WEDNESDAY, AUGUST 24, 2016
business@tribunemedia.net
Contractors not joining ‘celebration bandwagon’ over Baha Mar deal yet
Baha Mar creditors: Over 90 per cent to be paid By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
CCA contracts to be paid, but not Baha Mar’s
Baha Mar’s secured creditor agreed to fund the $3.5 billion project’s completion because potential purchasers have told it they will not buy an unfinished mega resort, with more than 90 per cent of local creditors set to be paid. Sources familiar with the agreement between China Export-Import Bank and the Government, speaking on condition of anonymity, conformed that the former had been forced to reverse its earlier position of not investing a further cent
Association chief ‘cautious’ amid wait for details Private sector hailed deal not knowing specifics
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net and NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net Bahamian contractors yesterday said they were “not joining this bandwagon of celebration” over the Government’s Baha Mar agreement just yet, amid suggestions contracts held directly with the former developer may not be honoured. Leonard Sands, the Bahamian Contractors Association (BCA) president, told Tribune Business that the group was being “cautious” over its response and what it told members, given that so many details were unknown. He added that there was “vagueness” in the Prime Minister’s announcement of the agreement with the China Export-Import Bank to complete Baha Mar’s construction, with no specifics provided on how much Bahamian contractors can expect to be paid, who will pay it, and when. A total $74 million was said to be owed to some 123 Bahamian contractors when Baha Mar was placed into Chapter 11 bankruptcy protection in June 2015, and Mr Sands said the BCA Board was meeting last night to disSEE PAGE B5
Baha Mar buyers not interested in incomplete resort Gov’t-China agreement ‘not pie in the sky’
into Baha Mar. “There weren’t any buyers interested in buying an unfinished building,” this newspaper was told bluntly, thus forcing China ExportImport Bank’s hand on the construction financing. Tribune Business understands, SEE PAGE B6
Moody’s backs IMF over Bran ‘concerned’ taxpayers to fund $100m fiscal deficit overshoot Baha Mar payouts By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
‘No doubt’ Chinese tax breaks will pay creditors ‘Amazed’ CCA getting ‘second bite at apple’
Asks if announcement timed to ‘deflect’ downgrade By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The DNA’s leader yesterday said he was “very concerned” that Bahamian taxpayers will ultimately be landed with the multi-million dollar bill for compensating Baha Mar’s creditors via the tax incentives granted to the Chinese. Branville McCartney told Tribune Business he had “no doubt” that the China ExportImport Bank and China Con- BRANVILLE MCCARTNEY struction America (CCA) had received extra investment concessions in return for pledges to pay unspecified sums to Baha Mar’s unsecured creditors. Describing CCA as “the real winners” from the Baha Mar debacle, Mr McCartney said he was “amazed” that the Chinese state-owned construction company was getting “another bite at the apple” despite the allegations of ‘shoddy workmanship’ surrounding its previous work on the $3.5 billion development. And with the Government providing little to no detail on the Supreme Court-approved agreement struck with the China Export-Import Bank for Baha Mar’s completion, the DNA leader said it was impossible to determine SEE PAGE B4
‘Ball in our lap’ to avoid further Moody’s action Downgrade action decided before Bahamas visit
Chamber chief says nation can’t be ‘defensive’ Expects ‘more positive outcome’ in next reviews
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Chamber of Commerce’s chief executive yesterday said responsibility for avoiding a further credit rating downgrade “falls squarely in the Bahamas’ lap”, as he accused Moody’s of having long planned its latest action. Edison Sumner told Tribune Business that private sector executives who met with Moody’s, following the early July announcement of its Bahamas rating review, felt its representatives were merely visiting this nation as “a courtesy”. He himself gained the impression that Moody’s had already decided to “go through with the planned downgrade” of the Government’s creditworthiness, regardless of what it discovered on its Bahamas visit. “The move from Moody’s, though it was disappointing, was not unex-
Contractors, others ‘to do quite well’
Edison Sumner pected,” Mr Sumner told Tribune Business. “In our last meeting with them, we got the impression from them that they were not going to shift any from their intent to provide another downgrade for the country. “By the time they came to see us, we believe they had written their report already, and we believe their visit to the Bahamas was more of a courtesy.” He added: “We tried to speak to some of the positives for the country and stay their hand, and show them why it would not be a prudent thing to continue to downgrade our sovereign credit rating. “We left that meeting with the impression that SEE PAGE B5
Moody’s yesterday backed the International Monetary Fund’s (IMF) prediction that the Bahamas’ 2015-2016 fiscal deficit is set to overshoot the Government’s estimate by around $100 million. The international credit rating agency, in a followup note to world markets following Monday’s downgrade of the Bahamas, forecast that the deficit for the recently-closed fiscal year would be equivalent to 2.9 per cent of GDP. This is some 1.2 percentage points higher than the Christie administration’s revised estimate of 1.7 per cent of GDP, or $150 million. And given that 1 per cent of Bahamian GDP is roughly equivalent to $80 million, the Moody’s forecast suggests the 2015-2016 GFS deficit will come in around $240-$250 million. “We estimate that the deficit reached 2.9 per cent of GDP by the end of fiscal 2015-2016, relative to the estimate of 1.7 per cent presented in the budget,” Moody’s said yesterday. “Given the gradual eco-
Says ‘red ink’ to be 2.9% of GDP, not Gov’ts 1.7%
Rating agency agrees Gov’t forecast too optimistic Adds that Bahamas’ reform progress ‘slow’
nomic recovery, we forecast that the government’s debtto-GDP ratio will continue rising through 2016-2017 and stabilise thereafter as the fiscal deficit continues to decline.” Moody’s forecast mirrors that of the IMF, which in its recent Article IV report warned the Government that its fiscal consolidation projections are “too optimistic”, and that the deficit for the just-closed 20152016 year will be around $100 million higher than forecast. “With weaker than expected growth weighing on revenue collection, the authorities’ plan that seeks to reduce the 2015-2016 fiscal deficit to 1.5 per cent of GDP, and to achieve a near balanced budget by 20172018, appears too optimistic,” the IMF said then. “Staff projections suggest a still significant, but more realistic and growthfriendly pace of consolidation, with the fiscal deficit projected to narrow to 3 per cent in 2015-2016.
