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BPL’s 15% fee ‘cost neutral’ by August By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMAS Power & Light (BPL) is hoping to make the extra charge associated with its $650m refinancing “cost neutral” for consumers by August 2020, its chairman revealed yesterday. Dr Donovan Moxey, confirming that the National Utility Investment Bond levy will likely be equivalent to 15 percent of every consumer’s monthly per kilowatt hour (KWh) consumption, said BPL hoped to cancel out its impact within months of its planned March 2020 introduction. He told the Bahamas Business Outlook conference that this will be achieved through the recently-installed 132 megawatt (MW) of new generation capacity at Clifton Pier, whose 30 percent greater efficiency

means they will reduce the fuel costs that make up 50-60 percent of BPL customer bills. And Dr Moxey said the planned switch from automotive diesel oil (ADO), currently the most expensive fuel source available, to heavy fuel oil (HFO) would reduce BPL’s generation costs by a “further 30 percent”. Combining these two savings gains, he added, should offset the addition of the new debt servicing charge and ultimately ensure customers’ total bills do not increase following the initial “hit”. The BPL chairman, who revealed that its imminent $650m Rate Reduction Bond (RRB) placement is the first of its kind in the Caribbean, also defended the refinancing from concerns voiced by conference attendees.

SEE PAGE 6

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Sea level rise threat to 15% of Bahamas’ GDP By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

HE Bahamas is among the top four nations forecast to be hit hardest by rising sea levels, a rating agency warned yesterday, with up to 15 percent of annual GDP and 11 percent of its people in peril. Moody’s, unveiling an assessment about the longterm threat to sovereign creditworthiness posed by climate change, drew on multiple studies to identify The Bahamas - as well as Vietnam, Egypt and Suriname - as the four countries most threatened by rising sea levels resulting from global warming. Describing the outlook as a “material credit risk”, Moody’s also voiced concern that The Bahamas’ efforts to combat sea level

• Nation among top-four exposed countries • Moody’s warns on ‘material credit risk’ • Says Bahamas’ response ‘uncoordinated’ rise “lack co-ordination” among government institutions and are made more complicated because much coastal, low-lying land is in the hands of private owners such as major resorts. Drawing on a World Bank study, the credit rating agency - which currently has The Bahamas barely maintaining investment grade status, one notch above so-called “junk” - said only Vietnam and Suriname faced more severe economic consequences in a worst-case sea level rise scenario. The Moody’s report, published as the Bahamas Business Outlook

conference focused on resiliency in the face of climate change and natural disasters, disclosed projections that a one-metre sea level rise would submerge 11.6 percent of this nation’s total land mass. This, in turn, would endanger 4.7 percent of annual economic output (Gross Domestic Product), given the tourism industry’s reliance on coastal sites, and 4.6 percent of the Bahamian population. However, the impact is much more extensive should sea levels rise three metres, as this would swallow 31 percent or almost one-third - of all land in The Bahamas.

And the threat to the economy would also be three times’ greater, with 14.5 percent of GDP in jeopardy, along with the lives of 10.5 percent of the Bahamian people. “Different studies yield similar results,” Moody’s warned. “Countries including Vietnam, The Bahamas, Egypt, Suriname and some in the Gulf are highlighted, with up to ten percent to 25 percent of the population or GDP exposed. “The greatest inundation by proportion of land area would be in The Bahamas, followed by Vietnam and

Shell: Bahamas ‘front runner’ on clean energies BPL chair admits: ‘We’ve lost trust of our customers’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A SHELL executive yesterday said The Bahamas can be “a real front runner” in adopting cheaper, more environmentallyfriendly fuels through New Providence’s proposed new multi-fuel power plant. Markus Hector, Shell LNG marketing and trading’s general manager for market development, said the choice of liquefied natural gas (LNG) as the plant’s main fuel opened up other opportunities beyond

resolving the island’s longstanding energy crisis. With an LNG regasification terminal and pipeline due to be constructed at Clifton Pier by 2022 to accompany the power plant, Mr Hector said it also provided a foundation to supply the fuel to Bahamas-based industrial companies, the Family Islands and passing cruise ships. “Having the infrastructure here and the fuel here, there’s opportunities in industrial use, opportunities in the Family Islands, and

SEE PAGE 7

Residents to receive $500m in reinsurace

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

THE Central Bank’s governor yesterday said Bahamas residents were in line to receive 50 percent of the more than $1bn in reinsurance settlement inflows to cover Hurricane Dorian losses. John Rolle told the Bahamas Business Outlook conference: “Collectively, it is estimated that more than $1bn in such settlements will cover Dorian’s losses - the highest amounts

JOHN ROLLE ever received. The portion of inflows to local residents will exceed $500m. A healthy level of receipts will also help

SEE PAGE 8

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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMAS Power & Light’s (BPL) chairman yesterday admitted the utility has “lost the trust of most of our consumers”, while also conceding: “Our customer service is terrible.” Dr Donovan Moxey, addressing the Bahamas Business Outlook conference, pledged that the state-owned monopoly will undergo a “customer centric” cultural transformation as part of the $650m bond refinancing that aims to finally place it on a sustainable financial footing. He argued that BPL’s

SEE PAGE 4

• Also concedes: ‘Customer service terrible’ • System so ‘antiquated’ can’t detect outages

DR DONOVAN MOXEY 17-year financial crisis, sparked by the ill-judged 2003 cut to its base tariff, had prevented the utility from investing in staff training and skills upgrades as well as its generation

plant and transmission and distribution (T&D) infrastructure. BPL is aiming to reverse this by using some of the $650m refinancing proceeds to establish a “state of the art” customer service centre by the 2020 second quarter, as part of its drive to “right the ship”. It will also invest $30m in smart meters, with the chairman admitting that its grid infrastructure is so “antiquated” it often does not know when electricity supply is out, and in which areas, due to T&D woes.

