THE BAHAMAS 2009 INVESTMENT CLIMATE STATEMENT

UNCLAS NASSAU 000083


STATE FOR OFFICE OF INVESTMENT AFFAIRS - EB/IFD/OIA, WHA/CAR, AND
WHA/EPSC

SANTO DOMINGO FOR USFCS

E.O. 12958: N/A
TAGS: EINV EFIN ETRD ELAB KTDB OPIC USTR BF
SUBJECT: THE BAHAMAS 2009 INVESTMENT CLIMATE STATEMENT

REF: 08 STATE 123907

--------------
INVESTMENT CLIMATE
--------------


1. Openness to Foreign Investment: The Bahamian Government
generally encourages and offers incentives for foreign investment in
all sectors of the economy except those the Government reserves
exclusively to Bahamian citizens. Reserved businesses include:
wholesale and retail operations; commission agencies engaged in the
import/export trade; real estate and domestic property management
agencies; domestic newspaper and magazine publication; domestic
advertising and public relations firms; nightclubs and restaurants
(except specialty, gourmet and ethnic restaurants and restaurants
operating in a hotel, resort complex or tourist attraction);
security services; domestic distribution and building supplies;
construction companies (except for special structures for which
international expertise is required); personal cosmetics/beauty
establishments; shallow water scalefish; crustacean, mollusk and
sponge fishing operations; auto and appliance service operations;
and public transportation.


2. Officially, the Government has targeted the following categories
of businesses for foreign investors: tourist resorts; upscale
condominiums; time share and second home development; international
business centers; marinas; information and data processing services;
assembly industries; high-tech service; ship registration, repair
and other services; light manufacturing for export; agro-industries;
food processing; mariculture; banking and other financial services;
captive insurance companies; aircraft services; pharmaceutical
manufacture; and offshore medical centers.


3. Benefits of investing in The Bahamas include: a stable,
democratic government; relief from corporate and personal income
taxes (although foreign property owners are required to pay a real
property tax based on the value of their property); timely
repatriation of profits of approved investments; proximity to the
United States; extensive air links through nearby Miami, Ft.
Lauderdale and Orlando; well-developed telecommunications links; a
good pool of skilled professionals; excellent tourism and conference
facilities; and current and potential future tariff concessions
under the Caribbean Basin Economic Recovery Act, Canada's CARIBCAN
Program, and the European Union's Economic Partnership Agreement.
The Bahamian dollar is fixed on par with the United States dollar
and the Government is firmly committed to maintaining this exchange
rate.


4. In practice, the vast majority of successful foreign investments
in The Bahamas have been in the traditional areas of tourism and
banking. The decision-making process within the Government of The
Bahamas is highly centralized and most foreign investments are
subject to review and approval at the cabinet level. The Government
is particularly interested in investments that will generate local
employment, particularly in white-collar or skilled jobs.
Large-scale projects in areas such as agriculture may be difficult
to staff since low-wage and low-skill jobs do not appeal to most
Bahamians, and because the Government is reluctant to permit
importation of foreign laborers to staff these jobs, even on a
temporary-permit basis. When new foreign ventures are perceived as
competitors to existing Bahamian businesses or too dependent on
foreign labor, the Government has responded to local concerns and
withdrawn or refused the license of the foreign business.


5. In 1993, the Government established The Bahamas Investment
Authority (BIA). It is located in the office of the Prime Minister,
Ministry of Finance. The BIA is intended to provide a
"one-stop-shop" to assist foreign investors with initial
governmental approval of their investment applications and to cut
through red tape for approved investments. BIA is the Government's
central point of contact for foreign investment questions.
Potential investors may contact the BIA at:

Bahamas Investment Authority
P.O. Box N-7770
Nassau, Bahamas
Tel: 1-242-356-5956, Fax: 1-242-327-5907
www.opm.gob.bs (note that the website is currently unavailable as
the BIA revamps their website)


6. While The Bahamas has not yet enacted environmental legislation
as extensive as that in the United States, the BIA still requires a
full accounting of the environmental impact of any industrial or
agricultural schemes.