“The fiscal deficit is expected to decline further in 2016-2017, albeit at a slower pace, with debt stabilising at around the same time.” Also agreeing with this SEE PAGE B6
$3.85 $3.89 $3.89
$3.89
PAGE 2, Wednesday, August 24, 2016
THE TRIBUNE
Tourism Ministry ups marketing efforts amid Zika concerns By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net Tourism Minister Obie Wilchcombe said yesterday that his ministry was ramping up its marketing efforts to curb the tourism fall-out from Zika fears, with Canada already having issued a travel advisory on the nation. “One of the things I have seen is a trend of the traveling public, where pregnant women won’t travel and in fact they are seeking new residences in areas where there has been no Zika outbreak,” Mr Wilchcombe said. “We have to be reassuring the general traveling public that we are monitoring the situation, that we are mindful of the circumstances and ensure them that our Ministry and particularly the Ministry of Health is doing all it can to deal with the mosquito.” Mr Wilchcombe added: “It
“We have to be reassuring the general traveling public that we are monitoring the situation, that we are mindful of the circumstances and ensure them that our Ministry and particularly the Ministry of Health is doing all it can to deal with the mosquito.” Tourism Minister Obie Wilchcombe is imperative because people who come to your country want to have a sense of comfort that when they get here that they are not going to be affected. Our public relations and our marketing people are doing more to get the information out, issuing more statements and talking to our friends in the media to get the message out. The problem has always been that when we are marketing, if something is in New Providence, people say The Bahamas and think that it is eve-
rywhere. We have to point out exactly where and let the world know the islands that have not had any issues.” The Government confirmed there are now four Zika cases in New Providence. The Bahamas reported an initial case of the virus on August 10 in a male who had recently travelled to Jamaica. Officials have said that two of the three new cases were reported in women, none of whom are pregnant. Additionally, two of the cases were transmit-
ted locally. Officials have tested roughly 83 suspected cases of the Zika virus with just the four positive tests reported to date. Canada, a source market for tourists to this destination, has already warned pregnant women, and those planning on having children, to avoid traveling to the Bahamas. In advice that was posted last Friday on
the Canadian government’s official website, the Bahamas was added to the Public Health Agency of Canada’s list of countries to avoid as a result of the Zika virus. The Canadian government is “recommending that Canadians practice special health precautions while travelling in affected countries. Pregnant women and those considering becoming pregnant
should avoid travel to the Bahamas”. Last week, Taiwan’s Center for Disease Control (CDC) scaled up a travel alert level for The Bahamas over Zika fears. At least 67 countries, areas and territories worldwide, primarily in Latin America and the Caribbean region, have reported outbreaks of Zika virus infections.
Baha Mar ‘will add 2,200 badly needed rooms’ By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net Baha Mar, when opened, will add 2,200 “badly needed” hotel rooms according to Tourism Minister Obie Wilchcombe, noting that the development will provide a ‘tremendous spark’ in the tourism and travel industry. Prime Minister Perry Christie announced Tuesday night that construction on the stalled $3.5 billion Baha Mar project, which will be funded by the China Export Import Bank, is expected to resume next month. “I think the first thing that is going to happen is that it is going to set a spark off in the world; among the traveling public and within the tourism industry. You’re going
to see that spark and that interest,” said Mr Wilchcombe. “There will be many who will be seeking to get to The Bahamas so our airlift is going to be important. We have good airlift now but we will need more because we are talking about filling at least 2,200 hotel rooms. It’s going to add to our inventory which is badly needed. We are now at are 15,000 hotel rooms and the 2,200 will take us to 17,200. That is going to be good for us because overnight visitors help us grow our economy. “We need to see a sustainable growth in our economy, between five and seven per cent. Tourism is a direct way to do it. By getting more room inventory and getting more heads in beds it is going to create a tremendous spark and excitement,” said Mr Wilchcombe.
Damianos adds to realtor team Damianos Sotheby’s International Realty has added James A. Malcom to its Harbour Island, Eleuthera sales team. Mr Malcolm’s roots and family history date back nearly 70 years on Harbour Island, where his childhood was spent in and around his family’s hotel, the Pink Sands Lodge. He has specialised in luxury resort services, hospitality, tourism and real estate sales and development for more than 25 years. “Representing Damianos Sotheby’s International Realty in Harbour Island as a
full-time real estate professional is a natural transition for James,” said George Damianos, president of Damianos Sotheby’s International Realty. “His extensive knowledge of the Harbour Island community, combined with his impressive sales and marketing experience, enables him to offer invaluable assistance to our clients searching for their dream home in Harbour Island.” Damianos Sotheby’s International Realty has 10 offices located throughout the Bahamas in Abaco, Eleuthera, Exuma, Nassau,
James A. Malcom Paradise Island, the Ocean Club Estates, Lyford Cay, Old Fort Bay and private islands.
