BEC strategic partner announced

“It is common knowledge that the Government has been seeking a permanent solution to our challenged electrical systems and administration by way of a Request for Proposal (RFP) Process. This solution proposes to create efficiencies which will allow for significant reductions in the cost of energy, increased energy security, environmental responsibility, reliability, and increased competitiveness as a country.”

After an exhaustive search by a government appointed steering committee lasting some eighteen months, the Ministry of Works and Urban Development announced on Thursday the selection of North Carolina based energy company PowerSecure as the strategic partner for the challenged state owned Bahamas Electricity Corporation (BEC). In light of the rolling blackouts, this is by far the biggest news of the week and for some, the best news they have heard in a while.

So who is PowerSecure? According to the statement, “PowerSecure is a public company traded on the New York Stock Exchange (NYSE: POWR) and headquartered in Wake Forest, North Carolina. It has total assets of $265 million, shareholders’ equity of $156 million, trailing twelve month revenues of $257 million (to December 31, 2014 ) and market capitalisation of $301 million (April 29, 2015).”

The statement continued that PowerSecure “has grown considerably over the last several years posting on average over a 25% Compound Annual Growth Rate (CAGR). In addition, based on its investor presentations, it holds a strong contract backlog of $368 million. Indeed, since January 2014, it has announced more than $400 million in new business.”

As for its beneficial owners, the statement revealed that “the company’s largest shareholder is Wellington Management Company, an investment manager with $900 billion under management. Other notable shareholders include Dimensional Fund Advisors, SRB Management, Blackrock Fund Advisors, Vanguard Group, AWM Investment Company, Becker Drapkin Management and other major, primarily US-based institutions and funds.”

My initial impression of the company’s ownership structure is that PowerSecure should not have any difficulty accessing the required capital to build the efficient and reliable power plants, both traditional and alternative, that are badly needed by BEC.

Contract conclusion is contingent upon PowerSecure’s ability to meet the terms and conditions set out in the Request for Proposal (RFP) which essentially calls for the strategic partner to reduce the cost of electricity to consumers by 30% over two years.

More US funding for counter-narcotics control

The Bahamas and the United States were on one accord on Monday as they signed the 7th amendment to the letter on counter-narcotics control and law enforcement at the Bahamas Foreign Ministry. The agreement formalized bilateral cooperation between the two countries in the areas of border protection, threats of money laundering, human trafficking and the smuggling of illicit drugs and firearms.

“The significance of this Agreement is irrefutable” said Bahamas Foreign Affairs Minister Hon. Fred Mitchell. “The Bahamas Government recognizes that the protection of our borders from the pernicious threats of money laundering, human trafficking and the smuggling of illicit drugs and firearms, requires a concerted effort and welcomes the assistance of its closest neighbor.”

At $2.745 million, this is the largest financial commitment by the US since the initial agreement in September 2010 and will assist greatly in “buttressing The Bahamas’ national security efforts in law enforcement, counter-narcotics control, drug demand reduction and anti-corruption reform” that are all “critical in countering this incessant and increasingly menacing threat” said Mitchell.

These sentiments were shared by US Charge d’Affaires Lisa Johnson.

The hugely successful Operations Bahamas Turks and Caicos, or OPBAT stands as a symbol of the success of this letter of agreement.

Speaking on the future of this collaborative initiative, Minister Mitchell foreshadowed a Memorandum of Understanding (MOU) between the Bahamas and the United States designed to facilitate greater intelligence information sharing on critical transnational matters such as migrant smuggling and human trafficking to get greater control over this increasingly complicated area of border protection. The MOU will be in the form of exchanges of diplomatic notes.

Mitchell also revealed that regional experts will gather in the Bahamas to convene the US-Caribbean Security Summit in the coming weeks.

50th anniversary of Black Tuesday celebrated.

There is no doubt that along with the 1958 national strike and Majority Rule, Black Tuesday will go down in history as one of the defining moments in the modern political development of The Bahamas. This singular act of defiance by Sir Lynden Pindling would change the course of Bahamian history for ever.

