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TUESDAY, OCTOBER 1, 2019
$4.50 Central Bank says ‘healthy growth to resume from 2021 By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Central Bank yesterday forecast that The Bahamas will “resume healthy economic growth” in 2021 following a potential Dorian-induced contraction next year as rebuilding gathers pace. The banking and monetary policy regulator, unveiling a much-changed outlook for The Bahamas, suggested that this nation’s gross domestic product (GDP) would still expand in 2019 - albeit a much lower pace than the projected 1.8 percent - as winter season tourism gains had already been locked-in prior to the category five storm’s arrival. With its analysis suggesting Dorian’s impact will likely be a short-term blip if any further hurricanes are avoided, the Central Bank said expectations of an earlier return for Grand Bahama’s economy underpinned its 2021 assessment - especially given the “lengthier absence of commerce” on Abaco and the surrounding cays. However, tourism’s recovery may go beyond 2020. Abaco’s loss will be felt most dearly in the vacation rental market, as the island accounted for 17.5 percent - or almost one in five - listed bookings during the eight months to end-August 2019. Together with Grand Bahama, the two islands have received more than one-quarter or 25.6 percent of all bookings in that market segment prior to Dorian’s arrival. As for the fiscal side, the two islands generate almost 13 percent of the government’s value-added tax (VAT) take. Based on revenue projections of $1.1bn in VAT for 2019-2020, it seems likely that Dorian may have blown a $143m hole in the government’s estimate there. Both Abaco and Grand Bahama account for a combined 10.7 percent of customs duty collections. Given that taxes on international trade and transactions are projected at $489m for 2019-2020, and excise tax at $283m, it appears that a further $82.5m combined may be lost here, meaning the deputy prime minister’s $200m revenue loss assessment is not far off. “The domestic economy will experience a negative,
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Dorian exacerbates ‘huge infrastructure challenges’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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HE Bahamas faced “serious challenges” with aging infrastructure prior to Hurricane Dorian, the Inter-American Development Bank (IDB) said yesterday, with public investment “insufficient”. The multi-lateral lender, unveiling its Caribbean Regional Quarterly Bulletin for the 2019 third quarter, said the category five storm had deepened problems associated with decaying infrastructure assets that require urgent modernisation to underpin The Bahamas’ economic competitiveness. Calling for an urgent “transformation” in a document written prior to Dorian, the IDB revealed that the Bahamian government has traditionally invested the least - measured as a percentage of gross domestic product (GDP) - in public infrastructure when compared to other Caribbean nations in the two decades since 1997. While such investment typically increases in the aftermath of major hurricanes, and will likely reach
• Bahamian govt region’s lowest public investor • IDB brands 2.3% of GDP spend ‘not enough’ • Called for urgent ‘transformation’ pre-Dorian
A MAN stands on the rubble of his home after the passage of the Hurricane Dorian in Abaco. Photo: Ramon Espinosa/AP exceptional levels follow- though investment in infraing the devastation inflicted structure in The Bahamas upon Grand Bahama is high by international and Abaco by Hurricane comparison... important Dorian, the IDB said this infrastructure gaps pernation’s infrastructure will sist. Expenditure levels of continue to be highly sus- public capital outlays averceptible to “disastrous age roughly 2.3 percent of climactic shocks”. GDP except for periods of “With regard to hurricane reconstruction. infrastructure, serious chal- In fiscal year 2018-2019, lenges lie in aging maritime, the compression of capital airport and energy systems, spending helped reduce the which require a transfor- deficit.” mation to deliver adequate That latter strategy is services,” the IDB said of now essentially out the The Bahamas’ pre-Dorian window. Dorian struck at a condition. time when the government “Public investment is not has been restraining capital enough given the country’s spending on infrastructure infrastructure needs, even projects to help it rein in
ENERGY regulators yesterday said renewable providers had “misunderstood and misinterpreted” proposed reforms designed to ensure “equitable treatment for all stakeholders”. Shevonn Cambridge, the Utilities Regulation and Competition Authority’s (URCA) director of utilities and energy, told Tribune Business that the “buy all, sell all” mechanism for compensating grid-tied renewable energy providers will not apply to systems that are part of the Small Scale Residential Generation (SSRG) programme. Instead, it will only be used for those in the Renewable Energy SelfGeneration (RESG) initiative, which is targeted at systems with greater capacity than those in the
the fiscal deficit and meet the targets set out in the Fiscal Responsibility Act. The devastating storm has exacerbated an existing infrastructure deficit that was previously branded “unquantifiable” when Desmond Bannister, minister of works, spoke to Tribune Business in June 2019. He revealed then that the Ministry of Works’ $93.736m capital works budget for 2019-2020 was $100m less than desired, with the former sum some $27m below the prior year’s allocation. And, with $53.512m of the $93.736m earmarked for projects already underway, there was then less than $40m available to tackle further physical infrastructure needs that are replicated across virtually every island in The Bahamas. Now, according to estimates given by Dr Duane Sands, minister of health, and Mr Bannister, the government is looking at