Markets rise following upbeat European business report
NEW YORK (AP) — U.S. and European stocks were solidly higher Tuesday, helped by a report out of Europe that showed businesses activity was expanding across the continent. Best Buy jumped after the electronics retailer reported a jump in sales.
day at an annual conference of central bankers in Jackson Hole, Wyoming. The Fed is not expected to raise interest rates at its September meeting but Yellen’s comments will be dissected for clues on the likelihood and timing of such a hike.
KEEPING SCORE: The Dow Jones industrial average rose 90 points, or 0.5 percent, to 18,620 as of 10:07 a.m. Eastern. The Standard & Poor’s 500 index rose 10 points, or 0.5 percent, to 2,192 and the Nasdaq composite rose 28 points, or 0.5 percent, to 5,272.
POWER ON: Best Buy jumped $5.05, or 16 percent, to $37.87 after the retailer reported results that beat analysts’ estimates. Notably Best Buy said sales in stores open at least a year rose in the latest quarter, a sign that the company’s turnaround strategy is working in the face of strong competition from Amazon and other online retailers.
EUROPE: A survey across the 19-country eurozone found that business expanded in August at a steady but subdued pace, a sign that companies were not overly worried about Britain’s decision to leave the European Union. The IHS Markit survey of purchasing managers reached a seven-month high. Germany’s DAX rose 1.1 percent, France’s CAC40 rose 1 percent and the U.K.’s FTSE 100 rose 0.8 percent. SUMMER LULL: Global markets were otherwise subdued as trading volumes were thin amid the summer holidays. Federal Reserve Chair Janet Yellen is due to speak Fri-
ENERGY: Oil prices fell again. U.S. benchmark crude fell 71 cents to $46.70 a barrel. Brent crude, used to price oil internationally, dropped 59 cents to $48.56 a barrel. CURRENCIES: The dollar slipped to 100.07 yen from 100.29 yen late Monday. The euro edged up to $1.1328 from $1.1323. BONDS: U.S. government bond prices rose. The yield on the benchmark 10-year Treasury note fell to 1.53 percent from 1.54 percent.
THE TRIBUNE
Wednesday, August 24, 2016, PAGE 3
Ex Baha Mar director: Govt going ‘all in’ with Chinese is a bad move By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribuemedia.net An ex-Baha Mar director said yesterday that while getting the stalled Baha Mar development going again is positive news, going “all in” with the Chinese would be a bad move long term. Dionisio D’Aguilar told Tribune Business: “Long term I don’t think that’s healthy. You have a Chinese company controlling Cable Beach, a Chinese
company controlling a big project on Bay Street and a large portion of your GDP being controlled not by an independent western styled company but by a foreign government that doesn’t operate in the same democratic norms that we do. For them to go all in with the Chinese and kick Sarkis Izmirlian to the road is a bad move long term.” His comments came on the heels of a major announcement by Prime Minister Perry Christie Tuesday night that construction on the stalled $3.5 billion
Baha Mar project which will be funded by the China Export Import Bank and is expected to resume next month. “On the positive side, it is great that he has agreed to get the contractors paid by the Chinese. Clearly the question is, ‘what did we have to give?’ The Chinese are not just paying that $70 plus million dollars. I don’t know what they had to give up,” said Mr D’Aguilar. “Another positive is that at least it is moving again. I don’t think it is the right contractor or developer.
This was Sarkis Izmirlian’s dream. He started the project, he was passionate about it and knew where to go and now you have the bank as the developer and a contractor notorious for missing deadlines and shoddy work. I don’t think from that perspective they are the right people to run it. The Government has gone all in with the Chinese,” he added. Mr Christie said Tuesday night that the Government will extend appropriate concessions to facilitate the construction and promote
the successful future operation of the resort. “The completed project will then be sold to a qualified world-class operator,” said Mr Christie, although no details were given on who the new operator could be. Mr D’Aguilar noted: “Mention was made of a world class operator and I’m almost certain it’s going to be a Chinese company. If you do the math, they have $2.5 billion in it now, they’re probably going to have another $500-$700 million completing the pro-
Government ‘relieved’ at Moody’s rating BY NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net
State Finance Minister Michael Halkitis
State Finance Minister Michael Halkitis said yesterday the Government is “relieved” that credit ratings agency Moody’s had decided to only downgrade The Bahamas’ rating by a single notch, from Baa2 to Baa3, noting that economic developments over the next 12-18 months should improve the nation’s outlook. “In all the circumstances we are relieved that we only went down one notch. “It’s important because we maintain our investment grade. The second important aspect of this is we get a stable rating which means that
for the next 18-24 months we should maintain this rating barring any unforeseen circumstances,” said Mr Halkitis. The Ministry of Finance had said in a statement Tuesday that, although the Government is disappointed in Moody’s decision, the country’s credit risk remains investment grade, and that the rating agency, by its stable outlook assessment, “acknowledges that the economic developments underway stand to enhance the resilience of the Bahamian economy”. “Traditionally you have 18 months to two years before they do a review barring any sort of calamitous event and so what that means is that within that time you would have a Baha
Luxury Paradise Island residences are now open
Replay Destinations (Bahamas) Ltd has announced the public opening of One Ocean luxury oceanfront condominium residences on Paradise Island. Replay recently unveiled a limited number of completely reimagined condominium and penthouse residences and stunning common areas overlooking Nassau Harbour and the Caribbean sea. At the end of the weekend One Ocean had secured over $34 million in overall sales commitments for the residences. In 2015 Replay acquired all 52 unsold residences in the 79unit building at the former Ocean Place condominium development on Paradise Island. Following acquisition, Replay began work on a multimillion dollar redesign and transformation of the residences and the common areas. As part of the transformation, Replay teamed with acclaimed Montreal-based interior designer Patty Xenos Design and Andrew
Stirling, Bahamian architect, to create brand new floorplans with modern and luxurious interior design concepts that differentiate One Ocean in the market and capitalise on the views and spacious outdoor living areas of the residences. The design team also created a more private and intimate arrival, courtyard and pool deck experience for owners and guests. According to Michael Coyle, CEO of Replay Resorts, the sales success of One Ocean reinforces that there is significant real estate buyer interest for thoughtfully designed residences in the Bahamas, and particularly in Nassau. “We saw the acquisition of these condominiums as a tremendous opportunity to create residences at a destination that has strong appeal for real estate buyers. One Ocean’s location on Paradise Island is ideal – fronting Nassau Harbour, adjacent to Ocean Club, across from One and Only, and within walking distance to both the beach and Atlan-
tis,” said Mr. Coyle. “This initial sales success demonstrates strong interest from real estate buyers who want a home on Paradise Island and are pleased with what we’ve done with One Ocean to make it a great place to live.” As the tallest residential building on Paradise Island, One Ocean offers tremendous views in all directions over Nassau Harbour, across the Ocean Club golf course, and toward the Atlantis Resort. “We’ve had a very large local construction team onsite for the past six months. Their hard work has taken us to this point,” said Bill Green, Managing Director, Replay Destinations (Bahamas). “Their dedication and intense work in the transformation of the residences is being rewarded with positive comments from everyone who visits One Ocean, and the new buyers we are welcoming as homeowners.” Three model residences at One Ocean are now open daily for viewing.
