By RASHAD ROLLE
Tribune Staff Reporter
rrolle@tribunemedia.net
THE government has relinquished its ability to terminate the heads of agreement with Oban Energies because of what environmental impact assessments may conclude about the safety of the project, according to the much-anticipated document which Prime Minister Dr Hubert Minnis tabled in Parliament yesterday evening.
This revelation comes after critics expressed concern that the agreement was signed before an EIA was conducted.
However, the agreement empowers the minister responsible for the environment to force the discontinuation of any “operation or equipment” from the project that causes an environmental infraction.
The agreement, which Dr Minnis said would ease concerns that have emerged about people associated with the project, was signed by Oban Energies’ President Satpal Dhunna, not Peter Krieger, the non-executive chairman of the company whose chequered past made headlines recently.
However, last week Mr Krieger signed a document related to the project during a press conference about the heads of agreement.
Last week, The Tribune revealed Mr Dhunna was dismissed by a credit research firm in 2010 for alleged “gross misconduct.” Before Oban Energies’ website was wiped of references to him, Mr Dhunna was described on the website as a former managing director of CreditSights, though a representative of that firm said he was just a director of a department.
The agreement for the $5.5 billion oil storage and refinery project featured no signature from Mr Krieger.
A source in the administration has said the principals of the company have removed Mr Krieger from his public role in the project, adding his visibility owed to a family connection he had to at least one of the company’s beneficial owners.
The agreement also did not reveal who the owners of Oban Energies are. Dr Minnis made no communication about the agreement when he tabled it yesterday evening, saying he will address concerns about the project in Parliament next week.
The agreement says: “The parties agree that the government shall not have the right to terminate these heads of agreement based upon any EIA report, but instead shall work with the developer to mitigate any concerns. If the government does not provide any such comments to the EIA within (a) 60-day period, the EIA shall be deemed acceptable to the government.”
The agreement requires the developer to first conduct an EIA for the oil refinery or terminal part of the development, then for all subsequent portions of the project.
The government would have 60 days after the agreement is submitted to provide comments and to prompt the developer to take precautions or make modifications that could address its concerns.
The agreement allows the government to impose financial penalties on the developer for environmental infractions that are not rectified within 30 days of notice, although the agreement stipulates that the aggregate number of fines and penalties cannot exceed $3.5 million.
The agreement says: “If any material environmental infraction is not remedied within 90 days of such written determination by the qualified independent expert, the minister responsible for the environment shall make the determination whether to continue the penalties or cause the discontinuation of the operation or equipment producing the environmental infraction and any other relevant governmental agency may determine to suspend the permit for the operation of the terminal or oil refinery as applicable. If the environmental infraction is deemed by the minister responsible for the environment to be an urgent threat to the health of exposed persons, the surrounding environment or an urgent safety concern, the minister shall determine whether to immediately or in a time specified by him, cause the discontinuation of the operation or equipment producing the environmental infraction any other relevant governmental agency may determine to suspend the permit for the operation of the terminal or oil refinery, as applicable.”
The agreement for the $5.5 billion project includes standard concessions offered to developers under the Industries Encouragement Act and Export Manufacturing Industries Encouragement Act.
The development is exempt from taxes on income, import duty, export tax and real property tax for 15 or 25 years based on the relevant law. The development is also exempt from value added tax on “construction material, equipment, furniture, fixtures and other material required for construction, equipping, furnishing and completing the development, as well as exporting any and all refined and stored products and oils once operations commence.”
Vehicles and gasoline needed for constructing the development could be imported and exported from the country free of customs duties.
However, the agreement stipulates that tax benefits and concessions could be reduced on a proportionate basis if the number of jobs agreed to within certain time periods do not come to fruition.
These include 600 direct jobs plus 1,000 indirect and induced jobs during the construction period and 250 direct full-time jobs during operations.
The agreement says the developer will use commercially reasonable efforts to substantially complete construction of the entire development by December 31, 2030.
If the developers cannot obtain water and electricity from the Grand Bahama Power Company at an economically viable rate, then the developer would have the right to develop and use its own self-generated or sourced utilities, the document also states.
Unless terminated through “force majeure” – unforeseeable circumstances that prevent someone from fulfilling a contract – the agreement will be effective for 45 years.
