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Economy
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Thursday, 05 July 2012 02:30
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By press release
Antigua St. John’s - The Government of Antigua & Barbuda, on Tuesday, signed a multi-million dollar investment deal with Bau Panel Systems Ltd. to build thousands of affordable homes.
The company will also establish a manufacturing plant here and the initial agreement is for 25 years. The contribution to the economy is projected at $200 million.
Bau Panel Systems will construct 5,000 low-to-middle income homes at four sites, on land provided by the government. The sites are Bolans, Five Islands, Lightfoot and Lyons. The plant will be situated at Crabb’s Peninsula.
The plant, which will manufacture the company's building system, will make Antigua the hub for the Caribbean and South America.
Son of the soil Ken Hurst, a polymer scientist, will manage the manufacturing plant.
He was credited by Bau Panel Systems Chairman David Kendrick for courting the company over the course of the last year and for making the requisite introductions that made the agreement a reality.
Prime Minister Baldwin Spencer, who signed on behalf of the government, along with Mr. Kendrick for Bau Panel Systems, expressed confidence that the agreement would become a success story for Antigua & Barbuda and the investors.
“Let me say how delighted I am personally and on behalf of the Government of Antigua & Barbuda that we have reached this point where we have now signed off on this agreement. We are certainly looking forward to operationalising the agreement to the benefit of Antigua & Barbuda and Bau Panel Systems. If all sides keep to the agreement, it will be a great success for Antigua & Barbuda,” PM Spencer said.
Mr. Kendrick said he is excited by the opportunity to introduce a building system that has been tested throughout the world to Antigua & Barbuda and the region. He pledged to honour the agreement.
Mr. Kendrick said houses will range in cost from EC $135,000 to approximately $400,000. He also said rather than building houses, his company would build communities. The agreement mandates that there will be, among other amenities, recreational areas, bus stops and mini marts.
Bau Panel Systems will provide financing, primarily for low-income clients in the first instance, Mr. Kendrick said.
Minister of Finance, the Economy and Public Administration Harold Lovell said the agreement is in keeping with the government's plans.
“Housing development is a key part of the government's social and economic programme. The agreement with Bau Panel Systems will create jobs, increase investment and aid in alleviating poverty,” Minister Lovell said.
Construction of the plant would begin shortly, Mr. Hurst said. He projected that approximately 1,200 jobs would be created.
Attending the signing, in addition to PM Spencer, Minister Lovell, Mr. Kendrick and Mr. Hurst, were legal counsel for Bau Panel Systems Colin Derrick and, on behalf of the government, Solicitor General Lebrecht Hesse and Martin Camacho from the Office of the Attorney General.
56 Comments In This Article
re: slythatguy
“Let’s fix the little things with RWE before we attempt to fix the big things.”
fnpsr
@ fnprs
SlyThatGuy
De Real Observer
Osbert R. Frederick
re: slythatguy
"Let's fix the little things with RWE before we attempt to fix the big things."
fnpsr
@ R. Berry
SlyThatGuy
PM stop trying to fool us
Smart TD
@ fnprs
SlyThatGuy
re: slythatguy
As I stated before, times are changing and folks want to be part of the process.
“Let’s fix the little things with RWE before we attempt to fix the big things.”
fnpsr
@ rupert j. SlyThatGuy
So who's pessimistic now?
R. Berry
lol
Maco
@ rupert j.
SlyThatGuy
re rupert j
Whether the govt is red or blue, there must always be due diligence. See JF's post below.
"Let's fix the little things with RWE before we attempt to fix the big things"
fnpsr
@rupert j.
That’s the result of repetitive lying and dishonesty…tota l lack of credibility!
jeb
A few things to ponder
* How will this impact the overall aesthetics, will there be any avenues for people in the squalor areas acquire any of these "low-income" houses?
* How much strain will this project add to the existing water supply system?
* Is there any plan(s) for sewage treatment, or will there still be the same practice of dumping more $hit at cooks?
Morris
RE: Government Signs Multi-Million Dollar Investment Agreement
really fed up.
rupert j (seeing the side work)
..
tenman
Avid Reader
..
tenman
I wonder why.
rupert j.
RE: Government Signs Multi-Million Dollar Investment Agreement
Why would any company setup a manufacturing plant on a small island with little infrastructure?
Why would a company setup a manufacturing plant on an island where the import tax practically doubles the price on any materials imported?
Why would a company setup a manufacturing plant on an island where exporting the finished product will both be difficult and costly.
Why would you build 5000 homes when there are no families who can afford to buy these homes with all the increased UPP taxes?
Where is the infrastructure going to come from to support 50000 extra homes, electricity, water, sewerage?
According to Bau Panel Systems two people are enough to erect a detached house in just 4 weeks, how does that equate to the claim of 1,200 jobs being created? Are they planning on building 500 homes every 4 weeks?
Spin Doctor
@ Johnny
The effort would be best spent, encouraging the current builders in Antigua, not take away work from them. Why are they not using this initiative with local builders?
This is crazy, why this country cannot get anywhere, reduce import costs and any local builder can compete with this builder they are bringing in. I can assure you that when they are done, there will be no house for $135,000EC, maybe $135,000US, unless they intend to manufacture every piece of material that goes into building this house and that is not feasible. That is what makes this outrageous.
Avid Reader
They are kidding?
Avid Reader
200 Million over 25 years
young analyst
re tenman and JF II
JF II, I agree with your analysis. Those questions should have been answered during the due diligence. But as we have seen time and time again, we love to "cut first and then measure" rather than "measure twice and cut once".