Mar remobilised, hopefully reopened and some of the other investment projects up and running, creating employment and contributing to the economy,” Mr Halkitis said. The international credit rating agency maintained the Bahamas’ ‘investment grade’ status at the lowest possible level, downgrading its creditworthiness by one notch from ‘Baa2’ to ‘Baa3’ - but that was as bad as it got for the Government. This implies that the Bahamas faces no prospect of a further Moody’s downgrade in the short to medium term, with the rating agency saying it expected both the $6.778 billion national debt and economic growth to “stabilise” within the next two years.
Dionisio D’Aguilar ject. If they are expecting to be repaid in full then I can’t think of a company in the western world that would buy that company for that amount.” Mr D’Aguilar also noted that remobilisation at Baha Mar will take some time, adding that the new operator to would need time to brand the hotel, market it, as well as hire and train staff for a reopening.
PUBLIC NOTICE Would the owner of a white 30ft homemade fiberglass hull boat located in Drigg’s Hill South Andros, on Lot #1 of Flowers Estate please contact Percitta Knowles at 369-1466/4710981./369-4569 in reference to removing said item. Storage fee @ $150.00 will be charged everyday for duration of Notice and thereafter. If no contact is made, the owner of the property reserves the right to dispose of the boat. Whether it be by removal of the boat from the property or sale of the boat for all cost incurred.
PAGE 4, Wednesday, August 24, 2016
THE TRIBUNE
Bran ‘concerned’ taxpayers to fund Baha Mar payouts FROM PAGE ONE whether it was a ‘good deal’ for the Bahamas and local creditors. “The devil is in the detail, and we certainly don’t have sufficient details right now,” Mr McCartney told Tribune Business, adding that he was “very concerned about” the amount of tax and other investment incentives granted to the two state-owned Chinese entities. He suggested that they would have demanded such concessions in return for compensating Bahamian creditors, meaning that payments to the latter would effectively be financed from tax dollars that will never reach the Public Treasury. “There’s no doubt about that. That is probably what is going to happen,” said Mr McCartney. “The Prime Minister was talking about the fact that Baha Mar employees will receive the monies owed to them... If they say they are going to pay the workers, that money is going to come from the monies the Chinese construction company and bank will not pay as taxes.” Tribune Business, though, was assured by sources familiar with the terms of the Government’s agreement with the China Export-Import Bank that the burden for compensating Bahamian creditors will not ultimately be placed upon the Public Treasury and taxpayer (see other ar-
ticle on Page 1B). This newspaper was told specifically that the investment incentives being granted for Baha Mar’s construction completion are no greater in sum, or extent, than what the Government would normally grant for a resort development of this size. Prime Minister Perry Christie on Monday night said China Export-Import Bank, Baha Mar’s $2.5 billion secured creditor, had agreed to finance the project’s construction completion. CCA will resume its role as the main contractor following construction remobilisation, with the company having agreed to “resolve” outstanding sums due to its sub-contractors and suppliers for work completed on Baha Mar. In return, the Prime Minister added that the Government will “extend appropriate concessions, to facilitate the construction and promote the successful future operation of the resort”. However, the absence of financial figures and specific details has already created much scepticism about the nature of the agreement between the Government and the bank, and whether it will actually deliver what the Prime Minister is promising. Echoing those concerns, Mr McCartney said he was “amazed” that CCA had been re-engaged to complete Baha Mar, given the
Prime Minister Perry Christie pictured during his national address on Baha Mar. previous concerns and allegations regarding the quality of its previous work at the $3.5 billion project. Many observers believe that CCA bears significant responsibility for the impasse that resulted in Baha Mar’s Chapter 11 bankruptcy protection filing last June, but the company now appears set to earn further millions while escaping accountability for previous actions. “I think the real winner in this is the Chinese construction company,” Mr McCartney told Tribune Business of CCA. “We know they are going to be the ones to finish the work. “They are the ones who are probably going to get up to probably $1 billion for more work, in addition to what they’ve been paid already. “The ironic part about this is that this is the same
company that allegedly did the shoddy workmanship in the first place.” CCA has vehemently refuted and denied such claims, first made by Baha Mar’s original developer, Sarkis Izmirlian, and instead blamed the latter’s actions for the project’s demise. However, Mr McCartney continued: “They [CCA] have not paid Bahamian contractors and workers, and now have another bite at the apple. “It amazes me that this construction company has another bite at the apple again. CCA failed to meet its own self-imposed deadlines [for completing Baha Mar] twice before, and we’re still wanting, giving the work to this construction company to do it again? It’s a farce. “This is the same company that, after they did work at Baha Mar that was
N O T I C E
NOTICE
EXXONMOBIL EXPLORATION AND PRODUCTION NORTH AFGHANISTAN LIMITED _____________________________________ N O T I C E IS HEREBY GIVEN as follows:
EXXONMOBIL EXPLORATION AND PRODUCTION NORTH AFGHANISTAN LIMITED ____________________________________________
(a) EXXONMOBIL EXPLORATION AND PRODUCTION NORTH AFGHANISTAN LIMITED is in dissolution under the provisions of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 22nd day of August, 2016 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is R.W. Rice, of 22777 Springwoods Village Parkway, Spring, Texas 77389, U.S.A.