Comments
Porcupine 6 years, 8 months ago
Beyond unbelievable. Minnis has sealed the deal, that he could do any good for The Bahamas. A true shame for Bahamians.
ohdrap4 6 years, 8 months ago
let's just hope their reputation precedes them and thay cannot get financing.
OBSERVER4CHANGE 6 years, 8 months ago
Stunningly unbelievable! Ineptitude is abundantly prevalent in the Bahamas, with large doses administered to the PM et al associated with this albatross of an agreement. Wow!!
HonestTruth 6 years, 8 months ago
“However, the agreement empowers the minister responsible for the environment to force the discontinuation of any “operation or equipment” from the project that causes an environmental infraction.”
It appears the minister has the power to stop all work on the sight if there are any environmental infringements, this is reassuring.
Porcupine 6 years, 8 months ago
I would maintain that there is NOTHING reassuring about this whole deal. I would say it is a very low point in our history.
HonestTruth 6 years, 8 months ago
Why would you define it as a low point? I’m looking for substance in your next message, express to me your concerns with what you have read, 90% of posts on this site is pure rhetoric and nonsense.
Well_mudda_take_sic 6 years, 8 months ago
Congratulations on your self-certification as an idiot sine pari.
Porcupine 6 years, 8 months ago
I have not the time to do your homework. The Age of Oil is coming to an end. The process of oil production, from start to finish, is deadly for life. If you start with a lie, be prepared to end with a lie. Acts of desperation rarely end well. We will soon be asking for money to help remediate the effects of sea level rise in our country. It is generally accepted that burning of fossil fuels is contributing to many premature deaths, as well as, having a very negative effect on our climate. I don't have time to bring anyone up to speed on this issue. The information is available to someone with a little spark.
TalRussell 6 years, 8 months ago
Ma Comrades, the very suggestion in the Heads Up Agreement that the teeny weenie bit protection for Grand Bahamalanders beaches, sea and drinking waters becomes even that less comforting and less reassuring once it sinks in there is no escape clause for who the Imperial prime minister actually has as his red minister environment. {You couldn't have made up a more fake agreement- if you tried}.
This has unite onward, forward, together the many thousands Grand Bahamalanders calling for the return Grand Bahama as a full pledged colony across the pond the English Motherland. God save da Queen prays God Her Majesty does sets the sails Royal Navy come guard the beaches. sea and drinking waters Grand Bahama.
Telllikeitis 6 years, 8 months ago
So now we know the REAL reason why Minnis could not have tabled the agreement last week...it is because they had to redo the signature page to have someone other than Krieger's signature on it to avoid the blow-back he was receiving for dealing with this scam artist. That's the FNM's transparency for you.
TheMadHatter 6 years, 8 months ago
The article fails to mention what we get out of the deal. It sounds like 250 permanent jobs and perhaps some spin-off to support or related business.
While that is good, the cost is kinda high for that.
Nobody thought of maybe ten cents per barrel of oil which flows thru the pipelines? Even one cent would add up.
It seems they won't be paying the 1/2% business license fee since they are exempt from taxes on income.
So exactly what are we getting out of this deal over the next 45 years? I was in support of this deal because Freeport needs help. But 600 temp and 250 perm jobs is a joke....even if another 200 spin-off jobs result.
There is no reason we cannot get a fixed amount per gallon/barrel flow. Im sure there is no other country on Earth that would allow this kind of business without some kind of ongoing pro-rated income resulting. Why are we always the jacks?
DDK 6 years, 8 months ago
What do Bahamians usually get out of these deals with foreigners? Minimum wage jobs? Environmental disasters? As these foreign entities always seem to have carte blanche with whatever they do, Bahamians almost never have any redress with labour issues. Other than bottom of the ladder jobs, there is no substantial contribution to the communities. As they are given all imports tax-free they bring in everything they need. Every now and then there is a token donation to a local charity. Usually the only winners are the politicians whose hands are greased under the table. Trust at least this will not be the case with The People's Government. Agree that, at the very least, a through-put fee would have been sensible..
Sickened 6 years, 8 months ago
I'm now thinking Minnis needs to get out of politics. If he can't even remotely convince the majority of Bahamians that this is a good deal then WHY THE HELL DID HE SIGN IT!!!!!
