The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

PRESS Secretary Anthony Newbold stressed yesterday the $4.5bn Oban Energies project for East Grand Bahama satisfied government criteria for deals of this magnitude.

Mr Newbold spoke to reporters the day after Prime Minister Dr Hubert Minnis signed a heads of agreement with Oban Energies to develop the oil refinery and storage company. Despite government and company officials praising the deal as good news for Grand Bahama, an island with high unemployment and a lagging economy, some critics have raised concerns about the scope of the project, whether the developers have the funding in place and questioned the background of the individuals involved.

“There’s generally a project list for all projects the come in that all proposals must satisfy,” Mr Newbold said. “In this instance you’re talking about being concerned about finance. All projects present to the government, that would be a major concern. In the case of what they’re proposing, the environment is a big concern. (Peter) Krieger spoke to that yesterday. Generally a project list is presented to all proposals coming in; once (that is complete) it gets to the NEC (National Economic Council). Whatever the technical requirements are, all the technical agencies are involved in looking at what is presented. Once satisfied it is moved on.

“Obviously to have gotten it to the stage where you got to yesterday where government felt comfortable to sign the heads of agreement, you talk about due diligence, then yeah that must have been done to the point where all the technical people were comfortable. I don’t know very many bankers or venture fund capitalists will just be giving out money because someone says ‘I have this wonderful project in the Bahamas, just give me $50m.’ Lots of things would have to happen, including something that would comfort a financier.”

Asked if the government is comfortable with the people involved in the project, Mr Newbold said: “Up to this point, I would say yes and had to be to sign that agreement yesterday.”

On Monday, Peter Krieger, Oban Energies’ non-executive chairman, sought to allay concerns over whether the developer has the necessary financing.

“We have all of our financing in place,” Mr Krieger said. “We have already spent a significant amount of money; many millions of dollars in pre-construction to this stage. We have done our geo-technical work, our environmental studies and our marine engineering. There has already been a significant investment.”