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WEDNESDAY, SEPTEMBER 11, 2019

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disaster Lucayan chief aims to $100m loan drawdown ‘ratchet up’ sales talks ‘within 2 weeks’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE Grand Lucayan’s chairman yesterday said he is aiming to “ratchet up” talks for the resort’s sale given that Freeport needs an “economic booster” more than ever after Hurricane Dorian.

Michael Scott, who heads the governmentowned vehicle that controls the hotel, told Tribune Business he had already reached out to Royal Caribbean executives in a bid to “expedite” negotiations and was hoping to “schedule a meeting” by this Friday.

He revealed that the damage inflicted on the resort by the category five storm was “not as bad as feared”, with the Grand Lucayan faring much better than its experience

• Freeport needs ‘expedited economic booster’ • Dorian damage ‘not as bad as feared’ • Fared better than Matthew and fully insured

MICHAEL SCOTT with Hurricane Matthew in October 2016 - an event that triggered Memories’ departure and, ultimately, government intervention that purchased the resort from a Hutchison Whampoa affiliate.

While unable to provide

a dollar figure for Dorian’s damage, Mr Scott said the Grand Lucayan had been “fully insured” through RoyalStar Assurance and was now awaiting the arrival of loss adjusters so it could kickstart the claims process.

He added that Lucayan Renewal Holdings is now focusing on preparing the closed hotel to accommodate Dorian rescue and recovery teams, as Freeport was presently “not open for business”.

With government negotiators “supposed to convene soon” with the Grand Lucayan’s prospective purchasers, Royal Caribbean Cruise Lines and its ITM Group joint

venture partner, Mr Scott said Dorian’s destructive effects on Grand Bahama’s economy had motivated him to try and accelerate the sales process.

“What I’d like to do is ratchet up the process and expedite it,” he told Tribune Business, “because Freeport is going to need that economic booster. It needed it before, and we’re going to start.

“I’ve already had a preliminary chat, discussion with Royal Caribbean’s people, and I am going to be touching base and scheduling a meeting. I’m going to try and do that by Friday.”

SEE PAGE 4

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government will make its first drawdown on the $100m Inter-American Development Bank (IDB) disaster recovery loan facility “within the next two weeks”, a top official has confirmed.

Marlon Johnson, the Ministry of Finance’s financial secretary, told Tribune Business that the government was still finalising how the funding available from the IDB will be disbursed and how the drawdown will be split into different tranches.

“The status of that is we’re still finalising the disbursement process,” he said, when asked by this newspaper whether the government had yet accessed that credit line. “That should be completed shortly, and we also have to determine the

MARLON JOHNSON tranche payouts.

“There’s some internal things we have to do decide as a ministry as to how we want the money disbursed.

Those are happening right now. There’s some other things that we have to give to policymakers on how they want things to progress.

I would imagine in the next two weeks you will see the first drawdown on that.”

The $100m IDB contingent credit facility, put

SEE PAGE 6

Oban brushes off ‘insane’ Half of Dorian victims lack insurance cover warning over oil spillage • And up to 75% may be underinsured

By YOURI KEMP

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net OBAN Energies “remains confident” in the environmental soundness of its $5.5bn oil storage/refinery project despite warnings it would be “insane” to proceed given the post-Dorian spill.

Fred Smith QC, the Callenders & Co attorney and partner, yesterday urged the government not to continue negotiations with the developers after the devastation inflicted by the category five storm at South Riding Point highlighted the potential dangers of another oil-related facility in east Grand Bahama.

Speaking out after the near-environmental disaster at that storage and transhipment facility, Mr Smith told Tribune Business: “We cannot have an Oban operating here. We cannot have an oil refinery operating here.

“It’s insane to keep thinking about this. Given what has happened at South Riding Point it would be insane of the government to continue discussions with Oban. I urge them not to.

The only thing that saved a major oil-related catastrophe on the south-west coast is that the wind seemed to be blowing it north-west coming out of the south-east.”

