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TUESDAY, JANUARY 7, 2020
$4.58 ‘No turning back’ on plastic bag charge By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE government yesterday asserted there is no turning back on the 25 cents fee for single-use plastic bags as retailers complained they are taking the brunt of consumer complaints. Dr Rhianna NeelyMurphy, the Department of Environmental Health’s senior environmental officer, told Tribune Business it had been forced to respond to “incorrect information” about the nature of the per bag charge and the purpose of the sixmonth transition period afforded to businesses and consumers alike. “The (incorrect) message was that the transition phase is there to help businesses get rid of their stock, and the second incorrect message was that the 25 cents was a tax,” she said. “The 25 cents is not a tax; the 25cents is a fee, which we hope people do not pay because they will be travelling with their reusable bags. “The six-month period is here to help people to adjust to living life with less plastic. The ministry [of the environment and housing] is not going back on the 25 cents. The 25 cents is a fee that is associated with the purchase of a plastic bag. If you do not want to purchase a plastic bag you do not have to pay the 25 cents. “The 25 cents is there as a deterrent. The ministry wishes people to travel with their reusable bags so that they do not have to pay the 25 cents.” The fees levied upon single-use plastic bags are retained by the retailer, and not passed to the government. However, Bahamian merchants yesterday complained that they feel “caught in the middle” between the ban and consumer disquiet over the fee. Don Davis, general manager of Quality Home Centre, said yesterday: “The issue I have now, today, is the Government is forcing us to charge for these plastic bags and, if we don’t charge the 25 cents, they come around and charge you $2,000 in fines. “It’s not the merchants. The merchants are put in a bind right now. We always give away the bags, but now the Government is forcing us to charge this 25 cents
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$4.59
Bahamas needs $670m for ‘first world’ health facilities By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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HE Bahamas needs a $670m capital investment to “bring our healthcare facilities into the 21st century and up to par with the first world”, a Cabinet minister revealed yesterday. Dr Duane Sands, pictured, minister of health, confirmed to Tribune Business that the government’s vision for an “ideal system to care” for the Bahamian people involves replacing both Princess Margaret Hospital (PMH) and Freeport’s Rand Memorial Hospital through a combined spend exceeding half a billion dollars. He disclosed that the government had been asked to think big, and lay out a design “as if money was no object”, ahead of next week’s “pledge conference” that aims to raise millions of dollars in private sector donations to finance Hurricane Dorian reconstruction efforts. Government documents, released ahead of the January 13 event, detail the scale of The Bahamas’ needs wish list in multiple areas including healthcare,
• Govt gives ‘ideal system’ vision to Dorian donors • Next PMH upgrade pegged at $200m-$250m • 28 emergency room admissions had no beds
housing, the environment, infrastructure and the micro, small and mediumsized enterprise (MSME) sector. They peg the costs of replacing PMH and the Rand Memorial Hospital at $500m and $120m, respectively, requiring a combined investment of $620m. The third, and final, healthcare project detailed in papers seen by Tribune Business involves a $50m investment to construct and “repurpose” health clinics across Abaco and the cays in Dorian’s wake. Dr Sands conceded he has “no idea” whether the pledging conference will
raise sums that get even remotely close to these targets, but added that its organisers had encouraged the government to lay out its ideals as if there were no limitations on what can be achieved. “We were asked to look at what would be truly impactful,” he told Tribune Business. “If we’re going to make an ask, the question would be: Are you going to limp into the next year or truly generate resilience moving forward? “Given the fact we have been asked to think even more liberally about the future in terms of the pledging conference, there’s a basic concept of what it would take to bring our healthcare facilities into the 21st century and bring them up to par with any facility in South Florida or the first world. That’s what translates into $500m [for PMH]. “What we’ve been asked to do, if money was no object, is to design or consider the health system that would be ideal to care for the population... In terms of
A BAHAMAS-based oil explorer and its advisers yesterday said they plan to seek the Securities Commission’s permission to open their newly-launched mutual fund to small local retail investors. The Bahamas Petroleum Company (BPC) disclosed that its £2m BPC Investment Fund, which began taking subscriptions yesterday, is for the time being only open to sophisticated institutional investors - such as pension funds, insurance companies, investment houses and other money managers - and not individual Bahamian investors. The oil explorer, which plans to drill its first exploratory well in Bahamian waters during the 2020 first half, said the BPC Investment Fund had been
need, it is very clear that if we were to do this entirely on our own based on the cash flow of the Government of The Bahamas, or the borrowing of the Government of The Bahamas, there’s a limit to how far we can get in the short term.” Dr Sands said the decision on whether to rebuild or upgrade PMH was “for the future”, but added that “a number of components” must be addressed to ensure it can fulfill its role as The Bahamas’ acute healthcare facility “for another 20 to 40 years”. “We have costed out the next phase, which is the emergency room, maternal child health and imaging, and the price tag we’ve got for that is between $200$250m,” he told Tribune Business. “We already have pretty advanced ideas about maternal child health. Bear in mind we made that a manifesto commitment in 2017. We have pretty clear renderings, costings etc, and
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DPM pledges to ‘speed up’ small business Dorian relief By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government is aiming to “speed up” financial help for Dorianhit businesses, the deputy prime minister said yesterday, although its $10m facility is likely to meet less than 25 percent of their needs. K Peter Turnquest told Tribune Business the process was “not going as fast as we’d like”, with the government now seeking “to address the issue internally” in a bid to restore micro, small and medium-sized businesses (MSME) to full health “as quickly as possible”. He spoke after the government revealed that the demand for post-Dorian assistance among entrepreneurs on Abaco and Grand Bahama could be more than four times’ greater than the $10m loan guarantee, grant and equity financing initiative it put in
• Process ‘not going as fast as we’d like’ • MSME sector needs may reach $43m • Four times’ the facility offered by govt
K PETER TURNQUEST place in the category five storm’s aftermath. It disclosed that the combined losses suffered by the 160 MSMEs that have submitted financial assistance requests to-date, representing just five percent of 3,546 such firms on the two Dorian-hit islands, are equivalent to $8.65m or 87 percent of the $10m made available.
