Government has signed a supplemental Heads of Agreement with Baha Mar, and its joint venture partner Harrah's, for the $2.6 billion investment project on Cable Beach. This comes some 33 months after the initial agreement was signed for the project during the Christie administration.

The signing ceremony took place yesterday afternoon at the Cabinet Office on Bay Street, with Prime Minister Hubert Ingraham overseeing the historic moment, along with nine other members of his cabinet.
"We just signed a supplemental agreement with Baha Mar with respect to their increased investment – with respect to their development on Cable Beach," said Mr Ingraham in a brief statement. "And the agreement will be made public. We will table it in the House of Assembly at an early date. And there will be a debate because some of the transfers require parliamentary approval."

He continued: "We will give the Baha Mar and Harrah's and Starwood the maximum cooperation from the government's point of view, and as will our agencies - all of the public utility companies.

"This project calls for an accelerated construction schedule.

"And we will do our utmost to accommodate them as speedily and as efficiently as is humanly possible."

No questions were taken at the signing by the prime minister or the Baha Mar and Harrah's team, which was led by Sarkis Izmirlian, chairman and CEO of Baha Mar.However, Mr Ingraham said he will hold a news conference on Sunday.

Despite the signing yesterday, the full details of this agreement do not yet appear to have been fully completed, based on a written statement released at the news conference by Baha Mar.

Baha Mar and Caesars Bahamas Investment Corporation, a subsidiary of Harrah's "are now proceeding to finalize documents for completion of the joint venture, following which construction of the project will immediately commence," said the statement.
"Completion remains subject to conditions, including (i) completion of definitive agreements, (ii) conveyance or other transfer to the joint venture of rights to certain parcels of real property, and (iii) parliamentary action."

The initial heads of agreement between Baha Mar and the Bahamas government was signed in April 2005, for the then $1.2 billion project. Since the initial deal, the developers expressed an interest to more than double the value of their investment.

Additional concessions were requested by the developers which led to extended negotiations between them and the Christie government, which did not conclude before the PLP were voted out of office in a written statement yesterday, officials from Baha Mar and Harrah's expressed their continuing commitment to the deal.

"We are pleased that the way is clear to move forward on this project as we finalize project documentation and proceed with initial development activity," said Don Robinson, president, Baha Mar Resorts Ltd.

"We look forward to working with the Bahamas government and its people, along with our partner Harrah's, to bring Nassau and
the region a resort product the likes of which has never been done before, and will undoubtedly bring new opportunities. employment and tourism growth to Nassau and the Bahamas."

Charles Atwood, vice chairman of the board of Harrah's Entertainment, also expressed his company's commitment to work with the government in providing a world-class destination for customers.

"Caesars Resort Hotel at Baha Mar is an important component of our global growth strategy, and it will also be a driver of an expanded tourism market for the Bahamas," he said.

The $2.6 billion project will offer nearly 3,000 rooms at completion. Harrah's will operate a Caesars Resort Hotel with more than 1,000 guest rooms and a 100,000-square foot casino, which will be the largest in the Caribbean.

In separate management agreements between the joint venture - Baha Mar and Harrah's - and Starwood Hotels and Resorts Worldwide, there will be a collection of four of Starwood's hotel brands: W Baha Mar, St Regis Baha Mar, Westin Baha Mar and the already opened Sheraton Cable Beach Resort.

Mr Ingraham also said yesterday that the necessary resolutions related to the Cable Beach project may be presented to the House as soon as next Wednesday.

Two other deals, he did not mention by name, may be presented to the House at the same time, said the prime minister.

Source: The Tribune