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MONDAY, FEBRUARY 3, 2020

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$188m SOE subsidy ‘definition of insanity’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

HE government is awaiting “imminent” receipt of a study on how to “optimise” the loss-making state-owned enterprises (SOEs) responsible for virtually its entire first half $188m fiscal deficit. K Peter Turnquest, deputy prime minister, conceded to Tribune Business that getting such corporations and agencies to at least a “break even” position was “vital to the sustainability of the tax base” as well as

• PwC ‘optimisation’ findings ‘imminent’ • DPM: ‘Vital to tax base sustainability’ • Reformer: ‘Stop throwing money’ at it these entities themselves given the $400m-plus annual drain imposed on Bahamian taxpayers. The Minnis administration last year hired the PricewaterhouseCoopers (PwC) accounting firm to analyse the operating structures and business plans of its SOEs, and determine how they can be adjusted to K PETER TURNQUEST

Oil explorer is hoping ‘Perseverance’ pays off By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMAS-based oil explorer yesterday said it is “ready to deliver” on a 14 year-old promise after confirming it will drill its first exploratory well in Bahamian waters in April 2020. Simon Potter, the Bahamas Petroleum Company’s (BPC) chief executive, told Tribune Business that the name chosen for the well, Perseverance One, expressed “the sentiment we feel” after beginning its exploration efforts in earnest in 2006. Describing BPC as being

“very much in the action phase” on its first well, which it will spud in waters southwest of Andros near The Bahamas’ maritime boundary with Cuba, Mr Potter reiterated that the company’s activities will be “transformational” for the Bahamian economy and government revenues if it succeeds in discovering commercial quantities of oil that are extractable. However, given the 45-60 day nature of the exploratory well activities, Mr Potter said opportunities for Bahamian businesses and employment

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Minister ‘won’t intervene’ on Compass Point issue By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net COMPASS Point’s owner has been urged to resolve his hotel licensing grievances with the regulator, a Cabinet minister saying: “This is not a case where I can intervene.” Dionisio D’Aguilar, minister of tourism and aviation, told Tribune Business that the concerns articulated by Leigh Rodney to this newspaper last Thursday needed to be properly analysed and consulted on with the wider resort industry before any

changes were considered. Speaking after Mr Rodney warned he will not renew his hotel licence for 2020 unless the government agrees to support an examination of how the industry’s regulation can be improved, Mr D’Aguilar told him to deal with the Hotel Licensing Board given that it was the appropriate supervisory body. “I suggest he completes his meeting with the chairman [Ethan Adderley] of the Hotel Licensing Board,” Mr D’Aguilar said. “It is the

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MARLON JOHNSON

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Polymers lays-off 11 as plastics ban bites By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net POLYMERS International last night confirmed it had terminated 11 employees due to “reduced demand” for its products as a result of the growing global ban on Styrofoam and single-use plastics. Greg Ebelhar, the Freeport-based manufacturer’s chief operating officer, in a messaged response to Tribune Business’s inquiries said it had “been a heart-breaking time” for the company and those affected, but no further lay-offs were anticipated in “the foreseeable future”. “The correct number is 11,” Mr Ebelhar told this newspaper, amid reports circulating elsewhere that up to 15-20 staff might have

been terminated. “Single-use plastic bans have reduced demand for expandable polystyrene. “We believe that we are aligned to be viable at this level for the foreseeable future. This has been a heart-breaking time for the Polymers family, and we wish those who are gone all the best in these trying times.” K Peter Turnquest, deputy prime minister, said the government had been informed there was “no immediate intent” for further terminations at the export-driven manufacturer that produces polystyrene beads for use in foam products, such as Styrofoam cups and food trays, that are being banned in an increasing number of countries including The Bahamas.

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THE TRIBUNE

CARIBBEAN AG TELLS BAHAMAS: ‘GET INTO THE DIGITAL ASSET RACE’ By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

A FORMER Caribbean attorney general is urging The Bahamas to “get into that race” of digital currency regulation as a means to overcome its traditional challenges with economic scale. John McKendrick QC, Anguilla’s ex-top law enforcement officer, told Tribune Business that The Bahamas should use its Central Bank Digital Currency, the Sand Dollar, as a platform to establish a regulatory framework for initial coin offerings (ICOs) and digital assets such as crypto currencies. He warned, though, that this nation could not afford any delay in targeting this space because rivals such as Bermuda and Gibraltar were already doing “an

URCA in ‘closer watch’ on BPL

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

extraordinary job” of selling their jurisdictions to digital asset promoters and investors. Speaking to this newspaper at last week’s Arbitration and Investment Summit, Mr McKendrick said Project Sand Dollar had become the “second digital currency in the region”. He added: “The first one is the Eastern Caribbean Central Bank, the ECCB, which issued a digital Eastern Caribbean dollar that has been quite successful. “But it’s fascinating to see The Bahamas has done that. When I was the attorney general of Anguilla we issued something called the Anguilla Utility Token Act, which was the first Caribbean attempt to regulate the issuing of utility tokens. “I think from a regulatory perspective, as a lawyer, regulating Fin-tech

