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WEDNESDAY, JANUARY 31, 2018

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Contractors’ WTO ‘survival’ threatened by no regulation

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net and NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemdia.net

T

he Bahamian Contractors Association’s (BCA) president yesterday warned it was “critical to our survival” under WTO for the Government to finally enact regulation of the $2 billion industry.

Leonard Sands told Tribune Business it was “beyond urgent” that the Construction Contractors Act be enforced, as the absence of regulation left the industry totally exposed to being overwhelmed by foreign competition within two years if the Government’s World Trade Organisation (WTO) accession target is met.

The BCA chief said he had yesterday written to Desmond Bannister, minister of works, requesting that he meet with the Association’s Board “to

* ‘Beyond urgent’ for Gov’t to enact Act * Association seeks Ministerial meeting * ‘Time slipping’ to protect $2bn sector discuss the possible negative impact of WTO on an unregulated building industry”.

Mr Sands added that Mr Bannister, as minister responsible for the construction industry, simply needed to implement the regulations accompanying the alreadypassed Act - and appoint the Board that will oversee its operation - to initiate the oversight regime.

Without it, he expressed fears that Bahamian contractors and other industry players could be squeezed out by increased competition from foreign rivals exploiting a liberalised trade environment to grab an even greater share of locally-based projects.

The ongoing absence of a licensing and certification regime, showing what

LEONARD SANDS each Bahamian contractor is capable of doing, has often been blamed for foreign developers’ reliance on overseas construction companies, and Mr Sands yesterday implied that WTO membership could exacerbate this trend unless the Minnis administration acted swiftly.

Referring to the “looming impact” of WTO, he said: “I wrote to the

Minister [Mr Bannister] today, requesting that our team and he have a sit down to discuss the possible negative impact of WTO on an unregulated building industry.

“Everyone in the WTO the Caribbean and beyond - has an opportunity to participate in your country.

You can imagine that we’re not prepared, we’ve not had the time to train people and get them ready for competition. We will have people from Jamaica, Antigua and Grenada looking at this market, next to the US, and saying: ‘Why not come here?’

“We have to prepare for that kind of involvement in this industry. With the construction industry not being regulated, as it is now, we’re

SEE PAGE 6

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RBC: Only university graduates need apply

By NATARIO MCKENZIE Business Reporter nmckenzie@tribunemedia.net A TOP Royal Bank of Canada (RBC) executive yesterday cited the inadequate Bahamian education system for forcing it to “adjust” its recruiting policy and target university students/graduates for even the most basic positions.

Tim Rider, RBC Caribbean’s senior vice-president of sales, told RoyalFidelity’s Economic Outlook conference that the Bahamas cannot allow the education ‘status quo’ to persist if it is to be competitive in the global economy. “The single biggest factor, in my view, that is now and will continue to lead to income and wealth inequality in the Bahamas is the inadequate education and training of its citizens,” he warned.

Mr Rider said poor educational

achievement, coupled with the Bahamas’ one:one exchange rate peg with the US dollar, places the country at a significant disadvantage when international companies look to invest.

Highlighting RBC’s own experience, Mr Rider said the bank has seen a “significant deterioration” in its ability to hire persons at the entry-level customer service representative post. He blamed this on many Bahamians lacking the basic math skills to perform their duties successfully.

“We are adjusting our recruiting policy towards only considering university students and/or graduates for all roles, including what we can consider the most basic. This is a continuing narrowing of opportunities for the Bahamian populace, and will provide a negative impact on income and wealth equality,” Mr Rider said.

RBC’S MIDDLE CLASS MORTGAGE GB CHAMBER CHIEF FEARS MORE CLOSURES * LESS HOPE AFTER PM’S GRAND APPETITE ‘SEVERELY DIMINISHED’ LUCAYAN APPRAISAL

By NATARIO MCKENZIE Business Reporter nmckenzie@tribunemedia.net

A ROYAL Bank of Canada (RBC) executive yesterday said its appetite to lend mortgages to middle and lower class Bahamians was “substantially diminished” due to inadequate market infrastructure. Tim Rider, RBC

* BANK CALLS FOR CREDIT BUREAU REFOCUS * NEEDS TO ‘SPEED UP’ CLOSURES, DIGITAL MOVE * COMPANIES, WEALTHY PLAN ‘ESCAPE ROUTES’

Caribbean’s senior vicepresident of sales, told the Royal Fidelity Economic Outlook that as a result the Canadian-owned bank was now focused on “affluent” borrowers when

$1m factoring scheme in SME funding ‘firsts’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A “first ever” $1 million accounts ‘factoring’ scheme aims to aid “well over 100” Bahamian small businesses immediately following its summer 2018 launch. Omni Financial Group, the Bahamian

SEE PAGE 7

* IDB TEAMS WITH LOCAL PAYMENT PROVIDER * PARTNERSHIP TO BOOST SME CASH FLOW, GROWTH * WILL ALSO IMPOSE ‘LONG-TERM DISCIPLINE’

it came to home lending.