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Sky principal: ‘I won’t play dead’ despite $4.2m loss By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net SKY Bahamas has incurred costs worth $4.2m “and counting”, it was revealed yesterday, as it continues to battle Bahamian regulators over the rejection of its Air Operator Certificate (AOC). Captain Randy Butler, the airline’s president and chief executive, told Tribune Business he is refusing “to lay down and play dead” after the Bahamas Civil Aviation Authority (BCAA) formally confirmed its decision to deny renewal of the permit that allows it to carry fare-paying passengers. Revealing that Sky Bahamas continues to exist as a company in name, and on paper, only following the near three-month prohibition on offering commercial flights, Captain Butler confirmed he is now beginning the appeals process in a bid to overturn the
• Regulator formally denies licence renewal • Airline plans appeal to authority’s board • Existing, but only in name and on paper
CAPT RANDY BUTLER regulator’s decision. He described the impact of the BCAA’s actions as “heartbreaking” for Sky Bahamas’ employees, who had all “gone home”, as well as creditors, vendors and partners who were either owed monies or relied upon the airline’s continued operations. Revealing that he had spent $200,000 of his own monies to “pay bills” and
reimburse Sky Bahamas employees, Captain Butler said the airline’s enforced shutdown had cost “hundreds of thousands of dollars” as well as endangering his own personal reputation. Again warning that he may have to resort to legal action, Captain Butler’s first appeal must go to the Bahamas Civil Aviation Authority’s Board, which is chaired by former Central Bank governor, Wendy Craigg. This move has been triggered by Captain Charles Beneby, the BCAA’s director-general, issuing a September 19, 2019, notice giving Sky Bahamas some 14 days - a period that runs out this Thursday to appeal the regulator’s
URCA: ‘All must carry their fair energy share’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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• Proposal ‘misunderstood & misinterpreted’ • Bigger systems ‘cannot drop-off BPL’s grid’ • ‘Buy all, sell all’ targeted only at larger capacity SSRG. Mr Cambridge explained that while the latter was aimed at homeowners and small businesses with renewable systems, RESG is instead targeted at larger companies and government facilities. He argued that URCA’s proposed “buy all, sell” compensation approach was key to “ensure everyone bears the burden of basic (energy) infrastructure”, as any method that allowed large businesses with high-capacity systems to self-consume before selling excess power to Bahamas Power & Light’s (BPL) grid could enable them to escape much of these costs. Mr Cambridge 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 megawatt (MW), even though he acknowledged that this might not be the desired “rate of return”. And URCA, once it obtains more data, will seek to determine a better reimbursement method rather than one simply based on BPL’s prevailing fuel charge. As to complaints that the process for approving
grid-tied systems is still bound up in excessive “red tape” and bureaucracy, Mr Cambridge replied that existing laws and regulations meant it was impossible to avoid the involvement of Ministry of Works electrical inspectors and other agencies. He also defended URCA’s proposed 15-year, long-term contracts between BPL and businesses with RESG systems on the basis that this would give the latter certainty and confidence that their installation costs would be covered without the utility suddenly tearing up the deal or changing its terms and conditions.
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decision not to renew the airline’s AOC. “The Civil Aviation Authority of The Bahamas hereby denies Sky Bahamas application for an Air Operator Certificate, as it has determined in all the considered circumstances and communications between the Authority and the applicant’s accountable manager (Captain Butler) and its attorney that, pursuant to schedule 12.025 (b) (1) that Sky Bahamas Airlines is not properly or adequately equipped or able to conduct safe operations in commercial air transport,” the notice, signed by Captain Beneby, states. The exact same language was used by Captain
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Govt hit deficit goal at $222m By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
HURRICANE Dorian may have rendered it somewhat academic, but the Central Bank yesterday affirmed the government hit its 2018-2019 deficit target by near-halving the “red ink” at $222.4m. The banking and monetary policy regulator, unveiling its pre-Dorian August report on economic developments, said the Minnis administration achieved a $192.5m or 46.4 percent year-over-year reduction in the fiscal deficit in line with its stated Fiscal Responsibility Act targets. While Dorian has now blown a hole in this goal, the Central Bank said the reduction was achieved by a $373.6m or 18.3 percent growth in total revenues to $2.416bn. This “outstripped” the $181.1m, or 7,4 percent, year-over-year growth in total spending to $2.638bn. Total tax revenues increased by 14.7 percent, with value-added tax (VAT) ahead of prior year comparisons by 20.2 percent due to the rate hike to 12 percent. This beat the 10.6 percent jump in recurrent or fixedcost spending. “Total revenue gains were largely bolstered by the 4.5 percentage points increase in the VAT rate, which led to a $214.3m (31.5 percent) expansion in VAT receipts to $894.9m,” the Central Bank said. “Further, amid the reclassification of VAT on realty taxes to stamp taxes, financial and realty-associated stamp taxes rose more than two-fold to $225.3m from $109.5m in the comparable period of the previous fiscal year. “Expenditure growth was due in large measure to a $232.6m (10.6 percent) rise in recurrent spending to $2.421bn. Specifically, purchases of goods and services - mainly related to the settlement of arrears - rose by $141.6m (31.5 percent). In addition, subsidies were higher by $64.9m (19.8 percent) and social assistance by $20.3m (12.3 percent),” the Central Bank continued. “Further increases were also posted for current transfers, by $21.7m (16.8 percent), and interest payments by $15.8m (5.0 percent). In contrast, disbursements related to employee compensation fell by $17.6m (2.4 percent). “Total capital outlays were reduced by $51.6m (19.2