Dated the 24th day of August, A.D., 2016.
HARRY B. SANDS, LOBOSKY MANAGEMENT CO. LTD. Registered Agent for the above-named Company N O T I C E
NOTICE
EXXONMOBIL EXPLORATION AND PRODUCTION INDONESIA (ARAFURA) LIMITED ________________________________________________ N O T I C E IS HEREBY GIVEN as follows: (a) EXXONMOBIL EXPLORATION AND PRODUCTION INDONESIA (ARAFURA) LIMITED is in dissolution under the provisions of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 22nd day of August, 2016 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is R.W. Rice, of 22777 Springwoods Village Parkway, Spring, Texas 77389, U.S.A.
EXXONMOBIL EXPLORATION AND PRODUCTION INDONESIA (ARAFURA) LIMITED ____________________________________________ Creditors having debts or claims against the above-named Company are required to send particulars thereof to the undersigned c/o P.O. Box N-624, Nassau, Bahamas on or before 20th day of September, A.D., 2016. In default thereof they will be excluded from the benefit of any distribution made by the Liquidator. Dated the 24th day of August, A.D., 2016.
HARRY B. SANDS, LOBOSKY MANAGEMENT CO. LTD. Registered Agent for the above-named Company
R.W. Rice Liquidator 22777 Springwoods Village Parkway Spring, Texas 77389 U.S.A.
NOTICE
N O T I C E
Dated the 24th day of August, 2016
EXXONMOBIL EXPLORATION AND PRODUCTION JORDON LIMITED ____________________________________________ Creditors having debts or claims against the above-named Company are required to send particulars thereof to the undersigned c/o P.O. Box N-624, Nassau, Bahamas on or before 20th day of September, A.D., 2016. In default thereof they will be excluded from the benefit of any distribution made by the Liquidator. Dated the 24th day of August, A.D., 2016.
R.W. Rice Liquidator 22777 Springwoods Village Parkway Spring, Texas 77389 U.S.A.
mian contractors and other local creditors “to recover a significant portion, and possibly all”, of the monies owed to them. Again, no details were provided on when payments would be made, how much and by whom to the Bahamian unsecured creditors. “If you look at what the Prime Minister said, it was really nothing, because it was an agreement for an agreement,” Mr McCartney told Tribune Business. “All this pomp and pageantry by the Prime Minister, it was a show. “This was a typical Christie show to deflect and politick at the same time.” The DNA leader suggested the Baha Mar announcement was timed to deflect public attention away from Moody’s downgrade of the Bahamas’ creditworthiness, plus the revived Renward Wells Letter of Intent (LOI) saga.
Creditors having debts or claims against the above-named Company are required to send particulars thereof to the undersigned c/o P.O. Box N-624, Nassau, Bahamas on or before 20th day of September, A.D., 2016. In default thereof they will be excluded from the benefit of any distribution made by the Liquidator.
R.W. Rice Liquidator 22777 Springwoods Village Parkway Spring, Texas 77389 U.S.A.
Dated the 24th day of August, 2016
not up to code, then turned around and started work at The Pointe,” the DNA leader added. “To me, it seems that CCA has their foot on this government’s neck.” Mr McCartney said the Prime Minister had also “failed to answer” who Baha Mar’s potential purchasers might be, other than to say the Government had agreed with the China Export-Import Bank that it should be a “world class hotel and casino operator”. The DNA leader also questioned whether the agreement was putting “the cart before the horse” in completing Baha Mar’s construction before selecting a buyer, given that the latter would likely want to choose its own contractor and design specifics. In unveiling the agreement with the Chinese, Mr Christie said “funds will be made available” for Baha-
EXXONMOBIL EXPLORATION AND PRODUCTION MYANMAR LIMITED ________________________________________________ N O T I C E IS HEREBY GIVEN as follows: (a) EXXONMOBIL EXPLORATION AND PRODUCTION MYANMAR LIMITED is in dissolution under the provisions of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 22nd day of August, 2016 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is R.W. Rice, of 22777 Springwoods Village Parkway, Spring, Texas 77389, U.S.A. Dated the 24th day of August, 2016 HARRY B. SANDS, LOBOSKY MANAGEMENT CO. LTD. Registered Agent for the above-named Company
N O T I C E EXXONMOBIL EXPLORATION AND PRODUCTION JORDON LIMITED ________________________________________________ N O T I C E IS HEREBY GIVEN as follows: (a) EXXONMOBIL EXPLORATION AND PRODUCTION JORDON LIMITED is in dissolution under the provisions of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 22nd day of August, 2016 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is R.W. Rice, of 22777 Springwoods Village Parkway, Spring, Texas 77389, U.S.A. Dated the 24th day of August, 2016 HARRY B. SANDS, LOBOSKY MANAGEMENT CO. LTD. Registered Agent for the above-named Company
NOTICE EXXONMOBIL EXPLORATION AND PRODUCTION MYANMAR LIMITED ____________________________________________ Creditors having debts or claims against the above-named Company are required to send particulars thereof to the undersigned c/o P.O. Box N-624, Nassau, Bahamas on or before 20th day of September, A.D., 2016. In default thereof they will be excluded from the benefit of any distribution made by the Liquidator. Dated the 24th day of August, A.D., 2016. R.W. Rice Liquidator 22777 Springwoods Village Parkway Spring, Texas 77389 U.S.A.