With many potential borrowers too heavily indebted to take on a mortgage, Mr Rider also pointed to the

SEE PAGE 4

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Grand Bahama Chamber of Commerce’s president yesterday expressed concern that further Freeport businesses may close following the Prime Minister’s more downbeat appraisal on the Grand Lucayan sale.

Mick Holding told Tribune Business he was surprised to hear Dr Hubert

* ‘A BIT SURPRISED’ FROM MORE DOWNBEAT TONE * FREEPORT RESORT PRIORITY, BUT ‘AIM FOR BOTH’ WITH GINN Minnis tell the nation that the sale of Freeport’s ‘anchor resort’ property was “far from completed”, given that the Prime Minister had indicated that the Wynn Group purchase

would close by end-February 2018 barely a month earlier.

Dr Minnis, in his televised address, only said the

SEE PAGE 5

PAGE 2, Wednesday, January 31, 2018

THE TRIBUNE

Aliv unveils $45,000 BFSB sponsorship ALIV has entered into a $45,000, three-year exclusive telecommunications sponsorship with the Bahamas Financial Services Board (BFSB).

The partnership, which began in November 2017, will result in funds being donated to the BFSB through cash or technological services.

Gravette Brown, Aliv’s chief business developer, said: “Aliv believes in innovation and technology, and wants to be on the cutting edge of infusing the same into many industries.

The Bahamas Financial Services Board will provide a platform for us to do just that with the financial services world.

“We live in a global community which is constantly changing, and so this partnership will no doubt assist both organisations in using international best practices.

Aliv always wants to be on the cutting edge as we look

CORRIE SEYMOUR, ALIV business analyst; Tanya McCartney, BFSB chief executive and executive director; and Gravette Brown, chief ALIV business developer. at ourselves as more than just a mobile telecommunications company, and the BFSB will help with this.”

Tanya McCartney, BFSB’s chief executive and executive director, added: “We have formalised a strategic plan to collaborate on matters that are of mutual interest and benefit to both entities. We have determined to partner on matters relative to financial technology (FINTECH) to create a better understanding of

the opportunities within the Bahamas to leverage technology to grow this important financial sector. Our emphasis will be on education and training. Together, we will seek to drive the process of developing the strategic plan for FINTECH in the Bahamas.”

As part of the agreement, ALIV will work closely with BFSB on marketing strategies to support growth, development and sustainability.

OVER 170 ATTEND SEMINAR ON FINTECH POSSIBILITIES MORE than 170 executives from over 50 companies attended last week’s financial technology (FINTECH) seminar hosted by the Bahamas Financial Services Board (BFSB) and ALIV. “FINTECH is changing the way that we do business, and it’s imperative that we understand the opportunities and create an environment to leverage them. We are very pleased with the interest expressed by our members,” said BFSB’s chief executive, Tanya McCartney.

The seminar began with a presentation by Brandon Caruana of

Sterling Financial Group.

He has more than 15 years’ experience in planning, developing and managing the successful roll-out of complex technology projects, and addressed ‘Blockchain Assets’ and the ‘Distributed Economy’.

Brian Jones, Deltec Fund Services’ managing director, and Christel Sands-Feaste, partner at Higgs and Johnson – two members of BFSB’s FINTECH Working Group - gave a presentation on opportunities for the Bahamas in this area, policy considerations and the next steps.

The event was moderated by Gravette Brown of Aliv. BFSB created a FINTECH Working Group in November 2017 to explore opportunities for the financial services sector to leverage technology in its repositioning and growth.

The group’s main focus currently is education, and increasing awareness of FINTECH opportunities in the Bahamas.

It is working on drafting a policy position on FINTECH, which will make recommendations to the Government on how to best create an environment conducive to its growth.

THE TRIBUNE

Wednesday, January 31, 2018, PAGE 3

FAMILY ISLANDS TOLD: ‘DON’T BAHAMAS TO ADOPT UN MISS A BEAT’ ON BANK EXITS MODEL ARBITRATION LAW

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

FAMILY Island residents were yesterday told by a Bahamian payments solution provider: “Don’t worry about a thing” when it comes to commercial bank pull-outs.

Dr Johnathan Rodgers, the Omni Financial Group’s founding partner, pledged that the company was “on the way” to fill the void left

by Royal Bank of Canada (RBC) and other Canadianowned banks as a result of multiple branch closures.

