BAHA Mar’s original developer is pleading with the project’s Chinese contractor to “come to their senses” and quickly settle the now $1.7bn damages award that was yesterday fully upheld by a New York appeals court. However, despite suffering the latest in a series of multiple legal reversals, the three China Construction America (CCA) affiliates held responsible for committing fraud and breach of contract against Sarkis Izmirlian pledged that yesterday’s verdict “is not the last word on this matter” given that they plan to
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A FORMER Baha Mar director yesterday urged the Government “to stand on the side of the person that is right” while demanding the project’s contractor “do the honourable thing” and pay Sarkis Izmirlian some $1.7bn.
Dionisio D’Aguilar, who sat on the project’s Board under the original developer prior to its ill-fated Chapter 11 bankruptcy protection filing, told Tribune Business that China Construction America (CCA) and its affiliates should bring “this whole sad process” dating back almost ten years to an end rather than mount a fresh legal appeal.
pursue a further appeal in the New York legal system. Both sides hit out after the New York State Supreme Court’s appeals division, first judicial department, yesterday “unanimously dismissed” CCA’s appeal against Justice Andrew Borrok’s original verdict that found the Chinese state-owned contractor had perpetrated “an absolute sham and shakedown” on Mr Izmirlian by supplying “phony” completion dates for the then-$2.5bn Baha Mar resort complex. The four New York appeal judges, in a short five-page verdict, completely shredded CCA’s challenge to Justice Borrok’s findings by ruling there was “no basis to
Speaking after the New York State Supreme Court’s appeals division “unanimously dismissed” the Chinese state-owned contractor’s bid to overturn the initial verdict that awarded Mr Izmirlian some $1.642bn, after finding sufficient evidence it had perpetrated a fraud and breach of contract that caused the initial Baha Mar project to collapse, he suggested that Beijing’s “coffers” should be tapped to finance the payout. And, asserting that yesterday’s appeals ruling has “100 percent vindicated” Baha Mar’s original developer, Mr D’Aguilar told this
newspaper that the Davis administration needs to side with the party that has been proven right in multiple court verdicts. He argued that it was “not advisable”, and “not in the best interests of the country”, for the Government to seemingly continue siding with CCA.
Suggesting that CCA’s US affiliate, one of three entities held liable to pay a damages award now estimated by Mr Izmirlian himself to have increased to $1.7bn, will likely “sit behind” its Chapter 11 bankruptcy protection in New Jersey, Mr D’Aguilar said: “In this whole,
disturb” the latter’s damages award to Mr Izmirlian. They also rejected the contractor’s assertion that it was wrongly held liable for fraud, finding that CCA’s internal documents showed it did not believe
economic turmoil, a financial analyst argued yesterday.
Hubert Edwards, principal of Next Level Solutions, told Tribune Business that given the potential for an improvement in the country’s creditworthiness within the next six to 12 months it needs to focus on enhancing competitiveness and reducing the subsidy drag caused by loss-making state-owned enterprises (SOEs) such as the Water & Sewerage Corporation.
the target March 27, 2015, opening date could be achieved - the direct opposite of what it was telling Mr Izmirlian to his face. CCA’s “misrepresenting
Backing the Davis administration’s energy reform drive, and called for “more effective and efficient” public spending by the Government, he described The Bahamas’ debt - especially its high cost and affordabilityas “a big soft spot” that needs to be addressed.
However, Mr Edwards also told this newspaper that planned reforms to the Bahamian dollar debt and bond market “bode well”, and said Moody’s
sad process, CCA has been found guilty of fraud and breach of contract.
“Mr Izmirlian has won in the lower courts, he has now won on appeal, and CCA should now settle. It’s a state-owned company. It’s owned by the People’s Republic of China, and it should pay. It’s a government that owns that company, they broke the law and, when you break the law, they should pay. They should go into the coffers of the People’s Republic of China and settle and pay out at least.”
The three CCA affiliates, which also include two Bahamian-domiciled entities, CCA (Bahamas) and CSCEC (Bahamas), struck a defiant tone following yesterday’s
THE Government’s explanation for why the Prime Minister intervened to place a $183m west Grand Bahama roadworks contract on hold “doesn’t cut the mustard”, the Opposition’s chairman argued yesterday.
Dr Duane Sands, speaking out after the Government confirmed a controversial contract destined for Bahamas Striping was never awarded or approved, told Tribune Business that “the story doesn’t add up” given that the Inter-American Development Bank’s (IDB) private sector financing arm was due to discuss at Board level providing $22m in financing for the project on April 29, 2025.
The Prime Minister’s Office, in a statement issued yesterday, asserted that the contract’s inclusion in a list of government procurement deals awarded in December 2024 was an “administrative error” because it had neither been awarded nor approved. Instead, the award to Abaco Caribbean Holdings, a Bahamas Striping group subsidiary, had already been “paused by the Prime Minister” prior to the list’s publication.
In a somewhat opaque explanation of events, which included no names, the Prime Minister’s Office said there remains “an urgent need for public works in Grand Bahama” which the roadworks
Foreign artist levy goal for
AN entertainers’ union is proposing that a portion of the levies collected by the Government from foreign artists be used to finance its ‘Band Aid’ initiative to assist Bahamian performers with health needs.
The United Artists Bahamas Union (UABU) said it will make the suggestion to the Government
with the Band Aid plan set to roll-out after the union’s elections in May. It added that the proposal has gained fresh impetus from the recent passing of Elon Moxey.
Asserting that the plan will act as a “safety net”, Linc Scavella, the secretary-general, told Tribune Business that from its inception and breakaway from the Bahamas Musicians and Entertainers Union, the UABU planned to create a way for funds
contract was seemingly designed to help address. However, the procurement list identified it as a “direct award”, meaning it never went out to tender or was subject to competitive bidding where multiple firms submitted offers.
“An international financial organisation (IDB Invest) had settled a prequalification amount with a particular vendor (Bahamas Striping/Abaco Caribbean Holdings), and the matter proceeded from there toward a conclusion,” the Prime Minister’s Office said.
“Upon this being brought to the Prime Minister’s attention, he instructed that the matter be set aside for further review. Unfortunately, that instruction was not reflected in the list that was subsequently published, which has led to regrettable confusion.