--------------
Conversion and Transfer Policies
--------------

7. Persons and corporations resident in The Bahamas are subject to
exchange controls administered by the Central Bank. Certain
commercial banks are authorized to deal in foreign currency and have
authority delegated by the Central Bank to approve exchanges for
certain current account transactions. Non-resident investors
wishing to initiate operations in The Bahamas must register their
operations with the Central Bank. If their projects are financed
substantially by foreign currency transferred into The Bahamas, they
will be given "approved status," meaning that profits and capital
gains can be converted into foreign currency and repatriated with
minimal formalities. Capital investment into The Bahamas remains
subject to exchange controls, but as a practical matter these
controls have not been known to inhibit repatriation of approved
investment capital. Many Bahamians argue that exchange controls
should be eliminated, but the Central Bank and the Government are
not prepared to do so at this time, citing the need to retain
sufficient foreign reserves to mount a strong defense of the
currency's one-to-one parity with the U.S. dollar.

--------------
Expropriation and Compensation
--------------


8. Article 27 of the Bahamian Constitution prohibits deprivation of
property except upon the making of prompt and adequate compensation
in the circumstances. There is no evidence that the Government has
ever expropriated a business, and both major political parties have
stated that nationalization will not be an instrument of Government
policy.

--------------
Dispute Settlement
--------------


9. There is no history of major investment disputes in The Bahamas,
although smaller contractual and other disputes between Bahamians
and foreign investors or exporters are common. The Bahamian legal
system is based on English common law. The judiciary, appointed by
the Governor General, is independent and there is no evidence of
Governmental interference with the system. The highest court of
appeal is the Privy Council in London.


10. Tentative consideration is being given to the creation of a
Caribbean Final Court of Appeals to replace the Privy Council.
Despite recent efforts to reduce backlogs of criminal and civil
cases, resolution of court cases can be slow, sometimes taking
years. The Embassy has received some reports of encounters with
biased judges and malfeasance by attorneys. The Embassy has also
received reports of local defendants evading payment of Bahamian
civil judgments or deliberately dragging out court disputes,
especially in cases involving non-resident plaintiffs.


11. Judgments of British courts, and of selected commonwealth
countries, can be registered and enforced. Other countries'
judgments, including those of the United States, must be sued upon
in court as debt, subject to all jurisdictional requirements.
Judgments of Bahamian courts are payable in Bahamian dollars unless
otherwise specified by agreement of the parties.


12. Personal bankruptcy laws are antiquated and rarely used.
Companies can be and are frequently liquidated according to law.
Creditors of bankrupt debtors and liquidated companies participate
in the distribution of the bankrupt debtor's or liquidated company's
estate according to statute. The law relating to sales of goods and
some other commercial subjects are codified in The Bahamas'
statutes.


13. The Bahamas has been a member of the International Center for
the Settlement of Investment Disputes (ICSID) since 1995. It is
also a member of the Multilateral Investment Guarantee Agency, which
insures investors against currency transfer restrictions,
expropriation, war and civil disturbances, and breach of contract by
member countries.

--------------
Performance Requirements/Incentives
--------------


14. The Bahamas lacks any form of taxation on income, sales,
estates or inheritances. The only direct tax is a real property
tax. Casinos are specially taxed, and there is a $20 departure tax
levied at the airports and harbors, which will be increased to $25
once the first phase of the U.S. pre-clearance facility is complete
at the end 2010. The principal incentives for foreign investments
are concessions on import duties and property tax abatement.
Tariffs in general are high and do not generally discriminate by
country of origin, although The Bahamas recently signed an Economic
Partnership Agreement with the European Union that aims at the
eventual elimination of duty on EU and CARIFORUM imports over the
next 25 years. Incentives are offered under the following
legislation:

-- Industries Encouragement Act: Under this law, the Government may
exempt from duties the machinery, tools, equipment, and raw
materials imported to construct new factories. A list of
duty-exempt items is negotiated separately with each new venture.

