Facebook Twitter 新浪微博 google plus Instagram YouTube Tuesday 21 July 2015

Bahamas Government Plans to Reinitiate Billion-Dollar Chinese Project

By Luxiao Zou (People's Daily Online)    03:42, July 21, 2015

Baha Mar Resort project, the biggest overseas investment of the China State Construction Engineering Corporation (CSCEC), is now suffering.

$3.5 billion has been invested in the Baha Mar project. However, after six years of constantly putting off the opening date, the project is faced with reorganization.

According to a Reuters's report on July 17, Bahamas Prime Minister Perry Chirstie says that the construction must be completed and resort must be opened, and that the Bahaman government has placed the project under the control and supervision of the Bahaman Supreme Court for liquidation. The goal is to reinitiate the project with new reorganization plan as soon as possible.

The project is crucial to Bahamian economy: 5,000 new jobs will be created and the project will contribute to 10 percent of economic growth in the Bahamas within the next ten to twenty years, says the Prime Minister.

Baha Mar has been stopped for a while during the financial crisis, but the $0.15 billion investment from CSCEC, who overtook the project as prime contractor since, and the $2.5 billion loan from Exim, breathed new life into it again in 2010, according to Wall Street Journal.

The negotiation between CSCEC and Baha Mar Ltd., major stockholder of the Baha Mar project, proved a failure. Baha Mar Ltd. applied for bankruptcy and blames CSCEC for stopping construction, fraud, and purposeful destruction. However, the CSCEC announced on July 7 that Baha Mar Ltd. withheld $0.14 billion and that their organization was a total chaos.

The Prime Minister acknowledged and appreciated CSCEC's "sincerity and flexibility" in the negotiation.

The results of the multi-party negotiation remain to be seen. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor:Tian Li,Bianji)

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