So on Tuesday of this week, Prime Minister Christie and other cabinet colleagues remembered the significance of that day, the 27th April 1965 when Sir Lynden threw the mace out of the House of Assembly during a debate on the unfairness of electoral boundaries.

Quoting the immortal words of Sir Lynden was Immigration Minister Hon. Fred Mitchell.

“Sir Lynden said of the mace, that it was the symbol of authority; the people are the authority; the people are outside and so the mace belongs outside too.”

Transport and Aviation Minister Hon. Glenys Hanna-Martin, daughter a significant Black Tuesday figure Hon. Arthur D. Hanna Sr. thanked suffragettes such as Mary Ingraham and Effie Walkes (who was in attendance) for their sacrifice and commitment to equality for all Bahamians. These sentiments were echoed by Tourism Minister Hon. Obie Wilchcombe also addressed the gathering.

Rounding out the speakers for the event was Prime Minister the Rt. Hon. Perry G. Christie who stayed true to the recurrent theme of perseverance, strength, courage and sacrifice as the principal moral attributes of a people united in purpose that brought about this significant and magnificent social revolution, making freedom possible for our generation today. This, in the Prime Minister’s view, was the enduring lesson of Black Tuesday.

“The enduring lesson is that there were thousands of Bahamians who sat on Bay Street; who marched to Bay Street; who stood on Parliament Street; who stood right here in support of what was taking place.”

Majority Rule was achieved two years on January 10th and later was memorialized as a public holiday since 2014.

This week in Parliament

The Bahamas will again return to the world stage this weekend (2 -3 May 2015) as more than 1,000 athletes, coaches and officials and more than 150 media representatives will assemble at the Thomas A. Robinson National Stadium for the 2nd IAAF/BTC World Relays. The athletes will compete in five relay disciplines: 4x100m; 4x200m; 4x400m; 4x800m and the distance medley for both men and women. The teams will compete for $1.4million in prize money.

Allaying fears of a possible blackout during the games, Sports Minister Dr. Daniel Johnson told House members and the nation that the national stadium has four stand-by generators that have been topped up with 20,000 usg of fuel and that the team at the national stadium has conducted a test run of these machines earlier in the week.

Forty-eight countries will participate in this year’s relays and this event will serve as a qualifier for the world championships and the 2016 Olympics in Brazil. The event will be managed by an all-Bahamian staff of more than 800 volunteers and the 70 member Local Organizing Committee.

In updating the House on immigration matters, Minister Fred Mitchell told members that after repatriating 331 migrants to Haiti last week, the balance of persons housed at the Carmichael Road Detention Center stood at 133 persons – 57 Haitians, 23 Cubans and a “smattering” of other nationals including 6 Venezuelans and 2 Ecuadorans. He further advised that the Amendments to the Immigration Act are scheduled to come into force on 10th May of this year with the regulations coming into force on the 11th May.

Introduction and first reading of Bills by State Minister for Legal Affairs include the following:

    A Bill for an Act to make provision in respect of patents and applications and to give effect to certain international conventions on patents and for connected purposes.

    A Bill for an Act to make new and better provisions for the protection and registration of trademarks to give effect to certain international obligations of The Bahamas with respect to trademarks. To repeal the Trademarks Act chapter 322 and to provide for connected matters.

    A Bill for an Act to provide for the protection of the layout of designs also called topographies of integrated circuits and related matters.

    A Bill for an Act to provide for the protection of new varieties of plants and connected purposes.

    A Bill for an Act to amend the Copyright Act.

    A Bill for an Act to provide for the protection of geographical indications and related matters.

    A Bill for an Act relating to false trade descriptions.

    A Bill for an Act to provide for the protection of layout designs also called topographies, integrated circuits and related matters.

Fort Charlotte MP Dr. Andre Rollins moved a motion for the appointment of a select committee to investigate the Rubis spill at its Robinson Road service station. The motion was defeated by a vote of 15 to 7.