With the Small Business Development Centre (SBDC) estimating that Dorian impacted 75 percent of Abaco small businesses, and 60 percent of their Grand Bahama counterparts, the government said these projections - when combined with the average $18,000 in funding provided to successful applicants todate - showed “the recovery costs for small businesses may reach some $43m”. This indicates that The Bahamas needs to bridge a $33m funding gap to restore MSMES in the disaster-hit areas to full health. A government paper, drawing on Department of Inland Revenue tax filing data, said such companies - defined as having a workforce of less than 50 persons, and with annual revenues of under
Oil explorer aims to open fund to small Bahamians By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
$4.66
• Leno to seek Securities Commission go-ahead • BPC’s £ 2m fund launches to institutions only • Will hold near 5% of firm if fully subscribed licensed as a locally-domiciled “professional” fund. This type of fund, under Bahamian law, can only be pitched at “sophisticated” and “institutional” investors who are well-versed in the risks, as well as the rewards, of the underlying investments. However, BPC said Leno Corporate Services, the investment fund’s Bahamian adviser and placement agent, planned to apply to the Securities Commission for it to be reclassified as a “standard” fund that can offer shares to the general public and ordinary Bahamian retail investors. “The fund has initially been licensed as a ‘professional’ fund such that
qualifying professional/ institutional investors will be able to subscribe for shares in the fund,” BPC said. “However, Leno intends to make application to the Bahamian Securities Commission for reclassification of the fund as a ‘standard’ fund, which would allow participation in the fund by non-professional retail investors in The Bahamas should such approval be granted. “The Securities Commission will arrive at a decision on this application in due course, and the company will provide further updates on this process when appropriate.” Many Bahamian retail investors are likely to be
angered at the BPC Investment Fund only being opened to investments made by large institutions, with the perception being that the “small man” is once again being denied the opportunity to make a wealth-creating investment that could drastically improve their economic well-being. However, others will argue that the fund’s status as a “professional” fund is entirely appropriate as the investment opportunity is only suitable for sophisticated investors able to both understand its high reward/high risk potential and absorb any subsequent losses.
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$5m - generated $411.126m in combined sales in 2018 and employed 4,500 people. The MSME sector will be a key focus at next Monday Dorian “pledging conference”, where the government is teaming with the United Nations Development Programme (UNDP), supported by the US and UK governments, to seek recovery donations from the private sector, high-networth individuals, other governments and donors who have expressed interest in assisting with the recovery. Mr Turnquest yesterday acknowledged that reviving the small business sector on Abaco and Grand Bahama was “critical” to postDorian recovery given the vital role it plays in driving
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$4.63 Govt eyes $40m waste-to-energy Abaco solution By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government is eyeing a $40m waste-toenergy package as part of a $140m solution to the postDorian clean-up challenges in Abaco. Documents released ahead of next Monday’s “pledging” conference, in which the government has teamed with the United Nations Development Programme (UNDP) to seek private sector funding for reconstruction, reveal that it wants to convert the waste generated by the storm into an energy-producing fuel. Arguing that gasification has “significant advantages” compared to merely incinerating Dorian-related debris, the papers call for the creation of a waste-to-power gasification plant on Abaco to “help stabilise the cost of electricity for residents and eliminate further environmental damage at the landfill”. Besides using existing technology as a power source for desalination, the government is also hoping to seize the opportunity provided by Dorian’s devastation to “enable The Bahamas-based development of waste management policy to eliminate industrial wastes, tires etc via gasification” Other objectives, for which the government will be seeking private sector donations to fulfill, are the creation of “a waterside facility to take single-use plastic and other wastes for a fee, and use it as a feedstock to produce clean water and energy, while reducing volumes of ocean plastic”. All this is designed to relieve the “additional stress” on Abaco’s Snake City landfill site following Dorian. That facility was described by the government’s report as “already struggling” with fires a “daily nightmare” for island residents. As a result, the Ministry of the Environment and Housing’s $140m wish list also includes $50m to help with further debris clearance; $7.5m to rehabilitate the Snake City location; $3m to demolish unsafe structures; and a further $40m to help remove marine debris from Abaco’s waterways. “In North Abaco, partially destroyed homes will have to be demolished and disaster waste and debris managed,” the government
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PAGE 2, Tuesday, January 7, 2020
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HE Bahamian financial services industry can “expect more of the same” from global regulatory initiatives in 2020, a senior executive said yesterday, with financial technology (Fintech) driving its evolution. Tanya McCartney, the Bahamas Financial Services Board’s (BFSB) chief executive, told Tribune Business: “As we begin 2020 we can expect a continued focus on global regulation, and the need for The Bahamas to demonstrate not merely compliance with international regulation by the passage of legislation but actual technical effectiveness in terms of implementation of various international initiatives. “These initiatives are driven largely by external bodies such as the Financial Action Task Force (FATF), the Organisation of Economic Co-Operation and Development (OECD) and the European Union (EU).” The Bahamas in most recent history has been hounded for the past two
Financial services faces ‘more of same’ in 2020 BY YOURI KEMP | TRIBUNE BUSINESS REPORTER | YKEMP@TRIBUNEMEDIA.NET
TANYA MCCARTNEY
THE TRIBUNE decades by bodies such as the OECD and the FATF, which have demanded that it and other international financial centres comply with their demands for compliance with global anti-money laundering and tax information exchange initiatives. The FATF in a report last year said: “The Bahamas made a high-level political commitment to work with the FATF and the Caribbean Financial Action Task Force (CFATF) to strengthen the effectiveness of its AML/CFT regime and address any related technical deficiencies.” France last year placed The Bahamas on its own “blacklist” - a move that was branded “disgusting” by deputy prime minister, K Peter Turnquest, as “disgusting”. He said he intended to tell the OECD’s Global Forum that “there is no point in The Bahamas engaging in these multilateral organisations if individual members are going to take unilateral action, particularly without dialogue, at the highest level”.