Porcupine 6 years, 8 months ago
I agree wholeheartedly. But it shouldn't be left up to Minnis to get out of politics. That is our job. He has revealed himself to be an idiot. Like Trump, he is unable to see the damage he is doing to his country.
Well_mudda_take_sic 6 years, 8 months ago
All of the agreements between the Bahamian government (including all of its departments and agencies) and Oban Energies (including all of its principals, affiliates and agents) are null and void on the grounds that they constitute nothing but a massive fraud committed against the Bahamian people, especially the people of Grand Bahama. Minnis will have failed the Bahamian people if he elects to do nothing about this most embarrassing matter, leaving many to ask: "What was in this deal for him, personally?"
sealice 6 years, 8 months ago
so it appears that no matter who is elected as soon as you sit in the chair you are given a lobotomy - thank's for nothing Ferriera....on your island too.
joeblow 6 years, 8 months ago
The only way this deal could have been worse was if the government decided to borrow the money to give to Oban to fund the deal!
TalRussell 6 years, 8 months ago
Comrade JoeBlow, not such a hypothetical question if you can articulate ya loan application when applying accompanied by offering Grand Bahama Crown Lands as collateral which does makes possible obtain big kinds loans? The Queen being sovereign over all Bahamalander lands - should looks into this? The Queen may just be one sail across pond with Royal Navy save Grand Bahamalanders. God save da Queen!
TheMadHatter 6 years, 8 months ago
Maybe the way to stop Oban is for no Bahamians to apply for work. Let them hire all Haitians and treat THEM unfairly - then the "well known" Q.C. will put Oban in court and get the company kicked out of the country.
All the international organizations that ignore human rights abuses at Fox Hill will jump on board as well and Oban will not have a chance to survive.
TalRussell 6 years, 8 months ago
Ma Comrades, come May 10 will be one year since PM Christie stepped down. Its an fast approaching date that could hold a key to how many red MP's will be prepared stick with this prime minister and his PLP corruption gig. There's a lot that's going to be decided over what the Imperial red cabinet ministers decide to do with Oban in leading up to the party's one year governance anniversary and the moving forward roles to be played, if any, by Minnis and KP? Former PM Christie must be suffering withdrawal spasms for resigning so quickly - had only he taken time out read the red tea leaf with Minnis's picture all over it? {Can't make this up}.
OBSERVER4CHANGE 6 years, 8 months ago
This agreement demonstrates Minnis and his cohorts are bumbling idiots, and unfit for office.
Porcupine 6 years, 8 months ago
And, now is the time to spread the word. Loudly. Time is of the essence.
Truism 6 years, 8 months ago
Loretta & crew warned us. UNBELIEVABLE, UNTHINKABLE...
TalRussell 6 years, 8 months ago
Comrade Truism, how right Loretta and Chippie were but we were all too blinded by their approach to have seen the light.
In name her wonderful Grandpa Milo, personally speaking I am ready give former member Long Island second chance. See that photo, things might been different if that was Chippie 'standing behind' and between the PM and Krieger in cabinet office photo. May the Queen save her colony ruin.
TheMadHatter 6 years, 8 months ago
She only lost because Bahamians don't want to see women rise to the top. MANY I spoke to during that time - both women and men - had outright hatred for her to "standing up". She ought to have known not to be "uppity" - Bahamians have been trained to know their place.
Now, of course, they want an "uppity" person to fight for their rights. Too late.
birdiestrachan 6 years, 8 months ago
they only had to talk to doc for one minute to know there is nothing there. BLANK
sealice 6 years, 8 months ago
Da gubmint of da Bahamas can do wtf it wants wtf it wants.... PLP been doin it since 73??
TalRussell 6 years, 8 months ago
If Ma Comrade Prime Minister and all his Red MP's Grand Bahamas might thinks the people are incapable wrapping their heads around how devious twas for their government elected on transparency be holding a Heads Ups Agreement signing ceremony in cabinet room with a fake head the company only pretending be signing document. The damn document tabled in People's House of Assembly - doesn't bear the signature Krieger. The people Freeport might be going hungry forced lineup soup lines but they're not be made from da DNA of fools. Sham comes mind.