Equinor, South Riding Point’s owner, has been forced to mobilise cleanup teams after Hurricane Dorian tore the roofs off several oil storage tanks and scattered an unknown quantity of the product

FRED SMITH QC across nearby land. To-date, it appears that the oil which leaked has not polluted the nearby sea and shoreline, although that has yet to be confirmed.

An Oban consultant yesterday told Tribune Business that the group had “reached out” to Equinor to offer its help in addressing the oil spill, and expressed confidence in the sustainability and “environmental friendliness” of its own proposal which is also focused in east Grand Bahama in an area closed to South Riding Point.

“Oban extends its condolences to the people of The Bahamas on the trail of destruction left by Hurricane Dorian,” the consultant said.

“Oban’s focus, at this time, is on the well-being of residents of Abaco and Grand Bahama on particular.

“Oban is quite aware of reports related to that oil spill. Without all the facts Oban will not give comment on the particulars of the oil spill, but has reached out to Equinor officials, and has every confidence that Equinor has the matter under control. Every indication and assessment suggests there is no cause for alarm.”

SEE PAGE 3

BAHAMIAN insurers yesterday warned that up to three-quarters of property owners in the areas Dorian hit hardest may be unable to gain full compensation for their losses.

Members of the Bahamas Insurance Association (BIA), addressing Dorian’s implications, highlighted the significant financial burden that may be imposed on the government and Bahamian taxpayers to finance rebuilding by suggesting that between 40-50 percent of impacted homes and businesses may be totally uninsured.

Timothy Ingraham, Summit Insurance Company’s president, responding to a question from Tribune

• Industry confirms $500m payout estimate • Payments to start today; premiums may rise

L-R: PATRICK WARD, president, Bahamas First; Glen Ritchie, president, Family Guardian; Warren Rolle, BIA chairman; Timothy Ingraham, president, Summit Insurance.

Business, said “anywhere from 40 percent to 50 percent of the persons in the affected areas are

uninsured, and some 75 percent are underinsured”.

Bahamian insurers have frequently warned their

clients to review the sums insured on their homeowners and personal contents policies, especially those who had purchased their properties before VAT’s introduction on New Year’s Day 2015, as the tax’s arrival may have resulted in their assets becoming under-insured.

Meanwhile, BIA members yesterday confirmed initial estimates that Dorian claims payouts could set an unwanted Bahamian record by coming in at over

SEE PAGE 5

BTC, Aliv at odds on post-Dorian roaming

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas Telecommunications Company (BTC) and Aliv are at odds over how long customers should be allowed to roam free of charge on each other’s networks in the Dorian-hit islands.

Garfield “Garry” Sinclair, BTC’s chief executive, yesterday told Tribune Business he was “hoping and praying” its main competitor would agree to permit free mobile voice and data services for 30 days on Abaco and Grand Bahama.

While the two mobile rivals have already implemented national roaming on each other’s network

• Two sides 16 days apart on GB, Abaco • BTC ‘hoping and praying’ for 30 days • Aliv seeks 14: ‘It can’t go on forever’ after being ordered to do so by the Utilities Regulation and Competition Authority (URCA), Mr Sinclair said they have yet to conclude an agreement on the terms of this arrangement.

He expressed surprise that Aliv executives had spoken publicly about the deal and given the impression that the terms it was seeking had been agreed, arguing that it was “premature” to have done so in the absence of a concluded agreement.

GARFIELD SINCLAIR

DAMIEN BLACKBURN

SEE PAGE 5

PAGE 2, Wednesday, September 11, 2019

THE TRIBUNE

BUSINESS COUPLE: ‘WE’RE NOT GIVING UP ON ABACO’

By DIANE PHILLIPS

T

WO business partners have promised they are “not giving up on Abaco” after their company was one of the few left standing by Hurricane Dorian.

