Showing posts with label Bahamian businesses. Show all posts
Showing posts with label Bahamian businesses. Show all posts

Friday, June 14, 2024

The Bahamas Prime Minister on a New Energy Era for The Bahamas

Transforming our country’s energy sector has been a priority for us from the start, says Bahamian Prime Minister, The Hon. Philip Brave Davis, KC., MP.,


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New Energy Era for The Bahamas
On the one hand, we have been compelled by the urgency of change – the need to relieve Bahamian families and businesses from the burden of high prices and unreliable electricity supply.

Relief is an important-enough goal – especially during a global inflation crisis.

But we are also motivated by our profound conviction that our economy can be more competitive, more prosperous, more dynamic, and more inclusive — with more paths to security and success for more Bahamians.

We have very big ambitions for our country and for the Bahamian people.

However – you can’t build a 21st century economy with 20thcentury infrastructure.

In every conversation I have with entrepreneurs, business owners, and investors – from the very smallest to the very largest – the high cost of electricity, and the costs and uncertainties associated with unreliable supply, inevitably come up.

For most Bahamians, the only bill bigger is their rent or mortgage payment.  Major bills are a major burden – which means less disposable income, which means less spending and investment in our local economy.

And, of course, high bills for businesses means high operating costs, affecting our competitiveness and our ability to diversify, and creating obstacles to growth and development – impacting investments, business expansions, and job creation.

Now – even with all of those problems, we’re a special-enough country that we’ve come roaring back after the dark days of, Hurricane Dorian, pandemic curfews and lockdowns, breaking big records, with substantial new investments and job growth.

Just imagine what we could accomplish if we had affordable, reliable, clean energy!

That’s where we’re finally headed.

But right before we get to the hopeful part of today’s launch – the solutions! – I want to make sure you all have an understanding of the scale of the challenge.

Important parts of our electricity infrastructure, including some transformers and substations, are more than 50 years old – they date back to before independence!

It’s hard to describe the experience of listening to engineers emphasize that critical parts of our grid are on the verge of collapse – with no chance of revival, once they go down.

And then there are the generation engines – 60% of BPL’s plant in New Providence, and 80% in the Family Islands, need replacement within the next five years.

So we have an aging, vulnerable, deteriorating, expensive system, dependent on heavy and diesel fuels, that cannot meet current needs – let alone the growing energy needs of a digital economy, or the increased demand we have to anticipate as temperatures rise in this new climate era.

If you’re wondering how much it costs to rescue and modernize our grid – I have an answer for you: about half a billion dollars.

Of course, BPL is carrying a legacy debt of the same amount —  more than $500 million, not to mention an unfunded pension liability of $100 million.

I could go on – about the grid’s vulnerability to storm damage, the inability of our current system to integrate renewable energy, the tens of millions in rental costs annually which contribute to high prices – but I can see you’re ready to move from problems to solutions.

As were we.  We understood that as urgent as change was, the quick short-term fixes that have been the historical pattern have not served our country well.

We knew we needed comprehensive, innovative reform.

Today, we’re excited to share these policies with you, which include:

- A foundational update to transmission and distribution in New Providence, so we can have a more stronger, more resilient, more modern, more efficient power grid – critical to gaining both lower prices and increased reliability;

- For the first time, utility-scale solar power in New Providence – 70 MW of solar power, and 35 MW of Battery Energy Storage Systems will be integrated into the grid;

- Solar power throughout our Family Islands – where new hybrid microgrids will incorporate solar power and natural gas, allowing us to eliminate expensive BPL rentals, replace aging generation units, and establish battery storage systems;

- Natural gas as a partner fuel to solar, to create important savings that can be passed on to the consumer;

- Energy Efficiency Upgrades, including energy audits and efficiency upgrades for government buildings, educational outreach to consumers, LED street lighting, and rooftop solar at schools; and:

- New electricity legislation (Electricity Act 2024), which allows for stronger consumer protections, and – very importantly, as you’ll hear momentarily – allows adjustment to the tariff rates to support consumers who most urgently need relief from high prices.