(financial technology) is a challenge and there are risks, but regulating regular financials services is also challenging and we mustn’t be put off by not understanding the technology behind Fin-tech. We must embrace it.” The Bahamas has several pieces of legislation in the pipeline to accomplish the objectives suggested by Mr McKendrick. The Securities Commission is aiming to complete a second round of consultation on the Digital Assets and Registered Exchanges (DARE) Bill early this year, while the government is also working on legislation to regulate blockchain technology and encourage innovation in this space. Asked what The Bahamas’ next move should be, Mr McKendrick added: “They have to consider how they can use the

digital currency to generate further commercial activity in the country, and what would be interesting is if the regulators - once they have some experience in regulating that currency- can think about whether they can regulate larger currencies beyond The Bahamas. “Would you consider some form of regulation of crypto-assets backed by a non-Bahamian currency because that would attract a lot of commerce and business to the country, and that’s really the way forward.” Mr McKendrick added that while “the international appeal of a Bahamas digital currency is possibly limited”, this nation could “bring in the investors behind the established virtual currencies like Bitcoin and Ethereum if you could find a way of regulating

them from here”. “That’s what we were trying to do in Anguilla,” he added. “We were trying to regulate utility tokens, and people who are offering utility tokens want to be regulated because that establishes customer confidence.” While acknowledging that “the legislation was challenging,” Mr McKendrick said “you have to get out there and promote it and sell it” to gain a competitive economic advantage. “What The Bahamas must do is that now they have taken these steps with a digital currency and regulating crypto-assets, they must now get out there and market it,” he argued. “That’s very important because some of these other smaller jurisdictions are doing a very good job. “If you look at what

Gibraltar is doing and what Bermuda is doing, they have done an extraordinary job in selling their regulation of initial coin offerings and crypto-asset regulations. The Bahamas must get into that race, because it will generate economic utility. “One of the great things of regulating crypto-assets is all the economies of scale that go against smaller Caribbean island jurisdictions don’t matter because you are doing everything on your telephone or your laptop. So there aren’t those normal costs of doing business that run against the Caribbean,” Mr McKendrick continued. “I just think this is a great opportunity for The Bahamas, and they just have to get out there and sell it because it can generate a lot of income in the islands.”

REGULATORS are still investigating the cause of Bahamas Power & Light’s (BPL) summer 2019 blackouts and are unable to presently say whether further fines will be imposed on the state-owned utility. Shevonn Cambridge, the Utilities Regulation & Competition Authority’s director of utilities and energy regulation, said it was “doing some things

to ensure we don’t have a repeat of what happened last summer this summer” but declined to give specifics. He was unable to say whether further financial penalties were likely to be imposed on BPL “because it is still a matter that is under investigation”. URCA already fined the utility monopoly almost $240,000 last year for failing to cooperate with its probe.

Mr Cambridge added that URCA plans to upgrade the performance reporting and monitoring regime for BPL, which “will allow us to keep closer watch on what’s going on in the utilities from both the generation/transmission and distribution/supply perspective, so that we could be ahead of it and ward off some of the problems that we had last summer. “We also have another project that we’re working on and that is our procurement procedures. That basically is setting the rules

by which the public electricity suppliers will be able to procure goods and services that impact the consumers’ bill at the end of the day, just to make sure we’re getting the best value for the money and staying current and abreast of all of the latest technology that’s going on in the industry.” Carlton Smith, URCA’s director of electronic communications, warned FM broadcasters that “the clock is ticking” on the 18 months they were given to come into compliance with new

technical standards. Stephen Bereaux, URCA’s outgoing chief executive, said he will depart et end-February 2020 for a position with the International Telecommunications Union. He said: “URCA will do a competitive open search for a chief executive. All executive members have to be selected by a competitive, open process, so that process will start next month. In the interim Mr Cambridge will be acting when I leave as chief executive.”

DISNEY Cruise Line has unveiled a website dedicated to its Lighthouse Point project in a bid to keep Bahamians informed about progress on the Eleutherabased destination. The website, www. DCLLighthousePoint.com, was designed by a Bahamian company, Felicia Creative. The cruise line said visitors will be find information about its efforts to create sustainable economic opportunities, protect the environment, incorporate Bahamian culture and strengthening the Eleuthera community. “Since the beginning of this effort, it has been important for us to forge deep relationships with our local neighbours in Eleuthera and The Bahamas more broadly,” said Jeff Vahle, Disney Cruise Line’s president. “We have strived to take input from the government and the community, and to share information openly about our vision and plans for Lighthouse Point. We hope this website serves as a helpful

DISNEY UNVEILS WEBSITE FOR ITS ELEUTHERA PROJECT resource, and provides a platform for easy access to the latest information.” Disney Cruise Line said its outreach efforts have included touring construction sites and meeting with contractors across Eleuthera, while also engaging with the Bahamian Contractors Association (BCA), Bahamas Society of Engineers (BSE) and other industry organisations. It added that it has held multiple information sessions in Eleuthera and Nassau to maximise opportunities for Bahamian contractors to find work on the project. Other seminars have been attended by hundreds of potential employees, vendors and tour operators.

