China Agrees to Build, Finance Baha Mar Development

Baha Mar Resorts in Nassau, Bahamas, inked a formal agreement with China State Construction Engineering Corp. to construct the multibillion-dollar Baha Mar Resort on Cable Beach.

Baha Mar also signed a memorandum of understanding with Export-Import Bank of China regarding project financing. The agreements were signed by Don Robinson, Baha Mar president, in Beijing and followed a year-long series of discussions with the bank and the construction firm.

Robinson stressed that although the agreements were preliminary and contingent upon more work and due diligence before final financing approval, “they mark a positive step forward in realizing our vision for the future of the project and for the growth of Bahamian tourism overall.”

China State Construction will serve as the builder of the project while Baha Mar’s development role will be one of management and oversight.

The resort is expected to create several thousand new jobs for local workers and contribute significantly to the island’s economy. The 2-to-3-year construction phase also will provide hundreds of jobs for Bahamians.

Baha Mar, conceived in 2002 as a six-resort, $2.6 billion project, faltered a year ago when venture partner Harrah’s Entertainment bailed on the project. The casino operator was a 43 percent minority partner in the project. Baha Mar had been searching for another partner or partners since Harrah’s backed out.

The properties currently open are the Wyndham Nassau Resort, Crystal Palace Casino and Sheraton Nassau Beach Resort. The Wyndham plans to shut down for eight weeks beginning Aug. 17 to reduce operating losses. Still to come are Westin, W and St. Regis hotels.

Baha Mar Resorts had planned to make the Nassau Beach Hotel the sixth hotel in the resort complex, but the property, in need of renovations, remains closed. Baha Mar bought the Nassau Beach Hotel two years ago.