PM Questions Legality Of Albany Concessions:
By TOSHEENA ROBINSON-BLAIR -
Nassau, Bahamas:

Prime Minister Hubert Ingraham on Wednesday tabled the heads of agreement between the government of The Bahamas and the developers of the Albany Beach and Golf Resort, and questioned in the House of Assembly whether some of the concessions granted to the developer were legal.

In a deal struck by the Christie Administration, the developers of the $1.3 billion mixed-use resort are set to receive major customs duty and stamp tax exemptions, in addition to fast-tracked work permits and business licenses for non-Bahamian personnel needed to bring to fruition the 565-acre Albany Beach and Golf Resort.

Among other high-profile investors, the development in southwest New Providence is backed by internationally renowned golfers Tiger Woods and Ernie Els.

In the House of Assembly on Wednesday, Prime Minister Hubert Ingraham voiced concerns about the legality of some of the concessions granted.

According to the agreement signed between the former Christie Administration and the principals of Park Ridge, in addition to customs duty and stamp tax exemptions, the developers will get concessions in respect of all materials necessary for the construction, equipping, furnishing and completion of the components of the Albany development.

The heads of agreement signed on November 9, 2006 was made public Wednesday when the prime minister tabled the document in the House of Assembly.

Mr. Ingraham said because Albany is slated to be a private-members club with its amenities made available only to its guests, it’s not eligible for some concessions.

"Concessions available under the Hotels Encouragement Act require that hotels and related facilities and amenities that benefit from concessions under the Act remain open to the paying public," he told Parliamentarians.

"The requirement is stipulated in all agreements concluded under the Act. By definition a private club is barred from receiving benefits under the Act."

When completed the Albany community will comprise 450 to 600 residential and resort units, an 18-hole Ernie Els designed championship golf course, a world-class marina for yachts up to 240-feet, shops, café, a spa, a fitness centre, an equestrian centre, tennis courts, an expansive water recreational facility and a beach-side social and dining club.

The heads of agreement also states that all construction plants, trucks, barges and cranes to be used in the construction, equipping, furnishing and completing of the luxury hotel and its other facilities may be imported into and exported from the Bahamas free of customs duties, on a pre-approved basis.

However, Park Ridge has to utilize Bahamian materials and services, "subject to competitive terms, price, delivery, efficiency and quality consistent with a first class residential club development and international standards."

For the construction periods of the project, the developers also agreed to publicize and offer employment opportunities to qualified Bahamian contractors to participate in the bidding process for the project.

The Albany development is expected to provide 1,607 jobs during the peak of construction and support over 1,100 permanent jobs, according to the independent economic impact study prepared by Global Insight.

In the heads of agreement the government recognizes that "the timely completion of the project on a highly accelerated schedule and the successful operation of the completed project to the highest international standards will necessitate the employment of non-Bahamians."

Therefore, the Bahamian government agreed to facilitate the grant of work permits and business licenses and other necessary government or government agency approvals "on an accelerated basis," when it comes to the hiring of non-Bahamian personnel and contractors.

The agreement reads: "With respect to the development, construction and continued operation of the project, and in recognition of the need for employees with special skills or experience, the government shall grant and renew at Park Ridge’s request, to Park Ridge and its agents on an accelerated basis work permits outstanding from time to time for non-Bahamian employees in job categories or classifications to be designated by Park Ridge and mutually agreed by the Department of Immigration."

Those hires and renewals are subject to the regulations and procedures prescribed by the Immigration Act and hinge on the unavailability in the Bahamian workforce of qualified persons.

Park Ridge is set to complete the project in two phases.

To be on schedule, Albany’s Phase One was expected to commence during the first quarter of 2007 and completed during 2010.

Last week, the Ingraham Administration granted subdivision approval for Phase One.

However, a critical approval to re-route traffic on the southwestern portion of the island is still pending, before work can begin.

4 October 2007