Caribbean & Central America - October 2015 (ISSN 1741-4458)

*** UN HELPS GUYANA-VENEZUELA TO MEND SOME FENCES. In May, the US oil company Exxon Mobil announced that it had made “a significant discovery” of oil in waters off Guyana. The only trouble was that the waters were adjacent to the region west of the Esseuibo River that Venezuela claims as its own despite an 1899 ruling to the contrary. Accordingly, Venezuela demanded that Exxon cease its activities, and when this didn’t happen it withdrew its ambassador to Guyana in July. It also blocked the appointment of Guyana’s new ambassador to Venezuela in early September. Tensions were then further raised when Guyana’s President David Granger accused Venezuela’s President Nicolás Maduro of ordering an “extraordinary escalation of Venezuelan military activity”. It is thought that the oil find could amount to more than 700m barrels.

A slight de-escalation has now been negotiated by United Nations (UN) General Secretary Ban Ki Moon, who brought Granger and Maduro together at the UN on 27 September. Maduro agreed to allow a UN delegation to visit Caracas to gather the facts on behalf of the Secretary-General, and he agreed that Venezuela would restore its ambassador to Georgetown immediately and accept Guyana’s nominated ambassador.

But the tone of Granger’s comments after the UN meeting indicates the continuing underlying tensions. Pointing out that all the problems were created by Venezuela he said: “It was the Venezuelans who withdrew the ambassador from Georgetown. It was Venezuela that refused to give our nominee for ambassador, Ms Cheryl Miles, agreement. It was Venezuela which held a military manoeuvre on the border. It was Venezuela which promulgated the decree on May 26 [purportedly annexing Guyanese territorial waters]. It was Venezuela which sent a naval corvette into our waters on October 10, 2013. All the provocation came from Venezuela. There has not been any lack of conversation on our part.”

For his part, Maduro described the meeting with Granger as “complex, tense, difficult”, but he added that Venezuela was “not an imperialist country” and was looking to restore “brotherly relations” with Guyana.

*** BAHAMAS ASSURED OF “EARLY COMPLETION” OF MEGA RESORT. Prime Minister Perry Christie of The Bahamas said on 28 September that he had been assured by the chairman of China State Construction Engineering Corporation (CSCEC) that the troubled Baha Mar mega resort would be completed. He said that he had held “very positive discussions” with the chairman of CSCEC who had assured him of “his full cooperation to ensure its early completion and opening”.

Construction at the US$3.5bn Baha Mar project stopped in February due to liquidity problems, and provisional liquidators have now been appointed to oversee the affairs of Baha Mar Ltd.

CSCEC subsidiary China Construction America (CCA) is the main contractor for Baha Mar, and Christie will be hoping that the assurances from the chairman of CSCEC will see work on the project restored in good time. CSCEC and CCA are major investors in The Bahamas, with the former acquiring the British Colonial Hotel last October. CCA is also involved in the construction of the US$250m The Pointe resort which will comprise 200 rooms and an 80-berth marina. Christie said: “There are a myriad of other opportunities that may stimulate China Construction’s interest…so we look forward to a long and mutually rewarding relationship…”

• Belize's Barrow calls elections

The United Democratic Party (UDP) government led by Prime Minister Dean Barrow was returned to a second term in power in March 2012 (winning 17 seats to the opposition’s 14) and theoretically had until March 2017 before needing to meet the electorate again. However, on 28 September Barrow announced that an early election would be held on 4 November. The prime minister appears confident that the UDP will secure a third consecutive term, and judging by the UDP’s performance in the March municipal elections his confidence is well placed. The UDP inflicted a humiliating defeat on the People’s United Party (PUP), with the UDP winning 62 out of 67 seats contested nationwide, and it captured control of all municipalities except one.