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FRIDAY, DECEMBER 16, 2022
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BPL to end deal covering 50% of Nassau electricity By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Bahamas Power & Light (BPL) is ending a deal that supplies around 50 percent of New Providence’s base load electricity generation despite concerns its own staff are not trained to operate the engines involved. Shevonn Cambridge, BPL’s chief executive, confirmed to Tribune Business that Wartsila’s contract to operate 132 Mega Watts (MW) of generation capacity at the Clifton Pier power station and provide routine maintenance will not be renewed after it expires at year-end. The state-owned utility instead will take these responsibilities back inhouse in the New Year,
* To take over 132 MW operated by Wartsila * BPL chief dismisses fears staff not trained * Move has no bearing on Shell, other deals
with Clifton Pier’s Station A “integrated” back into its own generation operations. The BPL, chief, though dismissed concerns that the monopoly power provider’s staff lack the training to operate engines that were manufactured and supplied by Wartsila itself in early 2019 for $95m. He asserted that their operation was not
SHEVONN CAMBRIDGE, BPL’s chief executive. complex, and that BPL has multiple mechanics - especially in the Family Islands - who are trained to operate such four-stroke, mediumspeed diesel engines.
Wartsila formed its own Bahamas-based team to operate and maintain the 132 MW it provided, which was equivalent to around half New Providence’s 260 MW peak energy demand. But some BPL insiders criticised their performance in alleging that “blackouts” occurred when the contractor’s staff failed to prevent the engines tripping. They also argued it was unwise to permit an outside contractor to have control over such a large portion of BPL’s New Providence generation. Mr Cambridge replied “that’s pretty accurate” when asked by Tribune Business if Wartsila’s Station A service and routine SEE PAGE B7
URCA ‘out of their minds’ for BPL 163% fuel hike backing By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A former Democratic National Alliance (DNA) leader yesterday blasted that electricity regulators “have got to be out of their minds” to determine Bahamas Power & Light (BPL) has made the case for up to 163 percent fuel charge hikes. Branville McCartney told Tribune Business that “I suck my teeth” after the Utilities Regulation and Competition Authority (URCA) said the state-owned
BRANVILLE McCartney energy monopoly’s decision to massively increase its fuel charge via a series of rolling rises throughout 2023 - a move that will allegedly impose $100m
Fears FTX ‘a game changer’ for financial services sector By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net FTX could be “a game changer” for the Bahamian financial services industry’s growth prospects, a wellknown businessman warned yesterday, with the country facing “severe attack” over its implosion. Sir Franklyn Wilson, the Arawak Homes and Sunshine Holdings chairman, told Tribune Business that the crypto currency exchange’s collapse and subsequent arrest and indictment of its founder, Sam Bankman-Fried, had placed The Bahamas under global scrutiny like never before. Arguing that much of this is based on misleading information that has “no basis in fact”, he added that it was impossible for The Bahamas to afford the kind of public relations (PR) spend that is necessary to counter the battering this country’s integrity and reputation took before Congress during the US House of Representatives Financial Services Committee’s Tuesday probe into FTX’s failure. John Ray, head of the 134 FTX entities in Chapter 11 bankruptcy protection in Delaware, told that hearing that The Bahamas’ provisional liquidation proceedings “lack transparency” while again implying that the Securities Commission and the Government
SIR Franklyn Wilson were colluding with Mr Bankman-Fried. This was despite him being provided with an explanation for why the Bahamian regulator moved $300m in digital assets for their own protection - a move authorised by the Supreme Court. “The FTX matter is such that I honestly believe it’s a game changer for us,” Sir Franklyn told Tribune Business. “A lot depends on how we survive this FTX matter. It’s not conventional banking, but obviously the banking community I suspect are watching it. The Bahamas is very much in the regulatory light, and the brand of the country is being subject to severe attack. “I think anyone with a degree of objectivity would justly be concerned. There’s a legitimate basis for concern. I don’t seek to be a pessimist, but there’s risk. One or two names out there, known banks, their SEE PAGE B8
in unnecessary costs on Bahamian businesses and households - was justified. URCA, in a short threeparagraph statement, said it had undertaken a “comprehensive review” of BPL’s proposal to drastically increase the fuel charge component of its bill over the next 12 months as it seeks to repay a $90m debt to Shell, its main supplier, as well as taxpayer financing (loans and/or subsidies) provided by the Davis administration. “As the regulator for the country’s electricity sector, URCA conducted a comprehensive review of BPL’s
fuel charge increase proposal. At the conclusion of that review, URCA determined that it is satisfied that BPL has made an adequate case for the rate increases outlined in its press statement dated October 4, 2022,” URCA said. Seeking to soften the blow from its verdict, URCA promised to undertake ongoing monitoring and reviews of BPL’s fuel charge during 2023 to ensure that the utility is operating efficiently and levying the correct charges on customers. SEE PAGE B4
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‘Disaster for business’: Village Road works in up to 46% loss By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Village Road companies have branded the area’s ten-month long roadworks “a disaster for business” with income losses running as high as 46 percent and damaged properties urgently needing repairs. Some 15 firms signed a December 9, 2022, letter detailing the economic impact, and their grievances, to Alfred Sears KC, minister of works and utilities, whose ministry has oversight of the road improvement project. They outlined how contractors have taken over more space on their premises than initially promised, and damages to parking lots and buildings that will have to be repaired.
ROAD works on Village Road pictured recently. Among the individual businesses testifying to their losses, The Place For Art disclosed that its earnings were down by 46 percent when compared to the same six-month pre-COVID period in 2019. “Our accountant SEE PAGE B4
Tax breaks call as Village Road avoided ‘like plague’ By YOURI KEMP and NEIL HARTNELL Tribune Business Reporters ykemp@tribunemedia.net
Village Road businesses are seeking VAT credits, plus Business Licence and real property tax waivers, to compensate for the damage inflicted by roadworks that have caused consumers to avoid the area “like the plague”. Some 15 companies, all impacted by the now-ten month project that seems likely to extend into the New Year, set out their cry for help via tax breaks and other concessions in a December 9, 2022, letter to Alfred Sears KC, minister of works and utilities, whose ministry has oversight responsibility for the project. Authored by Michael Fields, president of Four Walls Squash and Social Club, it also suggested that the Government provide “refurbishment grants” for residents and business owners to repair damaged premises, vehicles and other facilities impacted by the project. It also called for Bahamas Power & Light (BPL) bill discounts, and “full sponsorship” of a collaborative marketing campaign to entice consumers back to the Village Road area. SEE PAGE B6