Their actions have left some locations, such as Long Island, without a functioning commercial bank, but Dr Rodgers’ said Omni’s planned expansion

over the next 18 months would result in it providing “banking-like services” throughout the Bahamas.

Describing the bank exits as part of the “creative destruction” he had identified in his recent Bahamas Business Outlook address, Dr Rodgers said: “Banks can be moving out of the Family Islands, and maybe the Bahamas, but with the help of the Inter-American Development Bank (IDB) and blessing of the Central Bank of the Bahamas we’ll be providing bankinglike services in the Family Islands.

“We plan to do this in each of the Family Islands over the next 18 months.

Family Islanders, I don’t want you to miss a beat.

Don’t worry about a thing.

We’re on the way. I guarantee you our services will be faster, friendlier and cheaper. If not, we will pay for the transfer ourselves.”

Maria Attademo-Hirt, the Inter-American Development Bank’s (IDB) Bahamas country representative, said electronic payments providers such as Omni could ensure that this nation does not “close the door” on Family Island communities hit by commercial bank withdrawals.

She added that the bank exits were occurring for “reasons we can understand”, and suggested new business models were required for financial inclusion and ensuring Bahamian communities were not underserved by financial services.

By NATARIO McKENZIE Business Reporter nmckenzie@tribunemedia.net

THE Bahamas is aiming to adopt the United Nations (UN) model law on arbitration, Cabinet minister said yesterday.

Brent Symonette, who was speaking at the opening of Royal Fidelity’s Economic Outlook conference, said: “We hope to adopt the UNCITRAL model of arbitration.

“We can bring arbitration here as an alternative for dispute resolution.We will look at the whole question of arbitration while still maintaining a dual system for local arbitration as opposed to international arbitration.”

The comments by the Minister of Financial Services, Trade and Industry and Immigration came after the sixth annual arbitration and investment summit on Monday. Speaking with Tribune Business last week, Datuk Professor Sandra Rajoo, director of the

BAHAMAS FACING SQUEEZE BETWEEN CHINA AND US

By NATARIO McKENZIE Business Reporter nmckenzie@tribunemedia.net THE Bahamas must leverage its relationships with the United States and China “strategically” to achieve its own development goals, a global affairs specialist said yesterday, adding that this requires a strong governmental system.

Jamie Metzel, one of the featured speakers at the Royal Fidelity Economic Outlook conference, said: “The Bahamas, because of where it is, will always have - and need to have - a very close relationship with the United States.

“At the same time, China is moving very aggressively in this region, and I have not the slightest doubt that there will come a time when the Bahamas in some way will be like Jamaica [and] be faced with a very difficult and gut wrenching choice.

“Right now, the smartest thing for the Bahamas to do is hedge between the US and China. The problem is the Bahamas doesn’t have that much leverage, particularly with China.

They are very smart and strategic. They have a goal of becoming a leading global, comprehensive power by the year 2050 and leading the technological revolution.”

Port facilities and highways are among China’s biggest and most visible projects in the Caribbean, along with the multi-billion dollar Baha Mar resort, the largest resort project undertaken by China Construction America (CCA).

Mr Metzel added: “In addition to smart hedging,

not just playing one side against each other, it’s knowing where you would like to be, what are the Bahamas’ development goals, what are your human resource development goals and how in your position between the US, China and some other super power; how can all of these

relationships achieve your goals?

“That requires a very strong governmental system.”

Mr Metzel said that in the absence of a strategic development and human resources strategy, countries can find themselves in a ‘dangerous position’.

“There are some countries that are better organised and are using their relationship with China strategically, so that that as China builds these massive infrastructure projects their workers are being trained, they are getting the benefits and they are setting the agenda,” he said.

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Kuala Lumpur Regional Centre for Arbitration (KLRCA), recommended that the Bahamas adopt the United Nations model law on arbitration and have a single regime for domestic and international arbitration. His comments were backed by Dr Peter Maynard, the host of the arbitration summit. There are 78 countries in the world that have adopted UN model law. This is designed to assist states in reforming and modernising their laws on arbitral procedure, accounting for the particular features and needs of international commercial arbitration.

Mr Symonette said that as a signatory to the European Union (EU), the United Kingdom’s exit will have an impact on this jurisdiction. He said: “BREXIT poses some challenges as we look at the impact on trade, foreign direct investment and other technical assistance for a small island nation like the Bahamas and the rest of the Caribbean. It touches on many issues that my ministry has to deal with.”