Dr Moxey said he had personally stood in bill payment queues to “understand the pain and frustration”, and promised that all BPL’s front office staff will be “trained to talk to, and empathise with”, long-suffering consumers who have had to put up with high costs, ever-increasing load shedding and unreliable supply for years. The BPL chairman added that all foreign contractors hired by the utility will also be mandated to provide

SEE PAGE 5

PAGE 2, Friday, January 17, 2020

THE TRIBUNE

Healthy employees are best producers

LMOST everyone has a New Year’s resolution to take control of their personal health. Losing weight has certainly been at or near the top of the list for those coming out of an intense December featuring too much turkey, ham and fruit cake. Companies should consider reasonably simple ways to help their team members get in shape. Healthy employees are happy employees, and happy employees are productive employees. Good health essentially equates to good business. Take a look at eight health and wellness options that each employee can take to their human resource teams for immediate implementation: 1. Water breaks and easily accessible water stations. While you are at it, make the water areas exciting. Since most people still have challenges getting the necessary water intake, some motivation could go a long way. Flavoured water, carbonised water, sparkling water and fruit water, along with the regular purified water options, might spice things up a little. Perhaps appoint a water boy in the office whose job it is to ensure that everyone gets a healthy intake of water each day. If water is the natural cure to 90 percent of the illnesses affecting humans, surely this policy makes good business sense. 2. Balanced work load. Since stress is a major cause of ill-health, and work is a major cause of stress, works loads must be properly managed if employees are to lead healthier lives. Proper delegation of assignments, empowerment by

providing all the tools and resources required, and a solid Employee Assistance Programme to combat those overwhelming seasons in an employee’s life will all add value to the company’s wellness platform. 3. Reduced stress levels. Sometimes the stress at work has little to do with the work, but more with the environment. What might help, then, is a management style that creates a relaxed yet productive environment. Employee satisfaction surveys and leadership training might help in creating the atmosphere employees feel excited to show up to. 4. Rest periods. Children in kindergarten immediately after lunch take a journey on the sleep mat. Teachers have a lounge area separate and apart from their classrooms where they can retreat during their break periods. The average employee has nowhere to go when they just need to take a breather. A nicely-furnished lounge with comfortable seating, and possibly a futon couch, will help your team members collect themselves for the 30 minutes of retreat we all need during the course of the day. 5. Lights out…Go Home. We all know workaholics who convince themselves that they need their work and that it fulfils them. Some employees simply need to be kicked out of the office, and just made to leave the premises until the next day when office hours resume. A healthy work-life balance for every employee should be the goal of all companies. 6. Mandatory vacation times. This one needs no explanation really. No one should become so crucial to the operation that you cannot do without them for a few weeks. The two to five

IAN FERGUSON BY

weeks of paid vacation that your team members are entitled to should all be taken. No questions asked. The change of scene is good for their health. 7. Healthy cafeteria options. If your company has no café, then that is step one. Start small and outsource a healthy choice breakfast/ lunch provider. Balanced means are an absolute must if we are to live healthy, productive lives. 8. Creating a gym room and starting an exercise class. Fitness is probably the first thing people consider when the conversation of health and wellness comes up. A shower and basic gym room can really add value to the work experience. Perhaps partnering with a local gym or contracting an aerobics instructor for two hours each evening is the right fit for your company. Whatever works, just do something. • NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@ coralwave.com.

GB LAW FIRM GAINS MARITIME HONOUR A GRAND Bahamabased practice has been named Shipping & Maritime Law Firm of the Year for The Bahamas for the second year in a row. “It is truly amazing, and we all feel blessed to be recognised by the definitive guide to the world’s leading law specialists,” said Arthur K. Parris, founding partner of ParrisWhittaker.

“To win this prestigious award two years in a row is beyond humbling. This is just more motivation to keep finding new ways to serve our incredible clients.” Lawyers World’s awards recognise the law firms and individuals that have achieved excellence in their particular field of expertise in their geographic area.

The nominations come from Lawyers World’s individual law partners and senior management subscribers. The nominations are then assessed by their in-house team of experts. “This has been a phenomenal 12 months for ParrisWhittaker. And this award is the culmination of our team’s hard work,” added Mr Parris.

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Friday, January 17, 2020, PAGE 3