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PAGE 2, Tuesday, October 1, 2019
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BAHAMAS PROMOTES WEALTH MANAGEMENT IN NEW YORK THE Bahamas has hosted a New York breakfast briefing on how international financial centres (IFCs) can be used to grow and maintain private family wealth. The Bahamas Financial Services Board (BFSB) teamed with the Ministry of Financial Services to hold the event on Thursday, September 26, in collaboration with Clearview Financial Media Group. The briefing, under the theme Leveraging IFC’s for Family Wealth, was held at the Century Association, a private club in New York. Elsworth Johnson, the minister of financial services, trade and industry
and immigration, said: “For international wealth planners, there is no doubt that IFCs will continue to have crucial and relevant
roles in the delivery of wealth planning, mobilising financing, fund structuring and tax neutrality for both private investors and
MOMENTS captured during BFSB’s breakfast briefing in New York.
public–private co-financing to name a few. “We believe The Bahamas brand as the ‘Clear Choice’ for financial professionals who deliver products and services around the world is a must for you to consider in your wealth planning objectives and financial structuring.” Andrew Morriss, dean of the school of innovation and vice-president for entrepreneurship and economic development at Texas A&M University, spoke to the importance of IFCs in the global economy.
In his keynote address he placed the provision of international financial services by The Bahamas in historical context, while emphasising the continued legitimacy and relevance of jurisdictions such as this nation to the global economy as individuals and entities seek to diversify risk. Tanya McCartney, the BFSB’s chief executive and executive director, used the opportunity to emphasise that The Bahamas is open for business. She explained that despite
Hurricane Dorian’s impact on both Grand Bahama and Abaco, the financial services sector’s main base in Nassau is is fully functioning. Ms McCartney also advised attendees that The Bahamas has taken all steps necessary to ensure it is compliant with the various international initiatives over the past year. A panel of Bahamian practitioners and regulators set out The Bahamas’ “Value Proposition” and supervisory regime, together with the country’s commitment to maintaining international standards of best practice and compliance. Michelle Neville-Clarke, partner at Lennox Paton; Linda Beidler D’Aguilar, partner at Glinton, Sweeting & O’Brien; Sarah Packington, partner at Graham Thompson; and Christina Rolle, the Securities Commission’s executive director, led the panel talks. They spoke to the business and operating environment in The Bahamas, and what sets it apart from other jurisdictions. Themes discussed included family offices, private wealth management, investment funds, Fintech, asset management and the policy and regulatory environment. Stephen Harris, chief executive of ClearView Financial Media, facilitated the discussion.
SHIPYARD UNVEILS FIRST POST-DORIAN DRY-DOCK GRAND Bahama Shipyard yesterday said it has dry-docked its first vessel since re-opening shortly after Hurricane Dorian hit The Bahamas early last month. Taipei Trader, a 9,932-ton containership operated by Lomar Shipping, docked at the number three dock this week in a major step towards returning the Shipyard to normal operations. Taipei Trader first docked at the Shipyard on August 25 for a routine programme including propulsion and thruster maintenance, and preparation of the hull for protective coating. It had to be undocked and depart the Shipyard on August 30 due to the company’s storm protocols and Hurricane Dorian’s projected path. Following Taipei Trader’s return, Grand Bahama Shipyard resumed maintenance work and repairs on the ship, which are expected to be completed this month. “We are grateful to our dedicated team members at Grand Bahama Shipyard, whose hard work has made it possible for us to quickly resume dry-dock operations and continue to serve our important maritime clients,” said David Skentelbery, Grand Bahama Shipyard’s chief executive. “This dry-dock is another important recovery milestone for the Shipyard and the community, which will continue to see positive economic activity from the Shipyard’s ongoing operations and resultant benefit to the island.” The Shipyard also last
THE TAIPEI Trader on dry-dock in Grand Bahama. month announced the return of the 57,062-ton Agathonissos, owned by Greece-based Eletson, which is currently at the pier completing repair work started prior to the storm. Planning remains on track for the next planned cruise ship dry-dock at the Shipyard, which involves Carnival Cruise Line’s Carnival Ecstasy, on October 5. Mr Skentelbery added: “While clean-up and repair operations were ongoing at the Shipyard in preparation for restarting ship repair and drydock activities, our employees continued to volunteer their time, resources and expert skills to assist in recovery efforts across Grand Bahama. We could not be more proud of their efforts to step up when needed to restart the Shipyard and to support our colleagues and neighbours.” The Shipyard’s employees have assisted Grand Bahama Utility Company in restoring fresh water services; helped in the distribution of essential aid
by The Bahamas National Emergency Management Agency (NEMA); provided mobile light and power generation equipment to east Grand Bahama; and created “flying squads” of Shipyard volunteers to assist where needed on the island. This includes a 40-person team sent to clean up and clear debris from seven impacted schools to help ensure the buildings and classrooms are clean and safe for the return of students. Founded in 2000 by shareholders Carnival Corporation, Royal Caribbean Cruises and the Grand Bahama Port Authority, the Shipyard offers drydocking, afloat repairs, refurbishments, refits and revitalisations for vessels from the cruise, commercial and offshore segments of the maritime industry. Grand Bahama Shipyard schedules 85-100 drydocks each year, including more than two dozen major cruise ship drydocks annually.