“The model of the vendor in question is that of a project manager. As such, the allocated funding would not have gone to a single contractor but rather to several contractors operating in
‘Band Aid’ financing
to be collected and put towards Bahamian artists’ medical expenses. Open to all musicians and entertainers, whether part of the UABU or not, Mr Scavella added that the funding for the Band Aid initiative will also come from two major annual events. “We’re going to do two events a year,” Mr Scavella said. “The musicians and entertainers are going to participate themselves. So they’re going to raise the money using their
talent. That’s why it’s not relegated just to UABU members.
“It could be members, even who are not in the union, who will benefit. We’re going to get a reputable group to manage those funds. And so we got to do something like an annual ball and what you would call a fair - pretty much like what the Red Cross does.
“I think once our elections are completed in May, around the first part of
Carnival signs-up 26 Bahamian vendors for GB cruise location
SOME 26 Bahamian business owners have signed contracts to operate retail and food and beverage outlets at Carnival’s new $600m Celebration Key cruise port.
The cruise line, in a statement, said the contract signings represent the first tranche of concessions at its Grand Bahama flagship destination that is set to open in July. Celebration Key is forecast to initially bring more than two million guests per year to Grand Bahama, and up to four million by 2028.
Out of the 26 Bahamian companies that have signed contracts to operate at Celebration Key, some 18 are owned by Grand Bahamians.
“We’re so thrilled to bring so many talented Bahamian business owners together who will enhance the guest experience at Celebration Key. It was a thorough and rewarding exercise, getting to meet so many talented Bahamians showing an interest in partnering with us,” said Bertrand Piller, Carnival’s director of destination
third-party partnerships and business development.
“We wish we could have accommodated more of the proposals submitted but there are only so many spots. We have selected an excellent roster of vendors who will provide a varied offering showcasing The Bahamas in general, and Grand Bahama in particular.”
Among the first wave of contract signings are restaurants such as Mini Donut King; Fowl Play Wing Company; Pineapple House; Bahama Mama Seafood Pit and Flippin Fritters. Retail outlets include Bahari; Surfing Turtle; Caribbean Lighthouse; Sand Dollar Freeport/Bahamia; Baha Gala; Island Treasures by Sharkeez Freeport; Bahamian Bliss; Del Sol and Cariloha.
“I am so pleased to have been selected to showcase authentic handcrafted, Grand Bahamian-made jewellery at Celebration Key,” said Tenisha ElkinsCarey of Baha Gala. “I feel that this is a unique opportunity, not only in terms of economic empowerment of
Grand Bahamians, but also to represent our culture to the world.”
Jody Butler, of Flippin Fritters, added: “There is nothing quite like Bahamian cuisine anywhere else. We are very glad that Celebration Key chose to highlight so many local restaurants and food stalls so that we can bring the authentic flavours of these islands to a larger audience than ever before.”
“Many cruise ports in the region operate their own businesses within the port,” said Sandy Ann FlowersSaunders, of Bahama Mama Seafood Pit. “Celebration Key is an amazing opportunity and a welcome breath of fresh air. It is now up to us vendors to get ourselves organised and ready to succeed and make our country proud.”
The contract signings followed a selection process which included a Request for Proposals (RFP) listed on the Celebration Key website, social media and other platforms, in order to allow as many Bahamians as possible to apply, pose questions about the
DPM HEADS BAHAMAS’ PUSH FOR CRUISE TOURISM INCREASE
The Deputy Prime Minister headed a team of officials seeking to further boost The Bahamas’ expanding cruise tourism business at the Seatrade Global Cruise conference, Chester Cooper, also minister of tourism, investments and aviation, led a delegation to the annual four-day cruise industry summit that concludes today at the Miami Beach Convention Centre. Seatrade, celebrating its 40th anniversary, is one of the
world’s largest annual cruise industry conferences. Under the theme, ‘Milestones’, this year’s conference is inviting cruise lines and industry stakeholders to reflect on the significant progress achieved over the past four decades, while looking ahead to the sector’s future. Over the four days, the Bahamas Pavilion has showcased the country’s travel offerings, new developments and places of
interest for the global travel market.
Pictured among executives at Monday’s Seatrade forum are Mr Cooper; Ginger Moxey, minister for Grand Bahama; John Pinder, parliamentary secretary in the Ministry of Tourism, Investments and Aviation; Senator Ronald Duncombe; Latia Duncombe, director-general of tourism; tourism officials and industry partners.
vendors
THE LEADERSHIP team of Flippin Fritters signs up to bring authentic Bahamian cuisine to Carnival’s guests at Celebration Key.
application process and receive timely responses.
After the deadline for applications closed, Carnival reviewed and evaluated all proposals based on full completion of the RFP; ontime submission; and merit in accordance with the parameters set out in the bid and tender documents.
Following this evaluation, the team conducted inperson or digital interviews with the short-listed candidates to select successful vendor partners and negotiate contract terms.
Besides opportunities for Bahamian vendors, Carnival said there are numerous potential job openings in tours and shore excursions; transportation; and sub-contracting services. Celebration Key is expected to generate more than 700 permanent local jobs, including approximately 400 Bahamians hired directly by Carnival.
TWENTY-six Bahamian retail and food and beverage
have signed contracts to operate retail and food and beverage concessions at Celebration Key.
Photos:Kemuel Stubbs/BIS
TENISHA ELKINS-CAREY, of Baha Gala, who will showcase handcrafted Grand Bahamian-made jewellery at Celebration Key, called it a unique opportunity to take Bahamian culture to the world. Alandka Julien-Rolle, Celebration Key’s concessionaire manager, looks on.
Union desires foreign artist ‘rotation’ system
By ANNELIA NIXON
ONE of two unions representing Bahamian artists and entertainers yesterday urged that they rotate when asked to supply recommendations on work and entrance permits for their foreign counterparts.
The United Artists Bahamas Union (UABU) is hoping that the newlyupdated amendment regarding foreign artists performing in The Bahamas will soon become law. Linc Scavella, its secretary-general, said the change states that foreign artists seeking to work in The Bahamas
should consult with either the UABU or the Bahamas Musicians and Entertainers Union.
“Before it was changed, what the policy was, if you’re bringing in a foreign musician or entertainer, you needed a letter from the Bahamas Musicians and Entertainers Union,”
Mr Scavella said. “So we got them to amend that to say the Bahamas Musicians and Entertainers Union or United Artists Bahamas Union.