Bahamas ‘top of the heap’ before Dorian By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Bahamas was “top of the heap” prior to Hurricane Dorian with its 17 percent hotel occupancy growth leading the Caribbean, a top regional tourism executive said yesterday. Frank Comito, pictured, the Caribbean Hotel and Tourism Association’s (CHTA) director general, told the Bahamas Business Outlook conference: “The Bahamas was off in a big way before September 1. You were running actually next to Bonaire at the top of the heap in terms of percentage growth, running at 17 percentage growth at that point on tourism year-on-year. “You can see in THE prime minister yesterday pledged to combat fraud and corruption in the use of Hurricane Dorian relief donations following Monday’s $1.5bn “pledging” conference. Dr Hubert Minnis told the Bahamas Business Outlook conference: “In this new era, we must utilise the very best practices in combating the potential for fraud and corruption in the collection and use of donor funds. “The maintenance of the good name and the reputation of The Bahamas is essential as we seek the support of domestic and international partners in the rebuilding and the renewal of Abaco, the Abaco Cays and Grand Bahama.” The Prime Minister Minnis reaffirmed that “the United Nations Development Programme (UNDP) will oversee the design, establishment and administration of The Bahamas Recovery and Reconstruction Fund”, which will be jointly governed and administered by the UNDP and the government. The latter’s National Disaster and Reconstruction Authority will serve as the fund’s manager and executing agency. Dr Minnis also hit out at what he branded as “confusion in the public square” over Monday’s pledging conference, which has focused on concerns that almost two-thirds of the $1.5bn pledged is being offered as a public-private partnership (PPP) loan structure rather than a donation. He said, “Unfortunately, some who were not present at the event seem

“contagion” risk for both The Bahamas and wider Caribbean, with media coverage leading many travellers to believe this whole country was devastated by Dorian rather than just two islands. He recalled how Hurricane Maria had a similar effect on the whole Caribbean in 2017, even though it struck just Dominica, Puerto Rico and the US Virgin Islands. “Look at Hurricane Maria in 2017,” Mr Comito said. “Before that the Caribbean was having one of the best years ever. In fact, I think it was on track to exceed stopover arrivals for over 30m visitors. Hurricane hits, and received visitor arrivals all dropped for the entire Caribbean. “In fact, only six destinations - less than 25 percent

of the region - were hit by Hurricanes Irma and Maria. Seventy-plus percent was not even having a bad hair day. So you see that it has a contagion effect, just like it has in The Bahamas.” Recalling how the Caribbean “lost over one million visitors, and some $900m in revenue”, due to the 2017 hurricane season, Mr Comito said the region had rebounded by having the “right kind of messaging out there”. It was now beating a 40-year trend analysis that the CHTA helped produce in conjunction with the World Tourism Council on how long would it take destinations take to bounce back following disasters, with shuttered hotels now back on line. Mr Comito, though,

PM in pledge to combat Dorian donation misuse

discussions with other potential pledgers who will be added to the $1.5bn offered at this week’s conference. Dr Minnis also said the government is in the early stages of discussions with a leading US university to help with assistance, advice and expertise on how The Bahamas may better prepare for the effects of climate change. The government is also expected to partner with a number of leading international institutions on strategic planning for rebuilding Abaco, and for making other islands, including New Providence, more resilient. “Such intellectual and technical cooperation is as vital as various funding and financing mechanisms,” said Dr Minnis.

November the occupancy drop, so it was running yearto-date 65.5 percent, and then in November, year-onyear, it dropped a couple of points.” He voiced optimism, though, over The Bahamas’ prospects for a rapid post-Dorian rebound, saying: “It (tourism) is an incredibly resilient industry, despite what many of us think, as it rebounds quickly and it rebounds better.” Mr Comito said natural disasters presented a

BY YOURI KEMP | TRIBUNE BUSINESS REPORTER

PRIME MINISTER DR HUBERT MINNIS very confused and very poorly informed. Had they informed themselves they would not have made silly, confused and uninformed statements in the press. Some, who have an obligation to be more responsible, are irresponsibly making up false narratives of what happened.” Philip Davis, the opposition’s leader, has argued that the Hurricane Dorian pledging conference was nothing more than a “public relations exercise”, and challenged the government to identify the donors; the conditions they are seeking in return for providing funding; and to separate what is being borrowed from what is being donated. “Again, some seem not to understand what transpired or the nature of a donor conference,” the prime

minister replied: “The international community has come forward with various offers and pledges. “It is up to the Government of The Bahamas to carefully review these pledges and to decide what is best for The Bahamas and for the people and communities in affected areas.” Dr Minnis said there were “different types of funding pledged”, with loans only being one of them. Dr Minnis sought to reassure the public that “The Bahamas received pledges of financing, grants, technical assistance, intellectual assistance, humanitarian aid and other forms of assistance.The categories of pledges funding included: concessionary loans, equity, grants and guarantee financing.” He added that he had been advised the UNDP was in ongoing

warned Bahamians against “irresponsibility” by posting inaccurate social media information on the impact of future storms given how this could undermine recovery efforts. “You had a lot of Bahamians repeating misinformation on social media that instantaneously gets to the international media, who pick up on it,” he warned. “That’s a danger. Recovery and restoration is the responsibility of everyone. Doing irresponsible things like that impacts the lives of everyone.” Mr Comito said the

Ministry of Tourism needs to maintain “diligence” and continue to mitigate Dorianrelated fall-out, focusing on social media outreach and links with travel agents and travel partners, in addition to having promotional brand campaigns. He added that “a rapid response with accurate information is essential”, and said the CHTA will shortly be sharing a “regional crisis communications manual “ for the entire Caribbean to help with combating the negative messages that may hit countries which suffer a disaster.

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NOTICE TO ALL BENEFICIARIES In the Estate of AUDLEY C. KEMP SENIOR late of Waterloo Road in the Eastern District of the Island of New Providence one of the Islands of The Commonwealth of the Bahamas, deceased. NOTICE is hereby given that all Beneficiaries to Estate of The Late Audley C. Kemp Senior can review the Judicial Trustee Report as of June 2019 at SMS Chartered Accountants ,Compass Suites # 2 or Evans & Co, Shirley Street. Beneficiaries may review the report from Monday 20th January, 2020 to Monday 3rd February 2020 during the hours of 9:00am-5:00pm. If there are any questions, concerns or comments, please email or contact Ms. Sydnease Rolle.

