The Tribune

By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

THE government maintained yesterday that former New Providence Landfill manager Renew Bahamas "abruptly" terminated its contract to remediate the dumpsite, while insisting ongoing challenges at the site do not place it in breach of Baha Mar's heads of agreement.

Questions have been raised about the implications of the government's failure to honour a commitment made by the previous administration to resolve the landfill's issues by December 31, 2017.

This commitment was part of the April 25, 2017 heads of agreement with Baha Mar's new owner, Chow Tai Fook Enterprises (CTFE).

It was reported that any failure by the government to resolve the landfill's problems by that date would be treated as a "force majeure" event, meaning CTFE and its Baha Mar-owning affiliate could be released from performing their heads of agreement obligations for as long as it takes to remediate the landfill's problems.

However, in a statement to The Tribune, Press Secretary in the Office of the Prime Minister Anthony Newbold said there is no breach and there is no cause for alarm.

It came the day after Renew in a statement refuted accusations by Environment Minister Romauld Ferreira, who had said the company's management of the dumpsite was a "disaster".

He said the Department of Environmental Health Services had done a better job with the landfill when compared with Renew.

Contract

"The previous manager of the site Renew Bahamas abruptly terminated their contract unilaterally," Mr Newbold's statement noted.

"The government was compelled to utilise the Department of Environmental Health to resume management on a temporary basis.

"The Minister of the Environment Romauld Ferreira has already publicly outlined the steps being taken by the government to secure a lasting comprehensive resolution to the problem by having requested expressions of interest pursuant to technical advice and having now created a short list of qualified interested parties who will be invited to tender.

Resolution

"In the meanwhile, the government is working diligently to remediate the fire issue at the dumpsite, pending the comprehensive resolution towards which the government is already working.

"There is thus no breach of the very words extracted from the HOA; and no cause for any alarm on the part of the press or public."

The heads of agreement contained a commitment from the government to make several infrastructure improvements to maximise Baha Mar's success, including remediation and improved operation of the landfill.

"In the event that the government is unable to address the forgoing concerns by December 31, 2017, the project company shall consult the government as to the alternative measures that may have to be made by the project company to ensure proper operation of the project and the foregoing shall be deemed a force majeure event, provided that if the government's inability to address the concerns by December 31, 2017 is itself as a result of force majeure, the government's commitment to address the foregoing concerns shall be extended for a reasonable period of time not less than the duration of such force majeure," the heads of agreement notes.

A 'force majeure' is any unforeseeable event that causes elements of a contract to go unfulfilled. The heads of agreement states that in the event of this, the company "shall be excused" from performing and the incentives in the agreement "shall be extended for a reasonable period of time."

On Saturday, a portion of the landfill caught fire and officials at the DEHS now suspect combustion or some other kind of chemical reaction is to blame for the blaze, telling The Tribune Tuesday it was unlikely the work of an arsonist.

Renew was contracted under the former Christie administration in 2014. However, in October 2016, Renew discontinued this work.

It has remained adamant that it did not walk away from contractual obligations, saying the agreement is still active.

Disputes

"Renew Bahamas ceased operations due to a number of unresolved disputes created by the government of the Bahamas, which failed to adhere to significant terms of the landfill management agreement and has refused to meet to facilitate a resolution," the company said this week.

"After more than 18 months of unsuccessfully trying to amicably resolve the disputes, and government's deafening silence, Renew has applied to the Supreme Court for relief, including the protection of its fixed and moveable assets, which government has improperly and unlawfully restrained."