PAGE 4, Wednesday, January 31, 2018

THE TRIBUNE

RBC’S MIDDLE CLASS MORTGAGE APPETITE ‘SEVERELY DIMINISHED’ FROM PAGE 1 continuing absence of a Bahamian Credit Bureau as an example of ‘inadequate market infrastructure’.

Legislation to create such a facility has been tabled in the House of Assembly, and is expected to be debated early in 2018, but the RBC executive said its non-existence meant that lending decisions were currently based on “imperfect information” with banks unable to properly assess the creditworthiness of individual borrowers.

And, defending RBC’s continued Bahamian branch closures and

drive to digital banking, Mr Rider said the bank needed to be “speeding up” - rather than slowing down - when it came to driving such change.

Amid all the complaints, he questioned whether a bank such as RBC should be committed to the Bahamas if this nation was “not committed to its own success’, arguing that reforms such as digital banking where necessary to drag the country to world-class norms.

Mr Rider also warned that Bahamian companies and wealthy individuals were setting up “escape routes” for their assets and families in case the Bahamian economy and government finances

continued to nosedive - confirming what multiple sources have recently informed Tribune Business about.

“The current mortgage lending infrastructure has substantially diminished RBC’s appetite for mortgages to the average Bahamian, and forced our focus up-market to those borrowers who are more affluent and have proven ability to repay their debt,” Mr Rider said.

“The mortgage lending infrastructure, and lending infrastructure in general in this country, needs to improve so that we can actually open the lending books.”

Mr Rider added that the mortgage market has largely been deserted by the local banks, with Commonwealth Bank, Bank of the Bahamas and Fidelity Bank (Bahamas) now all largely focused on consumer loans that are perceived as less risky because they can be secured via salary deductions.

The senior RBC executive said many potential borrowers are over-leveraged, further depressing the pool of borrowers who can potentially qualify for a mortgage. “From an aggregate perspective we see the country having over-leveraged consumers and over-leveraged businesses,” he said.

“Leverage at the sovereign level is a concern, but the VAT tax has indicated that the size of the economy is larger than originally thought, so the debt-to-GDP can be

turned, but it will have to primarily be through expense control back towards an investment grade rating.”

While many Bahamians will likely be further riled

by Mr Rider’s comments, having been antagonised

by RBC’s recent branch consolidations and Family Island withdrawals, they have major social and economic implications for this nation.

For they suggest that the dream of ‘owning a piece of the rock’ is increasingly being placed beyond the reach of middle class and average Bahamians, the majority of society, as a result of commercial bank risk aversion to mortgage lending.

This is a consequence of the fall-out from the 2008-2009 recession, which resulted in $600 million worth of non-performing mortgage loans clogging bank balance sheets and depressing profit performance, and the prolonged workout that followed.

The Bahamian economy, together with unemployment and salary levels, has yet to fully recover and this, combined with more stringent banking lending standards, has sharply reduced the origination of new mortgage loans.

This, in turn, has depressed the Bahamian housing market, resulting in sharply reduced work volumes for multiple professions that rely upon it - the likes of contractors, realtors, attorneys and other service providers.

The negative ripple effects have been felt

throughout the Bahamian economy for a decade, and Mr Rider yesterday identified structural impediments to increased commercial bank lending.

He said the Bahamas does not have a Credit Bureau, making it nearly impossible for lenders to truly understand the level of indebtedness of a potential client. “This means decisions are based on significantly imperfect and much more narrow information than we are used to having in Canada, the US and Europe,” Mr Rider said. “While I know it is on the legislative docket, an expedited focus would be highly recommended.”

While he did not identify other ‘inadequate mortgage infrastructure’, Mr Rider may also have had in mind the Homeowners Protection Act passed by the former Christie administration. While the goal was to make struggling borrowers more secure in their home, the Act is viewed as having had unintended consequences.

Sir Franklyn Wilson, the Arawak Homes chairman, previously called on the Government to “urgently review” the Act, branding it “a real disaster” for the Bahamas’ struggling mortgage market.

A well-known Progressive Liberal Party (PLP) supporter, he criticised the Christie administration for “unnecessarily rushing” the Act into law so it could meet a 2012 manifesto promise prior to the May 10 general election.

He argued that it imposed overly-burdensome

restrictions on what banks and other mortgage lenders “can and cannot do” in relation to their distressed properties, and introduced concepts and definitions that were unworkable in practice. K P Turnquest, the Deputy Prime Minister, subsequently said the Government would conduct just such a review.

Mr Rider, meanwhile, said RBC has made significant investments in its digital app and point of sales (POS) technology. He added that it had to make “hard choices” to ensure the bank can survive.

“I have been asked many times to slow down and give folks time to adjust,” said Mr Rider, who argued: “We cannot be slowing down. In fact, we need to be speeding up.”