Daphne de Gregory and her husband, Nick Miaoulis, both spent five hours holding their own against the category five storm by using their bodies like concrete blocks to keep dormer doors closed at their business, Abaco Neem.

A sheet of glass was all that stood between them and Dorian’s howling 220 mile per hour winds.

Together, they prayed, minute after minute, hour after hour. When one was nearly worn out and on the verge of collapse, the other prayed louder, offering up encouragement until the wind finally subsided.

“Daphne is my hero,”

THE ABACO neem store in Marsh Harbour isone of the few that could open for business following Hurricane Dorian.

said Mr Miaoulis. “She was so strong.” The couple had survived the storm atop the second floor of their Marsh Harbour business, and yesterday conceded they were among the luckiest. Theirs is one of the few businesses left standing.

“We’re not giving up on Abaco,” they said.

Mr Miaoulis added: “We

DAPHNE DEGREGORY AND NICK MAIOULIS

lost 40 percent of our farm, but we had over 10,000 trees and I can always plant more trees. I’m a farmer. I’ve been planting trees for 27 years.” Some of their equipment was damaged, and the cover over that equipment ripped to shreds.

The Abaco Neem founders were in Nassau on business yesterday, meeting with their insurers

and those who sell their products, before sharing their story with a Toastmasters group. The couple said they will never fully understand why they were spared.

“Why God let our building stand, why God let us survive, we will never know,” they said. “We just trust that good follows good.”

ABACO NEEM’S FARM AFTER HURRICANE DORIAN

Visiting Bahamas ‘best thing’ MSC CRUISES MEETS PM ON DORIAN RELIEF to help dorian recovery A CABINET minister has told international travellers that “the best thing they can do right now” to help The Bahamas is visit the islands that were not devastated

by Hurricane Dorian.

Dionisio D’Aguilar, minister of tourism and aviation, signalled that this nation and its major industry remain open for business given that the Category Five storm ravaged just two of its 16 commonly-visited islands.

“Maintaining a robust tourism industry will be vital in helping the country to recover and rebuild,” said Mr D’Aguilar. “We are

DIONISIO D’AGUILAR

grateful for the outpouring of support and love for our islands, and we would like everyone to know that the best thing they can do for us right now is visit Nassau, Paradise Island, and the Out Islands. Our beautiful island nation is ready to welcome you.”

The 14 islands unaffected by Dorian include New Providence and Paradise Island, the Exumas, Eleuthera and Harbour Island, Bimini, Berry Islands, Inagua, Andros, Cat Island, Long Island, San Salvador, Rum Cay, Acklins and Crooked Island, and Mayaguana.

THE US chairman for Mediterranean Shipping Company (MSC) Cruises, Richard Sasso, centre right, and other executives met with the prime minister, second left, at the latter’s office. They discussed Hurricane Dorian relief and recovery efforts in The Bahamas.

Photo: Yontalay Bowe/BIS

THE TRIBUNE

Wednesday, September 11, 2019, PAGE 3

BUILDING SUPPLIERS AWAITING ‘MAJOR PICK-UP’ IN DEMAND

By YOURI KEMP

claims payouts.

Mr Collins said he had to-date sent several items to customers in Green Turtle Cay, Abaco, and a large barge of materials to to Man O’ War Cay, Abaco.

He emphasised, though, that Tops Lumber has no plans to increase prices in the near future as a result of Hurricane Dorian. Mr Collins explained that the only event that would cause a dramatic increase in building materials prices for Bahamian consumers would be a major hurricane or other natural disaster impacting their foreign suppliers.

He added that inspectors from the Consumer Protection Commission visited the company prior to Hurricane Dorian making landfall, but to his knowledge Tops was in compliance with the law.

Meanwhile, Chris Lleida, Premier Importers

chief executive, said his primary concern was getting the company’s Abaco store operational again.

Expressing relief that it was not totally destroyed

by Dorian, he is aiming to reopen that location within two weeks.