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Tuesday, October 1, 2019, PAGE 3
IDB WILL DETERMINE DORIAN’S FULL EFFECT By YOURI KEMP
THE full cost of Hurricane Dorian could be determined within the month after the InterAmerican Development Bank (IDB) conducts its assessment, the deputy prime minister said yesterday. K Peter Turnquest confirmed that the multilateral lender will conduct a mission to The Bahamas this week, and then provide the government with an assessment report on the extent of the damage inflicted by Dorian and repair costs. He told Tribune Business: “The IDB has a mission here tomorrow and Wednesday to assess economic and infrastructure costs. That mission will report in about three weeks, when we will have hard data from which to plan and report.”
K PETER TURNQUEST, deputy prime minister and minister of finance (fourth left), accompanied the IDB president, Luis Alberto Moreno (third left), and the bank’s directors for the US, Canada, UK, the executive director for the Caribbean, the Bahamas director and the country manager on a fact-finding tour of Abaco after meeting with the prime minister. The team met with parliamentary secretary, James Albury; local NEMA co-ordinator, permanent secretary Jack Thompson; and administrators Rolle and Lightbourne, who gave a briefing on the situation on the ground and upcoming needs. When asked if any of the be utilised to cover immeIDB’s $100m loan facility diate temporary shelter has been spent as yet, Mr costs, water and power Turnquest added: “We have restoration costs, which drawn down the $100m to the minister of works has
Sky principal: ‘I won’t play dead’ despite $4.2m loss FROM PAGE ONE Beneby in explaining why the BCAA had decided not to renew the AOC for Butler’s Aviation, another company operated by Captain Butler. The Sky chief, reiterating that both companies had fully complied with all safety and other findings made by the regulator, suggested the notice was issued because the BCAA had run out of reasons to justify the non-renewals. Describing the situation as “very challenging”, Captain Butler said: “We have to go through the system. The goal is the system is supposed to self-correct. If the board finds there is no cause they’ll self-correct. But to self-correct after three months, what’s that do for you? “We would have lost hundreds of thousands of dollars, your reputation is on the line, and we’ve gone three months down the road and the board finds no cause. What do you do? Staff have gone home, creditors are calling on you, my partners in the hangar operations are impacted, my US operations are impacted, my insurance is impacted and my group medical insurance impacted. “Everything has been impacted by a decision, finding that has no merit. I must now sit and wait for the board to make a decision while lives have been impacted.” Captain Butler expressed his “faith” in the “honourable people” on the BCAA’s Board, voicing optimism that they would reach a just conclusion. The BCAA’s decision not to renew Sky Bahamas’ AOC was based on the section in its schedules that permits it to deny such an application on the basis that “the applicant is not properly or adequately equipped, or is not able to conduct safe operations in commercial air transport”. Vehemently rejecting this reasoning, Captain Butler
admitted that Sky Bahamas effectively still exists only on paper or as a name. “We’re still a legitimate company,” he told Tribune Business, “but our AOC has not been renewed. “Man, essentially what I can say to you is: Everyone’s gone home. There’s no more work. There’s no more flights. We’ve not operated since July 8. I’ve spent about $200,000 paying bills and reimbursing people at Sky Bahamas. “If the AOC is renewed it will take us a little bit to get going with some fresh capital in there. I haven’t gone into how much because this may become a legal matter.” Captain Butler added that Sky Bahamas’ remaining aircraft, which are all leased, are “still there but the owners are ready for them”. While no lease termination notices have yet been received, he said the owners could only wait so long if the airline is not flying. “It’s heartbreaking that so many lives have been impacted in so many ways,” he told this newspaper, “but I’m not ready to lay down and play dead. We will fight this to the end. It will not only benefit Sky Bahamas but many other operators so that this does not happen again. “I’ve been in this for a long time. I’ve been a regulator, I’ve been an operator. Aviation is very important to this country, and the world is looking at The Bahamas because of Dorian and everything else.” Asked how much his battle with the BCAA has cost, Captain Butler replied: “So far we’re north of $4.2m and the costs have not stopped. It’s continuing.” Reiterating that Sky Bahamas has “complied with any and all inspections”, he added that there were no legal issues outstanding while any and all adverse findings had been dealt with “way before” the AOC renewal date.