He posed the question: “Should a global lender like RBC be committed to the Bahamas if the Bahamas is not committed to its own success?”

Mr Rider said that without change to bring the Bahamas towards world-class norms, it will continue to fall behind.

“Wealthy Bahamians and companies are limiting their investments in the Bahamas at this time, given their current exposure levels, as well as setting up financial escape routes for their families should the Bahamas continue to deteriorate financially,” he added.

“While we understand the prudence of this as a risk manager and banker, it is a detriment to the Bahamian economy.”

THE TRIBUNE

Wednesday, January 31, 2018, PAGE 5

GB CHAMBER CHIEF FEARS MORE CLOSURES FROM PAGE 1

Grand Lucayan’s sale would close “this year”, and Mr Holding was fearful that the absence of a better-defined timetable could cause some businesses - especially those in the Port Lucaya Marketplace and the surrounding area - to lose hope.

Pointing out that there were still 11 months to go in the year, the GB Chamber chief said the sale and re-opening of the Grand Lucayan held more importance for Grand Bahama’s economy than the $2.56 billion revival of the former Ginn project at West End that was much touted by the Prime Minister. Mr Holding, though, quickly acknowledged that west Grand Bahama “badly needed” renewed investment activity, and said residents there would argue that developing the ex-Ginn sur mer site was more important than the Grand Lucayan.

Arguing that the Bahamas, and Grand Bahama, should “aim for both” projects to get going, Mr Holding said each was critical to reviving the island’s economy and reducing the unemployment rate.

“I think that probably, but I doubt it will come first, the Grand Lucayan will have a greater impact on the general economy of Grand Bahama,” he told Tribune Business.

“There are a lot of businesses hanging in there, just waiting for the hotel to

re-open, and if something doesn’t happen quite soon some of those businesses will go under.”

Mr Holding added: “It’s not just the jobs in the hotel; there’s a whole infrastructure around there; restaurants, bars and retail, that depended on the hotel for their trade. Many have closed, others are hanging on, but may also close down.”

Admitting that he was taken aback by the Prime Minister’s more downbeat assessment, he told Tribune Business: “Before Christmas I think the statement was January/ February 2018.

“This year has got 11 months to run, and that’s quite a difference between January and February. I was a little bit surprised, I must admit. I think some of them [Port Lucaya area businesses] will hang on if there’s something positive; they’ll think: ‘At least there’s a lifeline there’.

“I think what’s going to happen, as things get tight or tighter and there’s still no deadline, some of them may go under I’m afraid.

That’s my concern.”

Dr Minnis, in his national address, switched quickly from the Grand Lucayan to the potential acquisition of the former Ginn project by Torontobased investor/developer, Skyline Investments, and its Grand Palm Beach Acquisitions vehicle.

Mr Holding described the purchase, if it closes, as only “positive” for

West End and the wider Grand Bahama economy in terms of job creation and increased economic activity.

“It’s going to create permanent jobs out there, not only in West End, which badly needs employment and regeneration, but also the rest of Grand Bahama,” he told Tribune Business.

“That community [West End] has suffered enormously for many years, and was badly beaten up in Hurricane Matthew.

This will certainly help the economy out there.”

Mr Holding also expressed hope that Skyline would invest as heavily in the West End community as Ginn has done.

Skyline Investments, which is listed on the Tel Aviv Stock Exchange, describes itself on its website as having $500 million in assets. It specialises in real estate investment and development related to the hotel/resort industry.

It describes itself as “sourcing new acquisition opportunities to grow and diversify its cash flow in North America”, with an emphasis on geographical diversification.

Current properties include the Hyatt Regency at The Arcade in Cleveland; the Renaissance Cleveland Hotel; Bear Valley Ski Resort in California, plus a variety of mixed-use resort developments throughout Canada.

Dr Minnis, unveiling the group’s plans, said: “Grand

Beach Acquisitions will construct, repair, revitalise, develop and operate 246 rooms in three hotels; a banquet facility; 116 branded hotel residences; 1,000 other residences; a hotel/casino site; approximately 150,000 square feet

of shops and restaurants; a spa and wellness retreat; two marinas; an 18-hole golf course including driving range; an IFR-rated airport; a resort hospitality training academy; and an organic farm.

“Grand Palm Beach Acquisitions intends to repair, revitalise and develop the property, to be known as ‘Bahama Bay’, in nine phases over a 10-year period with a projected expenditure of $2.56 billion.”