Mr Lleida added that there were obvious obstacles to shipping goods and supplies to Abaco given the sheer scale of the destruction inflicted on infrastructure and properties. He said “patience and understanding” was needed to allow rescue personnel in Abaco time to carry out their work.

The Premier Importers chief said his prices were more likely to decrease than increase, especially since the Government has implemented the exigency order providing relief from import tariffs and VAT on materials imported for post-Dorian rebuilding.

Oban brushes off ‘insane’ warning over oil spillage

friendly and sustainable development. It will no doubt help the Grand Bahama economy, and Oban is looking forward to being part of Grand Bahama’s recovery.”

Mr Smith, meanwhile, argued that Hurricane Dorian represented “a paradigm shift” for the Bahamian economy and the country’s future, as it highlighted this nation’s total exposure and vulnerability to climate change.

“This catastrophe has demonstrated that it cannot be business as usual in The Bahamas or any other small island developing state (SID),” he told Tribune Business. “Dorian should be a wake-up call to the world about rising sea levels and global warming.

“This should propel our government to embrace as low a carbon footprint in The Bahamas as possible.

We need revisions to our building codes so that all

NASSAU-BASED building supplies and hardware retailers yesterday said they expect “a significant pick-up” in demand within the next few weeks to assist post-Hurricane Dorian rebuilding.

Raymond Collins, of Tops Lumber and Plumbing, told Tribune Business: “There is nothing major happening right now business wise, but we expect a significant pick up within the next few weeks for sure.”

He added that it was “just a wait period for everything to get levelled out” in terms of the Government indicating when regular shipments can resume through the ports on Grand Bahama and Abaco, and when demand from residents of those islands for reconstruction materials spiked following the receipt of insurance

FROM PAGE ONE

Oban Energies, if it sticks to its original proposal, is planning to do much more than South Riding Point and Grand Bahama’s other oil storage facility, BORCO, which was said to have suffered only minor damage and no leak of product from Dorian based on initial inspections.

For it is proposing to develop an oil refining component as well as oil storage facilities. The government has been seeking to renegotiate its Heads of Agreement with Oban Energies via a Cabinet committee headed by Dion Foulkes, minister of labour, after the developer and its project were embroiled in controversy in early 2018.

Peter Krieger and Satpal Dhunna, Oban Energies’

non-executive chairman and president, respectively, at the Heads of Agreement signing were both subsequently replaced after Tribune Business revealed questions about the backgrounds and experience of several members of the developer’s team.

However, the Oban consultant said yesterday: “Oban understands the challenges and the pressure of trying to introduce a similar entity [to South Riding Point and BORCO], but sooner rather than later, as negotiations continue between the government and Oban, the public and the world will come to know that oil storage facilities and top-off oil facilities are improving on addressing environmental issues.

“Oban remains confident in our environmentally

SEE PAGE 4

ATLANTIS PARADISE ISLAND

Atlantis pledges $3m to Dorian assistance ATLANTIS and its owner, Brookfield Asset Management, have announced a $3m pledge to benefit Hurricane Dorian relief efforts.

“All of us here at Atlantis are deeply saddened by the devastation of our sister islands Abaco and Grand Bahama. We are thankful that Hurricane Dorian did not directly impact Nassau and Paradise Island, and we are in a position to help our fellow Bahamians” said Audrey Oswell, Atlantis’ president and managing director. “Now our focus is on how we can contribute to the rebuilding of lives and communities in the affected areas.”

Efforts

by Atlantis and Brookfield to provide aid and relief started prior to the storm through their partnership with chef José Andrés and his World Central Kitchen team, staging and assembling much-needed meals in Atlantis’ kitchens.

Meals continue to be delivered to Abaco and Grand Bahama, and volunteers from Atlantis’ staff continue to assist in assembly and delivery. In a notice that was shared with Atlantis staff last week,

the resort announced the $3m pledge as well as additional fundraising and relief initiatives: These include donation sites at Brookfield Place in New York and Atlantis’ offices in Plantation, Florida, which have been set up to collect much needed supplies that will be delivered to relief organisations.