Ms McCartney added: “The pace of change will continue to force us to work on improved agility as individual members of the EU appear to be taking unilateral action against countries such as ours. All indications are that the focus of these international bodies will be on taxation of the digital economy, and this is likely to follow on with discussions on a global minimum corporate tax. “Technology will continue to change the way that we deliver financial services. We are looking forward to the passage of the digital assets and registered exchanges legislation,” she said, hailing the launch of the Central Bank’s digital Bahamian dollar for its ability to “enhance” financial inclusion among Bahamians. Ms McCartney said that despite global regulatory pressures pressure she sees an “opportunity to leverage our strengths of location, ability to innovate and our expertise in financial services”. She added: “In the current period of global economic and geopolitical
instability and uncertainty, our location is an asset. “We have seen growth in family offices, and the economic substance requirements also create an opportunity for greater presence of companies who will need to show actual activity, decision making and adequacy of staff in the jurisdiction. “We can expect a continued call from industry for a more strategic approach to the development of the sector, and we will persist in our dialogue with policymakers and other all key stakeholders to develop a concrete plan of action for the sector.”
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EY UNVEILS NEW HIRES FOR BAHAMAS REGIONAL GROUP THE EY (Ernst & Young) accounting firm has announced two new hires for the regional group that covers The Bahamas and other international financial centres (IFCs). Eleanor Fisher has joined as partner, and Tammy Fu as associate partner, for the group covering The Bahamas, Bermuda, British Virgin Islands (BVI) and Cayman Islands. Both have ample restructuring and transaction advisory experience, and join from a boutique restructuring firm where they were founding partners. “We’re thrilled to have Eleanor and Tammy join our transaction advisory services team in the region,” said Dan Scott, regional managing partner. “Their combined 40-plus
FROM left: Keiran Hutchison, Eleanor Fisher, Tammy Fu and Dan Scott years of experience and vast array of clients.” also acted as liquidator for expertise in offshore debt Ms Fisher has more than many funds exposed to restructuring and inter- 20 years’ experience leading liquidity issues and fraud, national insolvency really complex financial restruc- realising value for invesaugment our team, enabling turings and insolvencies of tors, and is a fellow of us to provide a wide range offshore companies in the the Institute of Chartered of solutions and value to a region and globally. She has Accountants in England
and Wales and a qualified insolvency practitioner. Ms Fu also has two decades of experience working with stakeholders and companies to identify and implement solutions in complex and distressed situations. She has served in an advisory capacity for both creditors and companies, and is a fellow of the Association of Chartered Certified Accountants, an accredited mediator, and a qualified insolvency practitioner. Both women have led major international debt restructurings, including the $3.7bn restructuring of offshore drillship group, Ocean Rig; Chineseoperated solar panel manufacturer, LDK; and Bahrain-headquartered Islamic investment bank, Arcapita. They have acted
as liquidators in Bermuda and the British Virgin Islands. “We’re glad to have Eleanor and Tammy join a team that can provide unparalleled, experienced service to companies and other entities in the region,” said Keiran Hutchison, EY’s regional head of transaction advisory services. “Both individuals are well-recognised in this region, the US and the UK as leading restructuring professionals having worked on many groundbreaking projects. In a rapidly changing, increasingly digital and disrupted business environment, they will help us help bring new products and innovation to our clients, enabling organisations to reshape results for a better future.”
THE TRIBUNE
Tuesday, January 7, 2020, PAGE 3
Retailers in mixed christmas verdicts
By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net BAHAMIAN retailers yesterday revealed a mixed Christmas performance, with some reporting up to 20 percent year-over-year sales increases but others bemoaning declines. Brent Burrows, general manager of CBS Bahamas (Commonwealth Building Supplies), told Tribune Business: “Actually we
had a very good Christmas holiday as compared to last year. Sales were quite strong for us. In our store our biggest movers were in our housewares, like small appliances and stuff, and then small tools; power tools, lawn and garden and barbeque grills. That kind of stuff.” Asked by Tribune Business how business volumes compared to 2019 levels, Mr Burrows said: “It was over 20 percent.
We have seen an upturn in business since around July, and we think the Christmas thing had a lot to do with the government’s $1,400 bonus to the workers. I think the economy is doing a bit better overall.” Don Davis, general manager of Quality Home Centre, said: “ We did alright. I can’t complain. I guess some people are still shopping at home so that’s a good thing. haven’t finished my numbers, but we
are probably up by five percent or so. “In Christmas time, Bahamians believe in fixing up their homes. So first of all they will buy their little rugs for their bathroom, fix the bathroom up. Then their comforters and area rugs. Then they go for their dishes and stuff, and then in the last week before Christmas they start buying their toys. That’s how they shop.”
