business@tribunemedia.net
WEDNESDAY, MARCH 22, 2023
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Oban revival dismissed despite $2.5bn plans • PM’s spokesman says such talk ‘foolishness’ • But project’s new owners made ‘21 approach • Website talks of approval ‘road map’ review
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net TALK of reviving the $5.5bn Oban Energies oil refinery deal has been dismissed as “foolishness” by the Prime Minister’s spokesperson although an “introductory call” was held with the project’s new owners soon after the 2021 election. Clint Watson initially told Tribune Business that “no one is aware of anything” after Lucayan Trans Fuels, the entity that acquired the rights to the Oban project in 2021, posted on its website that “a road map” for navigating the development through all the necessary
government permits and approvals had been “outlined and reviewed” with the Prime Minister’s Office’s delivery unit. After speaking with the Prime Minister; Jerome Fitzgerald, Mr Davis’ senior policy adviser; Allison Collie, head of the Prime Minister’s Office’s delivery unit; Ginger Moxey, minister for Grand Bahama; and the Bahamas Investment Authority (BIA), he said none were aware of efforts to revive the Oban project or been in contact with investors seeking to achieve such an objective. “No one is aware of anything with these people. They’re talking foolishness,” Mr Watson said. However, when Tribune Business double-checked to confirm if anyone in the
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Davis administration had contact with persons purporting to represent Lucayan Trans Fuels, Mr Watson issued a statement in Mr Fitzgerald’s name disclosing that while there was an initial encounter soon after the September 2021 general election nothing had moved beyond that. “Shortly after the election there was an introductory call with a group representing that they had bought out the group that had an interest in developing the Oban project,” Mr Fitzgerald’s statement said. “They were advised that they would have to go through the normal process and make application through the BIA. There is no evidence that they ever made an application or had any further interaction with this administration.” Lucayan Trans Fuels was identified as the entity that had acquired the rights to the project in a recent Securities & Exchange Commission (SEC) lawsuit that charged Peter Krieger, Oban’s former non-executive chairman and chief promoter, with defrauding investors in the project of some $5.2m. This newspaper tracked down Lucayan Trans Fuels’ website, which gives the strong impression that the project is very much active and that talks with the Government about how to progress it to fruition have been proceeding. “The Government of the Bahamas has provided Lucayan
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PI entrepreneur ready ‘at stroke of PM’s pen’ Gov’t challenged: Disclose Royal Caribbean’s PI deal By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE BAHAMIAN entrepreneur seeking to restore Paradise Island’s lighthouse yesterday revealed his financing needs have been “oversubscribed by more than 300 percent”, as he urged the Government: “Make good on our deal.” Toby Smith, Paradise Island Lighthouse and Beach Club’s principal, told Tribune Business his proposed investment has been “upped” from $2m to $3m and stands “ready to go” at “a stroke of the pen” once Prime Minister Philip Davis KC signs-off on the approvals that remain outstanding. Suggesting that “a massive door” has been opened for his plans to proceed, after Royal Caribbean reduced the Crown Land footprint for its rival Paradise Island project from seven to four acres, he added that having provided the Davis administration with proof of financing “the ball is in the Government’s court to do what is right for the Bahamian people”.
CAPT. TOBY SMITH
• Toby Smith says financing needs ‘oversubscribed 300%’ • Royal Caribbean scaling down opens up ‘massive door’ • ‘Fighting for all Bahamians’, and tells Gov’t to ‘hurry up’ And, drawing strength from the concerns voiced by Atlantis and Glenys Hanna Martin, minister of education, over Royal Caribbean’s proposed beach club, Mr Smith reiterated his belief that he is “fighting for all Bahamians” when it comes to their ability to “thrive” as entrepreneurs and own a piece
of the country’s economy alongside major foreign investors. Promising that he will “never give up”, and remains determined to see a project first conceived 11 years ago through to fruition, he told this newspaper: “The Government have absolutely everything already on the table that
has been provided over a period of 11 years from Paradise Island Lighthouse and Beach Club, and with a stroke of the pen they could simply allow me to proceed for the benefit of all Bahamians and create meaningful jobs. “It’s going to be approximately 80 construction jobs and 80 full-time jobs for Bahamians only. I’ve upped my investment from $2m to $3m, and I’ve provided to the Government everything that has been asked of me. I’ve had financing lined up since inception, and I’ve been oversubscribed by more than 300 percent. “I’m ready to go just as soon as the Government issues all the necessary regulatory and procedural documents. I’m sure that the Prime Minister has a pen, and he simply has to sign the documents that are required. The Government is crying out for Bahamian-owned projects to contribute to the tourism product, and Paradise Island Lighthouse and Beach Club provides for a world class product for Bahamians to enjoy alongside our guests.”
