would need to “get (LNG) one way or the other.” He said that if The Bahamas could not meet Florida’s LNG needs, that state would have to get LNG some other way.
“So we think this is actually an opportunity for the Bahamas because it offers a chance to make some steady revenue in an area that could diversify the economy,” he said.
Dr. Hardt, while acknowledging that the Bahamas government had the right to take as much time as it sees fit to decide on the LNG proposals, also noted that the Bahamas Environment Science and Technology (BEST) commission “found no reason that the government couldn’t proceed.”
Dr. Hardt also told the gathering of businessmen that America values the Bahamas for its shared democratic values, and for one of the strongest law enforcement partnerships America has in Operation Bahamas Turks and Caicos (OPBAT).
He warned that the Bahamas could not “stand still” if it is to maintain its competitive edge. Among other ways the Bahamas could maintain that edge, Dr. Hardt urged what he termed “reform wholesale” – upgrading infrastructure, regulatory institutions, and education.
“The goal is to enable the greatest number of your people to have the best legal and institutional framework to innovate, start companies and become attractive partners for those who want to collaborate with them from elsewhere,” he said.
“Modern business needs modern government to thrive.”
Dr. Hardt’s call for collaboration echoed earlier remarks from China’s Ambassador to The Bahamas, Li Yuanming.
The major area in which The Bahamas and China can collaborate, according to Ambassador Li, is tourism.
The Bahamas is one of China’s most important trading partners in the Caribbean, with trade between the two countries in 2005 reaching US$155 million.
Ambassador Li noted that Chinese citizens have saved up more than US$1.5 trillion, and said the Chinese government wants its people to get out and spend some of that money.
While the Bahamas is one of 90 countries China encourages its citizens to visit, Ambassador Li called for collaboration on alleviating the travel issues.
There is no direct flight from China to the Bahamas, and Ambassador Li suggested that there might be some ways to alleviate the high cost of the long distance travel Chinese tourists to the Bahamas must make.
According to Ambassador Li, China plans to import at least US$1.5 trillion in goods and services over the next five years.
“This is (a minimum) – we want to import $500 million every year,” he said, adding that China wants to promote foreign direct investment into China in banking, insurance, telecommunications and shipping, among other things.
Diplomatic relations between China and the Bahamas were established in 1997, and Ambassador Li noted China’s intent for increased collaboration and exchange in education, culture and health care.
“There are many things we can do-we have the same goal; to promote world peace and to pursue mutual prosperity,” the ambassador said.
By: Quincy Parker, The Bahama Journal
