The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Central Bank is investing $24m in the construction of a new "cash and data centre" in south-west New Providence to complement its new headquarters building in downtown Nassau.

A tender document, seeking a lead design consultant for the planned facility, is designed to separate its cash centre and oversight of Bahamian dollar notes in circulation from the proposed Royal Victoria Gardens head office that is presently under construction.

The new site, located off Frank Watson Highway between the Albany and South Ocean properties, will also give the Central Bank extra security and a second data centre for business continuity planning (BCP) purposes should disasters such as a major hurricane strike.

The facility, the Central Bank added, will be designed to cope with currency demand that it forecasts will reach between 50m and 73m banknotes in circulation by 2037. It is targeting some 61m notes by that year.

"The construction budget for the project is $24m," the Central Bank tender said. "The bank, in conjunction with the construction of the new Central Bank building at the Royal Victoria Gardens site, has determined that the separation of its cash centre operations from that primary site would meet a major deliverable as part of its strategic plan.

"Additionally, the building of proper security and logistical conveniences, and the co-locating the secondary data centre and business continuity planning (BCP) operations, would also aid in streamlining back-up operations."

"The selected site for the Cash and Data Centre...... permits an appropriate level of perimeter security to be designed into the site’s overall footprint," the Central Bank added.

"The area is a plot of undeveloped land located on Frank Watson Highway with proximity to the Lynden Pindling International Airport. The property is ideally located, providing easy accessibility from the airport and security due to the out of town location."

Together with construction of its new Royal Victoria Gardens head office, the Central Bank is investing a sum between $50m to $100m in new real estate and facilities for itself. The regulator's officials have previously said it, rather than Bahamian taxpayers, is funding the headquarters building and a similar arrangement will likely be in place for Frank Watson Highway.

Outlining the new cash and data centre's needs, the Central Bank said: "The market demand for cash is largely driven by the volume of currency in circulation, the country’s denomination structure, the type of substrate used (which drives circulation lifespan), and established rates of growth in currency demand against inflation.

"By 2037, we forecast that the market will demand between 50m and 73m banknotes in circulation with a target of approximately 61m. Taking into consideration production and delivery plans, including BCP and data centre needs, conversion of the maximum expected circulation demand into stock forecasts that a physical plant will require approximately 75,000 square feet on multiple levels with a footprint of approximately 45,000 square feet.

"The primary functions of the building will include secure and general delivery for vehicles; general delivery and secure docks; general function space; cash operations including highly automated cash storage racking; administrative space; and staff parking."