“We’re going to go through all the historical facts and the requirements in law and regulations, and how we met them and were in compliance with them at all times,” he told Tribune Business of Sky Bahamas’ approach to the Board appeal. However, Dionisio D’Aguilar, minister of tourism and aviation, and others have suggested that Sky Bahamas’ problems have been of its own making long before the AOC issue came into play, and that it was in financial difficulties long beforehand. They have pointed to the action taken by Nassau Airport Development Company (NAD), which has been in dispute with Sky Bahamas over a longstanding six-figure sum in passenger facility user fees and security fees allegedly owed by the airline. It emerged last year that the airline owed NAD some $621,691 as at January 9, 2018, although this was cut to $454,015 by June 29 last year. NAD at the time had threatened to terminate the airline’s licence to operate at LPIA over the arrears. Captain Randy Butler downplayed the issue when it surfaced last year. He recently told Tribune Business that the carrier had paid some $1m to NAD over the past year in an effort to catch up, blaming some arrears in free flights provided to political party members in the run-up to the 2017 general election. However, NAD has now obtained a Supreme Court Order, dated July 23, where Justice Diane Stewart required Sky Bahamas to “cease all operations at the Lynden Pindling International Airport (LPIA) and vacate property leased to it” by NAD within 14 days. However, NAD subsequently gave Sky Bahamas some 90 days to vacate in an August 9 letter.
already foreshadowed. “We are concerned about the restarting of the economy on both islands and, to this end, the government is providing incentives through low-cost capital loans, grants and subventions.” This was previously mentioned by the prime minister when he announced the creation of Economic Recovery Zones for east Grand Bahama and Abaco, in addition to providing for $10m in grants and equity financing for businesses affected by Hurricane Dorian. Mr Turnquest confirmed that the government is interested in “the creation of special economic incentives such as VAT and duty concessions to assist in the return of operations, especially the main economic drivers, to encourage return of the labour and
people needed to re-establish and sustain the city [Marsh Harbour]. “We are focused on building the infrastructure to make that happen, and Bahamas Power and Light (BPL) and Water and Sewerage (WSC) are being given the resources they need in order to effect the rebuilding of their grids as soon as possible.” Desmond Bannister, minister of works, has already said it will cost between $95m to $110m to restore BPL and WSC throughout Abaco alone, with the latter’s price tag being anywhere from $15m to $20m and the electricity utility’s ranging from $80m to $90m. Asked if additional borrowing will be added to the $100m IDB loan in the short-term, Mr Turnquest replied: “As stated we anticipate drawing the full
$100m in utility restoration, providing temporary shelter and subsistence provisions until the economy starts to churn.” When pressed on the BPL and Water & Sewerage repair works alone costing more than the $100m provided by the IDB, and the need to find additional money, Mr Turnquest added: “So we are looking at any number of financing options as well as looking into the budget to determine the most optimal use of resources by shifting priorities.” Mr Turnquest is hosting the IDB president, Luis Alberto Moreno, this week. The duo, together with several IDB executives, left for Abaco on a fact-finding mission together with the South Abaco MP, James Albury.
URCA: ‘All must carry their fair energy share’ FROM PAGE ONE “There appears to be some misunderstanding and misinterpretation of the document,” Mr Cambridge told Tribune Business. “There’s no intent to change the compensation method in the SSRG scheme. The RESG forms a different class of customers with a different capacity range.” While the SSRG initiative was focused on homeowners and small businesses with a capacity of up to 100 kilowatts (KW), Mr Cambridge said the RESG programme the guidelines for which were unveiled for a month-long consultation by URCA on Friday - was aimed and medium-sized and large businesses, and government facilities with renewable systems ranging from 100 KW to 1,000 KW - even up to one MW - in capacity. The present SSRG initiative, launched in 2017, rewards renewable producers through a “net billing” arrangement. This enables persons with grid-tied systems to “net off” the difference between what they supply to, and consume from, BPL. However, SSRG participants yesterday suggested the reference to “net billing” was incorrect. Speaking on condition of anonymity, some said BPL merely installed a “two-way meter” and compensated them for energy sent to the grid via a payment again equivalent to the fuel surcharge. Mr Cambridge, meanwhile, confirmed that URCA is proposing a “buy all, sell all” approach for all renewable energy self-generation (RESG) systems. This means, according to URCA, that government facilities and businesses will not be able to consume
any electricity generated by their renewable systems. They will instead have to export all energy they generate to BPL, and consume all the electricity they need from the stateowned monopoly at the standard retail tariff levied on all its customers. URCA is proposing that those who “sell all” to BPL under this arrangement are compensated by the equivalent of BPL’s monthly fuel charge, which normally accounts for 50-60 percent of customer bills. This will be paid via either credits to the utility bill or via cash. Mr Cambridge, a former Bahamas Electricity Corporation (BEC) executive, acknowledged that basing “buy all, sell all” compensation on BPL’s fuel charge was a “very conservative position to start”, but pledged that URCA would seek to achieve a mechanism more favourable to renewable system owners once it possessed more data on how the initiative was performing. “We have to ensure everyone bears the burden of basic infrastructure,” he told Tribune Business. “It’s not unwarranted or inequitable in any way. These [RESG] customers are in a different rate class and consume different quantities of electricity. “When you look at the infrastructure to support this class, BPL requires more transformers and more switch overs to support them. and BPL has to have sufficient stand-by power when their systems do not produce. That’s a bigger challenge and bigger responsibility.” Mr Cambridge said any drop in consumption from BPL by larger businesses with renewable systems meant their “avoided costs” would have to “be apportioned at a higher rate” to other customers without such RESG