Disney said it was continuing to engage with organisations such as the Small Business Development Centre(SBDC), the Bahamas Chamber of Commerce and the Eleuthera Chamber of Commerce, and has met with the Ministry of Labour, University of The Bahamas, National Training Agency and Bahamas Technical and Vocational Institute (BTVI) to work on training initiatives. The cruise line added that it is also working with Bahamian artists, led by Kevin Cooper and Antonius Roberts, to advance Lighthouse Point’s design. It promised that this “will be inspired by the natural environment, and rooted in the culture of Eleuthera and The Bahamas more broadly”. Spending time with scientists who are familiar with the site and with conservation organizations who routinely work in The Bahamas. For example, Disney spent time with the leadership of the Bahamas National Trust before the holidays to provide an update on the project. Disney Cruise Line completed its purchase of the Lighthouse Point property in 2019, and has signed a Heads of Agreement for its development with the government. The company said it submitted its Environmental Impact Assessment (EIA) in late December, and has been advised that the Bahamas Environment, Science and Technology (BEST) Commission will post the document on its website after their feedback is incorporated and government reviews are complete. Additional public consultation related to the EIA will occur as part of the site plan approval process, Disney promised, adding that its plans include developing less than 20 percent of the site and employing sustainable building practices, such as an open-trestle pier to avoid dredging. It said environmental monitoring programmes will continue through construction and into operations, and added that more than 190 acres of privately-owned land will be donated to the Bahamian people.

THE TRIBUNE

Monday, February 3, 2020, PAGE 3

best method of assessing the compensation. “What we have is a scheme that’s available in the SSRG (Small Scale Residential Generation) that allows smaller residential consumers to utilise the power of their systems to produce first, and then they are paid by the utility for the surplus.” The SSRG initiative is focused on renewable systems producing 100 kilowatts (kW) or less, but the RESG is aiming at those that can produce between 100 kW to one megawatt (MW). These will typically be installed by larger businesses who are among BPL’s biggest consumers, and already enjoy lower tariff rates than SSRG participants because of their higher consumption volumes. Mr Cambridge said URCA’s “buy all, sell all” proposal means RESG participants “have to continue to purchase all of their power from the utility at the current rate, and they will be paid by the utility at a set rate for whatever their system produces. “The reason why that is appropriate is that that potential class of renewable energy participants are in a different rate class with the utility than the smaller provider, and get the more lucrative or attractive rates of compensation.

“The person that’s being allowed to consume first [SSRG] is in a rate class that is paying on average 14-15 cents per kilowatt hour, plus the fuel charge. The persons who would be in the ‘buy all, sell all’ category, they are in a category that’s paying about eight cents or five cents per kilowatt hour, because they are larger consumers,” Mr Cambridge explained. “The way the tariff is set up is that as you get into the industrial classes, because of the volume you pay a lower rate, but you pay a maximum demand charge for other reasons. The rate structures are different. “But the installers would prefer to have net metering and, if not net metering, then the very attractive version of net billing because that allows them to sell more systems because the rate of return is faster. At the end of the day we also have to make sure that the utility remains a going concern and is sustainable.” Bahamian renewable energy providers are likely to view Mr Cambridge’s arguments as unappealing, and a signal that URCA’s priority is to protect BPL from technology that is causing positive disruption by giving business and residential customers access to lower cost, cleaner and environmentally-friendly energy. The industry has also warned that the “buy all, sell all” proposal would make renewable energy

investments unattractive by extending the time required for systems to “pay back”, or generate a return, from seven to 20 years. Mr Cambridge, in a previous Tribune Business interview, said the proposal that RESG grid-tied systems be paid the equivalent of BPL’s existing monthly fuel charge for the energy they supply to the grid meant such suppliers would receive back between 50-60 percent of their typical utility bill. He added that this would still be “profitable” for those with solar and other systems up to one MW, even though he acknowledged that this might not be the desired “rate of return”. He promised that URCA, once it obtained more data, would seek to determine a better reimbursement method rather than one simply based on BPL’s prevailing fuel charge. Dispelling the renewable energy industry’s comparisons with other countries, Mr Cambridge said: “They always quote markets where this is taking place, places like Hawaii and Germany and all the rest of that. But those markets are being subsidised by the government to increase the penetration. “Here in our market, it’s not that big, it’s not as sophisticated. We have to take small steps. So in putting in place regulations what we tend to do is to err on the side of caution and go as conservative as possible and, as we build up

the history, then we are able to compensate and adjust so it’s not a set price in stone.” Mr Cambridge confirmed that URCA is about to undertake a renewable energy cost study with the assistance of the Inter-American Development Bank (IDB), which is “going to allow us to really be able to determine what the true cost of renewables is. “We just finished the terms of reference on that, and we are hoping that that project would commence within the next two weeks. We anticipate it being a ten to 12-week project, and that’s going to allow us to be able to see what is the true cost of individuals who participate in the various markets or the various categories we have partitioned off in the renewable market, and we will be better able to set the compensation to ensure that everybody is treated fairly,” he added. “The bottom line is if you go too far on the left with allowing people to become independent power producers (IPPs) where they are producing more than they are consuming, somebody has to bear the cost of the other infrastructure - the transmission and distribution infrastructure. Mr Cambridge continued: “If it gets to the point where I’m making money from the utility, who bears the cost of the transmission and distribution system? The persons who cannot afford solar. With solar’s variability, the utility still has to maintain

sufficient capacity to supply you on the day when the sun comes over and your solar system is not producing, but you only want to use solar when it’s convenient to you but you don’t want to bear the cost of the infrastructure to provide the back up support to you and all of those things go into the economics of it. “The ‘buy all, sell all’ for the particular category of individuals from 100 KW up to one megawatt, those are individuals that are large consumers based on the sizing rules, and some background economic considerations come into play that we cannot allow them to benefit in the same way the smaller guy benefits. One, because of the volume, and two, there are considerations as to why they pay a lower rate than you and I as residential consumers and, again, it’s because of volume. “So the same reason they pay a lower rate for their consumption is the same reason they are compensated less attractively as the individuals in the residential small scale programme. But you won’t hear them complaining about paying five and eight cents per kilowatt hour. If you want to put in solar and benefit on the same scale as the small scale folks, imagine me telling the large-scale consumer you are going to have to pay 14-15 cents per kilowatt hour instead of the eight cents per kilowatt hour for every unit you use.”

