01022018 BUSINESS

business@tribunemedia.net

WEDNESDAY, JANUARY 2, 2019

$4.55

CARL BETHEL QC

GB Power’s supply deals under review

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net GRAND Bahama Power Company’s now-expired East and West End electricity supply agreements are under review by the Attorney General’s Office, Tribune Business can reveal.

Carl Bethel QC, the attorney general, confirmed that he had passed the matter on to his officials for their assessment “several months ago” but had yet to hear back on the outcome.

“That came across my desk several months ago, and I referred it up to my technical people for review,” Mr Bethel told this newspaper. “I haven’t heard anything back as yet.”

Suggesting that the analysis will be completed in early 2019, the attorney general added that he “really cannot speculate” on what is being reviewed or why. Once the assessment is completed, he said a Cabinet paper would need to be prepared before the matter went to the Government’s highest decision-making body to be debated.

Tribune Business had been referred to Mr Bethel

by Kwasi Thompson, minister of state for Grand Bahama in the Prime Minister’s Office, who had confirmed: “The Attorney General’s Office is doing an assessment on that matter, and so I cannot speak to it until the Attorney General’s Office has given their view on it.”

GB Power’s original 25-year east and west Grand Bahama energy supply deals both expired in summer 2018 with the Government yet to decide whether to renew them.

Northern Bahamas Utilities (NBU), a 100 percent Bahamian-owned group featuring former GB Power executives, have already gone public with their $30m bid to take over power supply in both areas with two utility-scale solar plants billed as able to reduce electricity costs by up to 40 percent.

However, the expired East and West End supply agreements contain a potential obstacle for rival electricity suppliers seeking to break-up GB Power’s island-wide monopoly as they contain language that could be interpreted as giving it a “right of first refusal” on any renewal.

GB Power, then Freeport Power, agreed to expand beyond the Port area in 1993 to meet the thenIngraham administration’s desire for the electrification of East and West End. Tribune Business has obtained copies of the two 25-year agreements, one dated June 23, 1993, and the other August 31, 1993, that effectively gave it a 25-year monopoly on Grand Bahama’s energy market.

Using virtually identical terms, the agreements gave GB Power “the sole right” to supply electricity outside the Port area. And it was granted similar tax breaks as those enjoyed within Freeport, including exemptions from Customs duty, stamp duty and business

SEE PAGE 4

$4.21

$4.56

$4.30

Sir Franklyn: ‘High chance’ of new Atlantis ownership

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

S

IR Franklyn Wilson says there is “a high possibility” that Atlantis may undergo a change in ownership in 2019, describing this as a “significant” investment boost for The Bahamas.

The Arawak Homes chairman, in an interview with Tribune Business, said he had obtained information that The Bahamas’ prime mega resort may soon be in new hands and receiving a “major injection of capital” to ensure it remains competitive with rival Baha Mar. Sir Franklyn did not disclose his information source, nor did he identify any potential new buyer or the rationale that current owner, Brookfield Asset Management, would have for exiting now after holding the Paradise Island property for almost seven years.

Ed Fields, Atlantis’ senior vice-president of public

• Sees ‘significant’ boost for Nassau • With Oakes property purchase too • And continued Baha Mar investment

SIR Franklyn Wilson affairs, could not be reached for comment last night. His office phone voice mail said he was away until January 7, 2018.

However, Sir Franklyn said the predicted Atlantis ownership change was one of three forces that could drive New Providence’s economy towards increased growth in 2019.

ATLANTIS Paradise Island Besides Baha Mar’s continued investment, and potential development of a water park at the old Crystal Palace hotel site, the prominent businessman revealed that the Nancy Oakes estate had also sold some of its land in the Clifton area.

While not disclosing the purported buyer’s identity, he described them as “well

known to the Bahamian people”.

“I understand there’s a high possibility of a change in ownership at Atlantis, and that will be a significant event for the country,” Sir Franklyn told Tribune Business.

“My understanding is a significant part of what makes that a good situation

‘Immense problems’ if BPL not improved by year-end

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas will suffer “immense problems” if Bahamas Power & Light (BPL) closes 2019 in the same condition it is now, a prominent businessman has warned.

Sir Franklyn Wilson told Tribune Business it was impossible to see the stateowned utility monopoly, and its electricity costs, “getting any worse” than they are now, estimating that its struggles were costing The Bahamas a “conservative” $10m per month.

Arguing that it was “so obvious what needs to happen” to transform BPL, the Arawak Homes and

would find a way to “overcome the shortcomings in government” and “political immaturity and divisiveness” among The Bahamas’ leaders.

With high electricity costs continuing to burden businesses and households alike, Sir Franklyn told Tribune Business: “I can’t see BPL getting any worse.

If BPL a year from now is not significantly improved, the country’s problems will be immense.

“I believe a year from now that BPL will be more efficient, have more

‘Find the sweet spot’ for financial services

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas must “find the sweet spot” between meeting regulatory and market demands if its financial services industry is to survive and remain a key growth driver, a top QC has warned.