technology - a situation URCA is keen to avoid. “You have the avoidance cost, because with what you are able to produce you are able to avoid the full cost of the [BPL] retail rate and fuel charge,” he told Tribune Business. “You cannot allow that for larger consumers. “The economic analysis of it is you have to ensure there is some stability as well for the utility and basic infrastructure... It just isn’t feasible for larger customers to be allowed to avoid the full tariff for whatever they say they produce and then, when they feel like it, switch over to the utility which has to maintain its system and infrastructure to support them. “That cost is borne by consumers remaining on the system who don’t have access to renewable energy. It’s about equitable treatment of all stakeholders. It’s in no way going to incentivise individuals from subscribing to renewable energy. They do so for any number of reasons.” Pointing out that RESG suppliers with grid-tied systems would still see a 50 percent reduction in their energy costs under URCA’s “buy all, sell all” plan, Mr Cambridge added: “It’s not that it’s not profitable, I guess it’s the rate of return. “I think that what a lot of solar installers and providers miss is that the utility is responsible for providing electricity across all the islands with a uniform tariff, so a lot of crosssubsidisation takes place. There’s a lot of burden for BPL. We can’t allow consumers assisting with that subsidisation to drop-off the grid completely. “Right now BPL is not happy about it, installers are not happy about it, but our task is to make everyone carry their fair share.”
SECURITIES COMMISSION OF THE BAHAMAS JOB OPPORTUNITIES The Securities Commission of The Bahamas, a statutory agency responsible for the oversight, supervision and regulation of the investment funds, securities and the capital markets, in or from The Bahamas, as well as the supervision of financial and corporate service providers, invites applications from qualified individuals to fill the following positions: DEPUTY MANAGER Risk Analytics and Examination Department (Examinations Division) SENIOR OFFICER/APPLICATION SUPPORT/DATA ANALYST Information Technology Department APPLICATIONS: Full details of the job opportunities, guidelines for the submission of applications and general information about the Securities Commission of The Bahamas may be obtained from the Commission’s website at www.scb.gov.bs under Career Opportunities. The closing date for applications is 11 October 2019.
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Central Bank says ‘healthy growth to resume from 2021 FROM PAGE ONE
short-term fallout from Hurricane Dorian,” the Central Bank projected. “Prospects remain for a positive growth in 2019, but considerably less than the original forecast which predated the storm. “This is largely due to the timing of the storm, at the onset of the slowest months in the tourism season, whereas the robust gains from the first half of 2019 have already been realised. The performance could be flat, to slightly contracted for 2020, before a healthy growth trajectory resumes in 2021. “Underlying this would be an expected steady, earlier return of operation in the core of Grand Bahama’s economy, in contrast to a lengthier absence of commerce, other than rebuilding activities, in Abaco.” Analysing the fall-out for tourism, the Central Bank added: “In the stopover market where recovery could extend beyond 2020, Abaco accounted for 7.9 percent of the air arrivals recorded in the first seven months of 2019. “In the vacation rental market in the eight months
Govt hit deficit goal at $222m FROM PAGE ONE
percent) to $217.2m, attributed mostly to a $41.1m (18 per cent) decline in the acquisition of non-financial assets and a $10.4m (26.1 percent) fall-off in capital transfers.” Turning to the hotel industry, the Central Bank report said room revenue was up 29 percent for the seven months to end-July 2019 among key New Providence and Paradise Island hotels based on
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to August 2019, Abaco further housed an estimated 17.5 percent of booked listings in The Bahamas, compared to 29.4 percent for New Providence and 13.3 percent for Exuma. “In the meantime, Grand Bahama’s recent share of air visitor arrivals was 3.8 percent, and the Island received an estimated 8.1 percent of vacation rental bookings in the first eight months of 2019. “As to the fiscal exposure, an estimated 7.8 percent of recent VAT revenue payments originate from Grand Bahama and 5 percent from Abaco. The islands, Grand Bahama and Abaco, account respectively for 7.1 percent and 3.6 percent of recent customs duty collections.” The Central Bank added that the rebuilding of Abaco and Grand Bahama will attract multi-million dollar private investment and reinsurance payment inflows. “This should result in elevated demand for, and employment of, construction-related skills, which should partly offset reduced payrolls in the remaining sectors,” it said. “Two factors that could mitigate the depth and duration of the economic slowdown are the size of the available pool of construction labour to expedite the rebuilding process, and the degree of substitutability of tourism capacity elsewhere in The Bahamas for the facilities taken offline in Abaco and Grand Bahama. “Available construction skills speak to the speed at which the housing and commercial plant will be returned
to use. In the meantime, underused tourism capacity in New Providence and other Family Islands could provide some offsetting relief to displaced visitor demand,” the Central Bank continued. “For vacation rentals, in particular, the current average occupancy rates approaching 50 percent provides space for near-term business expansion without required growth in the physical plant, providing the marketing and other support infrastructure are aligned.” While the government’s short to medium-term fiscal position faced a double whammy from revenue losses, due to tax concessions and reduced economic activity in the two affected islands, and increased spending to restore public infrastructure, the Central Bank said global assistance and credit facilities will reduce some of the financial pressures on government. “With regard to external reserves, developments will largely depend on one-off reinsurance inflows, as well as the net effects of the seasonal increase in foreign currency demand and a rise in imports for rebuilding activities,” the Central Bank said. “As to timing, it is projected that the reserves will close out 2019 higher than in the absence of the storm as reinsurance proceeds accumulate, with a net drawdown only evident in 2020. Nevertheless, external balances indicators are anticipated to remain above international targets.”