The report Where should we go? Internet searches and tourist arrivals, written by Serhan Cevik, analysed Bahamian tourist arrivals data from 2004 to 2018 to determine that building Google Trends data into forecasting models improves both the Ministry of Tourism’s and private sector’s ability to correctly predict future visitor numbers. It added that such accuracy was critical to both “better planning and investment” in The Bahamas’ largest industry, and informing decision-making by both the government, resort industry and other private sector operators. The International

Monetary Fund (IMF) paper focused on US arrivals data for that 14-year period, given that this is the source market from which more than 80 percent of The Bahamas’ visitors originate. Dionisio D’Aguilar, minister of tourism, just last week announced a record 1.78m stopover visitors for 2019, with 1.45m coming from the US, and 7.216m total arrivals for the same year. “As tourism is the main engine of economic growth in The Bahamas, accurate forecasting of tourist arrivals is critical for informed decisionmaking by policymakers and businesses,” the report and its author concluded. “The main objective of this paper is therefore to

evaluate alternative forecast models and the usefulness of the Google Trends data in predicting monthly tourist arrivals to The Bahamas from the US, which accounts for about 80 percent of the total number of visitors.” It added that results showed the model incorporating online search data from the Internet’s largest search engine, accounting for 90 percent of all such activity, “outperformed” all other models when it came to predicting tourist flows. “Furthermore, checking the quality of alternative forecast models through three different measures of predictive accuracy, the model augmented with the Google

Trends data is found to bring a significant improvement in forecast performance,” the IMF report added. “The model augmented with online search data improves forecasting performance by about 30 percent compared to the benchmark model, and more than 20 percent compared to the model extended only with macroeconomic variables. “These findings are broadly consistent with previous studies, and indicate that Internet search data can help in real-time surveillance and provide more reliable forecasts of tourism activity. Hence, policymakers and private firms operating in the tourism industry would

benefit from internet search data-augmented forecast models in better planning and investment.” The IMF report added that while US visitor numbers increased in line with personal income growth in that country, and decreased if there was a rise in relative price levels in The Bahamas, these effects were not “significant”. Reiterating tourism’s importance to this nation, the report added: “In the case of The Bahamas, the economy is extremely dependent on fast-growing tourism, which contributes - directly and indirectly - about 48 percent of GDP and 56 percent of employment, respectively.”

URCA says BPL must stay ‘a going concern’ By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Bahamas’ top energy regulator has defended the controversial “buy all, sell all” renewable compensation mechanism as vital to ensuring Bahamas Power & Light (BPL) remains “a going concern”. Shevonn Cambridge, the Utilities Regulation & Competition Authority’s (URCA) director of utilities and energy, told Tribune Business that the proposed Renewable Energy Self-Generation (RESG) initiative needed to strike a balance between all industry stakeholders. He added that the large businesses targeted by the RESG programme already enjoyed lower BPL tariff rates because of the volume of energy they consumed, and any alternative compensation to ‘buy all, sell all’ - such as net metering or net billing - would swing the financial benefits in their favour and to the state-owned utility’s detriment. Speaking at URCA’s media breakfast last week, Mr Cambridge said: “The ‘buy all, sell all’ concept is not as wrong as others would suggest. In the grouping that it is applicable to, that is the

INTERNET GIVES 30% BOOST FOR BAHAMIAN TOURISM FORECASTS By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamian tourism industry’s ability to accurately predict visitor arrivals trends increases by 30 percent if it incorporates Internet search data into its forecasts, an IMF paper has revealed.

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THE TRIBUNE

$188m SOE subsidy ‘definition of insanity’ FROM PAGE ONE achieve the government’s “cost recovery goal”. Its findings are expected to be delivered “in the next two weeks”. Marlon Johnson, the Ministry of Finance’s acting financial secretary, confirmed to this newspaper that PwC had been asked to set-out how the public sector’s worst loss-makers can be made to “function optimally” and hit performance benchmarks relating to efficiency, output and “value added”. The keenly-awaited arrival of PwC’s report comes as the Government’s latest six-month “fiscal snapshot” revealed that the $186.7m in subsidies to loss-making SOEs over the six months to 2019 yearend almost exactly matched the government’s deficit for that period. It disclosed that the $188.7m deficit, which measures by how much the government’s spending exceeds its income, would have been virtually eradicated if all SOEs were transformed into “cost recovery” or break even entities - something the

