Business View Caribbean - November 2016 17
ing companies the $2.1 billion in cash (for working
capital), agricultural and farming equipment, as well
as skilled expertise. If the proposal is approved, the
Bahamas government would lease with an option
to renew the lease for additional years, to all 100
companies, 10,000 acres of Crown land in Andros.
Lease options will be available to each company for
an additional 100 acres, provided certain clearly de-
fined performance benchmarks are achieved. The
Bahamas government would also grant to each of
the companies fishing licenses consistent with ex-
isting Bahamian laws.
The proposal states: “While realization of a reason-
able return on an investment in agriculture is a rela-
tively slow process, requiring substantial capitaliza-
tion over many years, participating companies in the
initiative will within months of commencement of
operations realize positive cash flow from the sale
of seafood. It is anticipated that the agricultural
products and the seafood will be used either for
local consumption or will be exported to China or
the USA for sale. The management of participating
companies will resolve to do what is in their best
interest.”
The initiative hopes to qualify for funding under a
regional program of the Chinese government, which
has budgeted $35 billion for such initiatives. Two
Bahamian companies will come together in a 50-
50 ownership structure to incorporate, and equally
own, yet another company that will “participate” in
the proposed China-Bahamas Agriculture and Fish-
eries Initiative, the proposal says.
The proposal states that each Chinese owned joint
venture company will be the vehicle that transfers
the specified equivalent (i.e. $2.1 billion) of cash, ag-
riculture, and fisheries equipment as well as skilled
expertise to the participating company on an annual
basis, and over a ten-year period.
The government believes that the initiative “could
be a very impactful project that economically bene-
fits hundreds of Bahamian families for decades, pro-
vided that the level of investment sought is viewed
by the Chinese government as acceptable.”
The government has said no foreigner will be al-
lowed to physically fish in Bahamian waters by him-
self or in partnership with others, and therefore only
Bahamians would be allowed on the fishing vessels.
Under current government policy, foreigners may
own and may participate in the ownership of related
land-based activities, such as processing and pack-
aging houses for agriculture and fishing products.