Brian Moree QC, senior partner at McKinney, Bancroft & Hughes, told Tribune Business that The Bahamas has to carve out a niche where it serves the needs of the same countries that have imposed ever more onerous regulation on this nation over the past 20 years.

While acknowledging that the European Union (EU) and Organisation for Economic Co-Operation and Development’s (OECD)

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

SEE PAGE 4

SEE PAGE 5

SEE PAGE 3

BRIAN MOREE QC

Rejecting the arguments of “naysayers” eager to sound the death knell for the Bahamian financial services industry, Mr Moree nevertheless conceded that the sector’s contribution to economic growth going forward was likely to be “reduced” when compared to past decades.

As a result, he urged the Government to pursue a dual strategy of “protecting and preserving financial services as much as possible” while also seeking to diversify the Bahamian economy by attracting/developing new industries that will offer stable, lucrative jobs.

‘Misinformation’ on WTO impact causes concern

Mr Moree added that The Bahamas now has to “let the dust settle” and monitor the fall-out from the pre-Christmas legislative package designed to ensure this nation escapes the EU’s New Year “blacklist”.

Warning that the impact was hard to predict, he told Tribune Business: “The ultimate impact of this legislation on the financial services industry remains uncertain, and we will have to carefully monitor that and the impact throughout the economy - in the first quarter of 2019.”

capacity and not just be costing so much of the country’s money on its inability to execute on what so obviously needs to happen.

“Going back to the time of Michael Moss as executive chairman (to end-2012), there’s not been much discussion on what needs to happen at BPL. It’s been a question of how and who.

BPL needs more capacity, and it’s costing time and money by not getting it done,” he continued.

“We’re in this wonderful

• Bahamas must be useful to those attacking it • Industry’s GDP contribution likely to be ‘reduced’ • Top QC: Protect sector and diversify at same time latest anti-tax evasion drives had further “shrunk the space” in which The Bahamas can operate, Mr Moree argued that its financial services industry’s future lay in making itself useful to the industrialised economies that form these groups.

He called for The Bahamas to develop “a business plan” that builds on existing evidence showing this nation, and other international financial centres (IFCs), “play an important role in the global economy” by pooling huge amounts of capital that are then reinvested back into the major onshore centres.

SEE PAGE 3

THE Chamber of Commerce’s top trade executive is expressing concern about “the level of misinformation” being circulated about The Bahamas’ bid for full WTO membership.

Darron Pickstock, who heads the Chamber’s trade and investment division, told Tribune Business it was vital that Bahamians possessed correct information on the World Trade Organisation (WTO) and the implications of full membership so that accurate, non-emotional decisions are made.

He spoke out amid growing unease among some Bahamians over the government’s plans to finally complete this nation’s 18-year accession attempt, with many expressing fears - circulated widely on social media - that it will lead to a mass influx of foreign workers pushing locals out of jobs.

Other concerns articulated publicly are that WTO imposes a “privatisation policy” which will force the government to selloff all government services, and Bahamians will thus be unable to depend on government jobs, but Mr Pickstock branded such claims as “irresponsible” due to their inaccuracy.

“That is one thing that I have been noticing; the misinformation,” Mr Pickstock told Tribune Business.

“There’s so much misinformation out there. It’s irresponsible for people to do this; imparting information that is simply not true.

“I do realise there is a lot of misinformation out there about Wal-Mart coming in here and all those things.

I’m not saying this to say I support WTO, but it’s always important - whatever topics are discussed - that you have the proper information to make prudent decisions, otherwise you are making decisions on misinformation and emotion, which is never good.”

• Sir Franklyn: ‘It can’t get any worse’ • Same ‘bad news’ if Lucayan not sold • Concern over ‘political immaturity’ Sunshine Holdings chairman said it came down to “executing” changes that had been recognised as critical since the last Ingraham administration.

Focusing on The Bahamas’ economic prospects in 2019, Sir Franklyn added that it would be similarly “bad news” if the Minnis administration continues to find itself holding the Grand Lucayan resort come year-end.

And he expressed hope that the private sector, aided by ongoing US economic growth momentum,

is a new investor coming in will appreciate they have to keep the property competitive with Baha Mar, and will have to step up what it has to offer. That requires a significant injection of capital.”

There have been no outward signs, though, that Brookfield has any desire to sell Atlantis, which it acquired from Kerzner International in an early 2012 debt-for-equity swap.

Realising that the resort’s product constantly needs to be refreshed, the Canadian-headquartered asset manager has maintained Kerzner’s policy of frequent annual capital upgrades.

Brookfield has also twice refinanced Atlantis’ debt, the last transaction occurring in mid-2018, and previously sold the Ocean Club to Len Blavatnik’s Access Industries to raise principal to pay down that debt.