“Right now, as it stands with the policy, even though it is amended, the Government could still do what they want to do because there’s only a policy - as they did with Vybz Kartel.
Even though we pushed back against that, all of the Government agencies stamped and approved it. But if it was law, they couldn’t do that.
“The [Immigration] director, I spoke with him directly, and he agreed with me where I put the matter to him. I told him that now there are two unions. The promoters should come to any one of the appropriate unions until such time as the policy becomes law,”
Mr Scavella added.
“And so he agreed, and so we’re working now on getting the policy to become law, and then we have something added to that. Now whichever political party is in, then it
doesn’t matter, because it would be law, once we get what you call getting someone to write the Bill for us to send it to the Cabinet.”
With the UABU’s attorney, Obie Ferguson, still “fine tuning” several issues, Mr Scavella added that it is also pushing for an advisory board that will consist of members from both unions. He said they are hoping they can get things sorted before any general election.
In the meantime, the UABU is waiting for Pia Glover-Rolle, minister of labour and the public service, to assist in working with the Ministry of Immigration to get a rotating system in place so each union gets a fair chance to
Bahamian realtors present at property investment event
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A BAHAMIAN real
estate firm and its agents presented at the firstever Global Real Estate Speaker Series hosted by the District of Columbia Association of Realtors (DCAR) last month.
Elbert Thompson, an HG Christie real estate broker and appraiser, was a featured speaker at what is intended to be a quarterly event designed to help persons navigate international property investment opportunities in some of the world’s most desirable destinations.
He gave a presentation entitled ‘Navigating the real estate landscape in The Bahamas’, detailing investment opportunities and key considerations for foreign buyers.
“The Bahamas has long been a premier destination
take on foreign artists planning to enter the country.
“In the meeting we had with the minister week before last, the minister of labour, we had asked them to assist us in getting Immigration to create a rotating system until such time as we have a law with an advisory body, and they had agreed to assist us in getting that rotating system going,” Mr Scavella said.
“So Immigration will be in control of that. So they will say, ‘Okay,the last artist came in, came into BMEU. So this one will go to UABU. So sometimes we may get one that just maybe collect $75, and they may get one that gets $75,000, but it goes both
for international investors looking for stability, tax advantages and, of course, the unmatched beauty of island living,” said Mr Thompson. “Events like this allow us to connect with potential buyers, educate them on the process and showcase The Bahamas as an attractive option for second home ownership, investment properties and permanent residency.”
The HG Christie presentation featured a discussion on market trends, property options - from beachfront condos to private islands - and the advantages of investing in The Bahamas, including its close proximity to the US and a government that actively encourages foreign investment.
Also participating in the session were representatives from the Ministry of Tourism & Aviation; the Bahamas Investment
ways. The other time it will come back to them in that way. The minister of labour, she thought that was not difficult to accomplish. She said she and her director will assist in getting Immigration to look at that.” Mr Scavella said Mrs Glover-Rolle’s agreement to a rotating system sends a message that the BMEU does not control the Government. “One thing for sure, the fact that the Government amended the policy is a statement within itself to say, ‘Well, the BMEU don’t tell us how to operate’,” he added. “And so that’s why the policy is now either or. The promoter can come to either or.”
Authority; Nathaniel Butler, a mortgage broker and tax consultant; and attorney Shannelle Bethell. They gave attendees a comprehensive overview of the investment process and legal framework in The Bahamas.
“The interest from real estate professionals and investors in the DC area was overwhelming,” Mr Thompson added. “There is a clear appetite for greater collaboration between our markets, and we look forward to strengthening these ties in the future.”
John Christie, HG Christie’s president, said: “International engagement is a key part of our strategy to benefit both our Bahamian and international clients. I am pleased to see the initiative of agents like Elbert Thompson, who take the time to connect with markets abroad and showcase the many opportunities available in The Bahamas.”
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Foreign artist levy goal for ‘Band Aid’ financing
June, you will see that roll out. We would have two major events, and we will have them far apart. One will be, like I said, the fair, which we will go to some of the hotels that hire musicians and entertainers to assist in making contributions as well. And then we would do an annual ball, something that musicians have never had.”
Mr Scavella said the union will also “sell” to the Government the idea of using 50 percent of the levies collected from foreign artists that perform in The Bahamas and putting it towards the fund. He added: “One of the things that we are selling to the Government in getting the advisory body in place with regards to the foreign artists coming in, the levies that come from the foreign
artists, 50 percent of that, we want to put that in that same fund.
“And so that is something we will be discussing with the Government in that regard. And so there’ll be a number of ways that the funds will be raised, but mostly the musicians and entertainers, they’re raising their own funds.” Mr Scavella said the passing of well-known Bahamian musician, Elon Moxey,
pushed him to get moving and focus on launching the Band Aid initiative.
“Elon, his people have been begging for funds to help save his legs before they amputate it,” Mr Scavella said. “They didn’t raise the funds in time, and they didn’t raise the amount they needed. So after they finally got to take off his legs, then trouble followed after that. But I hate to see artists having to go through that.
“For example, let’s use Elon Moxey. Let’s say, if the fund was already in place, and have been matured, when they would have come and said, ‘well, he need assistance’, rather than going begging all over the place, that fund would have taken care of whatever his situation was - rather than waiting for GoFundMe and doing cookouts and all that.
“That’s the reason why we utilising the musicians
Sarkis to CCA: ‘Come to your senses’ over $1.7bn damages
FROM PAGE B1
its ability to perform”, the New York appeals court added, was sufficient evidence to prove fraud.
The appeal judges also determined that Mr Izmirlian were “properly awarded” the $845m value of their lost Baha Mar investment as damages, as well as interest on that sum starting almost 11 years ago from May 1, 2014. And, finally, they backed Justice Borrok’s decision to “pierce the corporate veils” as CCA’s “complete domination” of its Bahamian subsidiaries led to the breaches that caused the project’s collapse.
“This action stems from the breakdown of a multibillion dollar project to build a resort complex in The Bahamas,” the New
York appeals verdict said. “Non-party Baha Mar Ltd, a Bahamian entity, was the owner and developer of the project. Plaintiff BML Properties, another Bahamian entity, was the direct parent of Baha Mar, owned 100 percent of its voting shares, and was responsible for its day-to-day management.
