Opposition Leader Michael Pintard, flanked by members of the opposition, during a press conference following the 2024 Budget Communication on May 29, 2024. Photo: Dante Carrer/Tribune Staff
By JADE RUSSELL
Tribune Staff Reporter
jrussell@tribunemedia.net
THE Davis administration’s plans to reform Bahamas Power and Light amount to a “bad deal” that will leave Bahamians in a financial bind for years to come, Free National Movement leader Michael Pintard said yesterday.
He criticised the administration’s pursuit of a joint venture with Island Grid Solutions to upgrade and manage BPL’s transmission and distribution network (T&D).
Under the joint venture, the government would own 40 percent of the shares in a special purpose vehicle (SPV) called Bahamas Grid Company, and Island Grid Solutions would own 60 percent.
BPL, according to Energy Minister JoBeth Coleby-Davis, would contribute the book value of its New Providence T&D network in exchange for 40 percent of the SPV’s shares, while Island Grid –– the local management company for Pike Corporation –– would raise and contribute $130m to the SPV through private investors for the remaining shares.
Yesterday, Mr Pintard said the “significant difference in the equity ownership” does not benefit Bahamians, insisting BPL’s T&D assets are well above $100m.
Additionally, he said: “The Davis administration also indicated that the new entity would go out and raise an additional $100m in debt to fund the upgrade of the T&D system. Imagine being able to get $20m per year for an investment of only $30m, what a sweetheart deal, and the deal even allows you to go out and borrow $100m.
“Bahamas Grid company gets the assets and the profits, and the people of The Bahamas get to share a big chunk of the debt. It begs the question; will the T&D assets be leveraged as collateral to support the debt financing? Will BPL be purchasing goods from Island Grid whereby Island Grid will also be earning a profit from the markup of these goods?”
Mr Pintard recommended the government transfer none of BPL’s T&D assets to the new company, but rather enter into a long-term service agreement allowing the grid company to purchase new T&D equipment as needed.
He suggested the government negotiate a Power Purchase Agreement price for electricity generation that assures a reduction in energy costs for consumers and additional margins for BPL.
He added: If one considers that historically internal generation costs for BPL is approximately 5.4 cents/kWh, and if we are to take into consideration the assumption that the PPA price that BPL has negotiated to pay Bahamas Utility Company is 5 cents/kWh, this will leave 2.5 cents for BPL to cover its customer service and operations costs, pension obligations, and remaining debt obligations.
“It is our assertion that given the current average energy tariff rates and the costs communicated by the Davis administration, the proposed T&D and Generation agreements will be financially untenable and unsustainable over the short and long-term.
“Additionally, if the Davis administration reduces the tariff rates, as planned, BPL’s operations and customer service revenues will drastically decrease because, according to the agreements with the T&D and Generation services providers, their fees are fixed regardless of what fee is charged to the customer by BPL. It also appears that this convoluted initiative will leave The Bahamas in the top 20 percent of expensive countries in the world in terms of electricity.”
Mrs Coleby-Davis countered that the Minnis administration had four and a half years to address the crisis at BPL, but “produced only scandals, astronomical debts, and failures”.
She said Mr Pintard’s response shows he does not understand the complexity of BPL’s issues.
Comments
TalRussell 6 months ago
When exactly will this to become a $130+ Million Dollar “Bahamas Grid Company's -- True Ownership be exposed. -- Yes?
ExposedU2C 6 months ago
The ongoing big BPL rip-off will need to be entirely undone by the next government as it is tantamount to theft of vital state assets by a corrupt and most greedy cabal led by Snake and his local and foreign business partners. Enormous profits will be made by Snake and his partners while Bahamian taxpayers will be left on the hook for all of the existing indebtedness our nation has taken on in connection with BPL. This indebtedness now amounts to many hundreds of millions of dollars, possibly more than a billion dollars plus over the last two decades.
Make no mistake about it, this great BPL rip-off represents an existential threat to the national security interests of our nation. Turning our energy sector over to a corrupt cabal led by Snake will give them the power to mercilessly target whomever they want with outrageously high and unaffordable electricity rates in order to force the sale (to themselves) of businesses, and residential and commercial properties. at fire sale prices. Snake employed this tactic when he forced many of the independent gas stations owners out of business by lowering their operating margins to the point where even the hiring of illegal Haitian aliens could not keep their businesses stay afloat.
And just look at what's happened to the price of gasoline over the last three decades since Snake consolidated his control over the sale of gasoline in our country. Can you imagine the outrageously high and unaffordable electricity bills most of us will receive if the corrupt and greedy Snake and his partners are allowed to consolidate their control over BPL? Already Bahamians and their businesses are suffering from sky high electricity costs because of the sweet deals the corrupt and greedy Snake and his partners have cut with BPL relating to fuel costs and the rental of commercial generators.