Morningstar Credit Ratings, the investment

PAGE 2, Wednesday, January 2, 2019

THE TRIBUNE

Efficiency focus for LPIA operator

By NATARIO MCKENZIE

Higgs & Johnson Expands Partnership in The Bahamas & Cayman Islands The Partners of Higgs & Johnson wish to announce that Mr. Audley D. Hanna (The Bahamas) and Mrs. Francine E. Bryce (Cayman Islands) have been admitted into the partnership in the respective jurisdictions as at 1st January 2019. Audley, who joined the Firm in 2008, specializes in commercial litigation with a particular focus on employment law, admiralty law, insurance law and intellectual property litigation. Francine Bryce, who joined the Firm in 2010, advises on all aspects of corporate and commercial law, including investment funds and securities, banking and finance transactions.

Global Managing Director, Oscar N. Johnson, Jr. noted, “On behalf of the Partners, I extend heartfelt congratulations to both Audley and Francine for their ascension to the Partnership, and look forward to the significant contributions which they will both make to the Firm in their respective jurisdictions in this capacity.” Country Managing Partner of the Cayman Office, Gina Berry, noted her particular pleasure indicating that “Francine’s admission to partnership will undoubtedly strengthen the Cayman platform and the Firm as a whole”.

NEW PARTNERS Audley works within the Asset Recovery Unit of the Firm and provides legal advice to individuals, major financial service providers and global corporations regarding multi-jurisdictional litigation, shareholder disputes, fraud, asset-tracing and internal operations. He is actively involved in the International Bar Association (IBA) as a member and is chair of the IBA’s Consumer Audley D. Hanna Litigation Committee. Audley co-authored the Bahamas The Bahamas chapter in International Franchising (2016) and has been listed as a leading lawyer by Legal 500 Caribbean (2019).

Tribune Business Reporter

nmckenzie@tribunemedia.net TOP Nassau Airport Development Company (NAD) officials say they are focused on “efficient” passenger arrivals/departures so that The Bahamas benefits from strong tourism arrivals growth.

Lynden Pindling International Airport (LPIA) has seen record-breaking passenger traffic over the last two Christmas season weeks, with some blaming extended flight delays on poor layout and limited runway space at the airport.

Vernice Walkine, NAD’s chief executive, in a brief e-mail response to Tribune Business inquiries, said: “NAD does not wish to comment on the assertions made by stakeholders. We are very focused on ensuring, to the greatest degree possible, that our passengers arrive and depart efficiently, and that the

LYNDEN Pindling Intl Airport. destination benefits as a result of the strong growth in tourism arrivals.”

Hinsey McKenzie, the Bahamas Air Traffic Controllers Union president, said in a recent press release that a lack of airport capacity, inefficiency and less-than-adequate investment were to blame for recent challenges at LPIA. “The physical layout and capacity of LPIA is its own demon, and has been spoken to by all and sundry for decades,” Mr McKenzie said. “Until it changes there is no reprieve to be

got here. Airlines will have to wait for gates, and private and charter companies will have to wait to get to the runways, before waiting for take-off clearance. The capacity of the airspace has never been addressed, even though the concern has been raised at numerous junctures in the past.”

Holiday travellers suffered significant delays at LPIA as a result of an ‘“unprecedented level of traffic”, bad weather and other factors, including malfunctioning runway lights, according to officials.

Francine regularly advises on local licensing and regulatory requirements associated with doing business in the Cayman Islands and has significant experience in cross-jurisdictional transactions, including mergers and acquisitions, corporate restructuring. She also specialises in maritime and aviation matters, including ship and aircraft registration, financing and leasing Francine E. Bryce arrangements. Francine is an active Rotarian and a Cayman Islands member of the Women’s International Shipping and Trading Association (WISTA).

THE BAHAMAS

Counsel & Attorneys-At-Law n CAYMAN ISLANDS n higgsjohnson.com

MOBILE

APP

Take us with you Everywhere you go!

THE TRIBUNE

Wednesday, January 2, 2019, PAGE 3

Taxi drivers in strike warning

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net TAXI drivers may withdraw their services if their outstanding grievances are not resolved, with a union leader warning: “We’re going to hit the streets soon.”

Wesley Ferguson, the Bahamas Taxi Cab Union’s (BTU) president, said: “We have not had our

issues resolved to our satisfaction so, in short order, the first or second week in January, you will see some movements from us. We’re going to hit the streets and bring public awareness to our plight over these unresolved issues.”

He added that taxi drivers want a “clear view” on the direction of the industry and their involvement in the overall plan to redevelop Nassau’s cruise port,

‘Immense problems’ if BPL not improved by year-end FROM PAGE ONE position where we’ve identified the specific things that can be done. These are things we can check off the list and, if they are done, one would expect the overall effect to be favourable for the country.

“It’s so obvious what needs to happen. It’s pure execution; there’s no philosophy here. It’s getting it done. Every month it takes for BPL to do these things costs the country $10m a month; $10m goes down the pike. I’m being conservative in saying that. The country can sustain it, but it’s not in the country’s interest to sustain it.”

