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Lessons from the Bahía Príncipe hiccups
Dennis Morrison
Sunday, August 27, 2006

Bahía Príncipe, the name of the hotel being built at Pear Tree Bottom in St Ann, would have been very unfamiliar to Jamaicans just a few months ago. But a series of unfortunate events surrounding the project has put it in the limelight over the past few weeks.

Dennis Morrison

That the project is still moving ahead suggests that the developers are determined to establish the resort, even though they have been hit by one setback after another.

Their determination must, however, have been tested by a fire two weeks ago, coming after the collapse of the decking in the hotel's lobby, which resulted in the death of a worker and injuries to several others. An earlier incident of a similar nature had left some workers with injuries, but it was the last two accidents that aroused great concern on the part of the public.

The concern relates to possible breaches of the relevant building and safety procedures. In light of this, the authorities should ensure that the detailed investigation announced by the minister of labour is carried through with due care and any breaches corrected immediately.

Not even consideration of the large number of jobs that has been created by the project should obscure the critical importance of contractors adhering to safety standards and building practices that are in keeping with the regulations. As the developers would no doubt appreciate, Jamaica has maintained a good track record in terms of safety in both the construction and operation of hotels.

This would have been a factor in their decision to invest here and hence it is vital that everything be done to protect that record. One would expect that given their intention to carry out further investments here the developers would also be anxious to co-operate in making the necessary safety improvements.

The developers cannot, however, be held responsible for the failure of either the central agencies or local authorities in undertaking inspections or other monitoring exercises. According to newspaper reports, these inspections have not been occurring as stipulated in the approved building plan.

The blame for this has been placed on a shortage of technical expertise at the St Ann Parish Council. No less a person than the mayor of St Ann's Bay has been reported as admitting to this problem.

The critical question is: How can a major project like Bahía Príncipe be proceeding without regular inspections and consistent monitoring? The reality is that the council knew about the project for some time now, and should have been undertaking the required upgrading of its technical staff.

It was put in a position to do so based on the building fees of $33 million paid by the developers to the council. These fees were collected by the council although the real work of processing the various applications for licences and permits was done by NEPA and other central government agencies.

The other claim by the council that the developers had not been notifying it before concrete was poured has been contradicted by the developers. Their representatives have stated that the records show where the officers of the council had been notified on several occasions but had failed to turn up at the site.

Apparently, this was the case on the day of the second accident when the decking in the hotel's lobby collapsed. Isn't it reasonable that the Bahía Príncipe project be properly serviced with inspectors, considering the fees paid by the developers?

In the case of the St James Parish Council, building fees amounting to $63.35 million are payable in relation to the Iberostar and Palmyra projects. It is not clear whether this amount has already been paid. Is it that these projects are being regularly inspected?

Other hotel projects slated for St James will require that there be appropriate staff to ensure that proper monitoring is done. The same applies to Hanover and Trelawny where several major tourism projects will be implemented over the next five years.

Just last week there was an uproar in the Hanover Parish Council about delays in finalising approvals for the planned 2,000-room Fiesta hotel in that parish. Projections show that the council will collect more than $60 million in building fees for that project alone. Is the council preparing itself for the task of monitoring the construction activity? What is the state of its staffing arrangements?

The other councils should have learnt from the experience of St Ann that proper provisions have to be made if they are to live up to their responsibilities. To collect building fees and not give back service is unacceptable. It can only lead to damage of Jamaica's investment reputation.

The dispute over the environmental permit issued to the developers of the Bahía Príncipe project has already raised eyebrows in the investment community here and abroad. Other lapses must be avoided.

This is especially the case, bearing in mind innuendos about the recent fire at Pear Tree Bottom. While people connected to the project were quick to dismiss any suggestion of foul play in the first two accidents involving the collapse of decking, there have been suggestions of wrongdoing in relation to the fire. Some people have even suggested that this was in some way connected to the strong objections voiced against this particular project and the Spanish investors in general.

In visits to the area on two occasions recently, I have been struck by the growing suspicion of foul play, which was absent at the time of the earlier accidents. This cannot be a good sign for Jamaica, not if we are to continue the trend of increased investment activity.

A few years ago, new hotel projects were only proceeding when government investment was available. Now private investors, particularly from overseas, are committing their own funds to undertake mega-projects.

The Bahía Príncipe project at Pear Tree Bottom is one of this new wave of investments. Previously, the site had been earmarked for tourism development by local investors. But those plans were shelved until Grupo Piñero, a Spanish hotel chain, entered the picture three years ago.

Having purchased the land, this investor has mobilised its own capital and is well advanced in establishing what is set to be the largest resort in Jamaica. Surely, no one could want to drive away such an investor and thereby damage the prospects of jobs and cause damage to our economy.

In this connection it is imperative that the circumstances surrounding the fire be fully and swiftly investigated so that suspicions may be laid to rest. The developers should also be taking all measures necessary to reinforce their security arrangements, just in case there are wrongdoers who may be lurking in the vicinity of the project.

A close watch should be kept on persons with grouses who may be tempted to resort to sabotage in light of a rift between members of the workforce that had disrupted work at the site some time ago.
In the meantime, there is the obligation of the environmental regulators, local authorities and the developers to observe the conditions attached to the permit granted by the NRCA. The fact of the court action by environmentalists and the observations of the judge in that case make this an even more sensitive issue.

The hiccups with Bahía Príncipe are pointing to the need to tighten up the regulatory systems even while a greater effort is made to educate the public about the benefits of providing a welcoming environment for investments, whether from locals or foreigners.


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