The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Barack Obama’s commerce secretary has urged the Bahamian government to select two US-led groups to reform the Bahamas Electricity Corporation (BEC) and energy sector, describing them as the “superior choice”.

In a direct lobbying effort directed at Deputy Prime Minister, Philip Davis, Penny Pritzker touted the “cutting edge proposals” submitted by two of the five remaining BEC bidders - Caribbean Power Partners and Power Secure International.

Ms Pritzker, in her June 27, 2014, letter to Mr Davis, said: “Caribbean Power Partners and PowerSecure International are companies with years of experience in the realm of power generation and distribution, and bring to the table cutting-edge proposals to meet today’s energy needs.

“Caribbean Power Partners and PowerSecure International offer innovative and cost-effective solutions that make them a superior choice for the ambitious plans of the Commonwealth of the Bahamas.

“Please know that these firms have the full support of the United States Government.”

Tribune Business understands that the Obama administration effectively has a direct ‘stake’ in the success of Caribbean Power Partners’ bid to take over BEC’s electricity generation assets, as the government-owned US Export-Import Bank has agreed to provide financing to the consortium.

While some Bahamians may see Ms Pritzker’s letter to Mr Davis as unwarranted US intervention and interference in domestic Bahamian affairs, it provides an insight into the high-powered lobbying that governments throughout the world conduct on behalf of their nationals and domestic business interests.

Such conduct, often referred to as ‘batting for the national interest’, is seen in these circles as perfectly natural. And the Obama administration is likely to be far from alone when it comes to the BEC reform process.

The Chinese government is likely to have been engaged in similar conduct, especially if a state-owned entity such as China State Construction is among the five remaining bidders. Indeed, all bidders are likely to have embarked on extensive lobbying efforts and asked others to promote the merits of their offers.

Whether letters from the likes of Ms Pritzker will have any influence on the Christie administration’s final decision on BEC, and whether it goes through with essential reforms and their structure/nature, remains to be seen.

The US government’s lobbying of the Christie administration, though, appears to have been consistent. John Dinkelman, the Nassau Embassy’s former charge d’affaires, also lauded the Bahamas Generation and Utilities Corporation Ltd, the group featuring Caribbean Power Partners, in a September 27, 2013, letter.

Addressed to Creswell Sturrup, permanent secretary in Prime Minister Perry Christie’s office, Mr Dinkelman said Bahamas Generation and Utilities Corporation had “over 100 years of combined experience developing and implementing innovative solutions for complex projects.

“The company’s proposal includes state-of-the-art technology, high quality engineering services, and operations and maintenance services tailored to meet the needs of the customer at a very competitive price.”

Mr Dinkelman said the “technical and commercial merits” of the bids by Bahamas Generation and Utilities Corporation, and US-led groups bidding on BEC’s transmission and distribution management contract, offered the Bahamas “viable options” for reform.

The two letters from the US officials were attached to a study on the economic impact of energy reform that was released by the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) yesterday.

The Caribbean Power Partners/Bahamas Generation and Utilities Corporation consortium is headed by Texan Taylor Cheek, and features Fluor Corporation and ProEnergy Services.

PowerSecure International is the only one of the five remaining BEC bidders focused on the transmission and distribution management contract.

It was recently hired by BEC to examine the causes of recent power blackouts, prompting accusations that the reform process had been compromises, as PowerSecure would have gained access to information other bidders may not have received.

Tribune Business was the first to reveal that both Caribbean Power Partners and PowerSecure were among the major players bidding on the BEC reform process.