PAGE 6, Wednesday, January 31, 2018

THE TRIBUNE

Contractors’ WTO ‘survival’ threatened by no regulation FROM PAGE 1 in a more risk averse position than we’d like to be. It’s something the Government has to move on quickly before 2019. It is critical for the survival of our industry, and persons who have invested their life in providing construction services in this country.”

Whether the Bahamian construction industry is opened up to foreign contractors and workers, and to what extent, has yet to be determined. Much will depend on the feedback provided by the sector to the Government, since it is best-placed to identify the potential opportunities and threats presented by the

WTO’s liberalised, rulesbased trading regime.

Once this happens, it will then be up to the Bahamas’ WTO negotiating team to try and incorporate this position into the final terms governing this nation’s accession to full membership. Given that the construction industry is already relatively open, due to foreign developers’ reliance on overseas firms, it is unlikely that the Bahamas will be unable to close the sector to such competition.

“He just needs to appoint the Board, the Construction Contractors Board, and put in place the regulations,” Mr Sands said of the actions required by Mr Bannister.

The construction industry remains the last Bahamian profession to enjoy selfregulation, which would be overseen by the Board through its enforcement of licensing, certification and regulatory standards.

Without it, Mr Sands said Bahamian contractors, subcontractors and tradesmen - plus affiliated industries such as building materials suppliers - could be placed at “a huge competitive disadvantage” by WTO membership. “We have to prepare for it,” he told

Tribune Business. “We have to conduct training courses, all kinds of business courses to help our contractors and vendors deal with this outside competition.

“We have to deal with that, prepare for that. If not, it’s going to be a shock.

Some of them [overseas contractors] come strongly capitalised. Any time you add a lot of competition, it’s going to be difficult for the local market. We need the Government to recognise the risk.

“We have an unregulated sector and we’re inviting the world to play in it, that’s the risk we’re running right now,” Mr Sands continued. “WTO allows for everyone to come on a level playing field and enter your market. Our market is a $2 billion unregulated industry.

“If you have companies coming from larger economies, and with more experience, it would certainly be to the detriment of the local companies, tradesmen and contractors.

We’re not there yet; to be able to take on a $1 billion company from Jamaica, for instance, or $100 million.

“One or two companies may be able to compete, but what about the smaller

N O T I C E

NOTICE

EXXONMOBIL EXPLORATION AND PRODUCTION NEW OPPORTUNITIES (TWO) LIMITED ____________________________________

EXXONMOBIL EXPLORATION ANDPRODUCTION NEW OPPOTUNITIES (TWO) LIMITED

N O T I C E IS HEREBY GIVEN as follows:

______________________________________________________

Creditors having debts or claims against the abovenamed Company are required to send particulars thereof to the undersigned c/o P.O. Box N-624, Nassau, Bahamas on or before 21ST day of February, A.D., 2018. In default thereof they will be excluded from the benefit of any distribution made by the Liquidator.

(a)

EXXONMOBIL EXPLORATION AND PRODUCTION NEW OPPORTUNITIES (TWO) LIMITED is in dissolution under the provisions of the International Business Companies Act 2000.

(b)

The dissolution of the said Company commenced on the 11th day of January 2018 when its Articles of Dissolution were submitted to and registered by the Registrar General.

Dated the 31st day of January, A.D., 2018.

(c)

The Liquidator of the said Company is R.W. Rice, of 22777 Springwoods Village Parkway, Spring, Texas 77389, U.S.A.

R.W. Rice Liquidator 22777 Springwoods Village Parkway Spring, Texas 77389 U.S.A.

Dated the 31st day of January, 2018

MARKET REPORT t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

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BAHAMAS GOVERNMENT STOCK - (percentage pricing) 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

MUTUAL FUNDS 52WK HI 2.12 4.14 1.98 178.69 153.40 1.53 1.70 1.62 1.10 6.99 8.54 6.15 10.52 11.46 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.47 1.62 1.56 1.04 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 3.90 17.43 9.09 3.34 1.00 0.18 3.68 8.70 6.10 4.70 9.01 2.68 1.50 9.13 6.00 10.45 6.24 4.47 12.51 10.00

CLOSE 3.90 17.43 9.09 3.34 1.00 0.18 3.68 8.70 6.10 4.70 9.01 2.68 1.50 9.10 6.00 10.45 6.24 4.47 12.51 10.00

CHANGE 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 -0.03 0.00 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

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 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

110.18 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.56 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

110.74 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial 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

VOLUME 115

20

VOLUME

NAV 2.12 4.14 1.98 178.69 153.40 1.53 1.70 1.62 1.10 7.16 8.40 6.29 11.28 11.60 10.21

EPS$ 0.475 0.932 -0.508 0.540 -1.220 0.000 -1.462 0.611 0.583 0.171 0.631 0.102 0.330 2.670 1.129 0.729 0.484 0.298 0.543 0.000