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PAGE 4, Friday, January 17, 2020

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Ex-minister says $975m Dorian offer is ‘standard’ By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A FORMER Cabinet minister yesterday said The P3 Group’s $975m Dorian reconstruction offer is “standard” for the type of “pledging” conference that took place on Monday. Zhivargo Laing, pictured, former minister of state for finance in the last Ingraham administration, told Tribune Business: “I’m not familiar with that group, but is standard for pledge conferences to have operators of all kinds, to have public-private partnerships involved, so it is not typically just donations. It’s people offering their services, either as donations and/or as business propositions at some discounted rate for you.” When asked by Tribune Business if he expects all of the money pledged at Monday’s conference to materialise, Mr Laing replied: “I can’t say specifically about that because I don’t know the group that’s pledging. But I think it is conceivable that if The Bahamas government needed to borrow $1bn, it would have the means to do so.” The US-based P3 Group’s website says it is a commercial real estate firm, and boutique development and consulting operation, which specialises in business and community development through the creation of public-private partnerships (PPPs). Some 68.7 percent of The P3 Group’s $975m proposal is devoted to entirely

covering the government’s $670m post-Dorian healthcare “wish list”, which was provided to potential donors prior to Monday’s pledging conference at the Baha Mar Convention Centre. Wrapped into that $670m is $500m for a new hospital to replace Princess Margaret Hospital (PMH); $120m for the Rand Memorial Hospital’s successor; and $50m to reconfigure Abaco’s health clinics and care system. The remaining $305m of The P3 Group’s proposal is broken down into $155m for “other essential government facilities”, such as housing schools and airports; $100m for renewable and solar energy; and a final $50m for communitybased projects. However, the P3 Group has made it clear from the outset that its $975m “pledge” is not a donation but a loan that will have to be repaid by the government, Bahamian taxpayers and users of the new hospitals and other facilities it would construct over time. It is really offering a traditional PPP structure whereby it would seek a return on its investment, albeit at concessionary interest rates that it says could be as low as three

to four percent, although these terms would have to be negotiated should the government accept its offer. The P3 Group says the benefit of its proposal, where it would design, build, own/operate what it constructs for a 20-30 year period, recouping its investment through rent and user fees, is that it lessens the financial burden on the government to find such capital up-front. However, some observers believe it would have too much ownership/ control of key Bahamian infrastructure should the government accept its proposal in full. The group’s website says PPPs between a government agency and private sector company can be used to design, build, finance, operate and maintain projects, such as public transportation networks, student housing, college dining halls, parks and convention centres. It boasts clients such as the Mississippi Department of Transportation; the United States Navy and the United States Army Corps of Engineers; Burger King; Wing Stop; and the City of New Orleans. Tribune Business asked Mr Laing if the $1.5bn pledged was enough for the purposes of Dorian reconstruction, and he replied: “The reality is government has to keep pressing to do what it has to do until it has, and finds, the resources it needs to recover. So until that’s done, if another one [conference] is needed, I think we need to have another one.”

SEA LEVEL RISE THREAT TO 15% OF BAHAMAS’ GDP FROM PAGE ONE

Qatar.... Taking a broader view of exposure by combining several indicators (GDP, population, land area, agricultural area, degree of urbanisation, wetlands), Vietnam, Egypt, Suriname and the Bahamas feature among the most exposed countries. “In a scenario where sea level rise reaches three metres, Vietnam and Suriname are also the most exposed countries by economic output, followed by Benin and The Bahamas.” Other studies researched by Moody’s show that 100 percent of The Bahamas would be vulnerable to flooding and/or be submerged should sea levels rise by five metres. And Climate Central’s 2015 research estimated that two-thirds of the Bahamian population would be affected should a “locked-in sea level rise” occur under a scenario where global temperatures increased on average by three degrees Celsius. “If temperatures were to rise by three degrees Celsius (C), affected rated sovereigns would include Cayman Islands with 83 percent of the population submerged, Suriname (81 percent) and The Bahamas (67 percent),” Moody’s added. “If warming were limited to two degrees Celsius, the most affected sovereigns would be similar, but the share of population below sea level would reduce by two to 18 percentage points.” The Bahamas has already felt the brunt of climate change through Hurricane Dorian, which inflicted $3.4bn in losses and damage on Abaco and Grand Bahama, while also derailing the government’s

fiscal consolidation plan for at least three years by driving this year’s projected deficit to $677.5m and the national debt to $9.5bn over the medium term. Moody’s reiterated that The Bahamas was especially vulnerable due to its reliance on tourism for at least 40 percent of annual GDP, as most of the plant and infrastructure for its largest industry and economic engine are located on the coast. “Over time, coastal erosion or concerns about natural disasters may make some regions less attractive to tourists,” Moody’s warned. “For a number of small-island sovereigns, such as The Bahamas, Belize, Fiji or Maldives, tourism is a driver of economic activity, and a major source of export revenue and foreign exchange. “Permanently lower growth may weaken a government’s fiscal strength. Moreover, government compensation for lost income through higher spending or tax moratoria would widen budget deficits and raise debt. Among the sovereigns exposed to sea level rise, fiscal strength is particularly weak in Egypt, The Bahamas, Belize, Suriname and Tunisia. “While tourist inflows generally recover following natural disasters, the recovery period varies, and can be longer in the aftermath of more extreme events. In The Bahamas, storms or hurricanes have not hit key tourist destinations recently [apart from Abaco], but Hurricane Matthew in 2016 resulted in a slowdown in tourist inflows to Grand Bahama, which are yet to recover to pre-2016 levels.”