“Defendant CSCEC Bahamas Ltd, a Bahamian entity, was the sole minority shareholder of Baha Mar under an investors agreement. Defendant CCA Bahamas Ltd, another Bahamian entity, was the construction manager for the project.
“Defendant CCA Construction Inc was an affiliate of the other defendants; it was not a party to any of the project agreements but was nonetheless involved
NOTICE IS HEREBY GIVEN that in accordance with section 138(4) of the International Business Companies Act, 2000, as amended, YUPIK LIMITED is in dissolution.
The dissolution of the said Company commenced on 4 April 2025 when the Articles of Dissolution were submitted to and registered with the Registrar General in Nassau, The Bahamas.
The Sole Liquidator of the said Company is Ivylyn B. Cassar of Equity Trust House, Caves Village, West Bay Street, P.O. Box N-10697, Nassau, Bahamas.
Ivylyn B. Cassar Sole Liquidator
and had overlapping offices and executives, including one Taizhong (Tiger) Wu, who was an executive of CCA Construction and CCA Bahamas, and was appointed to Baha Mar’s board on behalf of CSCEC Bahamas.”
CSCEC stands for China State Construction and Engineering Corporation, CCA’s parent. “After a series of delays that ultimately prevented the resort from opening, plaintiff filed for bankruptcy,” the New York appeals court said of Mr Izmirlian’s BML Properties vehicle.
“Plaintiff commenced this action in 2017, asserting causes of action for, among other things, breach of contract and fraud. Plaintiff also sought to pierce the corporate veil, asserting that the defendants were alter egos of one another. The matter ultimately proceeded to a non-jury trial, which took place over 11 days, with 20 witnesses and more than 1,000 documentary exhibits.”
Finding “no basis to disturb” Justice Borrok’s original ruling and $1.642bn damages award, which includes interest on Mr Izmirlian’s initial $845m investment, the New York appeals court also ruled that he “properly construed” that Mr Wu, as the Baha Mar Board representative for CSCEC Bahamas, had “to act in the best interests of the project at all times”.
“Wu’s actions - for example, stripping manpower and resources from the project, diverting funds from the project that were meant for sub-contractors, and causing or authorising delays - contravened Baha Mar’s and the project’s
best interests, and therefore breached the investor agreement,” the appeal verdict ruled.
“The breaches, in turn, prevented the resort from opening and resulted in the loss of plaintiff’s entire investment. Furthermore, loss of the investment constituted direct damages, not consequential ones, as defendants’ breaches prevented the resort from opening, thus causing plaintiff’s financial collapse and bankruptcy...
“We reject defendants’ contention that the trial court failed to apply the correct scienter standard, and therefore erred in holding defendants liable for fraud.
Internal company communications introduced at trial showed that although CCA Bahamas told plaintiff that the project was on track for a March 27, 2015 opening date, CCA Bahamas did not, in fact, believe that it would be possible for the resort to open on that date.
“Thus the evidence established that defendants misrepresented their ability to perform, which is sufficient to support a finding of fraud,” the New York appeals court continued. “As for the award of damages, the trial court properly awarded plaintiff the value of its investment.
“Defendants note that although the investment was made in 2011, the fraud occurred in 2014 and 2015. However, plaintiff’s claim is that the fraud caused it to lose its investment because it took steps in reliance on the misstatements that precipitated the financial collapse once the project failed to open.”
Also ruling that CCA had “waived the application of Bahamian law” until it was too late, the New York Appeals court concluded: “The trial court properly found that, under New York law, defendants’ corporate veils should be pierced.
“The evidence in the record, which was largely unrebutted, shows that CCA Construction exercised complete domination of CCA Bahamas and CSCEC Bahamas, and that the domination was used to breach the investor agreement, defraud plaintiff, and cause the collapse of Baha Mar, resulting in plaintiff’s injury.
“In fact, the trial court made detailed findings as to both veil-piercing elements. We have considered defendants’ remaining contentions, including the contention that the trial court improperly applied a ‘reckless disregard for the truth’ standard of scienter, and find them unavailing.”
The next move is now CCA’s, with Mr Izmirlian likely to pursue all legal avenues and options against the Chinese state-owned contractor in a bid to collect his $1.7bn-and-counting damages award. CCA Construction Inc, the US affiliate that has been held liable to pay these damages, presently remains protected from Mr Izmirlian’s pursuit by its Chapter 11 bankruptcy filing in New Jersey. CCA (Bahamas), which owns the companies that hold downtown Nassau’s British Colonial and Margaritaville Beach resorts, plus CSCEC (Bahamas) are both the subject of windingup petitions initiated by Mr Izmirlian before the Bahamian Supreme Court. He is seeking to have the KPMG accounting firm appointed as receiver over the two companies and hotels on the basis they are insolvent and cannot pay his damages.
The three CCA affiliates yesterday sought to strike a defiant tone in the wake of the New York appeals court ruling by pledging to continue the fight to overturn Mr Izmirlian’s damages award and the original verdict. “We are disappointed
themselves. Because whenever you do a fundraiser, the biggest cost is the musicians, sound and light and all that. And so all these people who are involved with sound light, music and entertainment, we’re going to get them to be the ones to raise the funds because it’s for them. And so, at the end of the day, whoever is in trouble, they can come and they will get whatever issue is resolved.”
in the appellate court’s decision, which is incorrect on multiple points of New York law,” they said in a statement responding to Tribune Business inquiries.
“It also ignores BML Properties’ own mismanagement of the Baha Mar project, which led to the losses suffered by CCA Bahamas, CSCEC Bahamas, the Bahamian government, sub-contractors and workers. This is not the last word on this matter, and we intend to pursue an appeal of this decision to the New York Court of Appeals.”
However, given that it has now suffered multiple legal reversals on the matter without achieving any successes, CCA’s previous and ongoing protests that the New York courts’ verdicts are “fatally-flawed” and “piled error on error” are starting to sound increasingly hollow.
Mr Izmirlian, meanwhile, issued a statement in which he asserted that the damages owed to him have risen beyond the initial $1.642bn award to now $1.7bn and counting. This is as a result of the 9 percent interest attached to the principal sum that is continuing to accrue on an a daily basis.
“We are grateful that the appellate court upheld Justice Borrok’s judgment, once again confirming that CCA’s multiple acts of fraud and breaches caused the Baha Mar project to miss its opening, resulting in the subsequent loss of our entire investment,” said Mr Izmirlian in a statement.