data from the Bahamas Hotel and Tourism Association (BHTA) and Ministry of Tourism. “The average hotel occupancy rate rose by 9.9 percentage points to 82.9 percent for the month of July, as the number of room nights sold advanced by 16 percent,” the Central Bank said. “Further, the average daily room rate (ADR) firmed by 2.9 percent to $258.87 per night, contributing to a 19 percent growth in room revenue. “Over the seven-month period, the occupancy rate grew by 10.5 percentage points to 77.5 percent, while
the number of room nights sold expanded by 19 percent. Further, the ADR (average daily room rate) advanced by 8.2 percent to $277.40, resulting in a 29 percent strengthening in room revenue.” As for vacation rentals, the Central Bank added: “The latest data from AirDNA revealed that total room nights sold improved by 49.1 percent in August over the same month in 2018, reflecting increased bookings for both hotel comparable and entire place listings within all of the major markets.”
Dorian exacerbates ‘huge infrastructure challenges’ FROM PAGE ONE almost $200m alone to repair the healthcare, electricity and water and sewerage infrastructure that has been laid waste by Hurricane Dorian. “Adequate provision of water and sanitation systems constitutes an ongoing challenge for The Bahamas,” the IDB said pre-Dorian. “The country’s Water and Sewerage Corporation (WSC) supplies less than 50 percent of overall potable water demand in The Bahamas, as a significant portion of households and businesses rely on private water and sanitation systems. “Currently only 14 percent of the population has access to improved sewerage and sanitation facilities, with negative impacts on the environment and health.” It did, though, credit the Water and Sewerage Corporation for reducing system losses in New Providence by 60 percent and for its efforts to introduce smart metering technology. “Despite recent advances in information and communications technology (ICT), challenges in telecommunications remain that affect e-commerce,” the IDB added. “The Bahamas ranks 22nd in Latin America and the Caribbean (LAC) in mobile telephone penetration, and 15th in wireless broadband penetration (with mobile penetration rates measured at roughly 85 percent), which indicates substantial room for improvement in the development of technological solutions, especially regarding further improvements in
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ALL SHARE INDEX: CLOSE: 2,171.27 | CHG: -0.09 | %CHG: 0.00 | YTD: 61.82 | YTD%: 2.93 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 20.91 7.00 5.92 2.60 2.00 5.47 11.75 6.17 4.64 12.40 2.81 3.19 10.00 7.35 16.50 9.30 3.65 14.20
52WK LOW 3.50 19.17 4.90 4.46 1.01 0.22 2.00 9.17 6.15 3.60 6.75 2.35 1.76 7.51 6.10 12.10 6.20 3.01 13.00
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
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
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
52WK HI 2.25 4.31 2.06 191.61 158.55 1.63 1.77 1.71 1.17 8.01 9.60 6.83 11.39 12.30 10.68 10.00 8.69 11.79
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.56 1.68 1.65 1.09 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20
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)
MUTUAL FUNDS
MARKET TERMS
LAST CLOSE 4.10 17.43 6.00 5.92 2.46 1.80 4.80 11.06 6.16 4.00 7.20 3.34 3.19 10.79 7.00 16.50 9.27 3.47 14.20
CLOSE 4.10 17.43 6.00 5.92 2.46 1.80 4.80 11.06 6.16 4.00 7.20 3.30 3.19 10.73 7.00 16.50 9.27 3.47 14.20
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.04 0.00 -0.06 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00
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
LAST SALE 100.00
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
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
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial 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
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
with international aviation standards.” The IDB called for The Bahamas to establish a disaster relief fund, along with preparedness and risk reduction policies, to ensure its major infrastructure assets - such as roads, utilities, docks, bridges and ports - became more resilient to hurricanes and other climate-related challenges. “Disastrous climatic shocks, even more dangerous because of The Bahamas’ geography, fragile ecosystems and a concentrated population make the nation’s infrastructure highly vulnerable to climate change and risk,” the IDB added. “Strengthening preparedness and risk reduction policies, including establishing a natural disaster savings fund, would enhance fiscal and economic resilience. Additionally, insuring public assets, encouraging greater usage of private insurance, investing in resilient infrastructure, and maintaining modern building codes, land use planning and zoning guidelines were all essential elements outlined in recent reports.”
