The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Some 25,000 Bahamians and 150 small and medium-sized enterprises (SMEs) are projected to benefit from a $30m investment to unlock the country’s ‘blue economy’ potential and enhance coastal protection.

An environmental and social impact assessment of the Inter-American Development Bank (IDB) funded initiative, which has been seen by Tribune Business, reveals that it aims to “bolster the safety” of 1.5m hectares in Andros and Abaco through improving storm surge and flooding defences.

This, the report adds, will benefit the populations of both islands as well as an estimated 680,000 annual visitors. And, besides the environmental advantages, the project also aims to benefit 150 Family Island-based SMEs and 12 business clusters through the provision of training and other resources intended to boost their productivity and capacity to participate in The Bahamas’ ocean-based ‘blue’ economy.

To accomplish these objectives, there will be a series of investments in infrastructure, tourism and food security-related improvements. These include upgrades to the Bahamas Agricultural and Industrial Corporation’s (BAIC) Bartard Campus and Marine Field Station at Stafford Creek, both of which are based in North Andros, plus the restoration of eight docks on that same island and Abaco.

The project is also targeting the construction of two visitor centres, both 3,500 square feet in size, in north and south Andros, plus the launch of a grant programme to equip small and medium-sized Bahamian businesses with the financing required for expansion.

With ocean covering 95 percent of The Bahamas’ territory or exclusive economic zone (EEZ), the report compiled on behalf of the Ministry of Economic Affairs asserted that this nation has “significant opportunities” that remain untapped when it comes to its ‘blue economy’.

However, it warned that the Family Islands, in particular, face major difficulties in capitalising on this potential due to their lower population density and increased costs of doing business when compared to Nassau. “Contributing an estimated 21.5 percent to the GDP and up to 50 percent when indirect impacts are considered, this economic sector encompasses various aspects, from harvesting of living and non-living resources to tourism, trade and indirect contributions,” the report said.

“Although most of the population is concentrated in New Providence and Grand Bahama, the Family Islands (comprising 700 islands and 2,000 cays) harbour a rich marine biodiversity supporting tourism and fishing industries, along with providing natural coastal defences.

“Despite these advantages, the low population density of the Family Islands, coupled with the vast marine space and climate change vulnerability, presents unique challenges and opportunities for sustainable development. Although The Bahamas has a higher percentage of innovative firms than most Caribbean countries, it lags behind in green innovative firms. However, it does excel in women-owned innovative firms compared to the regional average,” the assessment said.

“Blue economy firms on the Family Islands encounter increased costs and risks due to geographical conditions, lack of public goods and the need for enhanced digital and technical capacities. However, these islands, particularly Andros, offer potential for the expansion of agricultural products, marine resources and associated value chains.”

Turning to tourism, the report said: “Sustainable infrastructure-supporting tourism activities need to be strengthened, particularly on islands like Andros and Abaco, where nature-based tourism is the primary focus. There is a need for the establishment of visitor centres, clear signage for attractions, birding towers and infrastructure to ensure safe exploration of Blue Holes.

“Tourist operators have identified the need for more tourist guides for fishing, nature, birding and diving. Many dock facilities in Andros and Abaco need repair, which is both a safety and an economic issue. Modern, safe, green dock facilities are needed to support connectivity by water between Andros and Abaco and the rest of the nation, and to spur overall economic development.....

“The programme aims to address the challenge of fostering economic development while leveraging and preserving the natural assets and fragile ecosystems of the Family Islands. This will involve an integrated set of interventions to enhance local firms’ productivity and human capital availability while ensuring the sustainable use of land and marine resources.”

Breaking down how the $30m will be spent, the project report revealed that more than half - some $17.36m - will go towards “promoting business growth” through enabling small and medium-sized Bahamian companies to embrace technology and other innovations while also driving the expansion of tourism-related firms.

Fresh water, waste water and waste management, and logistics, as well as “value chains” and business clusters in industries such as agriculture, mariculture and sponging will be targeted with just over $9m in grant funding, while the balance of the $17.36m will be directed into “green and climate resilient infrastructure for tourism” including the restoration of docks and other assets.

As to the remainder of the financing, some $12.64m, this will be allocated for “agriculture and marine research, including climate change considerations”, plus the promotion of sustainability in ocean-based industries that includes upgrading the management of The Bahamas’ Marine Protected Areas (MPA) network.

With the $30m investment set to be executed over a five-year period, the assessment report forecast: “The proposed advantages and beneficiaries of this scheme primarily include MSMEs across the Family Islands, who are expected to see capacity growth due to technical aid and potential for heightened productivity via participation in value chains, clusters and public resources like infrastructure and training.

“It is estimated that 150 SMEs and 12 firm groupings will profit. Inhabitants of the Family Islands, especially Andros and Abaco (roughly 25,000 locals and 680,000 annual visitors), are set to gain from improved coastal protection, which would also bolster the safety of 1.5m hectares of coastal land.

“The expected results are increased growth in Bahamian firms in the blue economy and tourism business that will benefit from investments in infrastructure, an increase in research and absorption of the industry in agriculture and marine research, and (promotion of sustainable economic activity in the strengthened MPAs. Public institutions such as BAMSI and the Bahamas National Trust will also benefit with institutional strengthening activities.”

Going into specifics, the report said BAMSI is set to enjoy building upgrades focused on the Marine Field Station at Stafford Creek and the Bartard Campus. The latter will have solar installed as a back-up power source, while the outdoor classrooms for animal science and aquaponics will also be enhanced. The Marine Field Station will also enjoy improvements to its six classrooms,

“In the current scenario, the programme plans to fund up to approximately $2.5m towards the rehabilitation and improvement of at least eight selected existing public and government docks in Andros and Abaco, which were damaged in the wake of Hurricane Dorian,” the report added.

“Works will include demolishing, piling replacement, concrete slabbing and structure, steel structure reinforcements, construction (and relocation) of new timber dock structure, minor dredging and debris disposal.” While only Abaco’s docks were damaged in Hurricane Dorian, the three targeted for upgrades on that island are the Treasure Cay ferry dock, The Crossing dock and White Sound, Elbow Cay.

The five attracting attention on Andros are in Red Bay, the fisherman’s and main public docks in Lowe Sound, Nicholls Town and Conch Sound. “Andros’ economic development is largely driven by tourism,” the report added. “This sector, incorporating nature-based activities such as recreational fishing, diving and guided visits to natural attractions like blue holes, significantly contributes to the island’s annual income.

“Within the scope of this programme, funding will be allocated towards the development of light tourist facilities such as visitor centres, informational signage and trail maintenance in the island. This includes the establishment of two new visitor centres, each spanning approximately 3,500 square feet. In addition, the programme also encompasses investment in minor scale visitor infrastructure associated with blue holes and bird-watching areas.”