I’d like to pause here to say that when I asked Minister Coleby-Davis last September to become the country’s Minister of Energy, we discussed our shared priorities for energy reform, which included:

- Immediate relief for Bahamian families

- Reforms that lead to lower prices, and fair prices, over the medium and long term

- Increased reliability

- Increased grid resilience during storms

- Cleaner energy, with a lower carbon footprint…

- An ironclad commitment to union workers, including job and pension security

- New entrepreneurial, employment, and investment opportunities for Bahamians…and:

- Strengthening the financial position of BPL, to ensure legacy debts are addressed.

To the Minister’s credit, she jumped right in and never looked back.

Which is why this morning, she has the honour of sharing more of the details of these big new policies.

And as I turn things over to her, I will close by reminding everyone – we didn’t come here to defend the status quo, we came here to change it.

We are determined to close the gap between our national potential and our national reality – and with this very big and ambitious agenda of reform and investment, we believe we are well on the way to ensuring that a new energy era will lead also to a new economic era – a new era of opportunity for all.

Source


Energy Minister JoBeth Coleby-Davis on a new energy era in The Bahamas>>>

Saturday, October 23, 2010

Baha Mar, Yea or Nay!

By Felix Bethel
Rough Cut
jonesbahamas



While we recognize that some of our fellow-Bahamians might cower in the face of opposition, we will not be deterred by some of the noise in the market that emanates from some of our brothers and sisters who are apparently opposed to the Baha Mar project.

So, today, with our eyes are focused on the price of the fish; we reiterate our support for the self-same Bahama Mar project.

And for sure, we hope and pray that the current administration will – yet- throw their support behind the venture; thus bringing to an amicable conclusion negotiations that have gone on for far too long.

In addition, we are fairly sure that there are other investors who are watching closely as one administration continues with a project initiated by its predecessor – watching to see the extent to which “politics” must be factored into their calculus of costs versus benefits of doing business in the Bahamas.

Here let there be no mistake about the importance of this matter; one that brings with it some very high stakes for the entire nation.

As we have previously suggested and explained, “…Let there be no mistake about the matter at hand – the Baha Mar project is a very big deal; it is not only a big deal to the investors who are putting their money on the line; but for sure, it is a huge deal for both the government and the people of The Bahamas.

“And here, let there be no mistake about another aspect of the matter involving this project – this project brings with it a large chance that – once completed – tens of thousands of Bahamians will benefit, either directly or indirectly…”

This remains our view; thus today, we find ourselves [for better or worse and thus like a host of other right-thinking Bahamians] in a most unlikely position; this being that while we are all fulsome in our support of the Baha Mar investment project, we are apparently at loggerheads with the nation’s chief.

We are now left to wonder why Mr. Ingraham apparently sees things so very differently; and in our wonderment, we note that while it was Mr. Ingrham himself who personally tabled the resolution in Parliament, with 100% support from the FNM MPs, approving the labor permits for the required skilled expatriate labor force necessary to help build Baha Mar; today it is the prime minister himself who now decries the Chinese labor requirements.
And for sure, there is more.

Here we note another reversal; this one concerning the time when the Ingraham administration itself somehow or the other, forced the Baha Mar project to enter into a Supplemental Heads of Agreement; this one requiring the entire project to be built in one phase, and imposing penalties if it is not.

Now that things have apparently changed or gone sour; we note that the prime minister has completely reversed himself and that he now demands that the project should be constructed in multiple phases.

Here the implication is clear; such a move would incur more costs to the investor and commensurately, reduced economic and job benefits to the Bahamas.

In this latter instance of losses projected, we can recite some who stand to lose most: Bahamian contractors and their employees; the Bahamian labor unions; community leaders; and countless Bahamian businesses, including the Chamber of Commerce.

In light of the foregoing, we reiterate a point previously made to the effect that this Baha Mar project is good for the Bahamas and that as such, its approval should be put on the fast track.

In addition, we would very much like both the governing party and its Opposition to know that each would do itself a world of good by working together so as to bring about an optimal resolution as regards the same Chinese funded initiative.

Incidentally, all of these groups and interests support the Baha Mar project and recognize the immediate and real benefits they will gain from its going forward.

As we have previously framed the issue at hand; so today we reiterate our view to the effect that, “…Those law-makers who mean this country and its people well should – as a matter of the most urgent priority – cease and desist from any tricks or shenanigans which might either detract from or otherwise distract them from supporting the Baha Mar venture.