“We are continuing in our efforts to aggressively enforce our rights against CCA, its parent CSCEC, their affiliates, and all those who orchestrated the fraud, and look forward to collecting on their debt. We hope that they will come to their senses and enter into a rapid settlement to minimise the disruptions to their operations that have been caused by their actions.”
$183m GB roadworks tale ‘doesn’t cut the mustard’
Grand Bahama.” A website closely associated with Fred Mitchell, minister of foreign affairs, suggested that as many as 33 contractors would have enjoyed a share of the $183m contract.
However, several sources speaking on condition of anonymity said a procurement contract of such size would have had to be approved at ministerial level before a Cabinet paper can be drawn up and it is placed on the Cabinet agenda. They suggested the Abaco Caribbean Holdings award made it to Cabinet, where questions and concerns were raised over the size of the award and other issues.
And questions were also raised as to why IDB Invest, the multilateral lender’s private sector finance arm, would progress the potential $22m revolving credit facility for Abaco Caribbean Holdings so far - completing both an environmental and social review as well as placing it on the Board’s agenda for April 29, 2025, - if had not received government assurances that the project was approved.
“Let me say that I was not impressed with the explanation,” Dr Sands told Tribune Business. “I was not convinced that it is a plausible explanation because you cannot have all these things co-existing. This was a ‘no bid’, ‘direct award’ contract, and there has to be extenuating circumstances according to
their rules where these qualify for such status. “The story doesn’t add up. There are so many things that, in order for them to co-exist and be correct... This comment about an administrative error doesn’t cut the mustard. We have the IDB involved, which requires dotting the ‘i’s’ and crossing the ‘t’s.
“All of us who have experience working with the IDB requirements know they are sticklers for details, and will require a huge amount of supporting information that is doublechecked, triple-checked and quadruple-checked before they give approval,” he added.
“You’re not talking about $183, you’re not talking about $183,000, you’re talking about $183m. This would not have been something even a permanent secretary would have published without the minister’s approval. It’s a pretty lame excuse they are using. Why don’t they come clean and tell us what happened, when it happened, and when they found out what the administrative error is?”
Going so far as to suggest the controversy was another “Bahamas Moorings moment”, where the Government is back tracking after being inadvertently caught out, Dr Sands also questioned how much of a profit margin Abaco Caribbean Holdings and Bahamas Striping would have made acting as project managers, dividing
and supervising the work of other contractors.
Latrae Rahming, the Prime Minister’s communications director, yesterday reiterated to Tribune Business that “the matter was stopped for review” by Mr Davis himself. “He has the ability as minister of finance to stop any project that he has questions about and stopped it for review,” he added. “The Prime Minister paused it for internal review.”
Observers, though, have challenged whether the ‘direct award’ of such a large $183m contract can be justified based on the law set by the Public Procurement Act. The last version of this Act, passed by Parliament under the Davis administration, sets out the grounds under which this procurement method can be used.
These include that the contract value is less than $100,000; that no suitable bids were received in a competitive tendering process; “reasons of extreme urgency”, such as a natural disaster; and other factors that do not necessarily appear to apply to such a project.
Mr Rahming, addressing all the media yesterday, said the contract review is ongoing and, once completed, a new statement will be issued to the public. “We remain committed to transparency and to correcting the record when errors are identified,” he added, while not identifying who was responsible for the “administrative error”.
“I’m not sure. I mean, obviously there was some breakdown in the communication. It could be either between the decision being made at the Cabinet level and the administrator itself. But these things happen,” said Mr Rahming. “Internal communication is something that we all have to seek to improve, but the right thing to do is when there is something that needs to be corrected that we publicly say that there was an error.”
He added that while he is unsure of when the Prime Minister decided to pause the contract “it could have been earlier this year”. Mr Rahming said: “My understanding is that this matter was intervened at the Cabinet level by The Prime Minister. It may have been earlier this year, but I will reach out for full clarity in so far as the date.”
Michael Pintard, the Opposition’s leader, yesterday also voiced scepticism over the Government’s explanation on the Abaco Caribbean Holdings/Bahamas Striping contract. “How did the vendor make it this far within the IDB approval processes without the full support and endorsement of the Davis administration? We know better,” he asserted.
“Did the Prime Minister only become aware of this project after it made it all the way to the IDB? Was the project ever put forward at any time for Cabinet consideration? As the project is listed under the Ministry of Finance, is it the Prime
urged: ‘Stand with Sarkis’
New York appeals court ruling by asserting “this is not the last word on this matter” and signalling they intend to fight to the end in the courts with another US legal appeal.
However, Mr D’Aguilar yesterday argued that CCA’s battle with Mr Izmirlian has dragged on long enough given that end-May/early June will mark a decade since the ill-fated Chapter 11 filing by Baha Mar’s original developer in a lastditch bid to retain control of the project and prevent his ouster by the contractor along with Chinese stateowned financier, China Export-Import Bank.
“This breach of contract and fraud was committed almost ten years ago,” the ex-minister of tourism and aviation told Tribune Business. “Mr Izmirlian has had his day in court and prevailed, and he should now expect to be reimbursed for the loss he incurred.
attempt to settle as we recommended and said.
“Before going to appeal we said over and over that it doesn’t look good. ‘I told you so’ would be something one attempts to say. I’m sure they [CCA[ have their options, and I’m sure Mr Izmirlian has his options if they seek to wriggle out of settling, but they should bring this entire unfortunate event to a close and let’s be done with this,” Mr D’Aguilar added.
“I’m looking at the fact Mr Izmirlian has suffered significant damages, and I’m happy he has persisted enough to pursue this matter and prevailed in the end. He’s been 100 percent vindicated and should receive his just rewards. For those people who doubted, and were disrespectful to him, they all have been proven wrong.”
resorts, the British Colonial and Margaritaville Beach Resort, which are said to have been appraised at a combined value of up to $355m.
Genguo Ju, CCA (Bahamas) executive vicepresident, asserted in an affidavit that the shares giving it ownership of both resorts were valued at $146m in the company’s most recent audited financial statements. And an appraisal conducted in 2024 had priced the combined real estate worth of the two properties at between $232.7m and $355.1m.
Minister who brought the matter to Cabinet?