Atlantis has co-ordinated the shipment of medical supplies donated by Baptist Health, while also establishing a Go Fund Me site with 100 percent of the proceeds

going to the Bahamas Red Cross. The goal is to reach $1m.

Brookfield is setting up a donation fund and will match contributions made by its employees worldwide. This fund will benefit Atlantis’ partner chef, José Andrés’ World Central Kitchen, a non-profit organisation.

Atlantis has also established an employee assistance fund to aid in the relocation or renovation expenses for the families of Atlantis team members.

PAGE 4, Wednesday, September 11, 2019

THE TRIBUNE

Lucayan chief aims to ‘ratchet up’ sales talks FROM PAGE ONE There were fears that Hurricane Dorian’s impact would - at the very least - disrupt and delay the Grand Lucayan’s sale, and plans to transform the resort and nearby Freeport Harbour into a true destination product.

However, Royal Caribbean and ITM, and their Holistica joint venture, quickly reaffirmed their commitment to the resort’s $65m purchase and subsequent $130m first phase investment once the storm had passed.

Tribune Business reported earlier this year how the government was aiming to close the deal by September/October 2019, or before year-end

THE GRAND LUCAYAN HOTEL IN GRAND BAHAMA

in a worst case scenario.

Dorian’s appearance, coupled with all the economic and social dislocation that has resulted, means that Freeport and wider Grand Bahama now need such a development more than ever.

The ITM/Royal Caribbean project was branded “a game changer” for Freeport’s economy when revealed by this newspaper earlier this year, as it promises a revival of the tourism industry that could - together with Carnival’s $100m cruise port - help drag the city out of a 15-year slump.

The Mexican port developer and cruise line have said the $130m first phase investment will cover a 24-month period, meaning that a revived Grand Lucayan - complete with

water-based theme park and associated retail, gaming and restaurant amenities - may only be ready to receive its first guests come winter 2021 if the current timeline holds.

The joint venture, if the deal closes, will pay $65m to acquire the Grand Lucayan as part of a development aiming to create 2,000 new jobs in its first phase. This will bring in an extra two million cruise passengers to Grand Bahama every year, transforming the area into “a world class destination”.

As previously detailed by Tribune Business, the proposal focuses on developing water-based adventure theme parks at both Freeport Harbour and around the resort. The Grand Lucayan will be upgraded to “five-star hotel accommodation”, and feature multiple gaming, entertainment and restaurant experiences.

Although few specifics have been released, the joint venture envisions combining Port Lucaya and Freeport Harbour into a “unique destination” that will set Grand Bahama apart from its competitors, not just Florida and other Caribbean nations, but Nassau/Paradise Island and the Family Islands.

Mr Scott, meanwhile, said the existing Grand Lucayan property had withstood Hurricane Dorian’s winds and storm surge much better than expected despite the storm pounding Grand Bahama for almost two full days after it stalled out over the island.

“There was some damage but it was not as bad as feared,” he told Tribune

Business. “It was mostly shrubbery, foliage and some of the utility infrastructure got waterlogged and will have to be cleaned.

“We’re doing a damage inquest, and have got a preliminary report, but need to sit down and look at the details. We’re fully covered by insurance. It’s just a question of making sure we’ve got it all and have submitted all the damage issues with the landscape and building itself, and get adjusters in to look at the values and the rest of it.

“Our adjusters and advisers, and adjusters for the insurance company, which is RoyalStar, is a process,” Mr Scott continued. “The good news is it’s not as bad as Hurricane Matthew treated the property in 2016. It’s not as bad as that.

“One has to look at it in the context of the government buying the hotel.

What the government bought from Hutchison in August 2017 was a salvage.

They had pocketed the Matthew insurance proceeds and absconded with them.”

