The Tribune

By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

QUESTIONS have been raised about the implications of the government's failure to honour a commitment made by the previous Christie administration to resolve the New Providence 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.

Deadline

Gowon Bowe, president of the Bahamas Institute of Chartered Accountants, yesterday questioned the ramifications of the government not meeting the deadline. This aspect of the agreement has come up for discussion as the landfill continues to smoulder after a fire erupted there on Saturday.

"Certainly I think there needs to be prudence on the side of the government in terms of their selection of a strategy, their selection of a preferred service provider to carry it out and the ultimate pulling over the trigger over what has to be done," Mr Bowe said.

"But what it cannot be seen to be is being kicked down the road because we have had many, many years of that and it needs to be resolved in a timely manner.

"There will be financial consequences, I have no doubt, as it relates to heads of agreements and commitments for failure to do so not like any other contract or construction contract.

"So I think what is important is what are the implications and failing to meet the obligation?

"What are the remedies that have been offered or are available in the heads of agreement as it relates to it and how we are making sure that we minimise those damages that we may incur as a result of failing to meet the obligation and the time frame that is agreed."

He also said: "Whenever you have commitments there are going to be elements that may impact and delay what transpires and the most important aspect is firstly acknowledging those commitments.

"Secondly being able to articulate the plan as to given the delay how quickly it'll be resolved.

"I think it's always been appreciated the dump resolution was never going to be a quick fix and the heads of agreement, if you think of it from the developer's perspective, they certainly would be pressing for it as quickly as possible and government may have had great aspirations over how quickly it can be done.

Obligations

"But I think what you have to bear in mind is the government is bound to the obligations of the previous administration and this administration really has to articulate how they are going to meet the obligation in the shortest time frame.

"It doesn't bode well when we fail to meet certain commitments and guidelines," he said.

Before the deadline, Environment Minister Romauld Ferreira told The Nassau Guardian it was inconsequential and suggested the government would not meet it.

He told the newspaper in December: "The most important thing isn't to meet the deadline. The most important thing is that this is done right and done successfully.

"Our internal deadline for the handover of operations…I think is in April.

"But this process of going through the bidding and receiving the expression of interest and handing out the RFP's, that should be done by early next year.

"I don't think that, that is going to cause any sort of major problems because at the end of the day every single player, they want it done right, so there is no point meeting a deadline if at the end of the day it's not done right.

"This is something we have to get correct."