BPL electricity bills spiked towards the end of 2018 due to a combination of global oil price rises and the series of fires at its Clifton Pier Power Plant.

The latter knocked out 60 megawatts (MW) of its most efficient generation capacity and forced BPL to rely heavily on its Blue Hills power plant, which uses more expensive fuel.

The state-owned utility was effectively caught in the “perfect storm”, with backlogged maintenance and aged, poorly maintained equipment further exacerbating its woes. BPL’s New Providence customers are also likely to see a major improvement in energy costs until 2021-2022, when Shell’s new multi-fuel power plant becomes operational.

In the short-term, the

utility is aiming to reduce costs via the proposed Rate Reduction Bond (RRB) that is intended to refinance around $600-$650m in legacy obligations - including $350m in bond and bank debt; an $100m unfunded pension deficit; and numerous environmental clean-ups stemming from past oil spills.

Sir Franklyn, looking beyond New Providence, added: “I hope the Government will find someone they can virtually give the Grand Lucayan to provided they agree to inject capital and do things. If a year from now the Government continues to own that hotel that will really be bad news for the country.”

Turning to his 2019 “wish list”, the Arawak Homes chair added: “I pray for 2019 that we are less selfdestructive, that we are able to build cohesive communities in the country, and the political leadership shows far greater maturity.

“I think that today the political leadership is not showing the political maturity in the interests of real, sustainable national development. It is my hope that the private sector do things that overcome shortcomings in the government.

“I think we are destroying ourselves because of the immaturity of our political leaders by governing the country on the basis that half the people don’t count, and only half of the people are needed to run the country.”

To advertise in The Tribune, contact 502-2394

adding: “We have no idea what that is all about.

“We’re going to hit the streets soon. Nothing was done for us so we have to make the public aware. If you look at what the doctors have done, we don’t need to go downtown; we just need to withdraw our services. The doctors withdrew their services and got immediate attention. A lot of people don’t know what your position is until

you bring it to the public’s attention.”

Last year, taxi drivers urged the Government to end the two-decade old moratorium on new plates during a town hall meeting with minister of transport, Renward Wells.

They cited the lifting of the moratorium as a key issue, with numerous complaints being raised over the leasing of taxi plates.

Another concern

highlighted by Mr Ferguson is the issue of unlicensed operators, which was highlighted in a recent travel advisory by the Canadian government.

“That is one if the concerns that we have.

What a lot of people don’t understand is that the Government has made a boo-boo when they took the SD plates and made them the same as the taxi plates,” he explained.

“That’s what the Canadian government is warning about; unlicensed taxi drivers. They’re talking about those persons driving SDs under the guise of being a taxi driver.

They are not insured to do so, nor are they authorised to do so by any entity. You can’t charge people to ride an SD. That is what the travel advisory pertaining to taxi drivers is all about.”

Sir Franklyn: ‘High chance’ of new Atlantis ownership

capital expansion works at Baha Mar. “The prospect of having real, substantial capital upgrades at Atlantis and Baha Mar will be very material and very significant for the country.”

Further bolstering his optimism for New Providence’s 2019 economic outlook, the Arawak Homes chairman

added: “I understand there’s been a recent change in ownership at the Oakes property at Clifton. I understand the new owner is well-known to the people of The Bahamas and has some ambitious plans for that.

“These are three specific things I think offer increased prospects for Grand Bahama.”

FROM PAGE ONE analysis firm which assigned the highest “triple-A” rating to the most senior financing tranches in Atlantis’ last $1.85bn refinancing, revealed in a July 2018 report that the resort “feels strongly” that Baha Mar’s emergence will not impact its long-term performance after net operating income jumped 27 percent for the 2018 first quarter.

“Management feels strongly that Atlantis will maintain its operating performance on a long-term basis given the resort’s brand affiliation with Marriott’s Autograph Collection; the property’s superior overall amenities and activities package; increased airlift capacity at LPIA; and the potential to increase visitation by cruise ship passengers,” Morningstar wrote.

“Management also shared financial information which shows that despite the opening of Baha Mar and additional displacement of rooms down for renovation at Atlantis, net operating income at the property increased by approximately 26.6 percent ($10.4m) in the first quarter of 2018 as compared to the first quarter of 2017.”

Morningstar added that Atlantis’s annual net operating income had increased by 22 percent, or almost $30m, in the six years since Brookfield replaced Kerzner International as the Paradise Island resort’s owner.

“Since the sponsor [Brookfield] took ownership of the property it has invested approximately $213m in capital improvements, which have contributed to the increase in the property’s net operating income from approximately $133.2m in 2012 to approximately $162.6m as of the trailing 12-month period ending March 2018,” the analyst’s report said.

“Notable projects include a soft goods renovation at The Cove and The Beach [Towers], a casino renovation including a high-limit gaming salon, new restaurants, lobby refurbishments, and pool renovations

including the addition of new cabanas and daybeds.