“And even now, if these works are so badly needed, as the Prime Minister states, why exactly is the project being paused? Was something done wrong? Or is it only because the public is now rightly outraged to discover that this government has, in a 14-month period, given out some $396.8m in ‘no bid’ contracts?”
IDB Invest, in documents released publicly in February 2025, said:
“IDB Invest is looking to finance approximately $22m through a working capital facility to support Abaco Caribbean Holdings, a Bahamian company, and its shareholders, the Bahamas Striping Group of Companies.
“This financing will be directed towards the West Grand Bahama Road Improvement project, which seeks to enhance connectivity, safety and the overall travel experience across Grand Bahama. The project involves the rehabilitation of asphalt paving of 51 miles of highway and 47 miles of settlement roads, with an estimated cost of $185m.”
Other IDB documents, seen by this newspaper and giving more detail on the project, state: “These improved roadways will unlock economic opportunities, facilitate smoother transportation of goods and services, and bolster the tourism sector, which is vital for the island’s economy....
“Abaco Caribbean Holdings, founded in 2016 as a
after appeal win
his damages award could be denied the necessary permits and approvals. Mr D’Aguilar, though, yesterday urged the Davis administration to side with Baha Mar’s original developer in the wake of the appeals court’s ruling
turnkey service provider, has gained experience through the planning, designing and construction of parks and community centres, and implementing smart technology systems. Most recently, with the support of other companies of Bahamas Striping, it has expanded its services into road paving and construction, land clearing and site development.
“The project consists of the reconstruction and rehabilitation of a stretch of approximately 51 miles of the Queen’s Highway, a main asphalt paved arterial road on the West End of Grand Bahama, about 47 miles of minor roads - collectors and settlement roads - various other capital and infrastructure works, and other road and infrastructure safety enhancements.” The latter is set to include “the installation of guard rails where required; the placing of traffic signs and road striping; the adoption of traffic calming measures; the placement of reflective road studs; and the construction of sidewalks in selected areas.
“To achieve the required production of asphalt for the road pavement, the company will install a new asphalt plant, which will be located approximately at the midpoint between Eight Mile Rock and the West End, within a rural environment, without any neighbours living nearby, and its main access is by the Queen’s Highway,” the IDB Invest report added.
“I’m sure CCA is assessing its options, but this is about doing the honourable thing. They committed fraud, they breached their contract, damages were incurred by Mr Izmirlian. They had their day in court, and they lost. They should
The three CCA affiliates have previously admitted they have insufficient assets and income to satisfy Mr Izmirlian’s damages award, which has risen from an initial $1.642bn to now $1.7bn because 9 percent interest on the original $845m principal is accruing daily.
CCA (Bahamas), which owns the companies that hold the British Colonial and Margaritaville Beach resorts, plus CSCEC (Bahamas) are both the subject of winding-up petitions initiated by Mr Izmirlian before the Bahamian Supreme Court. He is seeking to have the KPMG accounting firm appointed as receiver over the two companies and hotels on the basis they are insolvent and cannot pay his damages.
“I’m sure politicians do what they think is in their best interests,” he told Tribune Business, “but I don’t think it’s advisable to continue to support a strategy that was based on fraud, deception and breach of contract. I think Mr Izmirlian has done the right thing, he’s sought his day in court, and prevailed in both the lower courts and on appeal.
“That’s an indication it would be in our best interests as a country that the Government stand on the side of the person who is right, not the person who was wrong... I think Mr Izmirlian is an honourable man, and he would expect those who breached the contract with him to treat him honourably and deal with him honourably.”
Between the trio, their most valuable assets have been identified as CCA’s two downtown Nassau
NOTICE
NOTICE is hereby given that COLSIN IVON of Ragged Island Street, Cordeaux Avenue, Nassau, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 9th day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
MONTINA CHRISDONNE of Bacardi Road, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 2nd day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
However, Fred Mitchell, the PLP chairman, and others linked to the Government have hinted that any move by Mr Izmirlian to take over the two resorts in partial satisfaction of
Mr Mitchell has also suggested that Baha Mar’s former provisional liquidators, including accountant Ed Rahming, would be entitled to claim a portion of Mr Izmirlian’s damages
NOTICE
NOTICE is hereby given that SELIDIEU ALLY of Peach Street, Nassau, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 9th day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
award if CCA ever pays out to cover the hundreds of millions of dollars in liabilities left behind in the wake of the project’s collapse. These were ultimately paid by CCA and the China Export-Import Bank, and whether this can happen is not proven. The New York appeals court ruling comes at an especially sensitive time for CCA and Chinese interests in general given that Donald Trump yesterday confirmed tariffs of 104 percent on all Beijing’s imports to the US as part of the global trade war and fight for supremacy between the two world powers. Meanwhile, Michael Pintard, the Opposition’s leader, yesterday in the wake of the appeal court’s ruling renewed his call for an “immediate investigation” into CCA’s payment of $2.3m to a firm run by the son of Perry Christie’s top adviser when the Baha Mar dispute was at its peak. Sir Baltron Bethel, though, denied any impropriety when Tribune Business first exclusively revealed on November 8, 2022, that CCA had paid this sum to Notarc Management Group, where his son, Leslie Bethel, was chief executive.
The payments were made between December 2014 and January 2016, when the dispute between Mr Izmirlian and CCA was at its peak, but both Sir Baltron and his son denied they influenced the former’s stance towards the dispute and its participants, or his advice to the Government and its actions.
Sir Baltron, who was the Government’s ‘point person’ in dealing with the Baha Mar controversy, said he had acted “with complete integrity and objectivity” on the Government’s behalf and there was no connection or interaction between himself and Notarc “at that time”. Leslie Bethel, meanwhile, asserted that claims of anything untoward over the $2.3m payments were “political mischief”, and they were “unrelated” to Baha Mar. Apart from this, Mr Pintard said he and the Opposition are “somewhat encouraged” that all sides - including Mr Izmirlianhave pledged to protect and preserve Bahamian jobs and the British Colonial and Margaritaville resorts whatever the outcome of the dispute.
“It is our belief that all sides must have, as their number one priority, protecting the reputation of our country and employment of our citizens,” he added. Gov’t
NOTICE
NOTICE is hereby given that TAMIEKA NIKASHA MAMBYFAWKS of Carrolls Cove, Carmichael Road, P.O. Box EE16470, Nassau, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 9th day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
Moody’s upgrade creates ‘deeper reforms platform’
Grand Bahama.” A website closely associated with Fred Mitchell, minister of foreign affairs, suggested that as many as 33 contractors would have enjoyed a share of the $183m contract.