-- Hotels Encouragement Act: Under this law, new hotels and resorts
can be exempted from real property taxes for ten years from the date
the new facility opens, and for significant tax reduction for up to
ten additional years. An amendment to the Act currently before
Parliament would allow the Government to grant tax relief for an
additional ten years, raising the maximum length of tax abatement to
thirty years. In addition, the Act allows the duty-free importation
of materials used for the construction of new facilities or the
substantial renovation of existing facilities acquired by new owners
for a set period of time. The list of duty-free items for each
project and the duration of some duty-free windows are negotiated
separately for each venture.

-- Agricultural Manufacturers Act: This law allows any materials
necessary for the construction, alteration, or repair of an
agricultural factory, as well as any machinery or supplies used in
establishing such a factory, to be imported duty free. An
agricultural factory refers to any factory established for the
purpose of manufacturing or preparing agricultural or horticultural
produce of The Bahamas for sale or export.

-- Spirits and Beer Manufacturers Act: This law provides for the
duty-free importation of materials used in the construction,
alteration or repair of approved liquor distilleries or beer
breweries and the duty-free importation of raw materials and
equipment for liquor or beer production.

-- Recent amendments to the Tariff Act provide duty exemptions for
construction and development on certain outer "Family Islands."


15. Prospective investors should discuss the terms and conditions
under which these benefits will be made available in any specific
case with The Bahamas Investment Authority. Although work permits
for key foreign employees are readily granted in connection with the
investment approval process, Government policy favors employment of
Bahamians. Fees for work permits can run up to several thousand
dollars each, and permits for less senior employees can be difficult
to obtain.

--------------
Right to Private Ownership and Establishment
--------------


16. Subject to the reservation of certain areas of economic
activity to Bahamian citizens only, and the necessary approvals and
licenses, private entities may engage in nearly all forms of
remunerative activity. They may freely establish acquire, and
dispose of interests in business eterprises. One significant
exception is the Govrnment's monopoly onall forms of
telecommunicatins (except Internet services, wireless services,
paging, and radio) exercised by The Bahamas Telecomunications
Company (BTC). However, with the pln to privatize this corporation
the GCOB is opening the market to competition within two years of
the sale. The GCOB is actively seeking a buyer for BTC and is
offering 51 percent of its stake in BTC. Government corporations
such as the Hotel Corporation of The Bahamas and ZNS Radio compete
on a basis of rough equality with private corporations in similar
businesses.

--------------
Protection of Property Rights
--------------


17. Subject to long legal delays, secured interest in property,
both chattel and real, is recognized and enforced. Mortgages in
real property and security interests in personal property can be
recorded with the Registrar General.


18. The Bahamas is a member of the World Intellectual Property
Organization (WIPO),but not of the World Trade Organization (WTO).
There is little industrial production that might generate possible
infringements of patent rights. However, existing copyright laws
are widely ignored, resulting in widespread piracy of video and
music recordings and broadcasts, most of which remain in The
Bahamas. Parliament passed a new copyright law on July 4, 2000,
which is intended to provide better protection to international
holders of copyrights but has yet to be strictly enforced. The
Bahamas was removed from the USTR 301 watchlist in 2007 but is up
for review and possible inclusion on the list in 2009.

--------------
Transparency of the Regulatory System
--------------


19. Official Government policy commits The Bahamas to building an
economic environment where the Government assumes its proper role as
regulator and facilitator of economic development, and where ideals
of transparency, fair play and equality of treatment are protected.
Still, the discretionary issuance of business licenses can result in
a lack of transparency in decisions to authorize or to renew the
authority of a business. Large foreign investors may be held to
higher labor, health and safety standards than are local
entrepreneurs. Obtaining required permits, especially immigration
permits, can take an inordinate length of time. The Bahamas
Investment Authority exists to assist foreign investors in dealing
with the permitting process.