“From 2016 to 2017, [Brookfield] invested approximately $25.4m ($40,448 per room) on a comprehensive renovation of the Coral [Towers]. The renovation was completed, and all rooms have returned to full operation as of June 2018.

[Brookfield] has budgeted approximately $8m (approximately $32,000 per room) for a 2018 renovation of approximately 250 rooms at The Royal Towers, which will include a replacement of both soft and case goods.”

Atlantis is effectively the “crown jewel” in Brookfield’s resort and hospitality holdings, which come under the asset manager’s Brookfield Property Partners portfolio.

Still, resort and hospitality holdings do not appear to be a core business for Brookfield, which administers/manages some $330bn of worldwide assets. It recently disposed of its interest in the Hard Rock Hotel and Casino in Las Vegas, and concentrates more on office and retail properties, engaging in regular buying and selling of high-end commercial real estate.

Sir Franklyn, meanwhile, praised Atlantis’ $4.2bn Cable Beach rival, saying: “I remain convinced that Baha Mar will prove to be an economic force that keeps contributing, and that there will be significant

PAGE 4, Wednesday, January 2, 2019

THE TRIBUNE

‘Find the sweet spot’ for financial services FROM PAGE ONE “These are very major and substantial changes in our legislative platform, but the real challenge is to stay compliant with international agencies and, at the same time, offering services and products that are responsive to market demands.

“The space in which IFCs are going to be allowed to operate is shrinking within the global economy but, nevertheless, in my view there is a definite role for IFCs and the challenge for The Bahamas - as it is for other IFCs - is to find the sweet spot; find the area in which you meet an important market demand and remain fully compliant with the standards of these global agencies.”

The Bahamas has effectively been trying to find such a “sweet spot” for the past two decades, yet has been constantly kept off-balance by the never-ending barrage of anti-financial crime and anti-tax avoidance/evasion initiatives launched by the

likes of the US, EU, OECD and Financial Action Task Force (FATF).

The most recent offensive, led by the EU and OECD, has forced The Bahamas and others to yet again overhaul their legislative platforms to comply with efforts to prevent multinational companies from avoiding/evading tax in countries where they operate by artificially shifting revenue and profits to lower or “no tax” jurisdictions.

Bahamian-domiciled entities that are part of corporate networks, especially those belonging to multinational companies, must now establish a physical presence in this jurisdiction and conduct “real business” rather than operate as passive fronting/holding vehicles.

Those that fail to meet this “substance” test must submit to reporting requirements that will be passed to the relevant “home country” tax authority by the Ministry of Finance.

In addition, The Bahamas has also eliminated

the preferential tax breaks offered to non-resident entities and foreign investors to comply with the EU’s demands to end “ring fencing”. These preferences, not available to the domestic economy, include 20-year stamp duty exemptions for International Business Companies (IBCs) that must all be eliminated by end-2021.

However, Mr Moree reiterated: “That’s the future of financial services. It’s all about staying compliant but meeting market demands so that there are good commercial reasons to operate within IFCs. “There is empirical data to support the conclusion that IFCs are the most effective and efficient portals for the collection of large amounts of capital for reinvestment in the major industrialised economies.

“Therein lies the business plan we have to develop as an IFC to secure the industry going forward. IFCs will survive because they play an important role in the global economy, and it’s in

the self-interest of the major industrialised economies to maintain IFCs for that purpose while, at the same time, their governments continue to try and ensure tax revenues don’t leak to IFCs,” he continued.

“That’s where we’re going to head, and we have to let the dust settle in 2019. No doubt there will be continued demands from the OECD, FATF and EU that we will have to address, but careful, smart strategic thinking will secure our future and provide an ongoing sustainable business model for The Bahamas.

“It is a challenge. We’re going to have to ensure our business model is market attractive and compliant with international standards. The key is to find yourself in that space and, once you fulfill a role that benefits the major industrialised countries, I think we’ll be OK. The challenge is to find that space.”

While financial services will remain a major GDP driver for The Bahamas, Mr Moree conceded that

its economic impact going forward will be somewhat blunted by the onslaught of international regulatory initiatives.

While rejecting suggestions that the sector is dying a slow death, he said it made sense for The Bahamas to attract and develop new industries that will generate similar high-paying, professional jobs that have underpinned the nation’s middle class.

“The overall effect of all this is quite negative for financial services in a micro sense, but this is the reality today,” Mr Moree told Tribune Business of the OECD/ EU initiatives. “There is a business model for the industry to survive, and we will continue to be a significant contributor to the economy.

“I’m not one of the naysayers saying the financial services industry is over, but it’s getting more and more difficult. Without subscribing to the view our financial services industry will be eliminated; I don’t think it will be, but its

contribution is going to be reduced, and that points to the bigger question of diversifying our economy.

“We’ve got to preserve as much as we can of financial services - it’s a key growth driver, underpins the middle class - and we need to do what we can to protect it,” the well-known QC continued. “But, at the same time, accept it’s not going to contribute at the same level as before.