The very greedy and evil Snake knows that Davis's days as PM are numbered. He is therefore now pressing for this most harmful rip-off of state assets for the benefit of himself and his partners. The Tribune should be asking PM Davis point blank whether he has any skin in this royal rip-off. The owners of The Nassau Guardian certainly do.
birdiestrachan 6 months ago
Mr pintard does not know what he is talking about , mr, Davis and his team are doing what is best for the Bahamas they always have, rude boy sands said Mr Christie bought the shares for NIB and the FNM sold them, I knew Sands is a true liar but rude and abrasive I had no idea they are concern about some snake , but it is Bahamian brilliance at work may God bless their efforts and to hell with the nay sayers
ExposedU2C 6 months ago
ZZZZZZZZzzzzzzzz.........
JokeyJack 6 months ago
Bahamian beggars - begging for $130M. Not the politicians, but the people who voted for them - begging voters begging for $200 in a tshirt.
SP 6 months ago
Is anyone in this country aware that new green technology power generation systems delivers power at 1c per kwH!
ExposedU2C 6 months ago
And the moon is made of green cheese.
SP 6 months ago
Ignorance is bliss. In the world of the blind, the one eyed man is king!
Socrates 6 months ago
why are we so afraid of privately owned business? you pay your Bill and that's it. state ownership means you pay the Bill and pay tax to prop it up. look at bahamasair for example.. millions a year and you still pay Hugh ticket prices, so you pay twice.
realfreethinker 6 months ago
We are not against privately owned businesses. We are against giving away an asset for free then getting a minority ownership in a money losing company. We are against a company getting 60% ownership and don't have to bring any money to the table
ExposedU2C 6 months ago
You're missing the point, perhaps deliberately so. No one has reason to be afraid of a privately held profit motivated business provided that it does not represent an outrageous giveaway of state owned assets to a corrupt cabal, especially one led by the very greedy Snake.
Giving Snake and his corrupt local cronies and foreign partners a complete monopoly over one of the most vital sectors of our nation's economy, i.e. the energy sector, would have result in soaring electricity rates for many Bahamians and their businesses on the basis of their perceived ability to satisfy the evil Snake's insatiable appetite for profits no matter who must suffer to fill his coffers.
Already Bahamians and their businesses are suffering from sky high electricity costs because of the sweet deals the corrupt and greedy Snake and his partners have cut with BPL relating to fuel costs and the rental of commercial generators.
What corrupt PM Davis is proposing to do here, is facilitate the theft of vital state owned assets by a greedy Snake led cabal. That's a crime, plain and simple. And the sooner Pintard and the leadership of the FNM party serve public notice that as the next government they would have no choice but to reclaim the stolen state owned assets, the better.
TalRussell 6 months ago
The point is that the RedShirts' run their mouths while offering no real solutions to BPL's culture of failures after failures. -- Talkin' like he will pick up the premiership's phone and end this culture within 24 hours of making his call. -- Problem is, first he must get his RedShirts', elected to governance. --- Yes?
ExposedU2C 6 months ago
And of course you find allowing the outrageous giveaway (effective theft) of vital state owned assets, constituting a monopoly over our nation's energy sector to be an acceptable, albeit insane, solution. Small wonder I do not bother to read most of the garbage you post to this website.
You probably do not even realise that a big component of BPL's existing high electricity rates is attributable to corrupt sweet deals with the greedy Snake and his partners that allow them to enjoy sustained windfall profits from fuel supply and generator rental arrangements. And to think you are okay with this corrupt PLP government turning over to the known greedy Snake led cabal all the keys to our nation's energy sector - are you really that much of an insane nut?
Forget Stumpy PM Davis's insane (and criminal) proposed solution for BPL for a moment .... I would just love to hear what your proposed solution is for this corrupt PLP government. Speak up....did I hear you say change the existing government?
TalRussell 6 months ago
@ComradeExposedU2C55. I was responding to comments Mr. Pintard made about BPL, where he provoked whilst offering bunches of nothing to improve the larger popoulaces' -- Electricity woes. -- Yes?
AnObserver 6 months ago
Stop it. Just because the other team has an idea, doesn't mean it is a bad idea, although it often is.
In this case, however, it is going to benefit everyone in the long term. BEC is paralyzed by the parasites that are the union. By contracting out work to other non union companies, we can finally make some progress, and get the job done without a bunch of whining three year olds throwing temper tantrums.
ExposedU2C 6 months ago
I can only assume you have a vested interested in the evil and greedy Snake led cabal and his partners acquiring all the keys to the energy sector of our nation's economy for mere pennies on the dollar. No sane person without a financial stake in this ridiculous proposed plan for BPL would support it.
BPL/BEC has always had unions and should continue to have one no matter what. Your union bashing is, frankly, a red herring in this matter unless the PLP government has now decided it will to do away with all unions in our country. Your real beef should be with successive governments failing to ensure BPL has an adequate supply of well paid qualified Bahamian electrical and mechanical engineers. They are needed at both the management and staff levels and must be allowed to perform their jobs with minimal government interference at either the BPL board or union leadership levels.
Just ask yourself why has this corrupt Davis led PLP government not made any real effort to invite competing proposed solutions for review and consideration by a completely independent commission in open hearings televised to the Bahamian public.