-------------- --------------
Efficient Capital Markets and Portfolio Investment
-------------- --------------


20. In 2000 the Bahamas International Securities Exchange, (BISX)
began operations, and presently involves the listing and trading of
domestic equities and also provides a mutual fund listing facility.
BISX has experienced several problems during its short corporate
life, with a shortage of funds and low trading volumes since its
inception. The Exchange presently consists of 19 listed public
companies and the volume of securities traded on BISX in the first
quarter of 2008 declined to 4.8 million, from 5.25 million shares in
the previous period, and the value decreased by 1.6 percent to $28.3
million. In the same period the BISX All Share Price Index
appreciated by 23.2 percent to 2,066.75 points from last period's
1,676.19. Similarly, valuations represented in the broader Fidelity
Capital Market Index (FINDEX),which captures both BISX securities
and over-the-counter companies, increased by 26.4 percent to 938.3.
Total market capitalization on BISX rose by 24.3 percent to $3.9
billion.


21. The Exchange has experienced continued overall growth over
2008, though FINDEX growth slowed moderately. A number of important
initiatives are being carried out to accelerate the development of
the local capital markets. One of these is the inclusion of
Government debt securities among those instruments issued and openly
traded on BISX. This development has come about as the result of a
number of Governmental initiatives designed to stimulate capital
markets in The Bahamas and support BISX. As an initial step the
Government of The Bahamas published a 'Capital Market Development
Policy Statement' in August 2005 which commits itself to support the
growth of capital markets in The Bahamas. This commitment was later
illustrated by the Government's acquisition of a 43 percent interest
in BISX in February 2006, making them the Exchange's single largest
shareholder out of 46 shareholders.


22. Finally, with the further liberalization of Exchange Controls
initiated under the former administration, two new Bahamas Receipt
(BDR) products were offered to the public in 2007.


23. Local bank credit, including loans from The Bahamas Development
Bank, is available to resident enterprises for capital investment in
The Bahamas in proportion to their local ownership.


24. Despite the current global economic downturn, the effect on the
banking industry has been mild, reflecting a relatively sound
system. The prime rate and the Central Bank Discount rate at the
end of the second quarter of 2008 have been maintained at 5.50
percent and 5.25 percent, respectively. The majority of outstanding
commercial bank credit is personal loans (mortgages) for consumer
purchases. At the end of June 2007, the Central Bank reported the
total net external assets increased by $3.7 billion to $351.2
billion. Domestic banks also strengthened 8.9 percent to $8.4
billion. The gross economic contribution of the banking sector for
2007 to the Bahamian economy was $478.3 million. Since the passage
of the new financial legislation, the total number of banks and
trust companies declined from 415 in 1999 to 245 in 2007 - most of
these banks were "brass plate" banks (organizations that were
registered in The Bahamas but did not have a physical presence in
this jurisdiction). In addition, the number of International
Business Companies (IBCs) has rebounded after falling-off to around
80,000 in 2003, after implementation of new bank regulations in
2000, to 155,765 as at December 17, 2008. Further, the enactment of
the new legislation on Private Trust Companies has ushered in the
approval of two Financial and Corporate Service Providers (FCSP's)
to act as Registered Representatives of Private Trust Companies and
the exemption of seven (7) Private Trust Companies from having to
obtain a trust license.


25. Projects in The Bahamas are also eligible, in some instances,
for financing from the U.S. Export-Import Bank, the Overseas Private
Investment Corporation (OPIC) or from multilateral institutions such
as the Inter-American Development Bank (IDB). Major Bahamian
banking institutions which can provide financing for certain
projects in The Bahamas include:

Bahamas Development Bank
P.O. Box N-3034
Nassau, Bahamas
Tel: (242) 352-5780

Bank of The Bahamas, Ltd.
P.O. Box N-7118
Nassau Bahamas
Tel: (242) 326-2560

First Caribbean International Bank (merger between Barclays Bank and
the Canadian Imperial Bank of Commerce (CIBC)
Charlotte House
P.O. Box N-3221
Nassau, Bahamas
Tel: (242) 325-7384

