THE LONG-MOOTED BRIDGETOWN PIERHEAD MARINA project is set to start in nine months at an expected cost of $505 million.
This was disclosed yesterday by?Minister of Finance Chris Sinckler in a ministerial statement in the House of Assembly.
Sinckler said a memorandum of understanding (MOU) had been signed between Barbados Tourism Investment Incorporated (BTII) and SMI Infrastructure Solutions to undertake the project which would be done under a Build Operate Lease and Transfer (BOLT) financing arrangement.
“The cost of the marina has been estimated at US$101 million,” Sinckler said. “Based on this cost, annual lease payments are US$10.1 million at an 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$252.5 million with the interest charged over the same period of US$151.5 million.”
Sinckler said the project would include construction of “a super yacht marina” with about 80 berths.
He stated the cost recovery on the project was estimated at US$66 million from the reclamation of land and the sale of berths.
He added there would be a move towards the upper end of the tourism market by “attracting more high net worth individuals” who could be expected to own berths.
“They will also purchase condominiums on the ten acres of prime real estate that will be created through reclaimed lands which are the by-product of the building of the marina,” he said.
Sinckler said the marina would result in the enhancement of the beach in the immediate Carlisle Bay area. He said the project would bring in foreign exchange and create temporary and permanent jobs during and after construction. (WG)