Moody’s also indicated that The Bahamas efforts to counter this threat to-date have been less than impressive, adding: “In The Bahamas, a regulatory framework is in place to curb the effects of sea level rise. However, a lack of co-ordination among institutions and a high degree of private ownership of coastal lands hamper these efforts. “Sea level rise and related shocks pose material credit risk to Vietnam, Egypt, Suriname, The Bahamas and other small island sovereigns, including Maldives and Fiji. The pace of increase in the frequency and severity of natural disasters related to sea level rise and the effectiveness of adaptation measures will determine the extent of the credit constraints that these sovereigns face.” Detailing the economic and social consequences of not acting, Moody’s added: “The economic and social repercussions of lost income, damage to assets, loss of life, health issues and forced migration from the sudden events related to sea level rise are immediate. The main credit channels for sovereigns are economic and fiscal strength. “Vulnerability to extreme events related to sea level rise can also undermine investment, and heighten susceptibility to event risk, by hindering the ability of governments to borrow to rebuild, increasing losses for banks, raising external pressures, and/or amplifying political risk as populations come under stress. While one isolated shock related to sea level rise is unlikely to materially weaken a sovereign’s credit profile, repeated shocks could do.”

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Friday, January 17, 2020, PAGE 5

Canadian trade mission to ‘matchmake’ locally By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

LAURIE PETERS

A CANADIAN diplomat yesterday revealed that 12 of Canada’s most “progressive” companies will be present today for a Dorian-related

reconstruction forum being held at the Melia resort. Laurie Peters, Canadian High Commissioner to The Bahamas and Jamaica, told Tribune Business that

BPL chair admits: ‘We’ve lost trust of our customers’

recent track record of daily load shedding/blackouts, unreliable supply and damaged equipment. This is likely why most persons are suspicious of BPL’s pledge that the impact of its $650m refinancing, which it is aiming to close by mid-February, will be “cost neutral” even though an extra charge - equivalent to 15 percent of each customer’s consumption - will be added to their bills from March 2020 onwards (see other article on Page 1B). “Our customer service quality is terrible. It needs to be improved,” Dr Moxey also admitted. “We recognise this, we’re owning this. All the executives that stood up [during the conference] are owning this. One of the most important things is to take responsibility and solve it. “We have to keep employees trained. We’ve had no money to do that. As a result of that, the kind of development we needed to do over the last 15 years we didn’t do. We’re committed to righting the ship. We’re also changing our culture around safety at BPL, making sure employees are safe and customers are safe. “I’ve stood on the line to understand the consumer’s pain and frustration. Sometimes you just call the number and it rings and rings and rings. We’re going to build a state-of-the-art customer service centre by the second quarter that will be open 24/7 and 365 days a year. “We will take responsibility, fix and own that.

FROM PAGE ONE

“training and knowledge transfer” to Bahamians as part of a strategy to “leapfrog up” when it comes to workforce competencies. Promising that employee and customer safety will also see a renewed focus, Dr Moxey acknowledged that BPL’s relationship with most of its 100,000-plus customers had broken down in recent months and years due to the utility’s poor service and frequent blackouts that imposed additional costs on both businesses and households. “What we’re doing here at BPL is we’re looking to right the ship,” Dr Moxey said. “We know it’s not been working individually, collectively, for many businesses and as a country. We know our customers are frustrated with us, we know some of our customers don’t like us and don’t think we’re going to fix the problem. We understand that. We want an opportunity to do so in ways we believe will help the entire country. “Most of all, at BPL we will rebuild the trust of our customers. Most of our customer don’t trust what we say. We know that, and are committed to rebuilding that trust.” Many Bahamian businesses and households are likely to greet Dr Moxey’s confessions and promises with scepticism given BPL’s

the delegation will spearhead the forum for Dorian relief. Affirming that the Canadian government has already “done much” on Hurricane Dorian relief efforts, Ms Peters said of today’s forum: “It’s not a funding session, but what we have done is that we have answered the call to make sure The Bahamas is open for business. “So we have brought in a trade delegation - a trade mission of 12 companies - with everything from renewable energy to infrastructure building materials to actively

engage not only with the government but with other Bahamian companies to look at how to build back better.” She said the forum will be “targeted” to suit the Bahamas’s needs, adding that it was being held on the back of yesterday’s Bahamas Business Outlook conference. The 12 Canadian firms have a broad range of expertise in areas that include “designing and implementing technologies that address climate related challenges.” Ms Peters said: “This is an opportunity to do some matchmaking to make sure

Every employee who goes in front of the customer will be trained in how to talk to, and empathise with, the customer. More important, we will build a culture that is customer focused and customer centric. We’re doing business like everyone else, albeit we’re a monopoly, but that should not stop us providing the best service and best product.” Dr Moxey affirmed that part of the $650m refinancing proceed will be “invested in our people”. He added: “I can tell you this, Bahamians. Every contractor that comes in here and works on transmission and distribution, part

of that engagement is training and knowledge transfer. “We’re going to build our people. We’re going to take the technology of today and leapfrog up. We can’t do that internally. We need outside help.” The BPL chairman added that the utility’s new procurement system was designed to “give opportunities to Bahamians”, as all firms had the opportunity to register on its portal. Dr Moxey, though, also hailed the evolution and widespread use of What’s App for enabling consumers to report to BPL when power was off in their area.