British-American Bank
P.O. Box N-7502
Nassau, Bahamas
Tel: (242) 327-5170

Commonwealth Bank
P.O. Box SS-6263
Nassau, Bahamas
Tel.: (242) 328-1854

Royal Bank of Canada
P.O. Box N-7537
Nassau, Bahamas
Tel: (242) 322-8700

Bank of Nova Scotia
P.O. Box N-7518
Nassau, Bahamas
Tel: (242) 356-1400

Finance Corp. Of The Bahamas
P.O. Box N-3038
Nassau, Bahamas
Tel: (242) 322-4822


--------------
Political Violence
--------------


26. The Bahamas has no history of political violence, although
labor unrest has become violent on occasion and labor strikes are
becoming more common. In 1998 a semi-violent confrontation between
workers and police occurred due to the proposed privatization of the
phone company. In August 2008 telecom workers took part in a major
strike on both New Providence and Grand Bahama, once again in
protest of privatization. In 2008 union workers at Morton Salt on
the island of Great Inagua went on strike for three weeks due to the
termination of an employee who was also a senior union official.
Property on Morton Salt facilities was damaged. Despite these
isolated incidents, the Government publicly and strongly supports a
modern open approach to foreign investment, although many Bahamians,
including some prominent politicians, remain suspicious of
expatriate investors and employees. Foreign investors are sometimes
the targets of criticism in the news media and Parliament.

--------------
Corruption
--------------


27. Giving a bribe to -- or accepting bribes from -- a Government
official is a criminal act in The Bahamas under the Prevention of
Bribery Act. Penalty under this act is a fine up to $10,000, or a
maximum prison tem of four (4) years or both. The FNM Government
has emphasized anti-corruption measures. Since 192, credible
reports of heavy corruption have becme rare, although allegations
of improper conduc on the part of Government officials surface
reguarly, and have plagued the political process for dcades.

--------------

Bilateral Investment Agreements
--------------


28. There is no Bilateral Investment Treaty between The Bahamas and
the United States. The Bahamas was designated a beneficiary of the
Caribbean Basin Initiative (CBI) in 1985. As a result, with certain
restrictions, products manufactured in The Bahamas qualify for
duty-free entry into the United States. High wage rates, combined
with the small size of the country's manufacturing and agricultural
sectors, have hindered The Bahamas' ability to exploit these
benefits. On January 25, 2002 a previous FNM Government signed a
Tax Information Exchange Agreement (TIEA). A key side benefit of
this agreement for The Bahamas is that, effective 2005 it permitted
U.S. tax deductions for expenses of business conventions held in The
Bahamas.

--------------
OPIC and Other Investment Insurance Programs
--------------


29. Since 1992, the U.S. Overseas Private Investment Corporation
(OPIC) has approved two investment projects in The Bahamas. It
guaranteed up to $10.8 million in loans to Uniroyal Chemical
Company, Ltd. to assist in the purchase and refurbishment of a plant
in Freeport. The Uniroyal plant has since closed. In addition,
OPIC committed itself to a loan of up to $1.6 million to Landquest,
Ltd., for the development of a cruise ship facility on the island of
Eleuthera. The facility is currently operational.


30. The Bahamas is also associated with the Multilateral Investment
Guarantee Agency of the World Bank, which, like OPIC, insures
investors against currency transfer restrictions, expropriation,
war, civil disturbances and breach of contract by member countries.

--------------
Labor
--------------

31. In 2008 the labor force grew 19.8 percent compared to 2007,
consisting of 191,595 workers and owing mainly to the addition of
high school graduates. The Government and the tourism industry are
the country's largest employers. According to the Department of
Statistics, the unemployment rate appreciated to 8.7 percent from
8.0 percent in 2007. This contrasted the moderate increase of 90
basis points just a year earlier and it is expected to reach the
lower double digits by the end of 2009. There is a considerable
amount of under-employment and discouraged workers as a result of
the global economic downturn. The GCOB plans to create an
unemployment program and in an attempt to alleviate the current
increase in unemployment.