Minnis administration had promised to accomplish over a three to five-year period. Robert Myers, the Organisation for Responsible Governance’s (ORG) principal, told Tribune Business that The Bahamas’ approach to its loss-making SOEs was a prime example of the truism that “insanity is doing the same thing over and over again, and expecting different results”. Urging the government to “stop throwing money” at the problem, he demanded that it “get these albatrosses from around the taxpayers’ neck because they’re too burdensome” and have proven “decade over decade that they’re incapable of breaking even”. Arguing that The Bahamas cannot afford to “kick the can down the road or maintain the status quo” with its loss-making SOEs, Mr Myers said the country need “to be more courageous in making real change happen”. He added that it needed to focus on privatisation solutions for consistent multi-million dollar losers, such as Bahamasair and the Water & Sewerage Corporation, which still met the

ARCHITECTURAL TECHNICIAN NEEDED @ Wellington Woods & Associates Telephone Contact 325-3883 Email: wrwoods440@gmail.com

government’s policy objectives and the Bahamian people’s public interests while removing the Public Treasury’s financial burden. While PwC’s findings have yet to be produced, Mr Turnquest signalled the government still wishes to move in the direction articulated by Mr Myers given the dangers loss-making SOEs pose for a fiscal position set to suffer a $1.6bn debt blowout over the next four years due to Hurricane Dorian. “They are looking at the operations of those SOEs to see if their structures are still relevant,” he said of the accounting firm’s study, “and if their business plans can be adjusted to make them sustainable. “There’s no doubt we have to get our hands around the SOEs, and we have to do a better job of cost recovery. It’s vital to the sustainability of these entities as well as the tax base.” Mr Johnson, confirming PwC’s hiring, added that the accounting firm had been asked “to look at the options for optimising the state-owned sector”. He said: “They should be reporting to us imminently. This report should be completed in the next two weeks, and then we’ll put our thoughts together and present it to the policymakers and see what happens from there.” The acting financial secretary described PwC’s work as “a census of all the SOEs”, covering all corporations, agencies and quasi-governmental agencies”. The accounting firm was then charged with taking a deeper look at eight of them, ranging in size from very large to very small, identifying their “key issues” and comparing them to other state-owned bodies. “We wanted to take a look at several different sizes,” Mr Johnson

confirmed. “Once that’s done it gives us an understanding of how to approach their operating framework to ensure they’re operating efficiently, and there are key performance indicators and strategic plans set up to measure output, efficiency and value-added. “The key for us is to make them function optimally, articulate their outcomes and achieve policy objectives in a way that is quantifiable.” The government is projecting that Bahamian taxpayers will now inject $425.821m worth of subsidies into loss-making SOEs during the 2019-2020 fiscal year, up from the $413.821m forecast in the budget. That is due to the Public Hospitals Authority (PHA) receiving a further $12m, taking its yearly subsidy to $235.456m - more than half the total taxpayer SOE outlay. Other major subsidy recipients are the Water & Sewerage Corporation, at $25m, and Bahamasair at $22.393m, with both the Bahamas Civil Aviation Authority and Public Parks and Beaches Authority due more than $19m apiece. ORG’s Mr Myers said the combined $425.821m subsidy to loss-making SOEs was equivalent to 62.9 percent of the Government’s revised $677.5m full-year deficit post-Dorian, which further exposed the drain they imposed on Bahamian taxpayers. “The government-owned and managed entities are just dragging us down,” he told Tribune Business. “Get these albatrosses from around the taxpayer’s neck. They’re too burdensome, and decade over decade have proven incapable of breaking even let alone making a profit. “At some point the government needs to step back

NOTICE

NOTICE is hereby given that HANS FEBLES-FRANK of Banks Road Governor’s Harbour Eleuthera, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 3rdday of February 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that ROHAY LUKE ARINZE of Rosalind Street, Chippingham Nassau, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 27th day of January 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

Request For Proposals

EXTERNAL AUDIT SERVICES YEARS ENDING 30 JUNE 2016, 2017, 2018, 2019 AND 2020

This Request for Proposal invites proposals from suitably qualified firms to conduct the annual audit of the financial statement of the Straw Market Authority (SMA) for the years ending 30 June 2016, 2017, 2018, 2019, and 2020. Prospective auditors may review the Audited Financials prior to submitting their bids. Proposals are to be submitted to the Straw Market Authority in a sealed envelope by Friday 7 FEBRUARY 2020. Proposal for Audit Services Managing Director Straw Market Authority Woods Rodgers Wharf New Providence, Bahamas

ROBERT MYERS and say: ‘This is just proving the theory of insanity; doing the same thing over and over again, and expecting the same results’. Change the way you’re thinking; just throwing money at it is not working. Stop the insanity. “That’s a $425m change to your balance sheet. There goes over half your deficit, so do it. Stop talking about it. We have got to step up. We have got to do better. We can’t kick the can down the road and keep the status quo. We have to be more courageous in making real change happen. Mr Myers said there needed to be greater focus on privatising SOEs, and getting the government out of business, pointing to the Nassau Airport Development Company’s (NAD) first-ever profit of $7.5mplus as one example of where outsourcing/divestment had proven successful. Citing Bahamasair as an an example, he argued there had to be a structure for privatising the national flag carrier in a way that still met the government’s policy objectives and public interest, such as low-cost Family Island connectivity and a “backstop to ticket prices” for both local and international travel.