However, Edward Robinson, owner of apparel retailer, Bonneville Bones, said: “We were down a little bit by three percent.” Asked what he attributed this to, he said: “Well, it is hard to say for certain, but with Dorian and the increase in VAT), I think that was the two main contributing factors.” The government waived import duties for clothing and shoe retailers/importers in the 2018-2019 budget
in a bid to improve the sector’s competitiveness against online and foreign rivals, and preserve Bahamian businesses and jobs. Apparel and footwear retailers previously blamed Bahamians shopping in Florida or online for the sector’s weakness and seeming decline. The government decision to increase the Customs duty exemption from $300 to $1,000 has also been criticised for negatively impacting local retail sales.
DPM pledges to ‘speed up’ small business Dorian relief EX-BAHAMASAIR CHAIR’S SURPRISE OVER US BLOCK
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economic growth. He added that communities on both islands were depending on businesses to re-open for their own revival, and the return of pre-storm populations. “The small business sector is a key driver of the overall economy,” he told Tribune Business. “It’s critical we get things up and going as quickly as possible, as this is going to drive the economic recovery and return of the population into these communities. “Many of the small SMEs, in particular, were devastated in terms of property damage as well as loss of inventory. Getting them all started is a significant challenge for sure.” Mr Turnquest conceded that while “significant progress” has been made in providing SMEs with much-needed financial assistance, “it’s not going as fast as we’d like. We recognise that, and are trying to address the issue internally to hopefully speed up getting money into the hands of business people so they can get back into business as quickly as possible”. The deputy prime minister argued that economic recovery “goes hand in hand” with the rebuilding of communities in
‘No turning back’ on plastic bag charge
FROM PAGE ONE
and the customers are upset and think it’s the merchants. We all agree that we have to get rid of the plastic bags, but to charge the consumer or fine them for using it, that’s the problem. “I could have seen if they said that you have until June, and there is a ban on importing plastic from January, and you have up until June to get rid of the plastic. Let us give it away to the customers until then. That makes more sense than to charge the customer for the bag. I’m sure merchants would do that.” Rupert Roberts, Super Value’s principal, previously told Tribune Business his customers are “disgruntled” over having to pay 25 cents per plastic bag for their groceries amid threats circulating on social media from upset consumers calling for retribution on the food store chain. Some went as far as calling for a boycott of stores that charge customers
Govt eyes $40m waste-to-energy Abaco solution
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report said. “While people have started to return to their homes and businesses, the clean-up and demolishment of unsafe structures may pose serious health and environmental challenges that need to be considered.... “Managing debris relies not only on the mixed waste streams but also on volumes to be transported, and space is needed to allocate those. As activities are ongoing focusing only on the debris piled alongside the roads, and on clearing the shanty
Grand Bahama and Abaco, adding: “One goes with the other. It’s really a holistic approach we’re trying to achieve here.” The government’s MSME paper, released ahead of next week’s “pledging” conference, said: “The backbone of any economy is the existence of small and medium-sized enterprises. This is especially true of the islands that were impacted by Hurricane Dorian, which have suffered an estimated $1.02 bn loss as a result of the damage left by this unprecedented storm.” It added that Department of Inland Revenue data showed Abaco’s MSME sector generated $316.145m in collective top-line revenues in 2018, with 1,732 businesses employing 2,365 workers. Their Grand Bahama counterparts produced $94.982m in sales, with 1,814 companies providing work for 2,128 employees. Referring to its $10m funding facility, the government report said: “Since launching the funding programme, we have received 160 completed applications from MSMEs seeking to rebuild. On average, ten new applications are started daily. “These initial applicants represent only five percent of the total MSMEs
for these islands - and 12 percent of the total employees - yet their estimated losses represent 87 percent of the allocated funding.” Total funding requests came to a similar percentage at $8.549m. The government paper continued: “To date, 36 companies have received $647,000 in funding. This subset of clients has requested $2.17m in assistance. The expected economic impact from these 36 companies after their first year of recovery is $6.7m, equating to a potential return on investment of $3 to $1. One hundred and thirtyfive jobs will be retained and three created... “Based on business community surveys and on-the-ground assessments, the SBDC estimates that 75 percent of the MSMEs in Abaco have been impacted and 60 percent in Grand Bahama. Taking into account these estimates and the average funding approvals to-date ($18,000), the recovery costs for small businesses may reach some $43m. “Some of these businesses are insured. Others have direct access to private sector capital. The government has stepped in to provide $10m in financial assistance for that segment that may not be
ordinarily able to access private sector capital on their own.” Mr Turnquest said Dorian had reinforced “the importance of ensuring we have a system that supports MSMEs and their need for capital”, especially given the long-standing complaints from Bahamian entrepreneurs about their inability to access financing from banks and other traditional sources prior to the storm. And he said it was “critical everybody has learned their lesson” when it came to properly insuring property, inventories and other business assets against storm-related losses and damages. “Hopefully those lessons translate into action, and persons see the need to protect their investment,” Mr Turnquest added. “Not as a personal or luxury item, but as a critical component of their business plan. As we think about climate resiliency this is all part of the deal.” Mr Turnquest said it was “very important” that next week’s pledging conference is successful, as “the more we can receive or obtain in donor funding the less the financing costs for us, and the more we are able to do overall to assist our citizens”.
