Govt already paid $30 mil. for new West Bay Street

The Nassau Guardian

Govt already paid $30 mil. for new West Bay Street

The Christie administration has paid the developers of Baha Mar more than $30 million over the past year to cover the government’s portion of costs for roadwork associated with the development, The Nassau Guardian understands.

However, when asked about this yesterday, Robert Sands, Baha Mar’s senior vice-president of administration and external affairs, would not reveal exactly how much the government has paid on the debt.

However, he did tell reporters that the Christie administration has paid more than 50 percent of the $48.3 million owed.

“The reality is that there is an obligation to [pay] a finite amount but amounts have been paid on [the] account for over a year,” Sands said on the sidelines of a shop steward conference hosted by the Bahamas Hotel Catering and Allied Workers Union.

“The government has made in excess of 50 percent payment on that outstanding [amount],” he added.

For the past few months, the government has been negotiating with Baha Mar over whether it has to pay the full amount for road work associated with the project.

Earlier this month, Minister of Works Philip Brave Davis said government negotiators verified that the developers spent more than $100 million for the rerouting of West Bay Street.

At the time he added that Cabinet now has to agree to the final amount the government will pay for the work.

However, Davis did not reveal the figure Cabinet would be asked to approve.

Yesterday Sands said talks between government and Baha Mar are ongoing but did not want to divulge any details, nor would he say if the government had agreed to pay an adjusted amount.

“We continue to work with the government to resolve this matter and we are making progress in that particular area,” Sands said.

“We are very hopeful that should be solved in the not too distant future.”

In June, The Nassau Guardian first reported that the government was eyeing a payout to Baha Mar that was lower than the sum initially expected.

Under the agreement with Baha Mar, the government is obligated to pay more than $47 million to Baha Mar if the cost of the reconfiguration of West Bay Street exceeded $70 million, Davis said earlier this year.

He said if the figure is less than $70 million, the government would only be obligated to pay 50 percent.

This figure is the government’s portion of costs for the new West Bay Street that runs along the luxury development.

The Nassau Guardian previously reported that government technical experts reportedly assessed the value of the Baha Mar roadwork at around $58 million.

In August, former Prime Minister Hubert Ingraham criticized the government for the negotiations, calling the government’s insistence on paying less for the road “vexatious” and “worrisome”.

However, Davis said if the government accepts Baha Mar’s proposition it would mean that it cost $59 million to construct one mile of the rerouted West Bay Street and related infrastructure.

Prime Minister Perry Christie also responded to the criticism and said his administration would not apologize for protecting Bahamians’ money.

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