Mr Scott added that he “couldn’t begin to give you a dollar estimate for what it will cost for repairs and remediation work” in Hurricane Dorian’s wake, as the insurance claims process had yet to begin in earnest.

He confirmed that the Grand Lucayan remains closed, with power to the resort restored on Monday night. Water supply is currently being provided by the Freeport fire department, the Lucayan Renewal Holdings chairman revealed, as the Grand Bahama Utility Company’s network had been “compromised” by salt intrusion into its system due to Dorian’s storm surge.

With Freeport in no condition to currently receive tourists, Mr Scott said: “We will be equipping and preparing ourselves to do the restoration work to ensure, in the short-term, that the resort will be able to accommodate rescue and recovery people.

“The airport is only open for emergency and relief flights. There’s no terminal at the airport; it was all busted and, even if you get into Freeport, everywhere else is closed. One has to put this thing in perspective: Freeport is not at the moment, but will hopefully soon be, open for business.

Right now we’re still in the thickets of the recovery process.”

Oban brushes off ‘insane’ warning over oil spillage FROM PAGE THREE future buildings are built with cisterns, solar panels and greater structural integrity.”

And Mr Smith added: “Dorian is a paradigm shift for our economy and the future of The Bahamas.

We need the best of the PLP and the FNM to collaborate. Our country is too small for this continual tribal warfare. We need to take advantage of all our human resources given the effect on quality of life issues in The Bahamas.

“I’ve driven around Freeport and looked at the devastation first hand. We have never experienced such a high level of ocean incursion before. Although

we have never had six foot flooding in the downtown district, I build the [Callender’s] office six feet up out of an abundance of caution.”

However, the law firm’s generators and AC system was not built so high, and their immersion in water has prevented the law firm from resuming operations.

“Most businesses downtown and going to the harbour,” Mr Smith said, “because the hurricane came from the north-west have been completely destroyed.

“You can’t really recover from damage from salt water flooding.

Buildings need to be gutted and rebuilt.”

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THE TRIBUNE

Wednesday, September 11, 2019, PAGE 5

BTC, Aliv at odds on post-Dorian roaming FROM PAGE ONE While the regulator has given BTC and Aliv until this Friday to conclude a deal, the two are some 16 days apart on how long Bahamians in disasterstricken areas should be permitted to roam on their networks for free.

Damian Blackburn, Aliv’s top executive, confirmed to Tribune Business yesterday that it believed 14 days’ free roaming was sufficient as this was when both carriers’ networks were likely to have “materially recovered” from the store’s devastation.

While pledging that Aliv would review the situation once the 14-day period expires, Mr Blackburn added that free roaming for a rival’s subscribers “shouldn’t go on forever”.

He praised both his company’s technicians and their BTC counterparts for “moving heaven and earth” to get a national roaming network operational over the weekend in Dorian’s wake.

Mr Sinclair, meanwhile, confirmed that both mobile carriers had “beaten the deadline” set by URCA for completing such an arrangement. The regulator had given them until yesterday to complete all technical issues, yet everything was operational as of Monday.

“On the network side, the focus is to first bring the mobile network back up as is customary with natural disasters like this and to try and get a national roaming deal with your competitors,” the BTC chief told Tribune Business.

“We have yet to actually sign the agreement.

URCA had given us until Tuesday to implement the technical side so customers could roam on each other’s network. We tested it at the weekend and it started operating yesterday [Monday].

“That is working. URCA said get it done by today [Tuesday], so we beat that deadline. They said to get an agreement done by Friday, giving us extra time knowing how thorny that issue is. I was surprised to see my competitor come out and declare the timeframes and terms on which we have agreed.”

Mr Sinclair revealed that key among the terms on which BTC and Aliv have yet to agree is how long free mobile roaming on each other’s networks will last.

“I thought it premature that they’d listed fixed dates for how long the agreement would last,” he added. “We opened up free voice and data for the entire country last Wednesday, and said we would do that until Sunday night as it was still in the recovery and rescue phase.