John 6 years, 8 months ago
At this point Minnis would be wise to force these crooked clowns to 'put up or shut up.' Put pressure on them to prove they are financially capable of funding the project and terminate the contract if they can not show they have the means. With the signed documents in hand, these clowns can raise tonnes and tonnes of money without ever putting a shovel in the ground or refining an ounce of oil and only the Bahamas will have its reputation tarnished.
bogart 6 years, 8 months ago
1 in 8 Bahamians go to bed hungry every night, .....there are ...now more charitablte food contributing agencies organized to distribute 1,000s food to the needy and shut ins, .......thousands of meals are given out weekly.....more people are linkng up in soup lines to get a bowl of food....the poor and even the rich who have fallen on hard times...even distinctive Bahamians wid ORDER of theBRITISH Empire bin collectin dere monthly welfare $85. dollars welfare an phone allowance...selling belongings fer pittance.....poverty like never before .....hundreds in job line.....poverty aint know party colours....dont care if you black or white... rich helping brothers an sisters....yes Roc wid Doc is pushin gainst all ķinda man made hurricane to bring relief....to dese Bahamians.... to get ghis project goin ta put food in Grand Bahamian people mout......
TheMadHatter 6 years, 8 months ago
Things are bad, yes - but people also need to understand that it is not the government's job to "find work" for their 7 children. Even the Pope told parishioners in Argentina a few years ago that being Catholic does not mean you have to "breed like rabbits." That phrase shocked many who heard it. I suspect few in the Bahamas heard it - but it is true. Not everything is government's fault - a lot is, but not all. People can learn to take some responsibility. We don't teach much sex education to young girls until they are 15 and already pregnant - then they learn about dilation diameter of the hoo hoo for the baby to come out. Suddenly, it's ok then to talk about it.
TalRussell 6 years, 8 months ago
Ma Comrades, we got's lean on Jesus until Queen sets sail across pond to come with Royal Navy protect pristine beaches, sea and drinking waters Freeport, from potential destruction from sludge oils.
Join-in March 15, 2018 as we march Forward, Onward Together for Seven-Days around the People's House of Assembly brungs downs walls Jericho. How far is it around walls Jericho - 28 feet tall.
.........//////https://www.youtube.com/watch?v=Z4L8B59s3GY
Truism 6 years, 8 months ago
The gumption of the PM. He speaks about lifetime contracts that are for twenty-five years and have three year notice termination clause. Didn't think it was possible to commit a country to a worst deal than BTC Cable & Wireless, but, this clown has found a way to give away the keys to the kingdom. What would it cost the public purse to terminate this awesomely awful deal. He had a senior civil servant sign an ostrich deal.
Truism 6 years, 8 months ago
Head in the sand butt in the air. SAD
bogart 6 years, 8 months ago
@madhatter......Grand Bahama had seen the best of times and now the worst of times.....yes I agree wid you on the need for family planning...we should be listening to a govt 5...10...15....20 year plans wid demograpics in mind.... but we keep havin the voters voting out every 5 years the govt shouting curruption...cronyism..lovers..etcetc....and get another with different priorities...then dey gets voted out..compoundong the challenge is the Hurricane challenge dat can wipe out imfrastructure....businesses...umemployed and the continued use by banks of the Indemnity Insurances .?.an even one bank allegedly selljn it and collecting premiums and den chaning ways..and more challenges like a perfect storm....we are an archepelogic naton that hav to provide ghe same least fer the smallest populated cay like schooling meds etc...further glaring challenges to protect the poorest,...the consumers.. workers..wid no prptectons as it challenges the merchanr class who are policy mskers who never gets chatrged for illrgal laboures etc....somewhere the no taxation widout representation brings to mind a Republic type govt structure....etceyc kudos to Roc wid Doc fer drivin da bus
TigerB 6 years, 8 months ago
BORCO still gives of fowl odor, a school had to be closed down because of it, but you think any Bahamian government will close it down? I think not. There was envirnomental talk with the Bimini Bay Resort project, it was doom long before it started....really? You folks put a smile on my face.. Ill bet RUBIS in your home town still open... but we made all kind a about that, but they still open... that what we do, make noise and its is always in color, red or gold. I ask the Lord to allow me to live to witness the opening of our 3rd oil refinery here on the island, Then ill see what other noise will be made on here hehehe
TheMadHatter 6 years, 8 months ago
You are correct. I am always amazed when I drive by Rubis near the Mall and see the cars lined up for gas. I guess the people in those cars just love cancer.