for plastic bags with their purchase. The Ministry of Environment and Housing, in a statement issued yesterday, said: “The Ministry of Environment and Housing is aware that some members of the public are sharing incorrect information about the single-use plastic ban that was implemented nationwide on January 1, 2020. The purpose of this ban is to reduce plastic consumption in order to reduce plastic pollution across the country. “By reducing the proliferation of plastic in our communities we will create a healthier environment that will serve to prevent massive landfill fires, reduce litter on our streets and beaches, and improve our general health. “This ban is also a part of the government’s response to climate change, a global phenomenon that is devastating our environment by shifting weather patterns and creating monster storms like Hurricane Dorian... By acting today, we aim to reduce the potential risk, cost and devastation that we could all face tomorrow.” The ministry added that the ban affects single-use plastic bags; plastic utensils such as knives, forks, spoons and straws; and styrofoam containers and cups. Their importation was banned from January 1, 2020, but merchants and vendors can run down their existing
supplies without charging consumers except for plastic bags. “Businesses are permitted to charge a fee of 25 cents to $1 to consumers for plastic bags and biodegradable bags during this period January 1 to June 30, 2020,” it said. “The purchase of the bag must be reflected on the customer’s receipt as a separate line item. Value added tax (VAT) will be added to the sale of each bag, as per other items sold across the country by law. “The purpose of the fee is to discourage consumers from buying plastic bags and to encourage them to bring reusable bags to shop so that they do not need to buy a plastic bag. This will reduce the number of plastic bags in circulation.” The Ministry of the Environment and Housing continued: “Businesses can sell compostable bags, which look like plastic bags but are plant-based and therefore less harmful to the environment, from January 1, 2020, until 2022. Consumers have the option to buy plastic bags from businesses to transport their purchases or to bring their own reusable bags to shop. “The checkout fee on plastic bags and biodegradable bags will be eliminated nationwide on July 1, 2020, as business owners will be prohibited from selling or using them as of this date. Additionally, business owners will be
prohibited from selling or permitting the use of any of the ‘4Bidden Four’ items within their establishments after this date.” “Any business owner found selling plastic bags or biodegradable bags for any amount as of July 1, 2020, will be penalised to the full extent of the law,” it added. “The checkout bag fee that consumers pay when they choose to purchase a plastic bag at local businesses is not a government tax. “The government of the Bahamas does not receive the funds collected as the result of the sale of a plastic bag. These funds are collected by, and retained by, the business from which the consumer purchases the bag.”
towns, the debris is being transported to a lay-down site in Spring City created for this purpose as well as to an engineered landfill cell (Snake Cay) that has been managed as a dumpsite for the last few years. “The problem of different streams, including hazardous materials, as well as challenging volumes, has created an additional stress to a facility that was already struggling,” the government paper continued. “Fires are the daily nightmare of this dumpsite, with all the health risks associated, not to mention the risk associated of having hazardous and inflammable materials dumped together. “The lack of specific equipment for managing certain debris streams (as
organic and vegetative debris, metals, wood) is definitely increasing the volumes being disposed after the hurricane, with the problem of increasing the leachate production as well as contributing to the carbon footprint.” The government report added that the Snake Cay site, located off the Great Abaco Highway and known as the Great Abaco Sanitary Landfill, had been “severely impacted as a result of the large quantities of unsorted debris being deposited on site”. It said: “The mishandling of the landfill, the scarcity of oversight, and the absence of a landfill management plan have resulted in a number of negative impacts, including multiple on-going fires.”
By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net AN ex-Bahamasair chairman has expressed surprise that required upgrades to three of the national flag carrier’s jets were not “readily dealt with” prior to them being barred from flying to the US. Valentine Grimes, who headed Bahamasair’s Board under the last Christie administration, said: “I sincerely wish the management and board at Bahamasair all the best in dealing with the matter. I, along with the country, look forward to them resolving the issue expeditiously. “I would have thought that it would have been a matter that could have been readily dealt with prior to the deadline. I continue to look forward to Bahamasair making positive strides, as it ought to, in assisting The Bahamas in developing to the next level.” Bahamasair’s three older 737-500 jets were unable to fly to the US as of January 1, 2020, because they have not been fitted with the necessary flight tracking technology required by industry regulator, the Federal Aviation Administration (FAA). ADS-B (Automatic dependent surveillance - broadcast) equipment needs to be installed on the planes, which have been diverted to servicing Bahamasair’s domestic and other international routes until this happens. The installations will cost $195,000 per plane, and were supposed to have been completed through one aircraft being outfitted every month between September and November last year. However, Bahamasair is alleging that the initial supplier, to which it paid an initial $200,000 deposit, was unable to deliver and only informed it of the situation after the third aircraft deadline was missed. This prompted a scramble to locate another
VALENTINE GRIMES supplier, which has promised to source the necessary equipment and complete the installations by end-January. The FAA’s requirements have been known of by the global aviation industry since 2010, leading many observers to question why Bahamasair left the upgrades until the last minute. Tommy Turnquest, Bahamasair’s current chairman, explained that the installations had been awaiting a decision on whether Bahamasair will keep its aging 737-500 fleet or upgrade via purchases of new aircraft. This was also the rationale given by Opposition leader, Philip Davis, on Friday for why the upgrades did not take place under the former Christie administration. Mr Grimes, who chaired the airline for that administration, said he “honestly doesn’t know” why the sourcing of the necessary technology took so long. “The board that I was a part of has been out of there for some two-and-ahalf plus years,” he said. “I am aware that the matter was, as far as I was aware, being dealt with when I was there. So I was somewhat disappointed that it has not yet been finalised. “I think Bahamasair has a very, very important role to play in the upward development of our country. I enjoyed the five years I spent there as chairman of the board. I was very happy to work with the management and I look forward to it continuing to progress.”