THE TRIBUNE
Wednesday, August 24, 2016, PAGE 5
Contractors not joining ‘celebration bandwagon’ over Baha Mar deal yet with Baha Mar that we might not get anything or cuss the matter and see how something out of it. it could obtain the neces“I think everyone now sary details. has very high expectations. Meanwhile, Larry Treco, This situation with Baha President of CGT Contrac- Mar has put a lot of compators & Developers, told nies in trouble financially. Tribune Business he had Hopefully, if this works out, been promised that con- it will make a big difference tracts between Bahamian in the year and whether a contractors and Baha Mar’s company makes it or not. main builder, China Con- We have had to settle all of struction America (CCA), our bills locally although would be honoured and we weren’t paid.” paid. Mr Treco added: “The However, he suggested big thing is that most of the that those hired and con- contractors are owed large tracted by the former devel- sums of money, and if this oper, Baha Mar, may only agreement does turn out to receive a partial payment be what the Prime Minster - or possibly nothing at all. said, then that is good news. Mr Treco said: “I hope “Most contractors felt we all get paid fully. They that they would have to are promising that any take a big loss or possibly contracts that we had with lose everything if someChina State Construction thing didn’t happen, and (CCA) would be honoured; they would have to sue it’s just the ones directly China State Construction FROM PAGE ONE
LEONARD SANDS
(CCA). “That could have been a long, drawn-out process. I think everyone was biding their time based on the promises that the Government had made to try and get things sorted out. What we have heard is very good news. We will see if it turns out that way.”
‘Ball in our lap’ to avoid further Moody’s action FROM PAGE ONE notwithstanding our efforts, they had made their minds up. Moody’s downgraded the Bahamas’ sovereign credit rating from ‘Baa2’ to ‘Baa3’ on Monday, leaving this nation hovering precariously one notch above so-called ‘junk bond’ status. It based its action on a combination of the Bahamas’ consistently low GDP growth rates, which had left it with ‘weak economic strength’, and the continued increase in the $6.778 billion national debt despite the Government’s fiscal consolidation initiative. However, this nation was able to maintain its ‘investment grade’ status despite the downgrade, while Moody’s indicated that further cuts are unlikely in the short to medium-term by upgrading the Bahamas’ outlook to ‘stable’. Still, this nation is now just one notch away from ‘junk’ status with both Moody’s and its fellow rating agency, Standard & Poor’s (S&P), which has this nation in a six-24 month window where there remains a ‘one-in-three’ chance of another downgrade. Mr Sumner said the Government and private sector needed to respond proactively in addressing the economy’s structural weaknesses if the Bahamian economy was to avoid a ‘junk’ downgrade by either rating agency. “This ball now falls squarely in the lap of the Bahamas to respond properly, and show we’ve got a plan of action that can be effective and positive and get us out of where we are now,” he told Tribune Business, “and take us to another level where the private sector and the Government can build upon it to create a vibrant economy for all of us. “It’s how the Bahamas chooses to respond to it [the downgrade]. We can be defensive and say it should not have happened, but the more valuable response is to say we know what the key economic weaknesses are, that we have put policies and procedures in place to address those challenges, and have a real plan of action to get the country out of the situation it is in.” Mr Sumner said the ‘medicine’ required
included tackling the Government’s continual deficit spending; reducing unemployment and increasing job opportunities; improving the investment climate to attract “more qualified” foreign investors; boosting skill and productivity levels in the labour force; enhancing the ‘ease of doing business’; stimulating entrepreneurship and small business creation; and improving transparency and accountability in government. “We can see we have work to do,” conceded the Chamber chief executive, as he renewed calls for greater collaboration between the Government and private sector to address these issues and devise solutions. He added that if such a partnership could be established, and progress in addressing the economy’s structural challenges made, this - combined with recently-announced progress at Baha Mar - should ensure more favourable assessments from Moody’s and S&P the next time. “I’m sure that when they do their assessments again, there will be a more positive outcome coming from them,” Mr Sumner told Tribune Business. “I’m quite sure that when Moody’s and S&P do their assessments of the credit rating in the next three to six months, they’re going to take developments at Baha Mar into account and offer a more positive opinion on the outlook.” Mr Sumner, though, reiterated that Baha Mar was “not the only story in the country and we need to look beyond that”. Recalling that the Chamber had felt it was unwise to “put all the eggs of the Bahamian economy into one basket”, he added that Moody’s improved outlook on this nation’s prospect backed his belief that it had “hit the bottom of the economic barrel and is on the bounce to recovery”. “The position of Moody’s report holds true the statement I made several weeks ago that the economy has hit the bottom of the barrel, and is on the bounce,” Mr Sumner said. “The fact they’ve given a stable outlook means they see the economy of the Bahamas as being on the rebound as well. But it may take a while for many of us on the ground to feel it.”
