The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A former Cabinet Minister yesterday warned the new administration that it will have to “jump immediately”on Bahamas Power & Light (BPL), given the increased summer energy demand and commitments to Baha Mar’s new owner.

Phenton Neymour, a former minister of state for the environment, who had responsibility for BPL’s predecessor entity, the Bahamas Electricity Corporation (BEC), urged Dr Minnis’s government to make a “quick assessment” of BPL’s operational and financial position.

He added that with the summer months fast approaching, and Baha Mar moving ahead with its phased opening, the Government has “no time whatsoever” to delay on the issue.

“It is indeed critical that they jump immediately on the BPL issue,” Mr Neymour said. “We need an assessment on their position, not only operational but financially.

“We also need to jump on the management contract with them. We need an assessment at Clifton Pier, the status on each generator, and the same with Blue Hills. They need to know rental generators are on order, how many are operational at this time, the cost of using them, and look at whether they are meeting the current demand.

“Some days they are tripping, so I know they are struggling. We need to know whether they have sufficient units to meet increased demand in the summer and with Baha Mar.”

The Christie administration’s April 25 Heads of Agreement with Baha Mar’s new owner, Chow Tai Fook Enterprises (CTFE), commits BPL to “address reliable and consistent supply of electricity on the island of New Providence, which will include the ability to meet the requirements of the project”.

This involves the installation “of all supporting infrastructure necessary to support secure and dependable electricity supplies to the project, without the need for unusual load-shedding or other interruption in electricity supply to the project”.

This must be completed by December 31, 2017, which could well prove a tall order for the Government and BEC/BPL, given that both are cash-strapped, and based on the utility’s past performance.

Mr Neymour added yesterday of BPL: “We have to look at their financial situation, whether the Government will need to provide them with support, and assess their status in the Family Islands.

“There has to be a quick assessment. This administration has no time whatsoever because before you know it summer will be here and gone. We have to ensure we don’t have as challenging a summer for the Bahamian people.”

BPL and its private sector manager, PowerSecure, endured a tough summer 2016, which was marked by frequent power outages and load shedding due to problems with aged generation equipment and transmission and distribution (T&D) bottlenecks.

The need to supplement BPL’s power plants with rental generation capacity was lost in the transition to the new management company, and summer 2017 will prove whether past problems have been satisfactorily addressed.

Mr Neymour also warned the incoming administration against ‘the blame game’, saying: “You’re now the Government.

“We have a new administration now. We cannot blame the Christie administration for everything.  The FNM must recognise that the Bahamian people elected them because they wanted change and action, not talk. The people want  a higher standard of governance; that must be recognised.”  

PowerSecure signed a five-year management services agreement with the Government to run BPL on February 9, 2016,but its $900,000 business plan has never been disclosed.

The Government has also yet to refinance BEC’s $650 million legacy debt and other liabilities via the promised rate reduction bond (RRB), and the new administration will also have to assess the bids to provide BPL with improved generation capacity that were solicited by its predecessor.