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Commission seeks FTX $426m asset resolution By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE SECURITIES Commission is anxious to resolve the ownership of $426m in FTX digital assets under its control due to the ongoing costs it is incurring to secure them, it has been revealed. Brian Simms KC, the senior Lennox Paton attorney and partner, in a March 15, 2023, legal filings with the Supreme Court disclosed that he and his fellow joint provisional liquidators for
BRIAN SIMMS KC FTX Digital Markets, the Bahamian subsidiary, had spoken several times with the Bahamian regulator’s legal representatives on when they would move to
determine the ownership issue. “The joint provisional liquidators have had several conversations with counsel for the Securities Commission of The Bahamas in relation to when the joint provisional liquidators would make an application to determine the ownership of the digital assets currently held by the Securities Commission of The Bahamas,” he stated in a draft affidavit included among the batch of documents tabled with the court.
“The Securities Commission has been concerned about the administrative costs of holding the digital assets and wishes to have the ownership issues resolved...... Another reason for the issue of this summons now is to address issues of concern to the Securities Commission, which the Securities Commission desire to be resolved.” Mr Simms’ draft affidavit, which is subject to change, is due to be finalised and filed once he and his fellow FTX
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$200m GB airport deal can help solve Lucayan ‘eyesore’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A HAYWARD family member has voiced optimism that Grand Bahama International Airport’s $200m transformation will serve as a “catalyst” for the sale of a Grand Lucayan resort that has become “a bit of an eyesore”. Rupert Hayward, grandson of former Grand Bahama Port Authority (GBPA) co-chair, Sir Jack
RUPERT HAYWARD Hayward, told Tribune Business of the announcement: “This is welcome
news for everyone on the island, particularly for developments that are planned or already in the offing, especially the Weller Development, Pegasus and Six Senses hotel. “This is critical infrastructure, which is really important. I hope it will be the catalyst to get the big hotel sold. That’s the really important piece here. The Grand Lucayan is a bit of an eyesore. The airport will hopefully be
the catalyst for the sale of the Grand Lucayan, and that is a really important part of Grand Bahama’s sustainability.” Michael Scott KC, the Grand Lucayan’s former chairman, reiterated that it was almost impossible to find the correct buyer for the resort without an assurance that an airport capable of servicing the required airlift and guest flow was in place.
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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE BAHAMIAN entrepreneur bidding to restore Paradise Island’s lighthouse yesterday challenged the Government to disclose full details of the revised Royal Caribbean deal that has “massive hurdles” to overcome Toby Smith, whose Paradise Island Lighthouse and Beach Club project was shoved aside by the former Minnis administration to make way for the cruise giant’s competing Royal Beach Club interests, urged its successor to provide full transparency so that the Bahamian people can judge for themselves whether it has truly obtained better terms for their interests. “I think that if the Bahamian government has struck a new deal with Royal Caribbean that they want Bahamians to buy into, they should make public the entire agreement with all the details so Bahamians can decide for themselves if this is yet another ploy where just a few get to benefit,” he told Tribune Business. The Davis administration has given mixed signals on whether the agreement previously announced is a final, binding version that has received full Cabinet approval or just a preliminary deal that
has yet to receive final sign-off. Prime Minister Philip Davis KC was initially reported as saying he expected ground breaking for the Royal Beach Club to be broken“almost immediately”. However, after Atlantis, in particular, voiced alarm at this statement, both he and Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, clarified that Royal Caribbean’s Paradise Island ambitions now depend on successfully passing environmental scrutiny, and the Environmental Impact Assessment (EIA) and Environmental Management Plan (EMP) satisfying all concerns, before the project can proceed. Mario Bowleg, minister of youth, sports and culture, yesterday confirmed that the Davis Cabinet has not given full approval to the cruise giant’s Royal Beach Club. “There’s been no final decision made on that deal, so I don’t even know why it’s up for discussion right now,” he said. “It’s again a deal that is in the making and when the final decision is made those responsible for that will make the notation on what it will be.” Mr Smith, meanwhile, yesterday argued that any go-ahead for Royal Caribbean’s beach club plans on
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