However, several sources speaking on condition of anonymity said a procurement contract of such size would have had to be approved at ministerial level before a Cabinet paper can be drawn up and it is placed on the Cabinet agenda. They suggested the Abaco Caribbean Holdings award made it to Cabinet, where questions and concerns were raised over the size of the award and other issues.
And questions were also raised as to why IDB Invest, the multilateral lender’s private sector finance arm, would progress the potential $22m revolving credit facility for Abaco Caribbean Holdings so far - completing both an environmental and social review as well as placing it on the Board’s agenda for April 29, 2025, - if had not received government assurances that the project was approved.
“Let me say that I was not impressed with the explanation,” Dr Sands told Tribune Business. “I was not convinced that it is a plausible explanation because you cannot have all these things co-existing. This was a ‘no bid’, ‘direct award’ contract, and there has to be extenuating circumstances according to their rules where these qualify for such status.
“The story doesn’t add up. There are so many
things that, in order for them to co-exist and be correct... This comment about an administrative error doesn’t cut the mustard. We have the IDB involved, which requires dotting the ‘i’s’ and crossing the ‘t’s.
“All of us who have experience working with the IDB requirements know they are sticklers for details, and will require a huge amount of supporting information that is doublechecked, triple-checked and quadruple-checked before they give approval,” he added.
“You’re not talking about $183, you’re not talking about $183,000, you’re talking about $183m. This would not have been something even a permanent secretary would have published without the minister’s approval. It’s a pretty lame excuse they are using. Why don’t they come clean and tell us what happened, when it happened, and when they found out what the administrative error is?”
Going so far as to suggest the controversy was another “Bahamas Moorings moment”, where the Government is back tracking after being inadvertently caught out, Dr Sands also questioned how much of a profit margin Abaco Caribbean Holdings and Bahamas Striping would have made acting as project managers, dividing and supervising the work of other contractors.
Latrae Rahming, the Prime Minister’s communications director, yesterday reiterated to Tribune Business that “the matter was stopped for review” by Mr Davis himself. “He has the
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL
The public is hereby advised that I, INGA MARIETTA PAULITA DARVILLE of #14 Campbell Avenue, P.O. Box SS-5053, New Providence, Bahamas intend to change my name to INGA MARIETTA PAULITA McPHEE-FODEM. If there are any objections to challenge the name by deed poll, you may write such o ections to the hief Pass ort Offcer, P.O. Box N-742, Nassau, The Bahamas no later than thirty (30) days after the date of the publication of this notice.
ability as minister of finance to stop any project that he has questions about and stopped it for review,” he added. “The Prime Minister paused it for internal review.”
Observers, though, have challenged whether the ‘direct award’ of such a large $183m contract can be justified based on the law set by the Public Procurement Act. The last version of this Act, passed by Parliament under the Davis administration, sets out the grounds under which this procurement method can be used.
These include that the contract value is less than $100,000; that no suitable bids were received in a competitive tendering process; “reasons of extreme urgency”, such as a natural disaster; and other factors that do not necessarily appear to apply to such a project.
Mr Rahming, addressing all the media yesterday, said the contract review is ongoing and, once completed, a new statement will be issued to the public. “We remain committed to transparency and to correcting the record when errors are identified,” he added, while not identifying who was responsible for the “administrative error”.
“I’m not sure. I mean, obviously there was some breakdown in the communication. It could be either between the decision being made at the Cabinet level and the administrator itself. But these things happen,” said Mr Rahming. “Internal communication is something that we all have to seek to improve, but the right thing to do is when
there is something that needs to be corrected that we publicly say that there was an error.”
He added that while he is unsure of when the Prime Minister decided to pause the contract “it could have been earlier this year”. Mr Rahming said: “My understanding is that this matter was intervened at the Cabinet level by The Prime Minister. It may have been earlier this year, but I will reach out for full clarity in so far as the date.”
Michael Pintard, the Opposition’s leader, yesterday also voiced scepticism over the Government’s explanation on the Abaco Caribbean Holdings/Bahamas Striping contract. “How did the vendor make it this far within the IDB approval processes without the full support and endorsement of the Davis administration? We know better,” he asserted.
“Did the Prime Minister only become aware of this project after it made it all the way to the IDB? Was the project ever put forward at any time for Cabinet consideration? As the project is listed under the Ministry of Finance, is it the Prime Minister who brought the matter to Cabinet?
“And even now, if these works are so badly needed, as the Prime Minister states, why exactly is the project being paused? Was something done wrong? Or is it only because the public is now rightly outraged to discover that this government has, in a 14-month period, given out some $396.8m in ‘no bid’ contracts?”
IDB Invest, in documents released publicly in February 2025, said:
PUBLIC NOTICE
The Public is hereby advised that we, Rose Naidine Jean (mother) and Renaldo Prophete (father) of 160 Bacardi Road, New Providence, The Bahamas, parents of SINAYA JACQUES LOUIS intend to change our child’s name to SINAYA PROPHETE. If there are any objections to this change of name by deed poll, you may write such objection to the Chief Passport Offcer, P. O. Box N-3746, Nassau, The Bahamas or at deedpoll@bahamas.gov.bs no later than thirty (30) days after the date of the publication of this notice.
“IDB Invest is looking to finance approximately $22m through a working capital facility to support Abaco Caribbean Holdings, a Bahamian company, and its shareholders, the Bahamas Striping Group of Companies.
“This financing will be directed towards the West Grand Bahama Road Improvement project, which seeks to enhance connectivity, safety and the overall travel experience across Grand Bahama. The project involves the rehabilitation of asphalt paving of 51 miles of highway and 47 miles of settlement roads, with an estimated cost of $185m.”
Other IDB documents, seen by this newspaper and giving more detail on the project, state: “These improved roadways will unlock economic opportunities, facilitate smoother transportation of goods and services, and bolster the tourism sector, which is vital for the island’s economy....
“Abaco Caribbean Holdings, founded in 2016 as a turnkey service provider, has gained experience through the planning, designing and construction of parks and community centres, and implementing smart technology systems. Most recently, with the support of other companies of
Bahamas Striping, it has expanded its services into road paving and construction, land clearing and site development.