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NOTICE Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act, 2000, (As Amended) NOTICE is hereby given that JUKAJO LTD. has been dissolved and that the name has been struck from the Register of Companies with effect from the 20th day of December, 2019.

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we are aligned with the needs that have been identified, so it was great that on Monday at the pledging conference the seven priorities were clearly defined so we can align ourselves with those needs.” Dr Hubert Minnis, the prime minister, told the Bahamas Business Outlook conference that these seven priority areas are housing; the environment; debris clean-up; education;

health; infrastructure; and the economy. “From these reconstruction delivery plans, we have identified and prepared specific project concepts,” he added. Ms Peters, meanwhile, told the conference: “We, of course, provided important humanitarian assistance through funding $500,000 Canadian dollars to be immediately made available to the Red Cross.”

PAGE 6, Friday, January 17, 2020

THE TRIBUNE

BPL’s 15% fee ‘cost neutral’ by August FROM PAGE ONE Acknowledging that there was “no easy answer” to BPL’s financial quagmire, Dr Moxey admitted that it “cannot borrow another dime” without a government guarantee that would place further strain on an already-ailing Public Treasury. As a result, the utility has to “get out of this hole” by repaying its existing $321m by placing an extra burden on the backs of

households and businesses. Arguing that Bahamians had no choice but to “bite the bullet” as a result of poor decisions made by past governments, boards and management, Dr Moxey argued that BPL’s current strategy represented the “best solution” since it ultimately held out the promise that total customer bills will eventually decrease once the new multi-fuel power plant and liquefied natural gas (LNG) come on stream by 2021-2022.

NOTICE NOTICE is hereby given that MELVIN DEON ESTIME of Lewis Yard, P.O.Box F-40771 Freeport, Grand Bahama 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 17th day of January 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

“Initial estimates are that it will be 15 percent of the bill,” Dr Moxey confirmed of the debt servicing charge. “The average bill for consumers is $180, so that’s a $27 increase. We’ve developed a strategy on how to make this cost neutral for our consumers. “Given the plans we have in place, and if everything falls into line with the RRB in place by March, by August that cost will become cost neutral. You get a little hit, we recognise that, but our plan is to make sure that hit is not sustained over the life of the bond. “How do we do that? Number one: Generation. The new Wartsila engines are 30 percent more efficient. Then we will switch fuels from diesel to HFO and you will have a further 30 percent reduction. When all assets come on line, we will get rid of rental generation and the Blue Hills engines, and be running

high efficiency engines on the least expensive fuel, possibly by summer.” Dr Moxey’s remarks imply that Bahamian households and businesses may only see a hike in their total light bills, as a result of the National Utility Investment Bond fee’s addition, for four to five months during the 2020 Spring and early summer. That, though, remains to be seen, and BPL’s recent track record is unlikely to give consumers much comfort and confidence that this will become the reality following last year’s daily summer loading shedding and unreliable supply that destroyed valuable electrical equipment belonging to the private sector and homeowners. However, Dr Moxey yesterday added that the 132 MW supplied by Wartsila will soon be joined by 100 MW of existing BPL generation capacity at

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I,TAMIKA LYSHUN PAUL of Wilson Track, New Providence, Bahamas intend to change my name to TAMIKA LYSHUN EDGECOMBE. 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.

LEGAL NOTICE

NOTICE OF DISSOLUTION OF YELLOW SUN LIMITED Notice is hereby given that pursuant to Part IX, Section 138(4) liquidation of the above company commenced on the 15th day of January, 2020. Octagon Management Limited of The Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, The Bahamas has been appointed Liquidator of the Company.

NOTICE Pursuant to the provisions of Section 138 (8) of the International Business Companies Act (as amended), NOTICE is hereby given that Ze International Holdings Limited has been dissolved and has been struck from the Register with effect from 4th December 2019.

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

THURSDAY, 16 JANUARY 2020

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,215.21 | CHG: 29.38 | %CHG: 1.34 | YTD: -16.39 | YTD%: -0.73 BISX LISTED & TRADED SECURITIES 52WK LOW 3.35 20.91 5.50 5.38 1.60 0.67 2.00 9.50 5.60 3.95 6.45 2.35 1.76 8.00 6.30 12.15 6.80 3.01 13.50

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

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

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 3.35 17.43 6.00 6.68 2.35 1.62 3.51 11.06 6.00 4.40 6.49 3.23 4.60 10.67 7.60 15.05 9.33 3.56 15.20

CLOSE 3.35 17.43 6.00 6.68 2.30 1.62 3.51 11.61 6.00 4.40 6.50 3.28 4.60 10.70 7.60 15.05 9.33 3.56 15.20

CHANGE 0.00 0.00 0.00 0.00 -0.05 0.00 0.00 0.55 0.00 0.00 0.01 0.05 0.00 0.03 0.00 0.00 0.00 0.00 0.00

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

2,000 9,000 180 1,000

400 250

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 18.1 N/M N/M -8.0 16.1 13.4 23.9 46.4 32.2 9.9 16.6 10.4 18.4 9.9 17.5 24.1

