The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

A CABINET minister yesterday said the Government has yet to make a final decision on the two proposals it received to operate and manage North Abaco’s port.

Jobeth Coleby-Davis, minister of energy and transport, said that the request for proposal (RFP) process has ended after generating two bids for the Cooper’s Town-based port that are currently under review.

She said: “So the RFP process has ended. We have been in evaluation stages. And we’ve also been taking guidance and instructions from the Office of the Prime Minister to assist to make sure that the right decisions are made for the people of Abaco

“North Abaco port, that’s still work a in progress, and discussions surrounding what we got. What we got were two final proposals one that was being considered and reviewed, but hasn’t reached the stage of us making a final decision.”

The Government was seeking qualified bidders to redevelop, operate and manage the Marsh Harbour and North Abaco ports. When it comes to the former, Mrs Coleby Davis said the Government has partnered with the US Embassy to upgrade security and is still reviewing the PPP proposals that were received.

She said: “I can say that Marsh Harbour we just agreed a partnership with the US Embassy to support upgrades to the security systems and security plans out there. And so we would be in partnership as the ministry to upgrade it as best as we can to make sure that we are in the right security protocols for when audit time comes.

“And we will be looking to further review the proposals that we got for that port so that we can advance it and proceed.” Mrs Coleby-Davis maintained that the process “’takes a bit more time” due to financial constraints, and the Government wants to ensure whatever decision is made is in the best interests of Abaco residents.

She said: “It takes a little bit more time because we have to consider the financial model of what the proposals are recommending. But we also have to make sure we consider the island and the economic structure, and make sure that whatever is decided is a benefit to the community.

“And so it’s something that we are constantly discussing. It hasn’t been ignored. But we want to make sure that the right decisions are made to support the community as well.” Tribune Business revealed in November that the Government is eyeing a combined $100m investment to transform Abaco’s two commercial shipping ports into facilities that meet global best practices and standards.

The public-private partnership (PPP) tender documents for both the Marsh Harbour and Cooper’s Town ports, which have been seen by Tribune Business, reveal that bidders on the former must show they have combined equal capital and access to debt financing of “at least $60m”. For Cooper’s Town, the figure is slightly less at $40m in collective equity and debt funding.

Several sources, speaking to Tribune Business on condition of anonymity, have described both figures as being on the high side. The

sum sought for Cooper’s Town almost matches the $41m investment in its initial construction, which was completed by China Harbour Engineering Company (CHEC).

The tender documents, known as Requests for Proposal (RFPs), reveal that the Government wants the ownership structure for both Abaco port PPPs to mirror that which was put in place for BISX-listed Arawak Port Development Company (APD), operator of the Nassau Container Port. APD revealed to Tribune Business it has submitted a bid to take over management and operations at the Marsh Harbour port only.

For both the Marsh Harbour and Cooper’s Town ports, the RFPs stipulate that a combined 20 per- cent equity ownership will be “offered for sale to the general public” although it does not specify whether this will be via an initial public offering (IPO) or other method.

The remaining 80 percent ownership interest will be split evenly between the Government and winning PPP bidder, with each holding 40 percent. This split matches APD’s structure, where the Government and shipping industry each hold a 40 percent stake.

Meanwhile, among the expansion opportunities identified at the Cooper’s Town port is a 120-slip marina together with international and domestic warehouses, although no such opportunities were identified at Marsh Harbour, which remains the island’s prime commercial shipping port and cargo point-of-entry despite the devastation inflicted by Hurricane Dorian.

Both RFP documents state that each port will be leased to the winning bidder for a 25-year period, in an attempt to ensure they get a return on their upfront capital investment, with the Government wanting them to employ a workforce that is 80 percent Bahamian at a minimum.