Ministerial Statement Delivered By The Hon. Christopher Sinckler, Minister Of Finance And Economic Affairs In The House Of Assembly, With Regard To The Construction Of A Marina In Bridgetown, Tuesday, April 12, 2011

The Government of Barbados is pleased to announce that a Memorandum of Understanding has been signed by the Barbados Tourism Investment Inc., for the construction of a marina in Bridgetown.

This project, which has been under consideration by several administrations for many years, will see the construction of a super yacht marina consisting of approximately 80 berths.

After the successful completion of the tendering process, the Memorandum of Understanding was signed with SMI Infrastructure Solutions Inc. for a Build, Own, Lease and Transfer (BOLT) financing arrangement.

The total cost of the marina has been estimated at US $101M.?? Based on this cost, annual lease payments are US$10.1M at an annual interest rate of 8.8 per cent.?? Lease payments will reduce over time in accordance with the quantum and timing of cost recovery.?? Total payments over 25 years are US$252.5M with the interest charge over the same period of US$151.5M. Cost recovery is estimated at US$66M from reclamation of lands and sale of berths.

This transformational tourism infrastructure project will assist in repositioning the Barbados tourism product offering, while being the catalyst for the regeneration of Bridgetown.

The tourism product offering will be moved further towards the upper end of the tourism market by attracting more high net worth individuals who can be expected to own berths at the super yacht marina.?? They will also purchase condominiums on the 10 acres of prime real estate that will be created through the reclaimed lands which are the by-product of building the marina.

The development of the marina will result in the enhancement of the beach in the immediate vicinity of the Carlisle Bay area, which will be targeted by the Coastal Tourism Master Plan for future development.

Other economic benefits include: the injection of foreign exchange into Barbados; creation of hundreds of jobs during construction and permanent jobs after construction; repositioning of Barbados’ tourism product; and the marina acting as a catalyst for major new investment along the Bay Street corridor.

Construction is expected to commence in about nine months.?? Prior to the commencement of construction, stakeholder meetings will be held.

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