“There’s got to be some way to do that and drive down the cost to the government,” Mr Myers said. “We’ve got to come up with creative ways to make this happen and get the burden off the public. It’s just monumental, monumental.” The government’s 20192020 “fiscal snapshot” said: “Subsidies to public non-financial corporations were boosted to $186.7m from $151.6m in the comparable period of fiscal year 2018-2019. “Of this total, $120.1m was directed to the Public Hospital Authority (PHA) - an increase of $9.6m over the same period of the last fiscal year, to assist with renovations at the critical care block of the Princess Margaret Hospital (PMH). Subsidies to the national airline carrier and the Water and Sewerage Corporation stood at $11.8m and $24.5m, respectively.” Total subsidies were up by $29m or 17.2 percent year-over-year at $197.8m, with the government’s total expenditure climbing to $1.292bn or 46.7 percent of the full-year budgeted amount due to the cost of relief and recovery efforts associated with Hurricane Dorian.

Employment Opportunities

An established company in The Bahamas is presently considering applications for a Project Manager. The positions are opened to candidates with the following qualifications:

Project Manager

Bachelors Degree in Engineering, Certified Project Manager, Construction Management or related studies.Minimum of 10 years professional experience. Must have some project management experience. Proficient in Microsoft Word, Excel, Project and AutoCAD.

Personal attributes

Must be able to lead in planning and implementation of projects Must be able to perform engineering duties Must be able to oversee construction and maintenance of building structures and facilities Must ensure that construction standards are met. Must be a “problem solver” with an eye for detail Must have ability to identify priorities, meet deadlines in a timely manner Provide direction and support to project team Must possess good communication skills Must be able to multi-task.

All interested applicants should email to nassaurecruitment@gmail.com

Board Certified Dematologist 15 years Clinical experience including Mohs surgery

Submit Resume to Hr@familymedicinecenter.org

THE TRIBUNE

Monday, February 3, 2020, PAGE 5

Oil explorer is hoping ‘Perseverance’ pays off FROM PAGE ONE would be “kind of limited” to consultancies and “minor contractual roles” at this stage. He pledged, though, that “many Bahamians” will be trained for roles in the sector if sufficient oil volumes were discovered. Mr Potter also voiced optimism that all the necessary government approvals to permit BPC’s activities will be received in time for April 2020, even though it continues to work on arguably the key one - the Environmental Authorisation (EA) - with the Ministry of the Environment, Bahamas Environment, Science and Technology (BEST) Commission and their advisers. Speaking after BPC firmed up its April 2020 welldrilling date, Mr Potter said the name had been chosen by the company’s late chairman in 2011. “I think it’s the sentiment we feel,” he told Tribune Business of the Perseverance name. “We’ve believed in this technical prospect for many, many years. We’ve stuck at it, and spent a lot of time on this. It’s almost a truism, and we’re ready to deliver on it. It’s something where we feel we have a very good technical chance. We’ve been talking about it for quite a long time, and we’re very much in the action phase on this. People are very busy on this to ensure it’s ultimate success.” The Perseverance One well will be 100 percent owned and operated by BPC following its successful raising of some $25m, which will fully cover all associated costs. Results from the exploratory drilling, which will take place at the northern section of an area covering 400 square kilometres, are expected to be available during the second quarter 2020 which ends in June. BPC added that there was an equal 50 percent (P50) probability of gaining more or less than the target barrel of oil volume. “The target P50 prospective recoverable oil resource at this location

SIMON POTTER is 0.767bn barrels, with an upside of 1.444bn barrels (assuming the same recovery factor), and downside volumes approximating to the minimum economic field size at currently prevailing oil prices,” it said. “This location has been chosen, based upon high resolution 3D seismic data, as the best balance of lowest technical risk, geological conditions and recoverable volumes... In aggregate, the entire structure extends for between 70 and 80 kilometres along strike and accommodates over 400 square kilometres of mapped closure, with the entire structure having a combined most likely potential resource of in excess of 2bn barrels. “Perseverance One will be located in water approximately 518 metres deep, with a target depth of 4,822 metres, but with a capability to be able to reach 5,600 metres, thereby affording the ability to evaluate multiple reservoir horizons... The ultimate decision on well depth will depend on real-time drilling results and geological information.” Mr Potter yesterday said the well design was “essentially complete”, with the main contractors, Halliburton and BakerHughes GE, “integrated” with BPC’s operations. It has opened an office in Houston, a key global hub in the oil exploration industry, to be closer to suppliers and contractors, and is due to physically inspect the drilling rig “shortly”. Contracts with all thirdparty providers are now being finalised, and BPC said: “In parallel, the company has placed long-lead orders for casing and drill

bits, and will shortly be finalising contracts for the provision of supply vessels and helicopter services to the rig following an extensive tendering process. “The Company has appointed AON as its insurance broker, is in receipt of a number of quotes and is currently working through these with AON ahead of finalising an appropriate package of insurance policies for the intended drilling campaign.” Mr Potter, disclosing that BPC was moving to ensure “every hour is productive” when it comes to drilling, said opportunities for Bahamian involvement would not be extensive at this stage. “It’s kind of limited to consultancy and minor contracting roles for services and environmental work at this stage,” he told Tribune Business. “The well will itself be there for between 45 to 60 days, and is a temporary facility. Most of the skills and contractual services are very specialist and don’t widely exist in The Bahamas. That’s not to say that in the event of success there won’t be an education and training programme that will see many Bahamians trained to participate in this industry, but we need to establish discovery of sufficient volumes of oil first.” Mr Potter expressed optimism that BPC would receive the necessary EA approval in time, adding: “We’ve been working very well with the government, the BEST Commission and their independent advisers, Black & Veatch. “Our first submission was made in 2012, the next in 2018, and the most recent ones in 2019 and again in 2020. Black & Veatch responded to a number of so-called gaps - differences between our approach and technical norms and procedures. “We’ve been working to an agreed timetable to close those gaps, and everyone has been working very well together. We’re progressing discussions with the government and BEST

