The Government pulled back from signing off on the final approvals for Baha Mar's $2.4 billion Cable Beach redevelopment at the last minute,The Tribune has learnt, despite convening a special Cabinet meeting on New Year's Eve to address the situation.Informed sources close to the situation said the Government had been due to sign-off on the Baha Mar project at year-end 2007, but decided at the last minute to amend some details of the agreement, which are understood to be related to land issues. The revised agreement is understood to have been rejected by Baha Mar, leaving the two sides at what is at least a temporary impasse.

The Tribune had previously been told that Baha Mar was"very, very close" to getting all the Government approvals and permits it needs to finally proceed with the full go-ahead of its project. While the Government has been anxious to ensure that everything is in order with the investment projects it inherited in May 2007, and has been painstakingly dealing with all the loose ends left by the Christie administration, the clamour from the private sector for it to get a move on and approve these investments is increasing.

At yesterday's Bahamas Business Outlook, it was deafening.Dionisio D'Aguilar, the Bahamas Chamber of Commerce's president, pointed to the increased unemployment figures, falling tourism arrivals. and global and US economic woes, as reasons why the Government needed to approve the likes of Baha Mar and let foreign direct investment pick up the slack.
He added: "You need to make the decisions to get these projects up and running. I cannot understand for the life of me why Baha Mar has not been approved."It's a huge project, requiring lots add lots of people, and is going to ensure hundreds of jobs for Bahamians, and revitalise another tourist area in Nassau. My position is: My God, what could be holding it up."

Baha Mar has been seeking to negotiate a supplemental Heads of Agreement with the Government to account for the fact that the cost of its proposed project has increased from $1 billion to $2.4 billion. The April 6, 2005, Heads of Agreement signed between Baha Mar and the Christie government was for a $1 billion project.

Baha Mar first sought a supplemental Heads of Agreement with the Christie administration, as it was crucial to cementing its relationship with Harrah's, the Caesar's Entertainment parent, which would take a 43 per cent equity stake in the project, and Starwood.Yet no agreement was concluded before the May 2 general election, and the
Ingraham government's position has been that Baha Mar must start fulfilling its obligations under the first
Heads of Agreement before any new deal and extra investment incentives are considered.

Source: The Tribune