UK tells Bahamas: Let’s expand 295% export rise

percent, but I’d like to see that number for UK engagement increase and Bahamians better able to take advantage of what the UK can offer to address priority initiatives.

“I came to the country to help accelerate that process and have visited Grand Bahama, Eleuthera and Abaco as well as Nassau, calling on Bahamian companies and meeting representatives of government. This is all with the aim of identifying the most promising opportunities for UK companies to help Bahamians realise their vision for the country, whether in infrastructure, health or other sectors,” Mr Knott added. “This wasn’t a visit to conclude deals or define individual contracts. It was about enabling long-term partnerships which will benefit the citizens of the Bahamas and the UK. The development of these relationships will, I hope, be underpinned by the financing offer which UK Export Finance is making available. The specifics will depend on individual projects but this offer, like my visit itself, shows the determination of the UK to become a longterm partner. Dr Michael Darville, minister of health, revealed earlier this week that he was due to meet Mr Knott and his team to discuss potential financing sources for the proposed new New Providence hospital in the Perpall Tract area. Tribune Business reported earlier this year that the Government is negotiating with UK Export Finance, London’s trade financing and guarantee arm, a potential £750m, or $950m, credit line to finance various infrastructure projects in The Bahamas.

“UK Capability is already helping support Caribbean nations to build resilience in their economies. I leave The Bahamas very much encouraged, and with a clear view of how I hope the UK can be part of The Bahama’s continuing development,” Mr Knott added.

D’Jamila Ward, regional director for the Commonwealth Caribbean at the UK’s Department of Business and Trade, told Tribune Business that Bahamian exporters to the UK now have improved terms for market access after this nation and 13 other Caribbean states signed on to the Economic Partnership Agreement (EPA) with London following Brexit and London’s withdrawal from the EPA with the EU.

“It very much helps that we have concluded an Economic Partnership Agreement with The Bahamas and 13 other CARIFORUM countries, which came into effect on January 1, 2021,” she said. “The EPA is the cornerstone of our trade relationship and is a renewed opportunity to shape a distinct and ambitious partnership with The Bahamas.

“The agreement provides all qualifying Bahamian/ CARIFORUM goods (except arms and ammunitions) with duty-free quota-free access to the UK market. For UK businesses, tariffs are gradually phased on approximately 80 percent of goods up to 2033.

“The EPA also provides market access for service providers and covers other modern trade issues such as government procurement, competition policy and intellectual property. I look forward to working with The Bahamas to put the EPA into practice so businesses can realise its full potential.”

Thomas Hartley, the UK high commissioner to The Bahamas, added of Mr Knott’s visit: “It would have been easy to have spent four days in New Providence, but we wanted to start on the heart of the communities in the Family Islands. Across Grand Bahama, Eleuthera, Abaco and Nassau, we have seen bridges, airports, hospitals, schools, farms, ports and a clear vision from ministers and companies for growth. I really hope the UK can be a supportive part of that plan.”

Jesse McDougall, UK Export Finance’s head for the North American and Caribbean region, previously confirmed it has a Bahamas “country envelope” worth

DEVELOPER EYES $5M NEW PROVIDENCE MOVE

FROM PAGE B1 are going to do condo-like homes because we wanted to create that community feel. We want an environment where you can live, work and play in the same area, and the closest thing we have to it here is at Sandyport.”

Dr Turnquest said the idea is to be “more green than Sandyport” and keep a “minimal footprint” so that it can harness the natural beauty of the lake. The project’s financial budget has yet to be fixed because the developers are still going through changes suggested to them by the Town Planning Committee and Department of Environmental Planning and Protection (DEPP).

“The requirements from DEPP is one thing because first they gave an approval, and then there were offsets from the lake and from boundaries, and there were some other requirements that they have us going through and we haven’t really priced it out yet. But initial estimates given to me by my business partners have the project pegged at between $3m and $5m,” said Dr Turnquest. “We were going to initially do two buildings with the Urban Easter part and a set of condos in the back, and it was five buildings and I’m trying to get some of the other surrounding properties. We’re in negotiations with some of the property owners.

“We will probably build all of this out in stages, so originally it was five build- ings, but there are offsets and we have to make more considerations for parking and there are a few more things we are trying to work through. The building cost is going to be contingent on what we’re allowed to put there because they had cut us back down and we only could do what they allow us to do with the height restrictions and some other stuff.”

Tabeet’s Environmental Impact Assessment (EIA) states: “The owner proposes to undertake construction on two properties, respectively referred to as Property A and B. Property A will consist of one residential building, and commercial spaces which include one medical facility, one building for office spaces and one utility building, plus parking facilities with 66 stalls with an overall footprint of approximately 24,600 square feet.

“Property B will consist of commercial spaces that will include three retail shops and one restaurant, and parking facilities that will include 27 stalls with an overall footprint of approximately 11,400 square feet. Additionally, the owner intends to develop the disturbed area on site into an access road for both properties.”

Turning to the project’s economic impact, the EIA added: “This project aims to provide increased healthcare services to the local communities with introduction of a medical facility. This will allow for immediate care to patients nearby as the hospitals, both private (Doctors Hospital) and public hospital (Princess Margaret Hospital) are located approximately six miles away....

£750m, or $950m, which is the total available financing that can be allocated to infrastructure projects in this nation where there is “UK content” - meaning that British companies are involved.

In the case of Grand Bahama International Airport, Bahamas Hot Mix (BHM) is “the exporter of record” through its UK office. Ms McDougall, though, explained that the total $950m represents “a global allocation” that is not necessarily drawn down quickly, or all at once, by the borrower. This often occurs over a period of time, “years and years”, before it is used up and, in the case of The Bahamas, it is presently seeking just $400m or less than 50 percent of the total available.

The size of the potential financing drawdown and its uses are still being worked out with the Davis administration. The Prime Minister has previously indicated that a portion of the funding may also be used for the overhaul of 14 Family Island airports. UK Export Finance, which serves as the British government’s credit agency, is also selective in what it funds, choosing only “qualifying projects” once due diligence is satisfactorily completed.

“The complete development of the Tabeet project will require significant capital investment. It is estimated that approximately $3m is to be invested in the project. The approximate number of workers scheduled to work during the construction and operational phase of the project is still being discussed.

“It is expected that approximately 50 percent of the project cost will go directly into the Bahamian economy in the form of purchasing of goods, services and labour. It is anticipated that 80 percent of the project workforce will be Bahamian... During the construction phase Bahamian contractors will be hired to develop the properties and, during the operational phase, Bahamians would be hired to work at the retail shops, medical facility, restaurant, and commercial office building.”

Tabeet is trying to secure project financing from a commercial bank, and has been talking to several lenders over the last several years. “Everybody has been telling us to come back to them when we get a little closer, but funding is not contingent on government approval and we are leaving ourselves open for different things, but people just want a reasonable expectation that this could happen before there is a commitment,” said Dr Turnquest.