Commission, so remain confident we’ll receive the appropriate approvals.” Mr Potter said there would still be “a way to go” between discovering commercial quantities of oil and their extraction, although any positive results from BPC’s activities would confirm the presence of an asset that could act as security for the government’s borrowings. He added that the royalties agreement, which ensures the government gets a percentage of each oil barrel’s revenue, effectively made it an equity partner with BPC and would provide an additional revenue stream for the cash-strapped

Public Treasury. “I must emphasise this is exploratory,” Mr Potter told Tribune Business, “but in the event of success this could be transformational for the Bahamian economy. There’s quite a lot of water to flow under the bridge for that to happen, but this is the first step in proving there’s another industry in The Bahamas that could add significantly to the economy.” He added in a statement: “BPC is in the final stages of readiness for the commencement of drilling our initial exploration well, Perseverance One, in The Bahamas, with results from the well expected in the 2020 second quarter.

“Perseverance One has the potential to open a world class, new frontier basin offshore Bahamas, less than 200 miles from the world’s largest hydrocarbon market/ infrastructure. In our view this makes Perseverance one of the premier prospects that could be drilled globally this year with the potential to not only fundamentally alter the status of BPC in the market, but to also transform the revenue generating capacity of the Bahamian economy.” BPC also said discussions with potential joint venture partners continue, but their outcome will not affect the exploratory well plans or timing.

PAGE 6, Monday, February 3, 2020

THE TRIBUNE

Polymers lays-off 11 as plastics ban bites FROM PAGE ONE

“I think there’s 11-12 persons that have been let go,” he told Tribune Business. “They don’t anticipate any further lay-offs. There’s no immediate intent to have any further reductions. “Every loss of a job is a worry and concern to us in government. We certainly do lament the loss of economic opportunity for those individuals that are directly affected.” The deputy prime minister continued: “However, this government continues to offer its social safety net in terms of unemployment benefit, and we continue to invest in individuals through the Small Business Development Centre to empower them to create employment for themselves and others. “We are doing our best to bring investment projects across the line, so that they can start to put shovels in the ground and absorb a lot of the labour coming on to the market.” Polymers International’s move, though, will deal another blow to an alreadyreeling Grand Bahama and Freeport economy that is still struggling to recover some five months after the

fearsome battering it took from Hurricane Dorian. These lay-offs, together with the 11 that recently took place at Grand Bahama International Airport, add to those jobs lost at businesses that have been forced to downsize or have not re-opened following the category five storm. One source, though, speaking on condition of anonymity said the globally-expanding ban on single-use plastics and Styrofoam products meant that Polymers International’s move to right-size was almost inevitable. “The whole market has turned,” they said. The manufacturer last July terminated ten contract workers as its first response to the fall in demand for its products, with Mr Ebelhar saying then: “Polymers International Ltd recently adjusted our workforce in response to changing market dynamics that are reducing demand for the resins we manufacture in our Freeport facility. “Although we took several previous steps to reduce expenses that did not affect labour, we recently had to dismiss ten contract employees.”

Minister ‘won’t intervene’ on Compass Point issue FROM PAGE ONE entity that has responsibility, and would have the remit to hear his concerns. They would be the entity that would do all the groundwork on any possible change to the hotel licensing regime. “I suggest he completes his meeting with them, and then that board - suitably appointed to deal with such matters - can advise the minster on their recommendations. This is not a particular case where a minister and an operator can get into a room and solve this problem. “He’s requesting changes to a statutory regime that would require further analysis and wider consultation, so I invite him to use the process that’s there. I would be happy to meet with him, and the chairman of the Hotel Licensing Board, when the chairman recommends it is ideal to do so,” Mr D’Aguilar continued. “I have an excellent chairman, Ethan Adderley, who is very progressive and I’m sure would listen to his issues and evaluate them within the right environment. I’m sure he’d advise the minister, if statutorily required to do so, on how to proceed and then the minister can make a decision.” Mr D’Aguilar’s comments

DIONISIO D’AGUILAR effectively represent the position he outlined last August after Mr Rodney warned he would close Compass Point on the next general election day if his concerns continued to be ignored or were not addressed. The minister said then that he did “not want to be dealing with a single operator”, as the issued raised by the Compass Point owner affected the entire resort industry. Instead, he urged Mr Rodney “to come as part of The Bahamas Hotel and Tourism Association and the Bahamas Chamber of Commerce”. Mr Rodney, though, last week warned he would not renew his hotel licence for 2020 - a key requirement for his property to remain open - unless he met with Mr D’Aguilar to discuss his concerns. He is unlikely to be impressed by the minister’s

NOTICE NOTICE is hereby given that JONAS CYRIL of Nassau Street, Boyd Road Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 3rdday of February 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