NOTICE
This Public Notice is issued by the Utilities Regulation and Competition Authority (URCA) in exercise of its powers under section 38(3)(c) of the Electricity Act, 2015 (EA). URCA hereby notifies the public that ALL persons, licensees or franchise holders in the Electricity Sector (ES) in The Bahamas, or those involved in the generation, transmission, distribution, importation or exportation of electricity are required to obtain a licence from URCA unless exempt under the EA. Under section 22 of the EA, URCA was established as the independent regulator for the ES in The Bahamas and has the regulatory responsibility to grant a licence with terms and conditions consistent with the national energy and electricity sector policies, as URCA considers appropriate. URCA requests that ALL persons, licensees or franchise holders in the ES, and those involved in the generation, transmission, distribution, importation or exportation of electricity in The Bahamas to contact URCA at its office either at telephone number (242) 396-5211 or email info@urcabahamas.bs or visit its offices situated at Frederick House, Frederick Street, New Providence no later than September 30, 2016 to the end of becoming duly licensed under the EA. URCA hereby advises that, pursuant to section 44(2) of the EA, any person who engages in the generation, transmission, distribution, importation or exportation of electricity without a licence granted by URCA commits an offence and is liable on conviction to a fine not exceeding Five Hundred Thousand Dollars ($500,000.00).
Mr Treco was among the contractors paraded before the TV cameras on Monday night to praise the Prime Minister and the Government for the agreement struck with China Export-Import Bank, Baha Mar’s $2.45 billion secured creditor, to complete the project’s construction and compensate the unsecured Bahamian creditors. However, another who hailed the deal on TV, exBCA president Godfrey Forbes, told Tribune Business that contractors knew no more than what the Prime Minister read out before the cameras. “What you heard on the airwaves is exactly what we were informed,” Mr Forbes said, adding that contractors had “absolutely not” been given details - either specific figures or percentages - of how much they would receive, and when. Echoing Mr Sands, his successor, he added: “It’s kind of a wait and see thing.” Mr Forbes also revealed that the appearance of private sector executives at the press conference was “a last minute deal”, and that he
had to personally “scramble” to be there for 7.30pm, after only receiving a call to attend at 5pm Monday afternoon. All this suggests that the Baha Mar agreement announcement was carefully orchestrated, and the private sector representatives present were playing to the Prime Minister and government’s lead in the absence of specific details. Mr Sands, meanwhile, said he and the BCA wanted to make no public statement on the Government’s agreement with the Chinese until they knew “what all this means, and what’s going to happen”. Mr Christie said CCA, as part of the terms, “will resolve outstanding claims with its suppliers and subcontractors”. And “funds will be made available to enable” the thousands of unsecured Bahamian creditors “to receive a significant part, and possibly all, of the value of their claims”. Mr Sands said that based on the Prime Minister’s remarks, “the range is so vast” in terms of what Bahamian contractors could
receive, stretching from a minimal sum to all of what was due. “We don’t want to join this bandwagon of celebration yet because there may not be anything there,” Mr Sands told Tribune Business. “We can only go by what the Prime Minister said, but we’re being cautious to wait for more information, so we can report to the members accurate stuff to take to the bank - 60 per cent, 70 per cent or all of their money. “We want to be cautious. I think the details exist, but they are something that’s going to have to be found out by pressing persons more closely involved with it.” Construction completion at the stalled $3.5 billion Baha Mar project will be funded by the China Export-Import Bank, and is expected to resume next month. Mr Christie said many of the Bahamian contractors and companies previously contracted to work on Baha Mar will likely be re-hired to help complete the project.
PAGE 6, Wednesday, August 24, 2016 FROM PAGE ONE though, that Baha Mar’s receivers are still meeting with and talking to interested parties, having previously reduced the ‘preferred bidder’ field to a two-strong shortlist. One of those groups featured Lyford Cay billionaire, Joe Lewis’s, Tavistock Group, the developer of the $1.4 billion Albany project, while the other is thought to have been a Chinese-led consortium. Dionisio D’Aguilar, a former Baha Mar director, yesterday expressed concern that the China Export-Import Bank would merely add the construction financing and other costs to the price it is seeking from buyers, taking this to between $3.2-$3.5 billion. He suggested this would make it “incredibly hard” to sell Baha Mar, given that few investors would be willing to make such an outlay, which indicated that the China Export-Import Bank might seek to own the project postopening and engage hotel and casino operating partners. But the bank’s thinking, and that of its Deloitte & Touche receivership team, was also influenced by the knowledge that further delays to Baha Mar’s com-
Baha Mar creditors: Over 90 per cent to be paid pletion would only lead to continued devaluation of the resort assets, plus create more harm for the Bahamian economy. The Government was yesterday attempting to keep details of its Supreme Courtapproved construction completion agreement with the China Export-Import Bank a secret, with the absence of specifics in Prime Minister Perry Christie’s announcement generating much scepticism about whether what is promised is for real. While hailing the announcement as “positive news”, Edison Sumner, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, said the private sector needed to know specifics. “It’s certainly headed in the right direction,” he told Tribune Business, “but we do not know the details of this agreement, the terms negotiated, and that’s when the rubber hits the road.” However, sources familiar with the agreement assured Tribune Business that the deal was “substantial”, and
that Bahamian contractors and other unsecured creditors would “do quite well” in terms of receiving compensation owed to them. This newspaper was told that more than 90 cent of creditors would be paid, and that a specific structure - including a committee that will oversee the payment process - will be created. Unsecured Bahamian creditor claims will be dealt with via a ‘pool’ system, it is understood, with those owed $500,000 or less to be dealt with first. “The big issues have been agreed,” one source, speaking on condition of anonymity, told Tribune Business. “It’s not pie in the sky.” Acknowledging public concerns about the absence of details in the Prime Minister’s speech, they said the agreement between the Government and the China Export-Import Bank had to be “nailed down” and “fleshed out” properly if the deal was to obtain Justice Ian Winder’s approval. “The document is fairly extensive in order to get the court’s approval,” the source