DIV$ 0.080 1.130 0.000 0.230 0.000 0.000 0.000 0.300 0.220 0.120 0.690 0.060 0.050 0.565 0.290 0.500 0.150 0.120 0.580 0.000

P/E 8.2 18.7 N/M 6.2 N/M N/M -2.5 14.2 10.5 27.5 14.3 26.3 4.5 3.4 5.3 14.3 12.9 15.0 23.0 0.0

YIELD 2.05% 6.48% 0.00% 6.89% 0.00% 0.00% 0.00% 3.45% 3.61% 2.55% 7.66% 2.24% 3.33% 6.21% 4.83% 4.78% 2.40% 2.68% 4.64% 0.00%

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 0.000 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 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST 6.00% Prime + 1.75%

MATURITY 31-May-2018 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% 4.00% 4.39% 5.57% 5.69% 2.14% 2.44% 4.66% 3.89% 5.58% 6.65% 4.34% 4.34% 1.83% 1.83% 3.30% 3.30% 4.03% 4.03% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

NAV Date 31-Dec-2017 31-Dec-2017 31-Dec-2017 31-Dec-2017 31-Dec-2017 31-Dec-2017 31-Dec-2017 31-Dec-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017 30-Nov-2017

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 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

of opportunity to take advantage of a regulated construction industry will be lost.

“If we do not do that, we’re going to do the reverse and put ourselves in a bad position for WTO, which we have committed to doing in 2019.”

The Construction Contractors Act promises to yield significant benefits for the industry, consumers and the wider Bahamian economy if it functions as intended. The Act when implemented, will introduce a system of licensing and self-regulation, where Bahamian contractors are certified according to their qualifications and scale/ scope of work they are capable of undertaking.

This would place them on a ‘level playing field’ with foreign contractors, enabling them to better compete for multi-million dollar contracts on foreign direct investment (FDI) projects that come to the Bahamas because their capabilities are certified.

It will also give consumers greater protection.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, DONALEE FERGUSON intend to change my name to DONALEE BERNICE CURRY. 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 the publication of this notice.

NOTICE

NOTICE is hereby given that JOVENEL PIERRE-LOUIS of 26 Hamilton Sub-Ramsey St., P.O.Box CR-54595, 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 January, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, Bahamas.

NOTICE

HARRY B. SANDS, LOBOSKY MANAGEMENT CO. LTD. Registered Agent for the above-named Company

TUESDAY, 30 JANUARY 2018

companies doing $500,000 to a $1 million worth of work? We need to create a playing field and environment where local companies can benefit and prosper.”

Calling for the Government to have the Construction Contractors Act in force “prior to 2019”, Mr Sands said he was “trying to find every means to get in his [Mr Bannister’s] face to get this done”.

“This is beyond urgent,” the BCA chief reiterated. “We need to have the Board sitting and doing the work that the Act provides for, as well as the regulations that currently exist within the legislation. The regulations will give more protection because when you open everything up, you’re opening up for everyone to participate.

“The BCA is most concerned that the timeline to regulate the construction industry is slipping away.

The time is slipping away fast, and if we don’t do what it is necessary to do we are concerned that the window

NOTICE is hereby given that GUERRY CHARLES of Minnie Street and Balfour, 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 January, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, Bahamas.

NOTICE

NOTICE is hereby given that ROSANDRA JOSEPH of Boatswain Hill, Carmichael Road, P.O.Box SS-6582, 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 January, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, Bahamas.

NOTICE

NOTICE is hereby given that ELIE MONDESIR of Minnie Street , 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 January, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, Bahamas.

NOTICE

NOTICE is hereby given that JOSEPH ALEXANDER RUSSELL of Cotton Wood St., Pinewood Garden, P.O.Box SS-19830,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 24th day of January, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, Bahamas.

NOTICE

NOTICE is hereby given that JULIE LUBIN of Blue Hill Rd South, 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 January, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, Bahamas.

THE TRIBUNE

Wednesday, January 31, 2018, PAGE 7

$1m factoring scheme in SME funding ‘firsts’ FROM PAGE 1 payments solutions provider, yesterday hailed its partnership with the InterAmerican Development Bank (IDB) as potentially boosting cash flow, growth and customer base for local micro, small and mediumsized enterprises (MSMEs).

With the IDB’s Multilateral Investment Fund (MIF) providing the financing, Omni will effectively act as its ‘executing agency’ by making small loans secured against the accounts receivables (debts) owed to qualifying Bahamian MSMEs by their clients.

This is known as ‘factoring’, which is commonplace in most economies, but has never been done in a structured way in the Bahamas.