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% 3.89% 0.00% 1.23% 0.00% 6.20% 3.67% 2.73% 0.00% 13.23% 1.30% 3.07% 3.16% 3.59% 2.14% 3.37% 4.01% 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% 3.93% 3.93% 6.38% 6.38% 4.50% 4.50% 7.96% 7.96% 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 31-Dec-2019 31-Dec-2019 31-Dec-2019 31-Dec-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 1.66 1.85 1.76 1.20 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 1.60 1.74 1.69 1.12 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 1.66 1.85 1.76 1.20 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

The challenge we’re in; I’m going to be honest with you. We’re all Bahamians. BPL cannot borrow another dime without the government guaranteeing those loans. “From a sovereign debt point of view, we’ve been downgraded because the government extended too much debt to entities that should stand on their own. To borrow more is a nonstarter,” he continued. “The RRB is the way to go to get the utility out of debt. “It’s a cost. It’s a cost all of us are going to have to bear. It’s a cost we’re going to have to bear because of decisions made before we came to the table.” Dr Moxey reiterated that the key decision was the one taken in 2003 by the late Bradley Roberts and Al Jarret, minister with responsibility for the thenBEC and board chairman, to cut the base rate that generated all the utility’s cash flow and profits below the cost of producing electricity. That turned average profits of $15m prior to 2003 into consistent annual eight figure losses. The cut, from 16.5 cents per KWh to 12.5 cents per KWh, was said to have cost BPL almost $1bn in lost revenues that could have otherwise been put to generation maintenance and upgrades, transmission and distribution infrastructure improvements, and other initiatives that would have improved its performance. “That’s the bullet we have to bite, the cost we have to share to improve the utility,” Dr Moxey said. “All we did was maintain the status quo and hope the problem would solve itself. We kept kicking the can down the road.”

Legal Notice

____________________________ Octagon Management Limited Liquidator

52WK HI 4.45 22.65 7.00 6.70 2.60 2.00 5.47 12.00 6.17 4.50 11.01 2.81 4.60 10.21 7.90 16.99 9.40 3.63 15.20

Clifton Pier, which is currently being serviced and refurbished. This, he added, will give the state-owned energy monopoly 230 MW “running off the least expensive fuel” in time for both peak summer demand and to hit the August “cost neutral” target on consumer bills. It will also enable BPL to finally start “ridding ourselves of rental generation”, which costs its $2m per month plus the expensive diesel fuel, and to no longer rely on the Blue Hills engines that failed last summer. Dr Moxey said BPL was aiming to place the bond issue by mid-February, even though it has yet to obtain a credit rating from the likes of Fitch, Standard & Poor’s (S&P) and Moody’s. Such a rating is critical to pricing the debt, and determining how much Bahamians will have to pay to service it, meaning that the “15 percent” charge cited by the chairman is yet to be finalised. Describing the existing $321m debt as a “ball and chain we’ve been carrying for a number of years”, the BPL chairman suggested that the proposed bond refinancing was the best option for dealing with a financial crisis that had no easy or quick fixes. “The debt was to the point where BPL required government support,” Dr Moxey told the conference. “That’s unsustainable, and we have to get ourselves out of this hole. Yes, it’s a cost of about 15 percent on the bill, but understand that we want to mitigate that cost impact so that it’s cost neutral. “As we become more efficient as an organisation, our costs are going to go down. That’s in the long-term.

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

Magdaline Carey and Tachaka Mullings LIQUIDATORS c/o Clairmont Trust Company Limited Pineapple Grove #5 Lyford Cay P.O. Box SP-64284 Nassau, Bahamas Legal Notice

NOTICE Pursuant to the provisions of Section 138 (8) of the International Business Companies Act (as amended), NOTICE is hereby given that Jael Investments Limited has been dissolved and has been struck from the Register with effect from 02nd October, 2019. Lorna Kemp and Magdaline Carey LIQUIDATORS c/o Clairmont Trust Company Limited Pineapple Grove #5 Lyford Cay P.O. Box SP-64284 Nassau, Bahamas

THE TRIBUNE

Friday, January 17, 2020, PAGE 7

Shell: Bahamas ‘front runner’ on clean energies FROM PAGE ONE

opportunities as the cruise lines, in particular, and other vessels, are rapidly switching to LNG,” he explained. “There’s an opportunity for The Bahamas to be a real front-runner and create opportunities for the people of The Bahamas.” Dr Donovan Moxey, Bahamas Power & Light’s (BPL) chairman, yesterday confirmed the government’s intention to offer shares in the new power plant to “rank and file Bahamians” and others via an initial public offering (IPO) once it became operational. He explained that the deal with Shell North America is being structured such that two companies will be created, one to hold the power plant, PowerCo, and the other to own the LNG pipeline infrastructure and regasification terminal, TerminalCo. Shell will have majority ownership in both entities, but Dr Moxey confirmed the structure has shifted from the power plant being a joint venture solely between BPL and the international energy giant to one where Bahamians will have an opportunity to invest via an IPO. Pointing out that electrical utility investments typically generate a nine to 11 percent return, the BPL chair said the government wanted to give Bahamians an opportunity to create wealth and compensate for the 15 percent charge being added to their bills to service the utility’s imminent $650m debt refinancing (see other articles on Page 1B). “We recognised that rather than just take from the Bahamian people, we would give

them an opportunity to own,” Dr Moxey said. “Bahamians will have an opportunity to have ownership in their own power plant. They have an opportunity to get a nine to 11 percent return.” He was unable to provide any details on the IPO, such as the percentage of PowerCo that will be made available for Bahamian public ownership; the price the shares will be sold at and the minimum subscription amount; and whether it will be BPL, Shell or both selling part of their equity interest as the two sides were still sorting out the details. Dr Moxey also disclosed that the LNG terminal will have “local investment” in it, although this will come from institutional investors such as the major investment banks, pension funds, insurance companies and the like. “The way we run our business we want to have strong local participation,” Mr Hector added. “We want to develop this as power complex and LNG terminal for The Bahamas in the best possible way, and get local investment in these entities as soon as possible. We confirm our intent is to get maximum Bahamian ownership in both these entities.”