Exactly. People made all kinda noise about Rubis poisoning them, but the minute they opened back up - people were lined up to give them money. The same with the Chinese food stores - Bahamians line up to give them money. Perhaps Bahamians as a race are simply too stupid to survive. If we are wiped out by other cultures and races - perhaps it is simply the best thing for the future of the Earth as a whole. The Earth may be better off without us?
TalRussell 6 years, 8 months ago
Ma Comrades, what was presented in House is what happens when a society's peoples sit back listen to a government begin to mix fantasy and reality together. The government is entitled to the facts but not of their creation. The facts are many and here's just few. For the first (6) years no more than a dozen jobs will be created for each the (6) years and half will be filled by work permit foreigners.
This Agreement is drafted last (90) years. Even the (72) jobs be created over first (6) years will be part-time paycheques. You can believe the what's written into the Agreement or the government wants you believe it will do?
its your decision alone what believe is fantasy and what is factual truth. Just remember the public purse donated over a BILLION Dollars in lands, cash and concessions to the original and resurfaced Baha Mar and even with all then red oppositions talk - they as new government just let new owners Baha Mar walk away with it all. Trust them, my ass. I prefer trust proven credibility. And you?
bogart 6 years, 8 months ago
...fully agree TigerB....school evacuated etc...Borco pollution goes back decades and many prior owners....sadly its always the current govt decades later who gets the blame...then there is the costs and time totally derailling or impeding any govt from carrying out their own platform and agenda ......
TalRussell 6 years, 8 months ago
If Ma Comrade PM and KP want buy advertising "key chains" in bulk promote Oban, I can refer them someone with 12 years "key chains" sales experience. {Couldn't possibly make this up}. Even Joe Monks would've seen the crazy in this deal.
TheMadHatter 6 years, 8 months ago
Maybe the good Senator with the t-shirt business can even make t-shirts. "We Marchin Eastward !!"
juju 6 years, 8 months ago
Wake up Abaco! This is in your backyard! Pollution!
ThisIsOurs 6 years, 8 months ago
But didn't they ask us just two weeks ago why were we raising such a ruckus about the project since the EIA had to be completed first? Now they tell us it doesn't matter what the EIA says. Very deceptive.
BONEFISH 6 years, 8 months ago
I found what i am hearing and reading about this situation incredible. A HOA agreement signing that was carried on live tv that was not was a HOA signing. A clause that in the HOA that says this project can't be stop even if there is an adverse EIA. A constant rearranging of the companies principal officers resumes. Nobody seems to know or say who the owners of this company is.This is how the PLP does business. Not a peep from various environmental groups. Amazing.
TigerB 6 years, 8 months ago
Well I am quite aware of that area, its all pine barren, miles of it so if there is no problem with STATOIL having environmental issues I'm certain there would be a problem with OBAN. It's miles and miles of nothing, but i quite agree with Dr. Darville, EIA should have been first, that makes good business sense.
ThisIsOurs 6 years, 8 months ago
I read a book by that guy who wrote a Rich Dad Poor Dad and I always remember a piece of advice that he gave, "never go into business with someone you can't trust". As bright and shiny as the opportunity is, CHARACTER will out.
Something is seriously weird here, as I see everyone pointing out above, when the Kreiger story first broke, my first question was why would you chose this man with charged with moving investor money as the "face" of the company, it makes no sense,
Second, if you were going to invest all this money, why weren't you at the signing, that is really weird. The explanation given by govt is that the principal was at some other meeting and the government HAD to have the agreement signed that day? Seriously??? If I were the investor I'd say either change the date or I take my billions elsewhere...so that doesn't make sense.
Also the deal was basically done, you don't have to worry about someone trying to block you if they found out you were interested. None of this makes sense.
What they're telling us isn't what it is. It's desperation mixed with some other unknown issues
Truism 6 years, 8 months ago
For the next 4+ years there will be no environmental issues in The Bahamas. At least that is how it will appear as these pseudo environmental groups stumble to adjust. Their true agenda is being exposed with every passing day.
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