PAGE 4, Tuesday, January 7, 2020
THE TRIBUNE
Bahamas needs $670m for ‘first world’ health facilities FROM PAGE ONE programming considerations.” The government’s pledge conference papers said Dorian’s devastation of healthcare facilities on Abaco and Grand Bahama had “exacerbated” the pressures on an already-overworked and overcrowded PMH, further straining “shortages in critical services areas” and adding to already-long patient waiting times. Dr Sands, giving a deeper insight into these challenges, told Tribune Business: “To give you an idea, this weekend we had 28 patients in the emergency room admitted with no beds. You clearly have an incredible demand on PMH right now because the Rand is nowhere near at capacity notwithstanding the incredible benefit of Samaritan’s Purse [field hospital]. “We’ve not been able to provide elective procedures, surgical procedures and diagnostic procedures. A lot of that falls on to PMH and, with people coming from Abaco for treatment, the load on PMH is tremendous. “We have also had to use staff from New Providence to cover the Family Islands, Grand Bahama and Abaco, in order to give resident professionals there a break. That exacerbates the challenge. The demand on PMH is huge.”
Oil explorer aims to open fund to small Bahamians FROM PAGE ONE
For BPC is effectively a start-up, yet to drill its first well and with a history of financial losses. And, for all its research to “de-risk” the project, there is no 100 percent certainty that commercial quantities of recoverable oil lie below The Bahamas’ sea bed. As a result, many capital markets observers will likely view the BPC Investment Fund offering as more a venture capital/private equity investment play rather than an opportunity for small retail investors who can illafford any major loss. Still, it represents an opportunity for institutions
The most recent Ingraham administration had sought to redevelop PMH in stages, with its near$100m investment in the facility’s Critical Care Block designed to prioritise the treatment of ‘life and death’ conditions as the first phase. However, the government’s post-Dorian paper said redevelopment plans for The Bahamas’ primary tertiary care facility have been mulled since 1985. “As the major tertiary facility for the nation, the Princess Margaret Hospital has received the brunt of the patient load as a result of this catastrophic event,” it added, referring to the category five storm. “This aging facility has long outgrown its clinical spaces and the ability to safely provide the level of service required to meet the healthcare needs of the nation. To this end, design/ redevelopment plans dating back to 1985 have supported this need. “Understandably, after the passage of Hurricane Dorian, the population shift from the affected islands to New Providence exacerbated the existing situation with respect to critical bed shortages and the need to expand clinical spaces,” it continued. “Inpatient wards are overcrowded, particularly maternity, male surgical and children’s wards; shortages in critical services
areas (dialysis, intensive care unit); and notable challenges within the Emergency Department include further overcrowding with accompanying long wait times, constrained workspaces and poor patient/ work flows.” As for Freeport’s Rand Memorial Hospital, the government’s paper calls for it to be rebuilt “better and stronger”, and warns against making extensive investments in the current facility that suffered extensive flooding and other damages in Hurricane Dorian. “Based on previous facility assessments, there is a critical need for a new facility and investments should not be channelled to attempt repairing the entire facility,” the document states. It warns that the Rand and surrounding land are “susceptible to future flooding”, meaning that an “inevitable repeat of service and staff disruption” will occur during another Dorian-storm. “The age of the structure (50 years) guarantees high maintenance costs with limited opportunity for developing a smart, climate resilient facility,” the report added. “Ten years of expansion and modification has resulted in a mix of various HVAC and air conditioning systems delivering varying levels of performance and reliability.”
who manage funds belonging to thousands of Bahamians to benefit from the potential upside of investing in the lucrative oil industry, even though the BPC Investment Fund’s stake in the exploration outfit will be just 4.47 percent if the £2m offering is full subscribed. The issue, priced at two UK pence (2p) per share, is offering the same price as that extended to BPC’s international investors in recent capital raisings. Some 100m shares are on offer, with the minimum investment set at $10,000. Simon Potter, BPC’s chief executive, said in a statement: “It has long been the company’s intention to provide Bahamians a means of investing directly in this nationally significant project. “Whilst the royalty regime under which BPC operates ensures economic value for the people of The Bahamas via government revenues, the mutual fund initiative will allow Bahamian individuals to hold a stake in the
outcome of this exciting and potentially transformational project, and thus to personally benefit should the project be successful.” Mr Potter, in a previous interview with Tribune Business, explained that the mutual fund’s role was not to raise cash for BPC as the first $25m well project is already fully-funded. Instead, it was to facilitate Bahamian investment in the company and enable locals to participate in any wealth creation upside from the company’s exploration activities The BPC Investment Fund’s initial offering period will close on February 7, 2020, with the proceeds used solely to acquire ordinary shares in its sponsor, BPC. Investors will be able to purchase and redeem shares on a monthly basis, “or more frequently if felt appropriate by the Fund”, with any extra net subscription proceeds employed to purchase more BPC stock. These shares will either be issued directly as new shares by BPC, or acquired on the London Stock Exchange’s Alternative Investment Market (AIM) market of the London Stock Exchange (“AIM”). “The company has agreed to fund the set-up costs and first year of the fund’s operating expenses up to a maximum of $50,000 as an additional expression of support for the fund’s objective, being to provide a mechanism whereby Bahamian investors are able to invest in the company and thereby have an interest in the outcome of the planned upcoming exploration well,” BPC added. The BPC Investment Fund Board is comprised of two Bahamians, Sean Longley and Brian Jones, both Leno principals. Leno is both the investment manager and fund administrator, with its newlycreated trust arm serving as custodian. The auditors are HLB Galanis & Company.