The Bahamas Agricultural and Industrial Corporation (BAIC) will work with Omni to identify potential lending clients, and develop the benchmarks and rules that MSMEs must meet to qualify for the micro loan facility.

Harvey Morris, Omni’s chief executive, told Tribune Business that while the scheme would boost access to capital for an ‘underserved’ element of the private sector, it will also impose “long-term discipline” on MSMES when it comes to financial management.

He explained that the ultimate goal was to enable MSMEs to grow to the point where they could access more traditional forms of capital, such as debt financing provided by commercial banks, thereby stimulating economic growth, entrepreneurship and job creation.

Mr Morris suggested Omni’s IDB

DONALD TOMLINSON, Omni’s chairman; Michelle Evans, IDB; Harvey Morris, Omni chief executive; Maria Attademo-Hirt, IDB’s Bahamas country representative; Dr Johnathan Rodgers, Omni founding partner; and Michael Alexiou, Omni director partnership was “the first time that factoring has been done” in such a structured way in the Bahamas, with the parties “leaning towards” a model where the payments solutions provider paid the full invoice value - minus a small discount - to the MSE upfront.

While some factoring schemes only pay a proportion of the invoice value, Mr Morris added that the preferred model would better “increase the supplier’s [MSME] cash flow”.

“We are going to work with known purchasers and suppliers, and once the supplier has delivered the products his invoice is brought to us,” the Omni chief explained.

“We will discount the invoice at an amount to be determined, because we got an exceptional rate on this facility from the IDB, and those funds will be paid to the supplier immediately.”

Using a 5 per cent discount rate as an example, Mr Morris said Omni would pay the supplier $9,500 on a $10,000 invoice.

The payments provider would then treat the invoice as its own receivable, collecting repayment from the borrower’s client after onethree months depending on the payment terms.

Mr Morris said the scheme aimed to enhance MSME cash flow and liquidity by giving them instant funds to restock inventory, enabling them to start the product and supply cycle much quicker than if they were waiting for client payments.

“The benefit for them is to replenish their inventory,” he explained to Tribune Business, “and it also gives them the opportunity to negotiate sales with suppliers [clients] who they will not normally deal with now because those

suppliers have a longer payments cycle.

“The SME may have put all of his money in because financing may be difficult for him, so all funds go into products. He has a good receivable, but how does he replenish inventory to produce another set of products?”

Mr Morris said this was the problem that Omni’s partnership with the IDB is seeking to solve, and he suggested that “well over 100” MSMEs will be assisted “in the very early stages”.

“The intent is to try and provide the funding to persons who don’t have any access to financial services; credit services,” he told Tribune Business.

“We’re looking at farmers, we’re looking at cottage industries, we’re looking at persons providing services to the Government. “This year our [Omni’s] focus is

on providing financial inclusion to MSMEs. It’s badly needed, but a lot of people, because they’re not aware of the service, they have a receivable and wait it out while their business suffers.

“In speaking to members of BAIC, once we started the education process, everyone gave us a scenario where the product could have helped them if available before.”

Mr Morris said Omni had been working on the factoring product’s development for 18 months prior to yesterday’s formal unveiling, with its actual launch scheduled for summer 2018.

He added that the IDB will now arrange for Omni’s team to visit other countries that employ MSME factoring schemes, so it can obtain “complete knowledge” before completing its own version; “The next step is the completion of the conditions

precedent,” Mr Morris said.

“A key one is entering into an agreement with BAIC to assist in the screening of SMEs, and further review and development of the final product for approval by the IDN and our Board.

As far as the process is concerned, we have probably another three to six months to complete the next phase.”

Seeking to manage expectations, he added that yesterday’s signing with the IDB did not mean the factoring scheme will launch today.

“This does not mean the IDB will disburse the funds to us and we’ll be lending tomorrow,” Mr Morris said.

“It requires a lot more due diligence,” added Mr Morris.

He explained that one of the conditions required to qualify for factoring is the presentation of an invoice to “a reputable company that can settle that invoice on the due date”, thereby minimising risk for Omni and the wider programme.

“The short term benefit to the sector is the capital,” Mr Morris told Tribune Business, “but the longterm benefit is financial discipline and chance to demonstrate their ability to serve a facility from a commercial bank.

“It’s our hope many of these clients will be graduated.

“This product was tailormade for us by the MIF in the Bahamas. And the IDB continues to encourage us to provide financial inclusion for all.”

The $1 million represents the first time the MIF, the IDB’s private sector arm, has made a nongrant disbursement in the Bahamas.

PAGE 8, Wednesday, January 31, 2018

THE TRIBUNE

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