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Thursday, February 5, 2026
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Gov’t trims debt cut ambitions to $500m BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government has quietly moderated its fiscal consolidation ambitions through now predicting it will slash its direct debt by around $500m over the three-and-ahalf years to the 2028-2029 Budget period's close. The half-a-billion dollar cut, while still significant, nevertheless represents a $366m downward revision to the $866m forecast made just under a year ago in its previous Medium-Term Debt Managment Strategy. The current version, tabled in Parliament yesterday by Prime Minister Philip Davis KC, suggests that while its fiscal consolidation plans remain on track, it has trimmed its expectationsf for the pace of debt reduction. The new document, which covers the three fiscal years between 2026-2027 and 20282029, also reveals that the Government has adjusted its
Revises goal downwards by $366m in under year
Targeting $131m this fiscal year via corporate tax
42% of B-dollar debt maturing in less than one year
expectations over the size of annual Budget surpluses it expects to achieve as well as slight tweaks to its debt management plans. The Davis administration is now forecasting it will achieve annual Budget surpluses, which measure by how much the Goverment’s revenue income exceeds its total spending in any fiscal year, that “average an estimated 1.7 percent of gross domestic product” over the medium-term debt strategy horizon”. This is less than the average 2.3 percent Budget surplus that it forecast just 11 months ago when the previous strategy report was published.
And, while the basic foundations of the Government’s debt management strategy have changed little over the past year, it is now targeting a slightly higher proportion of external foreign currency borrowing as part of its total financing mix. Moving foward, external borrowing as a percentage of its total debt financing strategy will increase from 20 percent to 22 percent, while Bahamian dollar borrowing while fall slightly from 80 percent to 78 percent. The Government also reaffirmed that the 15 percent corporate income tax, imposed on Bahamas-based companies that are part of
multinational groups generating annual turnover of 750m euros to ensure comply with the gloal G-20/Organisation for Economic Co-Operation and Development (OECD) initiative, is forecast to generate $131m in revenue this fiscal year. "Additional yields" from the cruise industry's private islands are also expected, and the Government added that it is seeking to "stabilise recurrent expenditure at approximately 20 percent of GDP over the three-year" period covered by the medium-term debt strategy initiative.
BAHAMAS Power & Light (BPL) was yesterday revealed to have executed a new fuel hedge covering 2.5m barrels of oil in a bid to protect consumers from energy price shocks during the transition to renewable and liquefied natural gas (LNG) power. Jobeth Coleby-Davis, minister of transport and energy, told the House of Assembly that the all-in per barrel cost of the hedge was in line with that incurred by BPL under the former Minnis administration as the lower “premium”
compensated for the higher “strike price”. However, both she and Prime Minister Philip Davis KC reawakened the previously-dormant BPL fuel hedging controversy by accusing the Opposition Free National Movement (FNM) of prematurely mplementing a failed strategy that failed to ready the state-owned utility’s generation assets, systems and other infrastructure to maximise the potential financial savings for Bahamian households and businesses. And, in what some described as an attempt “to rewrite history”, they attempted to turn the tables
UBER representatives were yesterday revealed to have reached out to The Bahamas Livery Drivers Union (BLDU) in their attempt to bring the rideshare services to The Bahamas. Taurian Austin, the union president, said preliminary talks were held with Uber executives this week. Although no commitments were made, he added that he is open to future meetings in a bid to gather more information to share with his members. “We will sit to the table and hear,” Mr Austin said.
THE Government yesterday sought parliamentary approval to guarantee almost $150m in letters of credit and credit facilities that will underpin its share of the financing for liquefied natural gas (LNG) supply and the Clifton Pier regasification terminal. Jobeth Coleby-Davis, minister of energy and transport, told the House of Assembly that 57 mega watts (MW) of former rental generation units
• Arbitration location Beijing if disputes arise • Minister pledges ‘50:50’ role for Bahamians • Contractors chief hails ‘step in right direction’ BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
JOBETH COLEBY-DAVIS
on the former Minnis administration by asserting that it - not the Davis administration - was responsible for BPL under-recovering its fuel costs, which forced the
utility to increase its fuel charge by 163 percent in just eight months by mid-summer 2023 and the Government to
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FINANCING - See Page B7
“We can't say at this time because we don't know all the details, but we are open to anything that helps us to improve our sector. This is 2026 and a digital platform of booking for transportation is the way moving forward. So whether it's Uber or any other digital platform, we are willing to sit and listen and hear what they have to offer. And it may be something that we might be interested in. Like I said, I can’t say at this time what we would do, but we will definitely listen. “They have reached out to us. We had a meeting with a group of Uber representatives already earlier this week. And I guess it
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Gov’t seeks approval on $150m LNG credit BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Chinese law to govern $195m hospital loan
PHILIP DAVIS KC
Uber meets livery drivers in push to enter Bahamas BY ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
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CHINESE law will govern the bulk of the financing for New Providence’s $268m second hospital, it can be revealed, with any disputes between the lender and Bahamian government settled in Beijing if negotiations fail. The concessional loan agreement, which stipulates the terms and conditions upon which the state-owned China Export-Import Bank will release $195m to fund the new hospital’s construction, stipulates: “This agreement, as well as the rights and obligations of the parties hereunder, shall be governed by and construed in accordance with the laws of China.” The deal, which was signed by Prime Minister Philip Davis KC in his capacity as minister of finance on December 30, 2025, and tabled in the House of Assembly yesterday, appears unusual in its choice of governing law. Virtually all past commercial and financial agreements that involve the Government and Bahamas-based assets typically select Bahamian law, and this nation, for any disputes that arise. And, should such differences erupt over the 50-acre, Perpall Tract-based hospital, and negotiations not be successful, it is Beijing - not The Bahamas - where the Government and bank, which also financed the Baha Mar project, will head to. “Any dispute arising out of, or in connection with this agreement, shall be resolved through friendly consultation,” the loan deal states. “If no settlement can be reached through such consultation, each party shall have the right to submit such dispute to arbitration. Each party shall have the right to submit such dispute to China International Economic and Trade Arbitration Commission (CIETAC) for arbitration.
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BPL in new hedge on 2.5m oil barrels BY NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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based at the Clifton Pier power station will be converted to use the cheaper, cleaner LNG fuel source this year. She added that the units involved are now covered by a power purchase agreement (PPA), meaning that BPL only has to pay for energy it actually uses and no longer has to cover fuel costs. She added that, once phase two of the regasifiaction terminal is completed, the extra storage tanks and vaporisers will increase LNG generation capacity
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