’42 Of 46 Subcontractors Have Now Been Paid’
The Government confirmed that 42 of 46 subcontractors at the Caroline Bay project at Morgan’s Point have now been paid, and said they “continue to work with our advisers and the developers to find a way to best protect the interests of the people of Bermuda.”
Late last year Finance Minister Curtis Dickinson confirmed that the developers defaulted on their loan, and since the previous administration provided a guarantee of up to $165 million for the project “liabilities triggered by these defaults have resulted in the government having no choice but to raise the debt ceiling in order to borrow monies to fund the payments.”
The Government subsequently announced that it “successfully completed the purchase of the Caroline Bay project loans that were subject to Government of Bermuda guarantees.”
A look at the now stalled development as it appeared in late 2018:
A spokesperson said, “In October of last year, the Government completed the purchase of the Caroline Bay project loans that were subject to Government of Bermuda guarantees, as we were responsible for resolving the negative and unfortunate outcomes from the deal negotiated by the former government.
“Following the acquisition of the loans, we also acquired the claims from the project contractor and provided oversight of payments to the various unpaid Bermudian sub-contractors. 42 of 46 subcontractors have now been paid.
“The outstanding subcontractors are making payment plans with the Bermuda Government with respect to their government obligations, and will be eligible to be paid soon.
“We continue to work with our advisers and the developers to find a way to best protect the interests of the people of Bermuda.”
“The outstanding subcontractors are making payment plans with the Bermuda Government with respect to their government obligations, and will be eligible to be paid soon”
Am I understanding that correctly? Once the contractor enters into a payment plan to pay monies owed to Government then Government will give the contractor 100 cents on the dollar?
In private industry the debt owed to me (or Government) would be deducted from what I owed the contractor and only the difference would be paid.
Thanks OBA!!!!!!!
1 bad deal vs 20 years of terrible management by PLP….lmfao I know who um takin
So they guaranteed “up to $165 million” how much did the default on and owe and why did you borrow more.
Where to from here? This property still needs to be developed . Has Government taken over this project , or considered inviting persons in to take it off their hands ? It will cost us more the longer it just sits there .I’ve had a harder time trying to borrow a second hand lawn mower from the Parks Dept than what it took to get $165 million from the government . GO FIGURE .
And your former Minister of Finance said, if he were to do it all over again, he would do it.
Go figure!!!!!!!!!!
Well well well!!! We the public as usual bear the brunt of the success or failure of Projects like this one and Others ! As long as they say it’s of national importance we have to ” throw money at it ” ?
We never know the full details of these Kontracks that leaves us Garranteeing Six figure sums. Mostly