NOTICE NOTICE is hereby given that NATASHA SIMON of London Avenue off Carmichael Road, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 31st day of December, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas. LEGAL NOTICE
EMERA INCORPORATED (“Emera”) Notice to Holders of Depositary Receipts
Dividend Notice A dividend of CAD $0.153125 per Emera depositary receipt (CAD $0.6125 per common share of Emera) will be payable on or about February 14, 2020 to depositary receipt holders of record as at January 31, 2020. Dividends will be subject to applicable withholding tax.
Besides the salt water damage to the Rand’s electrics and plumbing, the report added that “75 percent of the ductwork throughout the facility is fibre glass, which cannot be cleaned of mold. The existing campus cannot accommodate all inpatient and outpatient services, necessitating perpetual maintenance of annual rental contracts”. Dr Sands said of this assessment: “I think we have all agreed that the existing Rand Hospital cannot be trusted to be the acute healthcare facility for Grand Bahama moving forward based on the fact it took a massive beating in the last hurricane. “The new facility not only has to be resilient in terms of weather, but it has to provide services it does not provide today like cancer care, cardio care; things like that.” The minister added, though, that the government had little choice but to sufficiently repair the existing Rand so that it can provide safe, essential medical services to the Bahamian people prior to the 2020 hurricane season. He suggested that this required a balancing act where the government invested what was required, but did not overspend and, in doing so, drain funding away from a potential new hospital construction. The third, and final,
project detailed by the government’s paper is a “hub and spoke” model for Abaco’s 24-hour healthcare via a network of seven clinics where Marsh Harbour acts as the “parent”, or hub, for the likes of Hope Town, Man O’ War Cay and Guana Cay in central Abaco. “Sandy Point Clinic in south Abaco is to serve as the parent facility for the Moore’s Island clinic, while Coopers Town Clinic will provide same for the Fox Town and Green Turtle clinics while also servicing the Treasure Cay community,” the paper said. “This vision has not been fully realised in part due to resource constraints relative to infrastructure and equipment. While recognising the opportunity for redesign, repurposing and enhancement to improve resilience, the focus cannot be singularly on reconstruction but must also geared toward achievement of the medium and long-term vision for health care services across the Commonwealth of The Bahamas. “Ongoing challenges such as inter-island/cay connectivity via information technology, as well as air, land and sea transport deficits, are all critical items for creating a resilient health care system in an archipelagic small island developing state such as The Bahamas,” it continued.
“Constructing resilient facilities is recognised by the Ministry as an area of specialty, and it is anticipated that assistance would be needed to ensure consideration is given to disaster risk reduction by rebuilding climate smart facilities, taking into consideration ongoing and evolving environmental factors.” Dr Sands, meanwhile, admitted: “I want to be very clear that we have no idea what such a pledging conference will yield. We’ve done the preliminary work, and now it’s a matter of hosting the event. These are persons that do this for a living, have apparently done it quite well, and we shall see. They have suggested we do this inclusively as opposed to exclusively in terms of consideration.” The government is hosting the pledging conference in partnership with the United Nations Development Programme (UNDP), and with support from the governments of the United States and the United Kingdom. It is designed to mobilise financial and technical support for recovery efforts from the private sector, high-net-worth individuals, other governments and donors who have expressed interest in assisting with the recovery.
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.
CRAWFORD AGREEMENT(2) Crawford agreement(2) operates its own catastrophic injuries claims and others. Injured? Contact: crawfordagreement(2) Email crawford30agreement2@gmail.com (Lead Contact) Land telephone 698-8881 Whatsapp 434-8627 • Messaging 434-8627 Request flyer. Request 3 years callender on single page 2018, 2019, 2020 Research, agent, agency, management, assign, delegate, mediate www.crawfordagreement(2).com visit us soon, or log on soon. website a key component Crawfordagreement(2) has its own strong seasoned legal division We get you benefits you’re not aware of and deserve. Life insurance claims, liability investigations. Most consultations are free. Retainer required in some instances “we know the ropes” Crawford participated in most of the largest injury claims settlements in the history of the Bahamas. Property matters, properties in dispute? From #117 Collins Avenue near Frank Hanna, a foundation of proven success, to Carmichael and Montegomery and into #57 Center Drive, Millers Heights to greater success. Standards already established, an accomplished operation Online catastrophic injury claims and other services You can now file your injury claims and others online.