Mr Hector added that negotiations between Shell and the government/BPL were “progressing extremely well”, and said: “I have been here the entire week. We had a very good meeting with BPL and the other government agencies... We have made significant progress getting our licenses progressed by the Bahamas Investment Authority, the environmental impact assessment and getting the land we need. We’re at an advanced stage.” The LNG terminal infrastructure will have to go over land owned by the likes of FOCOL Holdings and the late Tennyson Wells’ Source River group, with Mr Hector disclosing that a 20-25 year power purchase agreement (PPA) was being negotiated for the Shell majority-owned power plant to supply energy to BPL. Dr Moxey added that the two parties were aiming to conclude talks on the PPA and an asset purchase agreement by “the end of March” 2020. “Those are the very important initial agreements,” he said. “Once that falls into place, all the other agreements fall behind them.” The asset purchase agreement involves Shell purchasing from BPL both Clifton Pier’s Station A, which contains the latter’s recentlyinstalled 132 megawatts (MW) of new generation, and the 90 MW Station D for which construction is scheduled to start in March 2020 and be

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, ATTIAS SAINT REMY of Hanna Hill, Eight Mile Rock, Grand Bahama, Parent of SAINT REMY MICHEL intend to change my child’s name from SAINT REMY MICHEL to MICHEL SAINT REMY. If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

completed by August 2021. BPL has invested $95m in Station A, and will spend a further $70m on Station D. Dr Moxey said the price Shell will pay BPL for both facilities has yet to be determined, as he explained that both sides had decided the state-owned utility should proceed with construction due to their “very complex negotiations” that have yet to be concluded. “It’s better for BPL to cover the cost and Shell buy the plant from us,” he said, noting that talks between them began in mid-2018 leading to the

Memorandum of Understanding (MoU) in November 2018. Dr Moxey, meanwhile, added that BPL is “pushing Shell hard” to establish and agree a fuel hedging mechanism to ensure that the state-owned utility can fulfill its goal of providing price certainty and stability to consumers. Noting that BPL had passed up the chance to do this in 2016 when oil prices were $39 per barrel, Dr Moxey said hedging strategies - while did not necessarily guarantee the lowest price - locked

in fuel costs. He described this as a “game changer” for the Bahamian economy, investors and the private sector, as BPL would now be able to provide them with accurate forecasts on what their energy costs would look like as far as five to ten years out due to the price certainty. Dr Moxey said BPL was also pushing Shell to construct the LNG terminal in less than the 24-30 months it typically takes provided there were no “cut corners” on health and environmental safety.

PAGE 8, Friday, January 17, 2020

THE TRIBUNE

Residents to receive $500m in reinsurace

FROM PAGE ONE

non-residents finance their rebuilding.” Speaking on what the Central Bank is doing to ensure commercial banks and financial institutions have adequate access to foreign currency, Mr Rolle added: “For the Central Bank, our capacity to either stimulate the recovery or to give the lending institutions the scope to do so also depends on whether the external reserves, in combination with other access to foreign exchange, are able to finance imports of goods and services needed for a recovery. “The Central Bank has to satisfy this outcome while preserving the Bahamian dollar fixed exchange rate regime. This task always presents itself coincidental to a pause or slowdown in foreign exchange inflows from tourism activity.” Mr Rolle explained that the “buffer or access to foreign exchange during shocks” was derived from three sources. “The first is the outcome of our

deliberate efforts to accumulate foreign reserves in non-crisis periods”, while the “second means is through government borrowing for reconstruction. As public finances improve or get to a healthier state, it creates the necessary space to borrow or draw on external other financial arrangements in times of emergencies”. The third is reinsurance inflows from the international market. The Central Bank governor said 1,200 wallets were now operational in Exuma as part of Project Sand Dollar, the launch of the digital Bahamian dollar, with another 2,000 participants seeking to join. He said the initiative “has the potential to deliver on a longer-term resilient and deployable framework for financial access”. “Payments services connectivity can be swiftly restored in a wireless fashion after disasters, avoiding the cash shipment and cash handling frustrations,” he explained. “If necessary, aid could be dispensed electronically, and families allowed

to recapture their personal dignity, with flexibility to prioritise the elements of personal needs that they must satisfy post-disaster.” Some seven payments service providers are participating in rolling out the Sand Dollar app, ranging from money transfer agents to at least one commercial bank and other payment service providers. However, Mr Rolle defended the Central Bank’s policy of imposing a moratorium on the number of licensed payments service providers in The Bahamas as a way to protect the market’s integrity and its over-saturation to the point where no operator makes a profit. Two applications were left in limbo, but Mr Rolle said: “You are not going to get multi-million dollar rich by providing certain services in The Bahamas. In financial services, that is one of the areas where you don’t want to manage the fall-out consequences of business failures the same way you would manage it in other places.” “Eventually when we start to roll out financial technology, we are going to have to appreciate that payments is just one of the elements and there are a lot of other drivers and propositions we need to be thinking about.”

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