The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The number of Bahamian companies applying for, and certified to obtain, relief from the Government’s roadworks compensation programme has exceeded 100 on both counts, a key Ministry of Finance official has revealed.

Simon Wilson, director of economic planning, told Tribune Business just before Friday’s deadline for applying was reached that businesses had been “coming in by the droves” to seek compensation for losses inflicted by the New Providence Road Improvement Project (NPRIP).

He added that there had been a “huge last minute rush” as Friday, January 18’s, deadline for applying loomed.

“It’s over 100 that have applied, and certifications are at the same level,” Mr Wilson told Tribune Business. “We are well over 100 which have applied and are certified. We won’t have final figures until Wednesday, Thursday.

“People have come in by the droves. We’ve seen a huge last minute rush.” Mr Wilson said he felt the compensation programme offered, and the response, had met the Government’s objectives. He added that any decision to extend it beyond last Friday would have to come from the Cabinet.

Explaining how the programme worked, Mr Wilson said the Ministry of Finance had worked closely with the likes of BEC and the Ministry of Works to verify that applicant firms were both located on road corridors impacted by the New Providence Road Improvement Project and operational when it was taking place.

The Government’s $15 million compensation programme for businesses impacted by the roadworks associated with the New Providence Road Improvement Project (NPRIP) began on December 10.

The relief plan has been the subject of controversy, though, with the 50-strong Coconut Grove Business League (CGBL) warning that what is being offered is not enough to compensate companies for their losses. As a result, they have indicated they are going back to the courts to seek redress.

Other businesses, though, have argued that given the present economic and fiscal realities the Bahamas finds itself in, the private sector should look forward and not back. Pointing out that the Government will never be able to fully right the wrong that was inflicted, they believe companies should maximise the compensation on offer and move on.

Assistance provided under the compensation plan includes the creation of a deferred payment plan for commercial customers of BEC impacted by the roadworks, and for customers in good standing a 10 per cent rebate on electricity bills for a period of 18 months. For operators whose businesses had closed down, the Government would assume 50 per cent of the outstanding bill if the client pays in full the other 50 per cent.

The BEC-related compensation is effectively costing the Corporation, nor the Governnment, no new money as it is being offset by the huge multi-million dollar receivables the former owes the latter.

The Government has also included in the compensation plan a 60-day deferment on Customs duties for a period of six months for businesses which bring in equipment or inventory for re-stocking, and the establishment of a Road Works Compensation Micro loan facility at the Bahamas Development Bank.

The total size of the facility would be $3 million, and the maximum size of any loan would be $10,000.