The Tribune

By JADE RUSSELL

Tribune Staff Reporter

jrussell@tribunemedia.net

ENERGY Minister JoBeth Coleby-Davis says the government is “closing” its deal with Pike Electrical to manage Bahamas Power and Light’s (BPL) transmission and distribution network, clearing the way for the project’s next phase.

During her mid-year budget speech, Mrs Coleby-Davis mentioned last month in the House of Assembly that the deal with Pike was progressing but did not provide a timeline for finalisation.

“There were a few matters we have to discuss with our transition agreement, and that is focused entirely on making sure that we do the secondment to the standard in HR and BPL policies,” she said yesterday on the sideline of the signing of a Power Purchase Agreement (PPA) between BPL and Madeleine Solar Power LTD.

She said discussions were ongoing between the transition committee, which includes union representatives, HR, and BPL executives. 

Last month, Prime Minister Philip “Brave” Davis denied reports of tensions between the government and its partners in BPL’s transformation, saying there were “no challenges,” though “one or two issues” had been addressed.

His statement came after Anthony Ferguson, a BPL board member, denied Pike Electrical had paused its work while awaiting final agreements. Pike Electrical provides the manpower, materials, and expertise to upgrade BPL’s transmission and distribution network. 

The Davis administration is transferring New Providence’s energy grid to Bahamas Grid Company, a special purpose vehicle (SPV) that is 60 percent majority-owned by undisclosed private investors.

The government has finalised a 25-year agreement with Pike Corporation, through its Bahamian subsidiary Island Grid Solutions, to oversee the upgrade and management of BPL’s transmission and distribution network.

Under a joint venture, the government will hold a 40 percent stake in Bahamas Grid Company, with Island Grid Solutions retaining the remaining 60 percent. BPL will contribute its New Providence transmission and distribution assets, valued at $100 million, to the SPV in exchange for a 40 percent ownership stake. Meanwhile, Island Grid Solutions will raise $130 million from private investors to fund the project, securing the remaining 60 percent share in the SPV.