China Construction America Bahamas Ltd. (CCA Bahamas) revealed yesterday that Baha Mar’s decision to file for bankruptcy is a result of the resort’s failure to secure adequate financing and its mismanagement of the project’s design.
In a statement, CCA Bahamas explained that Baha Mar’s mismanagement includes the replacement of the principal architect after construction commenced, the late and incomplete delivery of design packages and over 1,300 construction change directives.
While Bahamians are deeply invested in the future of Baha Mar, CCA Bahamas also revealed that the resort’s decision to file for bankruptcy in the United States was done to benefit the project’s developer over the interests of The Bahamas and Bahamians.
CCA Bahamas, which is the general contractor for the $3.5 billion resort, also clarified that Baha Mar’s attempt to blame the contractor for the project’s delayed completion is “misleading and dishonest.”
“It is insulting to the many talented and hardworking employees and subcontractors that work for CCA Bahamas and harms the interests of the people and government of The Bahamas that are represented by this landmark project,” the statement read.
CCA Bahamas explained that since February of this year, the company and its subcontractors have performed approximately $72 million of the contract work and no payment has been received.
“Our aggregate investment in and commitment to the project, including money advanced by on behalf of the developer, approximates $220 million. We have continually acted in good faith in the performance of this work reliant upon the belief that Baha Mar Ltd. would fulfill its responsibilities as the owner,” the statement noted.
“CCA Bahamas is committed to holding Baha Mar Ltd. accountable for its improper actions and failed commitments to the Bahamian government, the people of The Bahamas, and all of its creditors. We look forward to working with the financial community and the Bahamian government in order to complete this important project.”
Last week, Baha Mar filed for Chapter 11 bankruptcy in the United States.