Yet again, we make this plea to these men and women because of some of what we perceive as little more than pious nit-picking on the part of some politicians who are making – as far as we are concerned – a mountain of what is surely a very real mole-hill; that being with the Chinese request for thousands of expatriate workers who would assist in constructing the resort complex.

Evidently, now is the time for a yea or a nay on that matter involving Baha Mar and its myriad of opportunities for the Bahamian people.

jonesbahamas

Saturday, September 4, 2010

Bahamas' recession woes are 'not close to being over by any stretch of imagination' - due to the nation's dependence on external forces that are themselves struggling

Recovery prospects 'nil' over short-term
By NEIL HARTNELL
Tribune Business Editor



The Bahamian economy's short-term recovery prospects are "nil", the Bahamas Chamber of Commerce's president warned yesterday, warning that the recession was "not close to being over by any stretch of the imagination" due to this nation's dependence on external forces that are themselves struggling.

Khaalis Rolle said the Bahamas' economic model made it almost totally dependent on foreign direct investment (FDI) inflows and US tourist visitor/spending levels to drive recovery, and both were under increasing threat from the possibility of a 'double dip' recession in North America and elsewhere, with the next three-six months being key.

"The prospects for recovery in the short-term are nil," Mr Rolle told Tribune Business. "Mr prediction has always been for stability over the next 24-36 months, and then we will see an improved level of confidence come back."

Adding that economic recovery "isn't automatic", the Chamber president said: "If follows the typical economic model, and under that model, when we're totally reliant on the consumer from the US to come here as a tourist and spend money, you're not going to recover."

A rebound would only be possible, Mr Rolle said, if there was an immediate upsurge in US business and consumer confidence, and a reduction in that country's employment numbers, something that was unlikely given the seeming possibility of a 'double dip' US recession.

Foreign

"Secondly, the Bahamian model of economic activity is completely and utterly built on foreign direct investment, and if foreign direct investment is at a standstill, everything else is at a standstill," he told Tribune Business.

"We have a ways to go. It's not, by any stretch of the imagination, close to being over. We have some challenges." US economic policy over the next three to six months, Mr Rolle said, was likely to determine whether it, and by extension the Bahamas, went "deeper into recession".

He was backed yesterday by his predecessor as Chamber of Commerce chairman, Dionisio D'Aguilar, who told Tribune Business that while many Bahamian businesses had "bottomed out" and settled into their "new normal", there was little for the private sector and consumers to get excited about in terms of recovery prospects.

"I think most businesses have settled where they are going to settle," Mr D'Aguilar said. "Most businesses have completed their decline and have bottomed out, and I think this is the new normal.

"Businesses are going to have to fight to get any substantial double digit growth in revenue.

"Indeed, if there's any growth at all it will be in the 1-3 per cent range. I don't see anything on the horizon to get us terribly excited.

"Ray Winder summed it up wonderfully [in yesterday's Tribune Business] in that the only item that will cause an uptick is foreign direct investment. There is nothing else out there."

Both current and former Chamber presidents thus agreed with Mr Winder and the Central Bank of the Bahamas, as each expressed growing concern yesterday over the prospects for a Bahamian economic recovery occurring in 2011. Mr Winder even suggested that without a major foreign direct investment rebound, a recovery in this nation may not be seen until 2012 at earliest.

The private sector's weakness was highlighted by the Central Bank's report on monthly economic and financial developments in July, as some 27 per cent of all commercial loans to Bahamian businesses and firms were said to be in arrears.

The Bahamian commercial banking system has an estimated $1 billion in outstanding credit to Bahamian companies, and the Central Bank reported that commercial delinquencies increased by $2.1 million to $270.6 million in July, as a $1.4 million decrease in short-term arrears was outweighed by a $3.5 million increase in non-performing loans.

Mr Rolle acknowledged that some companies with overdue loans were likely to go out of business, although those with greater strength might have the ability to refinance at more favourable rates and obtain some "breathing space".

Describing the private sector's health, Mr Rolle told Tribune Business: "I think the current state is tenuous at best, especially small and medium-sized businesses and businesses that rely on services. I know a lot of service businesses are being impacted. Companies in property management, facilities management, janitorial services, who are cutting back. We've got some challenges."

September 03, 2010

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