NOTICE
NOTICE is hereby given that BRIAN SAINT-LOUIS of Bed Rock, Off Bacardi, New Providence, 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 24thday of September, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL
www.bisxbahamas.com
MONDAY, 30 SEPTEMBER 2019
financial inclusion.” As for energy, the IDB said electrification and power outage indicators were “below expected performance levels” although it acknowledged that the government was moving to refinance Bahamas Power & Light (BPL) with a $450m-$550m rate reduction bond (RRB) offering and seeking to increase renewable energy penetration. “Ports and shipping facilities are fragmented, outdated, and inefficient, requiring modernisation to maintain connectivity and aid further development,” it added. “With over 53 licensed airports, 28 of which are governmentowned and operated, air connectivity is comprehensive and getting better, as The Bahamas caters to all the leading air carriers of North America and some from Europe. “However, as is the case for maritime transportation, the Family Islands require substantial investment in aviation transport and connectivity, with recent estimates suggesting that almost $140m is needed to upgrade its obsolete and inadequate public airport infrastructure and systems to comply
VOLUME
1,000
VOLUME
NAV 2.25 4.31 2.06 191.61 158.33 1.63 1.77 1.71 1.17 8.01 9.60 6.83 11.30 12.30 10.68 9.92 8.68 11.38
EPS$ 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$ 0.160 1.260 0.000 0.250 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
0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000
P/E 17.2 18.7 N/M 16.0 N/M N/M -11.0 15.3 13.7 21.7 51.4 32.4 6.8 16.6 9.6 20.2 9.9 17.1 22.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0
YIELD 3.90% 7.23% 0.00% 4.22% 0.00% 1.11% 0.00% 6.51% 3.57% 3.00% 0.00% 13.15% 1.88% 3.06% 3.43% 3.27% 2.16% 3.46% 4.30% 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% 2.15% 3.88% 1.61% 4.11% 1.53% 2.74% 3.85% 6.28% 7.12% 2.08% 1.91% 4.55% 1.45% 4.30% 1.67% 4.21% 4.75% 7.44% 7.17% 8.76% 11.07% 12.58% 3.50% 4.96% 8.92% -0.97% 5.22% 5.44% 2.95% 2.64% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%
NAV Date 31-Jul-2019 31-Jul-2019 26-Jul-2019 30-Jun-2019 30-Jun-2019 31-May-2019 31-May-2019 31-May-2019 31-May-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019
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
The Public is hereby advised that I, UFEMIA ADDMAS of Abaco, Bahamas, intend to change my name to UFEMIA ADAMS. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, New Providence, Bahamas no later than thirty (30) days after the date of publication of this notice. LEGAL NOTICE
NOTICE
OCEAN OUTLOOK PROPERTIES LIMITED (In Voluntary Liquidation) NOTICE is hereby given in pursuance of Section 218(e) of the Companies Act, 1992 as amended by the Companies (Winding-up Rules Amendment) Act, 2011 that the Members of the above-named Company by resolutions passed on the 27th day of September 2019, authorized the voluntary winding up of the Company and the appointment of GSO CORPORATE SERVICES LTD. of 303 Shirley Street, Nassau, The Bahamas as the Liquidator. All persons having claims against the above-named Company are requested to submit particulars of such claims and proof thereof in writing to the Liquidator, GSO CORPORATE SERVICES LTD., 303 Shirley Street, P. O. Box N-492, Nassau, Bahamas not later than the 31st day of October, 2019 after which the books will be closed and assets of the Company will be distributed. DATED this 1st day of October, A.D., 2019.
GSO CORPORATE SERVICES LTD. Liquidator LEGAL NOTICE
FIREWORK CONTINENTAL S.A. Company No. 586217 (In Voluntary Liquidation) NOTICE is hereby given pursuant to Section 204 (1) (b) of the BVI Business Companies Act, 2004 that FIREWORK CONTINENTAL S.A. is in voluntary liquidation. The voluntary liquidation commenced on 27th September 2019 and WERLLENN GLAYTON ALMEIDA PEREIRA of Talstrasse 83, 8001 Zurich, Switzerland, has been appointed as the Sole Liquidator.
Dated this 27th day of September 2019 Sgd.WERLLENN GLAYTON ALMEIDA PERERA Voluntary Liquidator TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333