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TUESDAY, JULY 27, 2021
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THE GRAND LUCAYAN RESORT
DR DONOVAN MOXEY
JOHN ROLLE
Unpaid tax, utility bills to factor into credit track record By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Central Bank’s governor yesterday warned that unpaid tax liabilities and utility bills will factor into Bahamians’ credit scores once the nation’s first Credit Bureau begins issuing reports to lenders. John Rolle, speaking after the regulator designated Bahamas Power & Light (BPL), the Water & Sewerage Corporation, Bahamas Telecommunications Company (BTC), Cable Bahamas and Aliv as providers of information to the credit bureau, said utility bill - as well as loan - repayment “track records” will ultimately factor into assessments of Bahamians’ creditworthiness. “People should understand that the information sources that go into credit assessments are quite broad in other countries,” he told Tribune Business, “in terms of areas where people have unpaid liabilities. People need to be mindful there will be a continued review of information sources that matter. “We have studied what would be relevant in terms of the tax register. The [Credit Bureau] Act references tax liabilities. We continue to review registers that relate to certain tax liabilities to determine what would be the best approach and type of information.” Mr Rolle said Bahamians must “understand that if somebody is assessing you for creditworthiness and looking at your credibility, whatever track record you have out there, it’s going to predict the risk profile you have from lenders. To the extent people are generally current with those obligations, they benefit from having that type of information included in their scoring profile”. The Central Bank governor added that the Credit Bureau had already begun to collect borrower information from financial institutions, although he conceded there might be “an isolated institution” that had yet to make its first data submission. Money lenders that fall under the Securities Commission, as
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BPL chair asserts Shell negotiations ‘making progress’
Lucayan seeks $3m over water ‘damage’
By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
T
HE government-owned Grand Lucayan yesterday said it is seeking almost $3m in compensation from the Grand Bahama Port Authority (GBPA) for “the exorbitant loss and damage” caused by poor quality water. Michael Scott QC, chairman of Lucayan Renewal Holdings, the special purpose vehicle (SPV) that owns the resort, said it planned “to mount a claim” against the GBPA and its Grand Bahama Utility
• Moves to claim against GBPA for ‘devastating’ costs • Chair slams high salinity levels as ‘anatomy of failure’ • Paid $1.2m to GB Utility under govt’s ownership
MICHAEL SCOTT QC
Company (GBUC) affiliate over “devastating” repair and equipment replacement costs incurred since the government acquired the hotel almost three years ago. His July 26, 2021, letter to Philcher Grant, the GBPA’s director of group corporate affairs and government relations, repeated assertions that damage to the Grand Lucayan’s air conditioning (A/C) chillers and internal plumbing had been caused by a Grand Bahama Utility
THE Bahamas will enjoy “the equivalent of cruise ship home porting” if the government follows through on pledges to develop a fully-fledged yacht registry, Tribune Business was told yesterday. Peter Maury, the Association of Bahamas Marinas (ABM) president, said this nation’s maritime industry would receive a significant boost if this nation can establish itself as a “flag” state for the mega yachts and charter business it was able to attract during the COVID-19 pandemic’s peak. Besides tax and fee income for the government, he added that enticing these vessels to adopt The Bahamas flag would also encourage them to select this nation as their “home base”, bringing with them
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Tourism ‘90% unaffected’ by COVID-19 tightening
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
TOURISM industry executives yesterday voiced optimism that the industry’s recovery will not be impacted by the government’s tightening of COVID restrictions, with one asserting it will be “90 percent unaffected”. Magnus Alnebeck, general manager of Grand Bahama’s Pelican Bay resort, told Tribune Business in a messaged reply: “Honestly I don’t think it will affect tourism unless we are putting in restrictions that really impact tourists. Very few tourists leave their hotels or rental houses after 10pm, but there are obviously exceptions, so let’s say that 90 percent of tourism will be unaffected.” He was backed by Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, who stressed that it was more important that this nation
• BHTA chief: Must show serious on health • Reiterates vaccination key to end pandemic • But ‘definitely a step backward’ for Briland
ROBERT SANDS reduce domestic COVID-19 case numbers, save lives and ease the pressure on an overwhelmed healthcare system than worry about any immediate impact on an industry that is the primary growth, job and foreign exchange earnings creator. Speaking as it was revealed that a further 133 new COVID-19 cases were detected on Monday, Mr