Half of Dorian victims lack insurance cover FROM PAGE ONE

$500m, and warned that property and casualty premiums will likely increase to enable underwriters to recover the costs associated with Hurricane Dorian.

Patrick Ward, chief executive and president of Bahamas First, said “without question premiums would go up” as a result of Dorian-inflicted damage.

He added that “monies have been pouring in from reinsurers in the millions” to help satisfy hurricane claims, which he said could reach well into the $500m range - some $100m more than the payout for Hurricane Matthew last year.

Mr Ward conceded that the “$500m estimate is a conservative estimate, and that the overall dollar amount at the end of the day could be much more than that”. He added that the BIA is basing its estimates on previous experience with processing $400m of claims from Hurricane Matthew, making the $500m mark a good starting number.

“We left it free for voice and data on the two affected islands, and obviously any agreement we conclude with our competitor we are hoping will accommodate the fact we think it is necessary to leave in place a situation where ravaged and devastated communities in these two islands continue to communicate by voice and date free of charge.

“We are hoping the agreement we will conclude accommodates that,” Mr Sinclair continued. “We’ve made it as hassle free as possible for affected communities to communicate.

We want to keep it free for at least 30 days. We are hoping and praying we get that accommodation from our competitor.”

The BTC chief added that the carrier, which is ultimately owned by Liberty Latin America (LiLAC), might not need the full 30 days free roaming deal it was seeking as it was “working feverishly to get the network back up and running” in Abaco and Grand Bahama.

He said that timeline was being sought “out of an abundance of caution and to ensure people have the best opportunity to connect with loved ones. Thirty days is the best period. We haven’t concluded that and would like to get it done before Friday”.

Mr Blackburn, though, told Tribune Business that Aliv had “made our position clear” that only a free 14-day roaming period was required for both carriers’ subscribers in the disaster hit area. He added that their differences were “not the main concern”, which was making sure their customers have the ability to use the other’s network.

“We’ve made an offer to him [Mr Sinclair] to give free service for 14 days, which we believe is when the the networks will be materially recovered, and will review it after 14 days,” Mr Blackburn explained.

“We’re doing the right thing by giving free service, and don’t believe it should go on forever. We will review it once at the end of the period. We were asked by the regulator to put national roaming live given the situation, notwithstanding whether there was an agreement or not. We think it’s the right thing to do; it’s an emergency. Whether there’s an agreement or not, get the service up.

“We both collectively moved heaven and earth to get it working over the weekend, and did it by Monday, which was the primary objective and what we achieved and co-operated to do,” the Aliv chief continued.

“We’ve made our position clear to him [Mr Warren Rolle, the BIA’s chairman, said the reinsurance programmes employed by Bahamian general insurers are very robust and there was no concern over the industry’s ability to satisfy claims.

He added that it was “important for customers to understand their insurance policy, and to check with their local insurance providers before going outside of The Bahamas to reinsurers to negotiate their claims”.

Mr Rolle also warned that customers should first “know and understand the overall costs associated with negotiating their claims, especially the people who go outside of their local insurance provider”, as this would increase their costs.

The BIA chief reiterated there was “no reason for concern over the latest AM Best international insurance credit rating agency report”, as it was “standard practice” for it to give periodic reviews on insurance companies in The Bahamas.

Mr Ingraham added that loss adjusters were currently on the ground in Grand Bahama, and set to issue a damage assessment report any day now. He stressed that Dorian-related claims will start to be paid today.

Sinclair], and he’s made his position clear to us.

That will get resolved in time. That’s not the main concern. It’s making sure people on the network have the ability to roam on the other’s network, which is what we’re focused on.”

BTC has been heavily criticised in Dorian’s wake with many Bahamians arguing that its network infrastructure was not sufficiently strong enough, and prepared well enough, to handle Dorian’s 200 mile per hour wind gusts, flooding and storm surges - at least not in comparison to rivals such as Aliv.