Task Force one step closer to selecting 2nd cellular mobile operator

In a press statement released late Wednesday evening, the Cellular Liberalization Task Force (the Task Force) advised that the Government appointed evaluation committee had completed its assessment of the Proposals received on the 11th February 2015 for the award of a second local cellular mobile operator license.

Proposals were received from Cable Bahamas Limited, Digicel (Bahamas) Limited and Virgin Mobile Bahamas Limited but according to the statement, Digicel dropped out of the bidding process during the first round and the remaining bidders all qualified for the spectrum auction phase.

“Prior to the conclusion of the evaluation process, Digicel (Bahamas) Limited voluntarily decided not to proceed with its participation in the selection process. The remaining applicants, Cable Bahamas Ltd. and Virgin Mobile (Bahamas) Limited, have satisfied the eligibility requirements to move to the next phase of the selection process, the spectrum auction, which is scheduled to take place in May. This spectrum auction phase will be administered by the Utilities Regulation and Competition Authority (URCA)” said the statement.

The statement concluded that following the completion of the phase two spectrum auction, the successful applicant will be awarded the relevant licenses subject to the requirements of the Request for Proposals document, including the formal launch and phased-in network coverage “with complete national coverage expected within a maximum of three years from the date of the grant of the licenses.”

CIBC praises Bahamas’ fiscal stewardship

CIBC recently published its first quarter assessment of the region and had high praises for The Bahamas.

Prepared by its Capital Markets unit, the report praised the fiscal reform efforts of the Bahamas government, indicating that sovereign ratings of The Bahamas measured up pretty well against other “credits” in the region.

“The Bahamas measures up pretty well against other credits in the region, and we expect the government to reverse the trend of higher debts and deficits of the last few years” said the report.

CIBC joins a number of reputed international institutions including Standard and Poors, Moodys, the International Monetary Fund and the World Bank to give The Bahamas government high marks for its fiscal consolidation plan that is geared to reverse unsustainable borrowing and huge yearly budget deficits.

CIBC also recommended that international investors purchase any outstanding Bahamas government bond issue with a maturity date of 2029 and a yield of 6.95%. Their reasoning was that the government’s successful implementation of Value Added Tax “should improve fiscal finances significantly over and above what was surely on route to the completion of the Baha Mar resort.”

CIBC’s position was supported by recent Ministry of Finance data which revealed that at $28 million per month in VAT collections, the government is on course to beat its initial collection target by 20%. The report also highlighted performance improvements in the Bahamas’ tourism product, specifically hikes in stopover visitors, occupancy levels and room rates.

This is no doubt good news for The Bahamas.

Teachers get brand new contract

After two years of negotiations, the Ministry of Education and the Bahamas Union of Teachers (BUT) agreed on a new five year industrial agreement on Wednesday, 29th April at the Public Service headquarters on Meeting Street.

The new industrial agreement which covered improved working conditions and salary increases was marked as “fair” and “in the best interest” of all in the teaching profession. Remuneration included $1 million in back pay to 100 teachers by the end of June. This lump sum payment comes on the heels of $5.3 million paid to teachers during contract negotiations between April 2013 and June 2014.

Extolling the virtues of the teaching profession, calling the industrial agreement “a step in the right direction” and thanking the government for its leadership was acting BUT President Zane Lightbourne.

“Teaching is a profession of professions, thus making all other professions possible” said Mr. Lightbourne. “And we applaud the government and their quest for the vision that they share in the Bahamas Union of Teachers for the overall status improvement.”

Hailing the importance of teamwork and goal orientation in light of the union’s ongoing leadership conflicts, Education Minister Jerome Fitzgerald pointed out that the primary goal of the negotiating teams was getting the deal done to the satisfaction of stakeholders.

“Today signifies the accomplishment of a formidable task which is to ensure that all stakeholders are satisfied that the bargaining agreement reflects the needs of its members.

“The key concern for everybody was to get this agreement done and the executives in the Bahamas Union of Teachers I think (are) bigger than any one person. We have more than 4,000 teachers involved.”