“We need, at the same time, to be diversifying the economy and developing other industries. But that is not to capitulate. It’s not to concede that the financial services industry is dead.

That is a non-sequiter; one does not mean the other.

“On one hand we can preserve and safeguard the industry, while at the same time looking at expanding and diversifying the economy and doing those two things at the same time. It’s not a question of either or; one supports the other. We need the ability to do both at the same time.”

GB Power’s supply deals under review FROM PAGE ONE licence fees, along with the use of so-called “bonded” goods without penalty.

And both agreements give GB Power an option to renew for a further 25 years, “upon the same terms and conditions”, provided it gives notice of its intention to do so some 60 days before the

existing deals expire.

The review by the Attorney General’s Office is likely to be focusing on whether both agreements give GB Power a legally watertight “right of first refusal” that excludes the possibility of any rival operator, Bahamian or foreign, from taking over the contract.

Meanwhile, Pastor Eddie

Victor, president of the Coalition of Concerned Citizens (CCC) advocacy group, which has been backing Northern Bahamas Utilities’ proposal as a means to end GB Power’s monopoly and reduce electricity costs, branded the latter’s recent focus on renewable energy as a “public relations show”.

GB Power, which is now

100 percent controlled by Canadian utility, Emera, and has no direct Bahamian ownership, recently pledged to invest more than $18m in renewable energy and smart technology over the next two years as part of a “bold statement” to improve reliability and lower energy costs.

David McGregor, GB Power’s president and chief operating officer, told Tribune Business that its 3.5 megawatt (MW) solar plant kickstarts the third and final stage in the turnaround plan initiated when its owner assumed control in early 2011.

Besides the $5m investment in the solar plant, which will be operational by summer 2019, Mr McGregor revealed that GB Power is making a further $8m outlay in a battery facility designed to address the frequency and voltage fluctuations that often strike Grand Bahama’s electricity grid.

The “frequency control” battery will be online

by February/March 2019, ahead of the 3.5 MW solar plant, with Mr McGregor also unveiling a $5.2m outlay on Advanced Metering Infrastructure (AMI) that will see GB Power replace meters for all 19,000 customers.

Pastor Victor, though, alleged that GB Power had only moved on renewable energy when it became aware of Northern Bahamas Utilities’ proposal and decided it needed to counter it.

“GB Power has cleared this property around their plant, but you need much more land to generate significant power from solar to

PASTOR EDDIE VICTOR, president of the Coalition of Concerned Citizens with support letters. make the dent you need,” Pastor Victor told Tribune Business.

“What we’re seeing is a show. You clear some land, put up some solar panels, but it’s not enough for the amount of customers you have and the power you need to generate from solar. You’re seeing the PR machine in high gear once they got wind of what [Northern Bahamas Utilities] was proposing to the Government.”

Pastor Victor also rejected assertions by Mr

McGregor’s predecessor, Archibald Collins, that GB Power was the best option to keep West and East End power costs lowest because of the economies of scale generated by its island-wide supply.

“There may have been, some time ago, when economies of scale applied,” he told this newspaper, “but with the advances in technology in the last ten to 20 years what you’re seeing now is that the supply of power to small communities can be done in a more affordable way.

“You can bring down the cost of energy and it has nothing to do with getting more people on the grid.

It’s primarily based on the model you’re using. Micro grids are being built for small pockets of communities to bring down the cost of electricity.

“The principal being applied by what Northern Bahamas Utilities are proposing is the customer base is much smaller but they can bring down the cost of power by 33-40 percent, make money, repay their their obligations.”

Pastor Victor said Grand Bahama’s electricity cost woes stemmed from a business model that was weighted too heavily in favour of GB Power’s shareholders, as opposed to customers, although he conceded the utility’s investors have a right to earn profits.

To advertise in The Tribune, contact 502-2394

THE TRIBUNE

Wednesday, January 2, 2019, PAGE 5

‘Misinformation’ on WTO impact causes concern FROM PAGE ONE “You are trying to do things in the best interests of your country, and with that comes great responsibility to ensure that when you advocate for or against you do so based on proper information.”

The WTO is global trade’s rules setting and enforcement body. It is designed to create a regime for the free movement of goods and services across borders, but this does not include free movement of labour - an issue that only arises with the Caribbean Single Market & Economy (CSME), of which The Bahamas is not part.

While WTO membership may open up some Bahamian industries to foreign companies, there is no enforced “privatisation policy”. Joining the global trade body comes with both challenges and opportunities, and The Bahamas ability to obtain the best accession terms will depend heavily on the skills of the Government’s negotiating team.

Among the genuine concerns are that WTO has not worked well for small economies such as The Bahamas, and that the prime beneficiaries are major industrialised countries and multinational companies that want to open up and exploit such markets for their own benefit.

There is also a perception that WTO’s much-touted dispute resolution mechanisms are ineffective, especially when small economies are pitted against larger counterparts. Many local observers also believe The Bahamas has little to gain because it has minimal physical goods exports with which to trade.