said. “It did have to be fleshed out quite specifically. It’s not a kind of ‘high level’ Heads of Agreement and you have tonnes of things to sort out. “Most of this thing had to be nailed down before the court would approve it. It’s a substantial agreement, and more fleshed out than just a general Heads of Agreement because the court needed more. Otherwise, it wouldn’t have been able to approve it.” The source acknowledged, as did the Prime Minister, that several details regarding the agreement remained to be worked out, such as “mechanisms for how it’s going to work” and be executed in practice. “Implementation is going to be critically important,” they added, with the China Export-Import Bank now having to set the plan in motion and make funding available. The source also suggested that the sums received by Bahamian contractors and other unsecured local creditors would be determined on an individual basis, and vary between firms depending on the nature of their contracts and other circumstances. “They are going to do quite well,” the source said of the Bahamian creditors. “The overall mechanism, structure
THE TRIBUNE
and funding has been put in place. “Individual deals, settlements and compromises have to be worked out with individual contractors. “It’s certainly all being worked out. “It’s been a long time, and a lot of people have suffered, but when it all comes out I think people will see it’s a pretty fair deal.” Tribune Business was also told that the cost to complete Baha Mar was “not going to be less” than the $600 million previously quoted by the Prime Minister, and the combined price tag for this, CCA’s remobilisation, and creditor compensation would be “a huge figure” anywhere between that number and $1 billion. Bahamian contractors are said to be owed a collective $74 million for work completed on the Baha Mar project, while trade creditors were out a total $123 million when Baha Mar filed for Chapter 11 Bankruptcy protection in June 2015. Mr Christie’s announcement was short on details in terms of creditor compensation - in particular how much they would each be paid, when, how and by whom. He said China Construction America (CCA), Baha Mar’s main contractor, would “resolve outstanding claims with sub-contractors and suppliers”, while “funds will be made available” for Bahamian contractors and other local creditors “to recover a significant portion, and pos-
sibly all”, of the monies owed to them. The Prime Minister promised that more details on the Government’s agreement with the China Export-Import Bank will be released shortly, as he acknowledged that much paperwork relating to the deal still had to be completed. He said “many of the people and companies” previously hired to work on Baha Mar as sub-contractors would be re-engaged to complete the project, while the Government and its corporations, such as Bahamas Power & Light (BPL), will “recover some of their outstanding claims against the Baha Mar companies”. Significantly, the agreement also includes compensating Baha Mar’s former employees, including the 2,000 staff made redundant last November. Mr Christie said they would receive outstanding salaries, severance and accrued vacation pay, while sums deducted from their salaries and pension contributions will be repaid. Tribune Business sources, meanwhile, said it was “not largely the case” that creditor payments would be financed through the Public Treasury and Bahamian taxpayer, via the investment incentives granted to the Chinese. Tribune Business was told these were no greater, in either sum or extent, than the incentives normally granted to resort developments of a similar nature.
Moody’s backs IMF over $100m fiscal deficit overshoot
FROM PAGE ONE
analysis, Moody’s added: “We expect that the current fiscal consolidation process will continue to take place, albeit at a slower pace than that envisaged in the 2016-2017 Budget. “Government interest payments relative to revenues have also increased to an estimated 13.5 per cent in 2015-2016 from less than 10 per cent in 2007-2008, suggesting a somewhat limited fiscal space compared with that of most peers. “Given the gradual economic recovery, we forecast that the government’s debt-to-GDP ratio will continue rising through 2016-2017 and stabilise thereafter as the fiscal deficit continues to decline.” While the Bahamas’ fiscal risks were offset by its “captive” domestic investor base, and relatively favourable debt maturity profile, Moody’s also noted the economy’s low average 0.2 per cent growth rate over the past four years. It forecast that the Bahamas’ GDP growth will be just 0.3 per cent this year, and 1 per cent in 2017, although it appeared not to be aware yet of the Government’s agreement with China for the construction completion of the $3.5 billion Baha Mar resort. “Over the medium term, structural rigidities in the energy sector and labour market, as well as impediments to the ease of doing business, may constrain growth to rates closer to 1.5 per cent,” Moody’s added. “While authorities have implemented some measures to address these issues, and have put forward a pro-growth reform agenda via the National Development Plan, progress has been slow so far.” The rating agency added that it expected “the Bahamas’ economic performance over the next five years will likely remain subdued, and constrained by structural rigidities. “While we forecast that the Bahamian economy will recover in 2016-2020, we expect real GDP growth to average 1.3 per cent during this period, the fourth weakest economic performance out of the current 22 ‘Baa- rated sovereigns,” it said.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, Annie Culmer a.k.a Annie M. Taylor, Betty Anniemae Patterson and Anniemae Culmer of #616 Crystals Boulevard, Winter Haven, Florida 33884, United States intend to change my name to Annie CulMer. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.
NOTICE
NOTICE is hereby given that JEAN SEME JOSEPH of Mastic Point, Andros, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 24th day of August, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that INAVIE SIMILIEN WARD of # 83 Wild Palm Close, Sunset Subdivision, Freeport, Grand Bahama Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 24thday of August, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that JUDITH DESOGUSTE of Milton St., New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 24th day of August, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.