I agree with Tenman, not every investment is with pursuing.
"Let's fix the little things with RWE before we attempt to fix the big things."
fnpsr
"Follow The Money Bau!"
A company out of Spain with building experience and results in Spain & Morocco. A&B has been recently courted by Morocco - Over 25 students studing their.
Both Countries are zones of Seismic Activity. No strong winds such as Hurricanes. Did the DCA check the Engineering Characteristics . Were the Architectural & Engineering Societies brought into the discussions to render Professional Recommendations?
Low cost housing from the website suggests Row Housing not detached.
Will the development, given that these are "Low Cost" be constructed with proper infrastructure of paved roads, sidewalks, electrical and telecommunicati ons lines, Domestic, Storm and Sanitary lines? Will there be a sewage treatment plant?
May I direct all to the Land Use and Zoning Plan which has not been passed to date. It contains the recommended Annual Housing Development for growth.
I shall leave questions of Land & Financing to others. Note Well Tenman & fnpsr's Contributions.
John French II
Johnny - where's the logic
..
tenman
RE: Government Signs Multi-Million Dollar Investment Agreement
Johnny
Tenman, ther is much more than loan repayment
Dax Rebel
fnpsr
..
tenman
What a place we live in!!!!!
Objectivity
Dr. Dredd
Quote:Since this was the case in 2004 when commercial costs were 17 cents US per kwh, imagine how worst is is now costs are at least 45 US cents per kwh
..
tenman
I question the due diligence
Again, I question if the due diligence was done.
I invite readers to check out the FAQ in BP’s Webster. I only perused a few of the questions.
“Let’s fix the little things before we attempt to fix the big things.”
fnpsr
Government signs Multi Million Dollar Investment Agreement
Anu
Ken Hurst success record
Dr. Dredd
What a joke. Another UPP gimmick
Dr. Dredd
re r berry
let's fix the little things RWE before we attempt to fix the little things.
fnpsr
@ Charmain Bailey
Jackie Spence
@ fnpsr
@ fnpsr - How is the land being "given" to Baupanel for the 25 year period? They're going to have to sell the homes to finance further building; so lets say after the first 200 homes are built, the uptake is slow to non-existent do Baupanel still get to "keep" the land for the remainder of the 25 years, do they hold on to the land indefinitely?
Are they any clauses in the agreement so A&B can get back the land just in case the project is not unsuccessful?
R. Berry
RE: Government Signs Multi-Million Dollar Investment Agreement
browngal
Investment
Charmain Bailey
Market Research
Next there is the North Sound Development which sits there uncompleted and practically empty. What does this say about the market? Remember these were also low income houses...and low income earners can't afford them.
My fellow bloggers i think you get the picture.
Really now
UPP could learn a thing or two from Bau
Anyway, look on the bright side, maybe all these Ghost Villages we are building can become tourist attractions.
dadlison
caveat emptor - part 2 & final
The pitch, in order to get the land and the deal is to provide “low-income housing”. But, as the record has shown, the low-income borrowers will not be able to afford the houses.
Did we lean anything from the WPP fiasco?
“Let’s fix the little things with RWE before we attempt to fix the big things.”
fnpsr
RE: Government Signs Multi-Million Dollar Investment Agreement
Sigh .....another failed project . . .
Smoke n Mirrors
caveat emptor - part 1
The company said it would finance low-income borrowers. This is good, but it will be taking loan opportunities away from local banks and we know that the profits will certainly leave the island.
What did the government give up? Did it give the land for free or did it sell it at peppercorn prices or did it lease it at a sweetheart deal? Was the proposal presented to parliament and was the company and the officials properly vetted? I would like to know, because often we have seen that after these deals have been cut, the citizens are the ones usually left holding the proverbial bag.
fnpsr
Whats the sense of more housing if people can't afford them?
Go figure
Common Cents
Whats the sense of more housing if people can't afford them?
I'd also love to see the terms of investment, to see what Bau is getting in the deal. I find it strange a "panel" company would be investing heavily in the collapsed housing market in a third world country
Common Cents
FAILURES!!
ANTIGUAN WOMAN
show me your motion (side work) part 1
..
tenman
Something fishy
This sounds like another Clock Tower Mall, the hotel, Chicken Farm or Car Park for which the government has either turned sod, held opening ceremonies or made grand public pronouncements.
Elections are definitely coming and drowning men are clutching at straws while schemers are scheming. Antigua and Barbuda people no folly!!!
Time up
wait and see
james c
Blue skies smiling at me…
PLM
Conflict!
Brown has to watch out Pappa Lazy going have plenty money to throw about this election!
Point Man
Conflict of Interest?
This $200million over 25years works out to an average of $8million per year. If one takes into account the future value of money, that amount decreases in real value over time.
Wouldn't it have been more prudent to give the land to local contractors to use as security and get the Chinese Government to provide funding (low interest loans) to the local contractors?
Then again that would have been too much to figure out!
Finally, how many of Dr Dr constituents will be able to afford one of these homes?
Slapping Hand
Dont know what to say
young analyst
RE: Government Signs Multi-Million Dollar Investment Agreement
Why would the PM make the above statement, is he suspicious about one party or the next or both? This comment certainly doesn't speak of 100% confidence.
If he's not confident then how are the people who you wish to buy the homes are to feel? Poor choice of words from Mr. PM.
I wish the project every success.
R. Berry
RE: Government Signs Multi-Million Dollar Investment Agreement
Seriously?
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