UPDATE 3-Chinese firm blames bankruptcy of Bahamas resort on developer
(Adds comment from developer)
By Tim McLaughlin
July 7 (Reuters) - The Chinese construction company building the unfinished $3.5 billion Baha Mar resort in the Bahamas on Tuesday accused the developer of mismanaging the project's design and not securing adequate financing.
China Construction America (CCA) has been blamed for the delays that caused the Baha Mar project to file for bankruptcy protection late last month in a Delaware court.
But CCA said the developer of the project replaced the mega resort's principal architect after construction began and had more than 1,300 change orders for construction contractors. Developer Baha Mar Ltd is run by Sarkis Izmirlian, the son of an Armenian billionaire.
Construction delays, funding squabbles, lagging inspections and faulty work at the Nassau resort have led to finger pointing among Izmirlian, CCA and China's export finance bank, which bankrolled most of the project with a $2.45 billion loan.
Baha Mar Ltd called CCA's statement an "attempt at damage control" and declined further comment, according to a spokeswoman for the developer.
Meanwhile, the turmoil over Baha Mar has roiled the Caribbean nation's fragile economy, aggravated would-be tourists and idled thousands of workers amid already high Bahamian unemployment and slack revenue growth.
"Baha Mar Ltd's decision to file for bankruptcy protection is the direct result of its failure to secure adequate financing and its mismanagement of the design of Baha Mar resort project," China Construction America said in its first public statement since Baha Mar's bankruptcy filing. Continuación...