NASSAU, Bahamas — What would appear to be the Bahamas government’s “default position” in favor of Chinese technical expertise and Chinese funding is “squeezing out” local entrepreneurs throughout the supply chain, according to a prominent financial services professional.
Kenwood Kerr, chief executive officer of Providence Advisors, spoke with Guardian Business on Monday.
“It would appear that every major project seems to be, by either intent or default, driven by the Chinese,” Kerr said. “It just seems to me that our own government seems to prefer, in every instance, either Chinese financing, Chinese technical expertise and with that comes Chinese labor.
“That squeezes out local institutions, it squeezes out local service providers – in terms of the engineering, the construction, the banks – and it squeezes out the labor, because their business model is to bring their labor with their capital.
“So we have to be careful about that.”
He noted the cautious stance taken by both China and the U.S. in regards to their bilateral relations and the historical relationship between The Bahamas and the U.S.
“And they (the U.S.) have met our demands, whether it be the sea rescue, the drug interdiction – whatever it is. Our economic engine is based on North America, for the most part. So we have to be very careful of the extent to which we indulge [and] cater to those (Chinese) interests.”
The Export-Import Bank of China is funding, or has funded – in varying degrees – a number of high-profile projects in The Bahamas, beginning with the new sports stadium in Oakes Field and continuing with the multibillion-dollar Baha Mar project on Cable Beach, a new domestic and foreign port facility in North Abaco valued at close to $50 million and part of the New Providence Road Improvement Project.
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