FRIDAY, 31 JANUARY 2020

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ALL SHARE INDEX: CLOSE: 2,219.25 | CHG: 3.89 | %CHG: 0.18 | YTD: -12.35 | YTD%: -0.55 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.70 2.60 2.00 5.47 12.00 6.17 4.50 10.99 3.24 5.06 10.57 7.90 16.99 9.40 3.80 15.20

52WK LOW 3.35 20.91 5.50 5.38 1.60 0.67 2.00 9.50 5.60 3.95 6.35 2.53 1.76 8.00 6.30 12.38 6.80 3.01 13.50

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ

1000.00 1000.00 1000.00 1000.00

Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Class A Focol Class B

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 3.35 17.43 6.00 6.68 2.30 1.62 3.80 11.61 6.00 4.40 6.49 3.49 4.60 11.02 7.60 15.05 9.33 3.44 15.20

CLOSE 3.35 17.43 6.00 6.68 2.30 1.62 3.80 11.61 6.00 4.40 6.49 3.42 4.60 10.89 7.60 15.05 9.33 3.53 15.20

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.07 0.00 -0.13 0.00 0.00 0.00 0.09 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME

20,000 266

30,000

VOLUME

EPS$ 0.239 0.932 1.760 0.369 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.646 0.728 0.816 0.939 0.203 0.631

DIV$ 0.170 1.260 0.000 0.260 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.434 0.060 0.328 0.240 0.540 0.200 0.120 0.610

P/E 14.0 18.7 N/M 18.1 N/M N/M -8.7 16.1 13.4 23.9 46.4 33.5 9.9 16.9 10.4 18.4 9.9 17.4 24.1

0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 5.07% 7.23% 0.00% 3.89% 0.00% 1.23% 0.00% 6.20% 3.67% 2.73% 0.00% 12.69% 1.30% 3.01% 3.16% 3.59% 2.14% 3.40% 4.01% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 3.73% 3.73% 2.93% 2.93% 2.67% 2.71% 5.76% 5.76% 12.81% 12.81% 3.93% 3.93% 6.38% 6.38% 4.50% 4.50% 7.96% 7.96% 11.57% 11.57% 18.35% 18.35% 5.17% 5.17% 15.86% 15.86% 5.67% 5.67% 3.40% 3.40% N/A N/A 10.80% 2.60% 10.40% -4.00%

NAV Date 31-Dec-2019 31-Dec-2019 27-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-2019

MUTUAL FUNDS 52WK HI 2.29 4.37 2.09 195.13 166.73 1.66 1.85 1.76 1.20 8.34 10.26 6.94 12.01 12.35 10.74 10.00 8.98 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.60 1.74 1.69 1.12 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.29 4.37 2.09 195.13 166.73 1.66 1.85 1.76 1.20 8.34 10.23 6.94 12.01 12.35 10.73 N/A 8.98 11.40

MARKET TERMS

BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

30-Sep-2019 30-Sep-2019 30-Sep-2019

description of Mr Adderley as “progressive” as the latter shut down his meeting with the Board after being told Tribune Business was present. Mr Rodney acknowledged “the risk to the livelihood of 60 fine Bahamians” employed at Compass Point as a result of his stance, which stems from his longheld belief that the Hotel Licensing Board’s annual inspections are “pointless”, and a “waste of Compass Point’s time” and Bahamian tax dollars. Tribune Business was subsequently given more information about Mr Rodney’s concerns from a well-placed source, speaking on condition of anonymity, who said: “They [the Hotel Licensing Board] tried to shut him down because a single tile was missing in the bathroom when Compass Point was doing renovations. They also forced him to place a ‘no lifeguard on duty’ sign on the beach.” After initially trying to push his ideas to the former Christie administration, Mr Rodney said he was able to secure a meeting with Mr D’Aguilar a few months after the May 2017 general election. He added that the minister “agreed with my

observations, and expressed confirmation and sympathy to my frustrations”, and he left believing Mr D’Aguilar “had the same goals as me” to improve governance. “With the election of the FNM, and its promise to make doing business simpler in The Bahamas, I thought that there would be a receptive new administration, eager for ideas on ow to fulfill their promises,” Mr Rodney said. He added, though, that he had quickly become disillusioned by his failure to secure a follow-up meeting with Mr D’Aguilar. Noting that many Compass Point staff have been with the resort for ten years or more, Mr Rodney said the property was now six months closer to his closure deadline and no progress had been made in addressing his concerns. He likened his situation to being an employee with Mr D’Aguilar as “my boss”, adding that any worker unable to get management to listen to their concerns was effectively being told to “quit”. “If I am forced to quit my job... I want my employees to know why I quit, and I want the Bahamian public to know why I quit,” Mr Rodney said. Mr Rodney acquired Compass Point in 2006. The property’s purchase from Island Outpost ended its two-year post-Hurricane Frances closure, although the iconic Compass Point Recording Studios were not included in the deal. Mr Rodney is president of Detroit Forming Inc, a Detroit-based designer and manufacturer of rigid plastic packaging, a family-owned business that was started by his father in 1962.

NOTICE NOTICE is hereby given that JIAJIE LAN of #116 Cordeaux Ave, P.O.Box N-9221 Nassau, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 29th day of January 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.