32. Well-qualified accountants and secretaries, and others with
skills appropriate to the financial services industry, command a
premium wage. While low skilled labor, mostly found in the hotel
and restaurant industries, basic wage hovers around the minimum
rate. Unemployment is slightly higher for adults between the age of
25 and 34. As expected, Nassau - the capital city - has the highest
employment. However, Freeport, the second city, has experienced
escalating unemployment due to two devastating storms and the
closure of a major casino and resort. At a meet the press
conference in November, Prime Minister Ingraham stated that
presently there is no good news for Grand Bahama. The government
approval of several tourism anchor projects on major family islands
was developed to attract workers back to the family islands.
Conversely, most of these projects have stalled in light of the
current economic crisis, so these benefits will not be realized in
the near future.


33. There is notable concern about the level of employee and
white-collar crime in The Bahamas.


34. In the 2000/2001 Government Budget, the Government increased
its minimum wage from $4.12 per hour to $4.45 per hour for public
sector employees. Minimum wage for private sector workers is $4 per
hour. The Fair Labor Standards Act requires at least one 24-hour
rest period per week, paid annual vacations, and employer
contributions to National Insurance (social security). The Act also
requires overtime pay (time and a half) for hours in excess of 48 or
on public holidays. A 1988 law provides for maternity leave and the
right to re-employment after childbirth. A new Minimum Labor
Standards Act including the Employment Act, Health and Safety at
Work Act, Industrial Tribunal and Trade Disputes Act, and the Trade
Union and Labor Relations Act were passed in 2001 and early 2002.


35. The Bahamian Constitution specifically grants labor unions the
rights of free assembly and association. These rights are exercised
extensively, particularly in the hotel industry - where 80 percent
of the employees are unionized - and in the state-owned industries.
Unions operate without restrictions or Government controls. The
right to strike is governed under the Industrial Relations Act,
which requires a simple majority of union members to vote in favor
of a strike before it can commence. The Ministry of Labor oversees
strike votes. Although prolonged strikes are still rare, work
slow-downs and rowdy protests occur occasionally. Labor unions and
others involved in disputes with foreign-owned enterprises have not
been above using the fact of foreign ownership as a lever to gain
popular support for their demands.


36. The Immigration Act requires foreigners to obtain work permits
before they can be employed in The Bahamas. The Government will
permit foreign employees to work in a technical, supervisory or
managerial capacity to initiate and operate industries, provided no
similarly qualified Bahamians are available for the job. Foreign
business owners are expected to train as many of their Bahamian
employees as possible to eventually fill technical and managerial
positions. Work permit fees have increased from a range of $250 to
$7,500 per year to $350 to $10,000 per year.

--------------
Foreign Trade Zones/Free Ports
--------------


37. The 1955 Hawksbill Creek Agreement established Freeport, Grand
Bahama, the country's second-largest town, as a free trade zone.
Firms in Freeport are granted the right to import equipment and
materials duty-free, and enjoy other tax advantages. In 1993, the
Government extended the Hawksbill Creek property tax exemptions
through 2015 and duty exemptions to 2054, but withdrew real property
tax exemptions for foreign individuals and corporations. The Hong
Kong-based conglomerate Hutchison Whampoa has invested millions of
dollars in a new deep-water container port, airport, cruise ship
dock, industrial park, and hotel properties in Freeport, promising a
revitalization of Freeport as The Bahamas' leading industrial city.
The Grand Bahama Port Authority (GBPA) has been embroiled in an
ownership dispute since the summer of 2006. As of March 2008 the
issue has not been resolved, but GBPA leadership has sought to
assure investors that their investments are safe.

--------------
Foreign Direct Investment Statistics and Major Foreign Investments
--------------

38. There is also a direct link between the level of imports flowing
into The Bahamas and foreign direct investments. At the end of the
second quarter 2008, net private direct investment was $212.0
million, and net private direct equity investments was $108.8
million. Net Foreign Loan Financing on foreign investments was
$149.3 million. Net foreign real estate purchases for this period
totaled $103.1 million. While Government statistics do not list
overall foreign investment by nationality, post determined that the
largest investors are American, Canadian, Hong-Kong Chinese, and
South African in origin.