However, others argue that The Bahamas cannot afford to be isolationist given its status as an international business centre.

Besides opening up overseas markets for Bahamian exporters, they believe full WTO membership will clarify “the rules of the game” for foreign and domestic investors, helping to attract new industries to this nation.

Acceding to the WTO

will also, in the eyes of some, force The Bahamas to enact reforms to modernise its economy - something it has traditionally been reluctant to do. The Standards Bureau has already been created to verify the quality of local products, and other trade-related changes in the pipeline include a competition law and regulator; intellectual property legislation; and sanitary and phytosanitary regulations.

However, activist groups are now joining forces in their efforts to oppose the Minnis administration’s bid to close the world’s longest-running WTO accession. These include Bahamians Agitating for a Referendum on Free Trade and the Bahamas Enough Movement, which played a key role in organising the pre-Christmas protest march to Rawson Square.

Tribune Business has seen social media talk about staging a similar march on January 10, Majority Rule Day, under the moniker Say No to WTO, although it is unclear yet whether this will actually proceed.

Mr Pickstock, meanwhile, urged Bahamians to obtain factual information

is

from the WTO’s website and other sources. “At this point I am concerned about the level of misinformation because it can give you a negative result,” he told Tribune Business.

“It’s important that the Government and the private sector continue to put information out there that’s correct. The Government, in support of WTO, it’s important for them to get out there and hold the public sessions and consultation so they can inform people on what they’re doing and give them the right information.

“This is an important topic, important issue, and I’m confident people will seek out the right information for themselves.” Mr Pickstock said the private sector was unlikely to be influenced by any WTOrelated misinformation because it was already conducting its own research.

Zhivargo Laing, the Government’s leading WTO negotiator, said he, too, was aware of inaccurate and misleading information being circulated among Bahamians via social media.

He called on both the Government and Bahamian public to intensify their

hiring a

GRAPHIC ARTIST

WTO-related education efforts, adding that he welcomed increased dialogue and debate among Bahamians on the issue.

The former minister, who held responsibility for trade matters during both Ingraham administrations, urged Bahamians to ask WTO accession critics for their information sources whenever claims were made about the negative impact of full membership.

He acknowledged, though, that the Government has “work to do” and must “keep pressing the case” for this nation becoming a full WTO member, while agreeing that Bahamians should always hold it accountable for a policy decision of such magnitude.

“I welcome the participation of more and more citizens of our country in this dialogue and debate.

I really do,” Mr Laing told Tribune Business. “I do, however, note as you do that there is out there a great deal of either inaccurate information or misleading information about what WTO does or does not represent.

“That means there has to be a continual effort on the part of government

to educate, make freely available and share the information it has with the public. It requires the public to do a better job of factchecking what they’re told.

“I recently spoke to a labour representative who said a leader had told him there’s free movement of labour with WTO. I said: ‘Ask the labour leader to give you the language and text in the WTO agreement that makes them believe that’. You can simply ask them to reference where they are getting that information from.”

Mr Laing also challenged claims that the WTO agreements cover 20,000-30,000 pages, saying the organisation’s own website details the 60-plus agreements as

only covering 500 pages.

“The Government has to do its part in educating the public, but the public has to help itself with its own checks,” he added.

“The dialogue makes sense.

People shouldn’t let the Government simply do things. They should ask, inquire and even if they disagree should debate.”

Pointing to a recent Public Domain opinion poll, in which respondents were evenly split between being for, against or requiring more information to come to a decision on WTO, Mr Laing said more were now in favour than would have been the case in 2001.

“The Government has to keep pressing the case,” he added.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, TYRONE ALBERT STRACHAN aka TYRONE ALBERT MILLER of Mollie Street, New Providence, Bahamas, intend to change my name to TYRONE ALBERT SMITH. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

PAGE 6, Wednesday, January 2, 2019

THE TRIBUNE

CAN MAKE A DIFFERENCE IN THE LIVES OF THE CHILDREN AT RANFURLY

T

he Ranfurly Homes for Children has been a safe haven for thousands of Bahamian children since 1956. The Home provides a safe, structured environment for children who have been orphaned, abused, neglected or abandoned.

YOU can make a difference in the lives of the children at Ranfurly. With your support children can have nutritious food, warm beds and a safe environment where they can discover the joy of being children. For years the children living and learning at Ranfurly have made great social and academic strides.

Their further development requires additional support in the form of a Transitional Home, planned for construction on the Ranfurly property.

This residence will cater to teenagers and young adults who are beyond school age, but need accommodation while they find work and gain independence from the Home.

We look forward to your continued support in this worthwhile endeavour.

