By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE New Providence landfill’s new manager yesterday said it was eyeing an initial public offering (IPO) to finance the potential expansion of its business model to the Family Islands.

Henry Dean, chairman of the now seven-strong Waste Resources Development Group (WRDG), told Tribune Business: “Our investors are private now. We’ve gone to places and institutions that manage funds, and we have asked them to invest.

“We are covered by that, but there may be a drive in the future for greater participation by the general public. A part of our plan is to seek the government’s approval to move into the Family Islands, which requires funding, and that is where we could see a public offering.”

Kenwood Kerr, principal of Providence Advisors, which has partnered with WRDG on the landfill deal, told Tribune Business last month that he was moving “in earnest” to close the initial $20m financing required for New Providence.

Mr Dean yesterday confirmed that the group officially took over the landfill’s management on March 15, having been given 30 days to raise the necessary funding.

He added that 40-50 persons have been hired by the consortium to-date. In addition, two non-Bahamian groups comprising Americans and Canadians have been brought in for their scientific expertise.

“They bring the scientific knowledge to the table. We have said to the Government, give us three years and Bahamians will be up to par to take things over. Our foreign partners have been mandated to identify Bahamians to shadow them,” said Mr Dean.

He revealed that there needs to be “an adjustment” in the tipping fees charged at the landfill, noting that the Government will ultimately have to decide whether to absorb any increase or pass them on to users.

“We have touched on the issue with the Government but nothing is final. To adjust it we need government’s approval,” Mr Dean said. “Government has to weigh its willingness to absorb the cost of managing the landfill against the complaints of the general public. That’s a government decision.

“Ten dollars a ton cannot satisfy their requirements. There has to be, and there needs to be, an adjustment. The Government has to decide whether they are going to absorb it or pass it on.”

Previous Tribune Business reports indicate that the Auditor General’s Department has previously opined that tipping fees at the landfill are insufficient to cover the facility’s operating costs. Fees are based on the weight/tonnage of the waste brought for disposal, with 300 pounds or less incurring no charge. Loads between 300 to 999 pounds are charged $5; those between 1,000 and 1,999 pounds are charged $10 per load; and 2,000 pounds or more $10 per tonne, There have been no revision of fees in over a decade.

The WRDG consortium was selected as the preferred bidder to take over the landfill’s operations - and effect a $130m transformation of the site - in late August 2018. The group has partnered with Ken Kerr’s Providence Advisors in a 60/40 split, and have a 10 year deal to manage the landfill.

Mr Dean, who addressed the Rotary Club of West Nassau, said the transformation of the landfill into the New Providence Ecology Park has already begun. He said that in six-months the group plans to roll-out a recycling program, and is taking measures to prevent fires at the site by currently sourcing the necessary equipment.

“I won’t say it will never happen, but as much as we can we are going to work to prevent fires,” said Mr Dean.