“The project consists of the reconstruction and rehabilitation of a stretch of approximately 51 miles of the Queen’s Highway, a main asphalt paved arterial road on the West End of Grand Bahama, about 47 miles of minor roads - collectors and settlement roads - various other capital and infrastructure works, and other road and infrastructure safety enhancements.”
The latter is set to include “the installation of guard rails where required; the placing of traffic signs and road striping; the adoption of traffic calming measures; the placement of reflective road studs; and the construction of sidewalks in selected areas.
“To achieve the required production of asphalt for the road pavement, the company will install a new asphalt plant, which will be located approximately at the midpoint between Eight Mile Rock and the West End, within a rural environment, without any neighbours living nearby, and its main access is by the Queen’s Highway,” the IDB Invest report added.
NOTICE
MARINER CREWING LTD.
(In Voluntary Liquidation)
NOTICE IS HEREBY GIVEN as follows:-
(a) MARINER CREWING LTD. is in voluntary dissolution under the provisions of The International Business Companies Act 2000.
(b) The dissolution of the said Company commenced on the 1st day of April, A.D., 2025 when the Articles of Dissolution were submitted to and registered by the Registrar General.
(c) The Liquidator of the said Company is RIW NOMINEES LIMITED of Nassau, Bahamas.
(d) All persons having Claims against the above-named Company are required on or before 30th April, 2025 to send their names and addresses and particulars of their debts or claims to the Liquidator of the company or, in default thereof, they may be excluded from the beneft of any distribution made before such debts are proved.
Dated this 7th day of April, A.D., 2025.
RIW NOMINEES LIMITED, Cable Beach Court, Unit No.2, 400 West Bay Street, Nassau, Bahamas. Liquidator
INTENT TO CHANGE NAME BY DEED POLL
Keystone oil pipeline shutdown could quickly lead to higher gasoline prices
By JACK DURA and SARAH RAZA Associated Press
THE nearly 2,700-mile Keystone oil pipeline was shut down Tuesday morning after it ruptured in North Dakota, halting the flow of millions of gallons of crude oil from Canada to refineries in the U.S. and potentially leading to higher gasoline prices.
South Bow, a liquid pipeline business that manages the pipeline, said it shut down the pipeline after control center leak detection systems detected a pressure drop in the system. The company estimated that 3,500 barrels of oil were released and said the spill was confined to an agricultural field in a rural area, about 60 miles (97 kilometers) southwest of Fargo.
"The affected segment has been isolated, and operations and containment resources have been mobilized to site," the company said. "Our primary focus right now is the safety of onsite personnel and mitigating risk to the environment."
The pipeline transported an average 624,000 barrels — or more than 26 million gallons — per day in 2024, according to Canadian regulators. It stretches 2,689 miles (4,327 kilometers) from Alberta, Canada, to Texas.
Prices at the gas pump could rise in the coming days
The pipeline's shutdown could quickly lead to higher gasoline prices in the Midwest, said Ramanan Krishnamoorti, vice president for energy and innovation at the University of Houston. It could raise prices at the pump within one or two days, but will have a greater impact on diesel and jet fuel, Krishnamoorti said. The Keystone pipeline transports a large amount of a unique, heavy crude that only is available from limited sources, he said. "The refineries run on blends of crude so that they can get the product line that they want to deliver, whether it is gasoline, diesel, jet fuel, etc., and not having the supply of heavy
crude is going to tilt their ability to make diesel and jet fuel," he said. "They will make less of diesel and jet fuel when they have less of the heavy crude."
Higher diesel costs could lead to grocery price increases because diesel trucks transport those products, he said.
The lead petroleum analyst at gasoline price tracker GasBuddy, Patrick De Haan, said that typically refineries have at least a few days supply of crude oil on hand that will insulate them from immediate impacts from the shut down. But if the shutdown continues more than a few days or a week it could become problematic.
Mark LaCour, editor-inchief of the Oil and Gas Global Network, said he doesn't expect gas prices to immediately increase because the major refineries served by the Keystone pipeline have millions of barrels in storage.
"Even if the pipeline gets cut off completely for, say, 2 or 3 weeks, they have enough crude to continue
refining for gasoline," LaCour said.
The pipeline was shut down within two minutes of a 'bang'
It wasn't clear what caused the rupture of the underground pipeline. An employee working at the site near Fort Ransom heard a "mechanical bang" and shut down the pipeline within about two minutes, said Bill Suess, spill investigation program manager with the North Dakota Department of Environmental Quality. Oil surfaced about 300 yards (274 meters) south of a pump station in a field and emergency personnel responded, Suess said.
No people or structures were affected by the spill, he said. A nearby stream that only flows during part of the year was not affected but was blocked off and isolated as a precaution, he said. The Pipelines and Hazardous Materials Safety Administration is sending a team to investigate the cause of the leak.
Fort Ransom, a city of less than 100 people, is in
a hilly, forested area of southeastern North Dakota known for scenic views and outdoor recreation. A state park and hiking trails are nearby. It's unclear at what rate the 30-inch (0.8-meter) pipeline was flowing, but even at two minutes "it's going to have a fairly good volume," Suess said. "But ... we've had much, much bigger spills," including one involving the same pipeline a few years ago in Walsh County, North Dakota, he said. "I don't think it's going to be that huge," Suess said.
The pipeline has a history of past ruptures
The Keystone Pipeline was constructed in 2010 at a cost of $5.2 billion and carries crude oil across Saskatchewan and Manitoba through North Dakota, South Dakota, Nebraska, Kansas and Missouri to refineries in Illinois, Oklahoma and Texas. Though the pipeline was constructed by TC Energy, it is now managed by South Bow as of 2024.
A proposed extension to the pipeline called Keystone XL would have transported crude oil to refineries on the Gulf Coast, but it was ultimately abandoned by the company in 2021 after years of protests from environmental activists and Indigenous communities over environmental concerns. After a spill, the Pipeline and Hazardous Materials Safety Administration is responsible for investigating the root cause of the issue and any lack of compliance. The agency, which regulates liquid and natural gas pipelines, lost several senior-level executives earlier this year as part of President Donald Trump's federal cuts.
PHMSA did not immediately respond to a request for comment.
Bill Caram, executive director at industry watchdog Pipeline Safety Trust, said the organization already was "an underresourced, underfunded agency."
"To lose anyone will have an impact on safety," he said.
