The Tribune

By LYNAIRE MUNNINGS

Tribune Staff Reporter

lmunnings@tribunemedia.net

WITH a major energy deal unravelling and millions in financing under scrutiny, Energy and Transport Minister JoBeth Coleby-Davis offered little clarity yesterday, declining to explain the collapse of a key New Providence grid management arrangement.

Pressed on the breakdown involving Bahamas Grid Company and Island Grid, Ms Coleby-Davis cut off further questions, telling reporters only: “We spoke to it and a statement went out.” She refused to elaborate.

Her response came after the government sought to steady confidence after the abrupt exit of Island Grid, led by US energy executive Eric Pike, from the project, which had been promoted as a cornerstone of energy reform but had now fallen apart less than two years into a 25-year agreement.

In a statement issued on Wednesday, the government sought to frame the development as a transition rather than a breakdown, pointing to new leadership at Bahamas Grid Company.

“The public should also be assured that the ownership structure of the transmission and distribution assets remains unchanged,” the government said. “The only change at this stage is the move to a fully Bahamian-led operating team after the completion of the foundational phase. That is a transition the government welcomes. We have full confidence in the Bahamian leadership now in place at Bahamas Grid Company.”

The government said Dareo McKenzie has been appointed chief executive officer and Gladys Fernander chief financial officer, describing the shift as a strengthening of leadership. It added that Mr Pike remains engaged as a contractor to complete foundational works, including major transmission and substation upgrades expected to finish by the end of May, and said outages have been reduced and system reliability improved.

But those assurances have done little to quiet concerns about the implications of the arrangement’s collapse.

Opposition chairman Dr Duane Sands warned that he foresees “lawsuits in abundance” and questioned the circumstances surrounding Island Grid’s departure, pointing to unresolved issues involving payments, governance, and the operational relationship between Bahamas Power & Light and Bahamas Grid Company.

Financial stakeholders have also raised alarms, particularly those tied to the $111m bond structure and $30m equity investment backing the project, as investors seek clarity on repayment and stability. The fallout has also triggered a reshaping of Bahamas Grid Company’s board. Mr Pike and his associate Mei Shibata have exited and been replaced by attorney Nikolai Sawyer and Super Value president Debra Symonette, alongside an existing director. Other previously listed directors are no longer understood to be in place.

The original agreement provided for shared governance between the government and private investors, but the changes have intensified questions about oversight and control.