The agreement is retroactive to 2013 and expires in 2018.

US Embassy announces new security guidelines

BAHAMIANS TRAVELING TO AND THROUGH THE UNITED STATES MUST PAY SPECIAL ATTENTION TO FOLLOWING PUBLIC NOTICE

The United States Embassy announced via press release on Friday that as of May 15, “new security measures will be implemented at the U.S. Embassy in Nassau that are expected to impact the U.S. visa application process.To better streamline security screening, the U.S. Embassy will no longer provide storage services for restricted articles that are not allowed to be brought into the building. Under the new regulations, U.S. visa applicants who arrive at the U.S. Embassy carrying restricted items will be refused entry and risk missing their visa appointments.

“Restricted articles include electronic devices such as mobile phones, car alarm remotes, tablets, MP3 players, notebook computers, headsets and any device with a power plug or battery.Other items not permitted include cigarettes, lighters, matches and any article that could be used as a weapon” said the statement.

For more information please visit the official website of the US Embassy at http://nassau.usembassy.gov or telephonethe Public Affairs Section at 322-1181 ext. 4220.

In passing…

The HMBS Rolly Gray was the fourth in a series of nine defense force vessels to be commissioned by the government under the Sandy Bottom project. The late Rolly Gray was a legendary master mariner who hailed from Staniel Cay, Exuma. It follows the commissioning of HMBS Arthur Dion Hanna, HMBS Durward Knowles and HMBS Leon Smith. The commissioning ceremony took place on Thursday, 30th April at the Emerald Bay Marina in Exuma.

Newly appointed non-resident High Commissioner of The Bahamas to India, H.E. Mr. Lowell J. Mortimer, O.B.E. presented his Credentials to the President of India, Shri Pranab Mukherjee at Rashtrapati Bhavan on April 30, 2015. Mr. Mortimer, an attorney, is currently the president of Campbell Shipping Company and was a veteran educator.

Forty-seven Junior Achievers were honoured at Government House on Wednesday of this week for their outstanding and innovative entrepreneurial work. They were selected from a group of more than 400 youngsters.

Madame Stella Maureen Crane-Scott was sworn in as a Justice of The Bahamas Court of Appeal by Governor General Dame Marguerite Pindling on Friday at Government House in a short ceremony.

Continuing its commitment to training and educating its staff to enable them to consistently deliver the highest quality of public goods and services, the department of Housing hosted a two day seminar at the Bahamas Vocational and Technical Institute (BTVI) this week. Twenty-three building inspectors and safety officers participated in this refresher course that took place in the ‘U’ block of the institute on Old Trail Road.

The World Customs Organization IT Conference and Exhibition is set to take place in Grand Bahama, May 6th thru 8th 2015 at the Grand Lucayan Resort. This event was announced at a press conference on Thursday by Larry Bodie, Superintendent of Bahamas Customs and head of the planning committee. The 2015 WCO conference will comprise a pre-conference workshop in Customs Administration for senior managers and the two-day conference will include a mix of briefings and presentations, case-study discussions and table top exercises. The theme of the conference is “IT for an Inclusive Approach in Connecting Customs and Other Stakeholders in Inter and Intra-Regional Trade.”

President of the International Amateur Athletic Federation (IAAF), Lamine Diasck of Senegal and World and Olympic sprint champion Usain Bolt of Jamaica paid a courtesy call on Prime Minister Christie at his Cable Beach office on Friday, 1st May. Both Diasck and Bolt are in town for the 2nd IAAF/BTC World Relays to be held at the Thomas A. Robinson National Stadium on 2nd and 3rd May 2015.

About the author: Elcott Coleby is a Deputy Director at the Bahamas Information Services. He holds a Bachelor of Science degree in Chemistry (B.Sc) and a Masters of Business Administration (MBA). He provides frequent commentary on public policy and communicates the works of the government. Address all comments to the following email: egcoleby44@gmail.com