dustrial Company Ltd., the Government is
to take the necessary measures to grant
the expiring concessions to these companies, their existing affiliates, subsidiaries and
joint venture companies in like terms for a
period of twenty years, commencing 4th
May, 2016.
We are also taking steps to address an important inhibitor to development in Grand
Bahama. The lack of any taxes or carrying
costs of undeveloped land mean that property holders can simply sit on undeveloped
land without recourse. To address this situation, and enhance the revenue base in Freeport, we intend to create a new framework
where real property tax would be payable
on undeveloped land held by non-Bahamians owning more than five acres.
[28]
2016/2017
DRAFT
ESTIMATES
OF REVENUE &
EXPENDITURE
A Bill will be presented for consideration
by Parliament to give effect to these new
measures. My Government will during the
next fiscal year work to implement these
bold initiatives with the objective of ensuring that Freeport and Grand Bahama realizes the full economic benefits for many
years to come.
Mr. Speaker,
I would now like to address the issues relative to the Baha Mar project. Members
and all Bahamians will recall that it was,
without notice to the Government of The
Bahamas, on the 29th June of last year that
the Baha Mar Group of Companies filed
a Chapter 11 Bankruptcy motion in the
Bankruptcy Court for the District of Delaware by Northshore Mainland Services
Inc. The Court in Delaware heard the
Baha Mar Debtors’ first-day motions and,
without any of the creditors or interested
parties in attendance, granted two main
orders on an interim basis. Mr. Speaker,
Baha Mar then sought to have the Chapter 11 Orders recognized in the Supreme
Court of The Bahamas, which my Government vigorously resisted. We wanted to
ensure that any determinations in a matter
of this magnitude and with a possible impact on the sovereign rating, the economy
and the people of The Bahamas be made
by a court in The Bahamas.
Mr. Speaker much has transpired since that
date, including:
i. the winding up petition filed in The Bahamas by the Government, together with
related government agencies and statutory
corporations, as the second largest creditor of the Baha Mar Group of companies
and the largest unsecured creditor;
ii. the appointment of Joint Provisional
Liquidators by the Supreme Court of The
Bahamas;
iii. Mr. Raymond Winder of Deloitte and
Touche (Bahamas) and two Hong Kong
based partners of Deloitte and Touche
being appointed as the Receiver Managers
by the China Export Import Bank, the secured creditor; and
iv. The global sale process initiated by the
Receiver Managers for sale and realization
of the Baha Mar assets.
Mr. Speaker,
The Baha Mar project is of such significant
importance to the people and economy
of The Bahamas and to our sovereign rating. Its early remobilization and completion
is an important matter that must be addressed by my Government in the presentation of this Budget Communication.
At all times, the Government has upheld
the interest of the Bahamian people and,
as Members and Bahamians will be aware,
I have been personally involved in every
effort to achieve the early remobilization
and completion of the project, which remains a very high priority for me and my
Government. From day 1, I have remained
resolute and made it abundantly clear that
a solution, i.e. the early remobilization and
operation of the project, must provide for
the satisfaction of the legitimate interests
of Bahamian sub-contractors. Nothing will
distract my Government from providing
for jobs and entrepreneurial opportunities
for the Bahamian people.
There is no doubt that all of the stakeholders have suffered losses as a result of the
unfortunate actions taken with respect to
Baha Mar. We also appreciate that, legally,
there is but one secured creditor, which is
the Eximbank. However, the Government
must, in advocating for its citizens, seek to
protect their interests. That, Mr. Speaker, is
the reason why we sit in these hallowed
halls.
The third and final aspect concerning the
remobilization of the Baha Mar project
relates to the status of the global tender
process that is being carried out by the
Receiver Managers on behalf of the Eximbank. My Government has been advised
that the first round of bids has just closed
and that there are a number of good and
reputable investors who have shown interest in the project. These investors will be
evaluated.
It must be borne in mind that this ongoing process is being carried out under the
supervision of the Supreme Court. Therefore, these matters are subject to confidentiality and, as such, only limited information may be shared. It is hoped that
the selected investor could be determined
shortly and submitted for the necessary
Government approval.
Mr. Speaker,
The Receiver Managers have confirmed
that CSCEC and CCA Bahamas are still
under contract to finish construction of
the project, and, EXIM, CSCEC and CCA
Bahamas have committed to continue to
work closely with the Bahamian Government with a view to seeing the Baha Mar
resort project through to 100% completion, opening and successful operation, so