In fact, I would submit such a proposed massive turnover of BPL's vital state owned assets to any private group should not occur without the prior consent of the Bahamian people in a duly held national referendum. I say this because of the serious implications this would have for our nation's economy and national security interests. The proposed PPP arrangement is farcical to say the least, because we know who will end up being in control, even if it means putting government in their pockets.
The financial pain the gasoline retailers are feeling is nothing compared to the financial pain that the very greedy Snake and his local and foreign cronies would inflict on the Bahamian people and their businesses if this planned theft of BPL's state owned assets is allowed. This most corrupt Davis led PLP government is criminally paving the way for the evil greedy Snake and his cronies to gain complete control over the generation and distribution of electricity in our country for decades to come.
A prominent businessman said he could not believe corrupt Davis has turned over to his buddy the greedy Snake, and his buddy's local and foreign cronies, the ability to decide what electricity rates should be charged to a customer or whether the customer should be subjected to power failures of the kind that lowers the value of their business or property to the point where it must be sold for mere pennies on dollar with the greedy Snake lying in wait as the purchaser.
truetruebahamian 6 months ago
Davis is intentionally opening thee door to let the proverbial fox(Snake) into the hen house.
ExposedU2C 6 months ago
And Pintard has yet to publicly announce that if he becomes PM his first order of business would be to completely undo what would be tantamount to an unconstitutional giveaway of our nation's energy sector to a cabal of marauders led by, of all the unethical business people, the insatiably greedy Snake.
Many financially struggling Bahamians would no longer be able to afford electricity because the greedy Snake and his cabal of marauders would greatly increase existing electricity rates to achieve the sustained windfall level of profitability they are now drooling at the prospect of entirely pocketing for themselves.
This most corrupt Davis led PLP government, which has thrown FOIA under the bus, is ascribing to itself power that it was never intended to have under our Constitution. Under the guise of Public-Private-Partnerships, our nation's vital state assets, important to our national security, are literally being given away for pennies on the dollar to cabal of marauders with no open bidding process or public hearings so that the people could weigh-in on this matter with their voice.
I would submit that this matter is of such national importance that it warrants, under our Constitution, the approval of the Bahamian people by way of a duly held national referendum, with assurances from the government that it will respect the outcome the referendum. Pintard should be demanding a national referendum.
John 6 months ago
I saw a pigeon fall from a building and break its wing. It could not fly. Was looking around for a box to put it in so it could be safe for the night. Then this cat came outta nowhere and launched at the pigeon. And as like a miracle, the pigeon flew off and back on top of the building and away from the cat. Moral of the story. Y’all continue to sit around and wait for BPL to be fixed. Don’t forget they brought in one American company before to try manage BPL. And the result was more chaos and deeper debt. Try hard go buy one solar panel and throw on your roof. And gradually build your own solar power grid. When that pigeon ( BPl) see that fat cat launching at him, it will fix itself
ExposedU2C 6 months ago
We're talking about an insatiably greedy Snake, not some cat. And it's the kind of Snake that will wrap itself around BPL and squeeze the life out of its customers (the pigeons) with outrageously high and unaffordable electricity rates of the kind never experienced in our country.
sheeprunner12 6 months ago
The PLP is taking BPL down the same road as BTC. The only difference is that Ingraham sold BTC to a foreign company, while Davis dem is in cahoots with some of their PEPs to make a killing out of BPL for the New Day elite.
Time will tell how far this New Day deal with BPL will be another tax millstone around the 242 citizens' necks.
ExposedU2C 6 months ago
If corrupt PM Davis called a national election tomorrow, there would be less than a 20% probability of the PLP government winning a majority of seats in the HOA.
Against this backdrop, and considering what's at stake here in terms of our national security and economic interests, Pintard as opposition leader, and the Bahamian people (voters) should be howling for either a snap general election or a national referendum.
And Pintard must make it clear that if there is no snap general election or national referendum so that the voice of the Bahamian people can be heard on this proposed giveaway of state assets and turnover of our nation's vital energy sector to a cabal of marauders led by the insatiably greedy Snake, then the entire corrupt deal will be undone by the next FNM government on Constitutional grounds.
This corrupt Davis led PLP government did absolutely nothing about BPL's woes for nearly four years. And now that Davis clearly sees the writing on the wall for the whooping the PLP will take in the next general election, he is paving the way for Snake and his fellow marauders to seize control of our nation's vital energy sector for mere pennies on the dollar of its true value. This meets the definition of theft of state assets facilitated by a most corrupt PM.
Small wonder the U.S. government has called out this Davis led PLP government for its failure to pass an effective FOIA and its non-compliance with, among many other things, the Procurement Act which requires a transparent competitive bidding process.
TalRussell 6 months ago
@ComradeSheeps'&Goats'Runner12, Before the last vestiges of your credibility varnishes. -- Which hangs on you stuckin' to typing on the keyboard -- Comments in defense of matters connected to Long Island's Toxic Representation (LITR) and the broader -- Waters' & Sewages' (W&S). --- Yes?
ExposedU2C 6 months ago
ZZZZZZzzzzzz.....
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