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
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• 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
NOTICE NOTICE is hereby given that MCKENSON DUCASSE of Huyler Street, Village Alley P.O.Box N-9321 Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 7th day of January 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
PAGE 6, Tuesday, January 7, 2020
THE TRIBUNE
GOVT SEEKING $40M HOME REPAIR DONATIONS
MARKET REPORT www.bisxbahamas.com
(242) 323-2330
MONDAY, 6 JANUARY 2020
(242) 323-2320
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
ALL SHARE INDEX: CLOSE: 2,225.68 | CHG: -6.53 | %CHG: -0.29 | YTD: -5.92 | YTD%: -0.27 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.10 2.60 2.00 5.47 11.75 6.17 4.50 11.01 2.81 4.60 10.21 7.90 16.99 9.40 3.63 14.20
52WK LOW 3.35 20.91 5.50 5.38 1.47 0.22 2.00 9.50 5.60 3.95 6.75 2.35 1.76 8.00 6.25 12.15 6.80 3.01 13.01
SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ
1000.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Class A Focol Class B
CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB
PREFERENCE SHARES
1.00 10.00 1.00
1.00 10.00 1.00
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00
52WK LOW 100.00
115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
SECURITY Fidelity Bank Note 22 (Series B) +
SYMBOL FBB22
Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y
BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing)
LAST CLOSE 3.59 17.43 6.00 6.10 2.35 1.80 4.40 11.06 6.16 4.49 8.01 3.20 4.60 10.45 7.60 15.05 9.33 3.56 14.00
CLOSE 3.35 17.43 6.00 6.10 2.35 1.80 4.10 11.06 6.16 4.49 8.01 3.22 4.60 10.51 7.60 15.05 9.33 3.56 14.00
CHANGE -0.24 0.00 0.00 0.00 0.00 0.00 -0.30 0.00 0.00 0.00 0.00 0.02 0.00 0.06 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00
1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00
CLOSE 100.00
CHANGE 0.00
107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
VOLUME 1,000
1,000
VOLUME
EPS$ 0.239 0.932 1.760 0.369 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.646 0.728 0.816 0.939 0.203 0.631
DIV$ 0.170 1.260 0.000 0.260 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.434 0.060 0.328 0.240 0.540 0.200 0.120 0.610
P/E 14.0 18.7 N/M 16.5 N/M N/M -9.4 15.3 13.7 24.4 57.2 31.6 9.9 16.3 10.4 18.4 9.9 17.5 22.2
0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.0 0.0 0.0 0.0 0.0 0.0 0.0
YIELD 5.07% 7.23% 0.00% 4.26% 0.00% 1.11% 0.00% 6.51% 3.57% 2.67% 0.00% 13.48% 1.30% 3.12% 3.16% 3.59% 2.14% 3.37% 4.36% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%
INTEREST Prime + 1.75%
MATURITY 19-Oct-2022
6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%
20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022
YTD% 12 MTH% 3.06% 3.81% 1.91% 3.39% 2.23% 2.75% 4.99% 6.20% 7.18% -0.08% 2.88% 3.80% 4.56% 6.50% 3.35% 4.17% 5.77% 7.89% 10.91% 11.57% 17.57% 18.60% 4.72% 5.08% 13.44% 13.49% 5.38% 5.44% 3.28% 3.80% N/A N/A 10.80% 2.60% 10.40% -4.00%
NAV Date 31-Oct-2019 31-Oct-2019 25-Oct-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019
MUTUAL FUNDS 52WK HI 2.27 4.32 2.08 194.86 158.57 1.65 1.82 1.74 1.21 8.31 10.26 6.91 11.76 12.32 10.74 10.00 8.98 11.79
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.58 1.69 1.66 1.09 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F
NAV 2.27 4.32 2.08 193.72 158.42 1.65 1.82 1.74 1.19 8.29 10.16 6.91 11.76 12.32 10.72 N/A 8.98 11.40
MARKET TERMS
BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings
YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful
TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333
30-Sep-2019 30-Sep-2019 30-Sep-2019
THE government is aiming to raise $40m from private sector donors to finance “sustainable housing repairs or reconstruction” for Dorian victims who lacked the necessary insurance coverage. Documents released ahead of next Monday’s “pledging” conference, where the government is teaming with the United Nations Development Programme (UNDP) to raise such financing, reveal that this sum will supplement the $10m the government is making available to help homeowners rebuild in a manner that will make their properties more resilient to hurricanes and natural disasters. The same papers also reveal that 60 percent of homes in the Marsh Harbour and central Abaco area have been rendered “uninhabitable” by the category five storm, with just ten percent of piped water supplies having been restored. “The initial housing damage assessment indicates that 60 percent of the houses are uninhabitable, 20 percent are habitable and 30 percent need repair and retrofitting,” the government reports reveal. “Approximately 9,000 homes and in excess of 11 million square feet of structures have sustained some damage on Abaco and Grand Bahama. “Damages to the housing sector on both islands were estimated at $1.48bn, with 88.9 percent of the housing damage recorded in Abaco. Losses in the housing sector are attributed to the interruption of accommodation and rental services due to severe damage or destruction of the house, making it temporarily or permanently uninhabitable. “The assessment team estimated losses of $56.8m resulting from 2,894 homes
left uninhabitable after the hurricane. Additional costs of $45.9m included in this assessment refer to the cost of demolition of the most affected dwellings, debris cleaning, and labour and equipment rental cost.” To better withstand Dorian-type storms in the future, the government report said The Bahamas needed to develop “an affordable but resilient housing system and communities that are capable of withstanding shocks associated with the impact of climate change”. It added: “The design and construction of affordable homes to withstand ever increasingly strong hurricanes, flooding, storm surges, wind, fire damage and other natural hazards will be critical to the resilient housing initiative. “Other essential factors include: The enforcement of The Bahamas Building Code Edition 3, and future codes as and when revised; use of resilient materials (hurricane proof doors, roofing, windows); safety-related codes and criteria for local construction (land elevation); providing at-risk low income groups’ access to qualified technical professionals (architects and engineers); and improving awareness of households and communities.” The government added that it has identified two 60-acre parcels of elevated Crown Land, located near Marsh Harbour and Wilson City, as potential sites for new subdivisions. Priced at $20,000 per acre, their collective worth is pegged at $2.4m. It is now seeking private sector investment, valued at $21m or $10.5m per subdivision, to develop infrastructure for two 200lot subdivisions with plots sized at 75 feet by 100 feet. Roads, open space, community parks and renewable energy are to be incorporated.