Sands said it was vital that The Bahamas demonstrate to potential travellers that it treats pandemic-related safety and security with the utmost priority. “I don’t think it will have any impact,” Mr Sands said of the measures unveiled by the government on Friday. “I think the important thing is the demonstration we’re taking safety seriously. We have to get this COVID-19 situation under control and these are minimum measures to help control the spread in the islands of The Bahamas. “I think most people will agree that the measures put in place are positive from the point of view that the country is taking this whole COVID-19 safety and security issue very seriously. Nothing that has been done
Marinas seek ‘home port’ equivalent over yachting By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Company water supply that was “more than five times’ the safe or acceptable level of salinity”. Noting that this was based on test results and analysis of water samples by NALCO Labs, Mr Scott blasted “an anatomy of failure” over what he described as “the abysmal and unsatisfactory waterworks in Freeport”. He also questioned why there had
• ABM chief eyes ‘flag’ status and registry • PM and tourism minister voice interest • Charter fee portal gets $2m in five months the dockage, fuel, groceries and electricity consumption that goes with maintaining their conditions and operations. Describing the sector’s spending as more “street level” than that of hotel and cruise ship guests, with funds going directly into “Bahamian pockets”, Mr Maury said the prime minister and Dionisio D’Aguilar, minister of tourism and aviation, had already spoken to the ABM about doing what was necessary to develop a modern yacht registry. He added that The Bahamas’ Maritime Act would need to be amended and upgraded to achieve these ambitions, with “private charter yachts” better
defined and the limitations imposed by being a “red ensign” state eased, but asserted that the economic benefits were worth it. Mr Maury said Bay Street Marina, which he operates, had incurred a $58,000 electricity bill last month as a result of all the power that was consumed by vessels berthed at its docks. He added that the ABM’s SeaZPass online portal for collecting four percent yacht charter fees on the government’s behalf had garnered $2m in five months, while one 120-foot vessel present in The Bahamas for eight months had informed him that it had consumed almost $1m worth of local goods and services.
“The government has made huge steps in home porting, so hopefully we will get something for the marinas,” Mr Maury told Tribune Business. “We’re trying to get The Bahamas’ flag for private limited yacht charters. Those boats currently carry the Jamaican flag, and we eventually hope to get to that because it will be good for the country. “These boats would flag in The Bahamas, and this would basically be their home base. It would be the equivalent of home porting for the cruise ships. They’d be flagged under the Bahamas, and a lot of money and products they consume
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should have any impact on the tourism industry at this point. “What will have an impact on the tourism industry is if we don’t get this COVID19 situation under control. We have to monitor these trends. The fact we’ve put in place some concrete measures, it should stem this particular spike and we hope that actually does come true. It’s not going to have an impact on us just yet. We’ve taken the corrective action.” Bahamian hotels, in particular, are unaffected by the restaurant-related restrictions imposed on their off-property counterparts, which the latter have argued are discriminatory. While the one-hour extension of the
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BAHAMAS Power & Light (BPL) has made “significant progress” in negotiations with Shell North America for the latter to supply New Providence’s baseload electricity needs, its chairman said yesterday. Dr Donovan Moxey, while not providing any details, said talks on a power purchase agreement (PPA) with the multinational energy giant had reached a stage where BPL was “pretty comfortable” with progress made to-date. He added: “The PPA, we’re still in negotiations with Shell. We made some significant progress with them and we’re continuing to make progress with them. We’re working towards getting a PPA arrangement in place and so from our standpoint, which we have said all along, is we’re negotiating the best possible deal for the Bahamian people. “If, at the end of the day, we don’t determine that it’s the best possible deal then we have to look at other options. But at the end of the day we’re pretty comfortable with how things are progressing. It’s not final yet, but again this is another form of remit that we’ve never done in this country, a PPA. On top of that is what we call a baseload PPA, where we’re having a third party really take care of our base load generation.” Dr Moxey added that there were a lot of “intricacies” and “complexities” involved in the Shell North America talks. The latter has remained at the table even though its exclusivity expired late last year, giving BPL and the government “a free hand” to negotiate the best electricity prices for New Providence with any supplier that can meet their terms. The Shell North America deal would see the energy giant acquire from BPL some 225 megawatts (MW) of generation assets that have been built, or are due to shortly be constructed, at Clifton Pier. A liquefied natural gas (LNG)
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