MEMBERSHIP PACKAGES Individuals, Families & Corporate Sponsors Children Helping Children - $5 (Individual children from ages 6 - 18) Individuals Helping Children - $50 (Individual adults 18 years and over) Families Helping Children - $100

CIRCLE of FRIENDS Silver: $1,500 - $2,499 Gold: $2,500 - $4,999 Platinum: $5,000 plus

OPPORTUNITIES • • • •

Invitations to Ranfurly events Assist with fundraising events Involvement with special activities Adults are eligible to join the Board after three months • Stay in touch with Ranfurly through website and newsletters

BENEFITS

• Personal fulfillment in knowing you are impacting lives • Ranfurly children’s appreciation and positive response • Continued support provides stability and constant care

For more information visit: www.ranfurlyhome.org Please “Like” us on Facebook Ranfurly Home for Children, Mackey Street P.O. Box 1413 Nassau, Bahamas 242-393-3115

THE TRIBUNE WASHINGTON Associated Press PRESIDENT Donald Trump invited congressional leaders from each chamber to a White House briefing on border security today as the partial government shutdown wore on over funding for a border wall, with Trump tweeting: “Let’s make a deal?”

The briefing would happen the day before the Democrats take control of the House, but the exact agenda wasn’t immediately clear, according to a person with knowledge of the briefing who was not authorised to speak publicly about the issue and spoke to The Associated Press on condition of anonymity.

The invite comes after House Democrats released their plan to re-open the government without approving money for a border wall — unveiling two bills to fund shuttered government agencies and put hundreds of thousands of federal workers back on the job. They plan to pass them as soon as the new Congress convene tomorrow.

Trump spent the weekend saying that Democrats should return to Washington to negotiate, firing off Twitter taunts. He then revised his aides’ comments to state that he really still wants to build a border wall. And last week, he blamed House Democratic leader Nancy Pelosi for the impasse that led to the shutdown.

Yesterday morning, after tweeting a New Year’s message to “EVERYONE INCLUDING THE HATERS AND THE FAKE NEWS MEDIA”, Trump tweeted, “The Democrats, much as I suspected, have allocated no money for a new Wall. So imaginative! The problem is, without a Wall there can be no real Border Security.”

But he seemed to shift tactics later in the day, appealing to Pelosi, who is expected to take over as speaker when the new Congress convenes.

“Border Security and the Wall ‘thing’ and Shutdown is not where Nancy Pelosi wanted to start her tenure as Speaker! Let’s make a deal?” he tweeted.

Wednesday, January 2, 2019, PAGE 7

Congress leaders invited to White House for border briefing

THE US Capitol is seen early in the morning in Washington yesterday, as a partial government shutdown stretches into its third week.

A high-stakes move to reopen the government will be the first big battle between Nancy Pelosi and President Donald Trump as Democrats come into control of the House.

Photo: Jose Luis Magana/AP Whether the Republicanled Senate, under Majority Leader Mitch McConnell, would consider the Democratic bills — or if Trump would sign either into law — was unclear. McConnell spokesman Donald Stewart said Senate Republicans would not take action without Trump’s backing.

“It’s simple: The Senate is not going to send something to the president that he won’t sign,” Stewart said.

Even if only symbolic, the passage of the bills in the House would put fresh pressure on the president. At the same time, administration officials said Trump was in no rush for a resolution to the

impasse.

Trump believes he has public opinion on his side and, at very least, his base of supporters behind him, the officials said, speaking on the condition of anonymity because they were not authorised to speak publicly.

White House officials, including the departing

chief of staff, had indicated that Trump’s signature campaign pledge to build the wall would not be fulfilled as advertised. Chief of staff John Kelly told the Los Angeles Times in an interview published Sunday that Trump abandoned the notion of “a solid concrete wall early on in the administration”.

The Democratic package to end the shutdown would include one bill to temporarily fund the Department of Homeland Security at current levels — with $1.3bn for border security, far less than the $5bn Trump has said he wants for the wall — through Feb 8 as talks continued.

It would also include another measure to fund the departments of Agriculture, Interior, Housing and Urban Development and others closed by the partial shutdown. It would provide money through the remainder of the fiscal year, to Sept 30.

Democrats under Pelosi were all but certain to swiftly approve the package in two separate votes tomorrow.

They would take place after the election of a new House speaker, a contest Pelosi was expected to win as leader of the new House majority.

The White House did not respond to multiple requests for comment on the House proposal. Republican senators left for the holidays refusing to vote on any bills until all sides, including Trump, were in agreement. The lawmakers were frustrated that Trump had dismissed their earlier legislation.

The president has not said he would veto the Democratic legislation, if the bills were to land on his desk.

But a prolonged crisis could hobble House Democrats’ ability to proceed with their agenda, which included investigations of the president and oversight of his administration, including Russian interference in the election.

At least one Republican, South Carolina Sen Lindsey Graham, encouraged Trump to use the budget impasse as an opportunity to address issues beyond the border wall. But a previous attempt to reach a compromise that addressed the status of “Dreamers” — young immigrants brought to the US as children — broke down last year as a result of escalating White House demands.

Graham said Trump was “open minded” about his proposal.