Major foreign investments in The Bahamas include:
ACCOUNTING:
-- Grant Thornton Chartered Accountants
-- Horwath International
-- KPMG
-- Ernst & Young
-- PriceWaterHouseCoopers

TOURISM DEVELOPMENTS:

-- Atlantis Resort, a hotel, resort, and casino complex on Paradise
Island near Nassau owned by Sol Kerzner of the South African firm
Sun Hotels International

-- Baha Mar owned by Armenian, Sarkis Izmirlian recently purchased
the Radisson Resort (formerly government owned),Wyndham Nassau
Resort & Crystal Palace Casino formerly the Nassau Marriott Crystal
Palace Resort, casino, and convention center, and the Nassau Beach
Hotel

-- Superclub Breezes Resort, owned by a Jamaican company

-- Sandals Royal Bahamian Resort, owned by a Jamaican company

-- The British Colonial (Hilton) Hotel a subsidiary of Blackstone
and managed by Hilton Corp., both U.S. companies

-- Comfort Suites on Paradise Island owned by a U.S. company

-- Island Outpost Resort at Compass Point, Nassau, Pink Sands
Resort, Harbour Island, and Kamalamae Resort, Andros owned by a
Jamaican company

-- Freeport/Lucaya Marina Village developed recently by European
investors

-- Gorda Cay, renamed Castaway Cay, purchased and developed by
Disney Corp. for its cruise ship operations

-- Half Moon Cay, owned by U.S. company Holland America Cruise
Lines

-- Princess Cay, a cruise ship landing facility near Eleuthera
Island, owned by Landquest, a U.S. company

-- Four Seasons Resort Development on Exuma, owned by a Canadian
Company

-- Our Lucaya Resort, a subsidiary of Hutchison Whampoa Group and
Centex Rooney

-- RIU Resort, Paradise Island, owned by a Spanish Company

-- Winding Bay Resort, Abaco, owned by an American company

-- Baker's Bay located on Guana Cay, Abaco is owned by the U.S.
Discovery Land Company of San Francisco

-- Bimini Bay Resort, owned by Florida-based developer Geraldo Capo

-- The Ginn development project located on the west end of Grand
Bahama, owned by the Florida-based Ginn Development Company

-- The Bahamas Film Studio/Gold Rock Creek Enterprises Ltd., located
at East Grand Bahama, owned by Canadian Paul Quigley

-- Ritz Carlton Rose Island Resort owned by Karim Alibhai of the
Florida-based Gencom Group

-- Albany Golf and Beach Resort owned by an investment group
comprising Bahamian Joe Lewis, American Tiger Woods and South
African Ernie Els

-- The I Group Mayaguana development owned by developers from Boston


CONSTRUCTION:

-- Baker Construction

BANKING & FINANCE:

-- Citibank, N.A.

-- JP Morgan Trust Co. (Bahamas) Ltd.

-- BankBoston Trust Company Ltd.

-- Templeton Global Advisors Ltd.

OTHER:

-- Morton Salt (Bahamas) Ltd.

-- American - Marubeni Caribbean Power Holdings, Inc. (Grand Bahama
Power Company)

-- AES American Oil Company, which owns Ocean Cay, a facility to
produce liquefied natural gas (upon Bahamian government approval)

-- Freeport Ship Care Facility, owned by the Lloyd Werft Ship Repair
Company of Germany

-- The Container Port facility, airport and three beachfront hotels
in Freeport were acquired in 1997 by Hong Kong-based Hutchison
Whampoa

-- The Caribbean Marine Research Center, operated by The Perry
Institute for Marine Science, an American firm

-- Cable Bahamas, Ltd., established by a Canadian group

-- Commonwealth Brewery Ltd (Heineken),a Dutch-Bahamian company

-- Polymers International, Ltd., a subsidiary of Dart Container,
which produces styrofoam pellets at a plant in Freeport

HOUSING DEVELOPMENTS:

-- Sandyport Development Co. Ltd., a housing subdivision owned by a

British company

-- Roberts Isle, a housing subdivision, owned by a U.S. company

-- Treasure Cove, a housing subdivision, owned by a U.S. company.

-- Schooner Bay, an environmentally friendly community, owned by a
U.S. company.

-- Old Fort Bay, a housing subdivision, owned by a U.S. company.


ZUNIGA-BROWN