However, BTC yesterday said it was focusing its recovery efforts on Freeport, Marsh Harbour and Eight Mile Rock. Mr Sinclair said: “We now have mobile equipment on the ground in Abaco, and our technical teams are testing a temporary solution that would provide mobile voice services to the more densely populated areas on the island.

“The teams are also continuing remediation efforts to repair fibre connectivity.

Landline and mobile services are operational in Sandy Point and Cherokee Sound.”

In Grand Bahama, mobile services have been restored to the Grand Lucayan, Eight Mile Rock, West End, Taino Beach, Freeport, Coral Reef Estates, Chesapeake, Lewis Yard and Midshipman Drive.

Landline services have been restored to Eight Mile Rock, Lucaya, Midshipman Drive and West End. “Our first priority once we got the ‘all clear’ was the recovery effort for our employees and their families,” Mr Sinclair added.

“Because of this Black Swan event, we needed all hands on-deck. This meant that some of our resources that would usually be

focused on network repairs were diverted to assist with the immediate recovery effort.

“We are working in partnership with our vendors who are providing additional

technical support resources to help us restore services to our business customers in the shortest possible timeframe.”

BTC has evacuated more than 145 staff and their

families to New Providence, provided more than 55,000 pounds of immediate relief supplies, and is donating ten generators to the emergency room doctors in Grand Bahama.

PAGE 6, Wednesday, September 11, 2019

THE TRIBUNE

$100m disaster loan drawdown ‘within 2 weeks’

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FROM PAGE ONE

NOTICE

the Government to both finance recovery from Dorian and, at the same time, mitigate the fiscal and economic fall-out for the country.

“A number of assessments are going on of the fiscal and economic impact of the storm, and all these things are going to brief policymakers on the range of options to mitigate the anticipated economic and fiscal impact and chart the course forward,” he added.

“We do know Abaco and Grand Bahama are the third and second largest economic centres, and fall right behind New Providence in terms of size. We anticipate the economic and fiscal impact will be substantial.

“There’ll be a hit to revenue inflows and economic activity in those areas. This is probably the second and third worst case scenarios, if you want to frame it that way, in terms of a potential hit.

“We want to do a full assessment so that we determine with some precision what the impact looks like so we provide proper analysis and options that can work.”

K P Turnquest, deputy prime minister, yesterday defended the Minnis administration’s decision to obtain insurance

in place to give the government instant access to liquid cash and recovery finance in the immediate wake of disasters such as Dorian, is one of the largest sources of funding available in the wake of the storm that devastated Grand Bahama and Abaco.

The speed of restoration efforts, especially when it comes to key public infrastructure, will likely depend on how quickly this funding can be accessed by the Government and its agencies.

Mr Johnson, meanwhile, said the Ministry of Finance was conducting studies on the options available to

NOTICE is hereby given that EAREN HUINGS of 5207 North West 17th Street, Lauderhill, Florida 33313 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 11th day of September, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

coverage for The Bahamas from the Caribbean Catastrophe Risk Insurance Fund (CCRIF) given that the near-$11m payout seems relatively minimal compared to the scale of Dorian’s devastation.

“Just for comparison’s sake, we’ve paid roughly $5m over the last two years, so if we’re getting $10m we’re $5m ahead,” he said outside the weekly Cabinet meeting. “We’re pleased and confident the coverage worked out.

“Heaven forbid a storm like we’ve seen with Dorian hits New Providence. The damage and cost would be astronomical. Without some protection by CCRIF we’d be flat on our back for a long time. We cannot do it on own. We need risk protection to address immediate needs.”

Mr Turnquest said the CCRIF payout was “more or less in line with what we expected based on the area of loss”. He added: “We’re going to be looking at that ourselves just to make sure the formula they’ve used makes sense and is in line with our thinking. That’s the insurance part, and we have to look at the rainfall coverage to see what we can get from that.”

The deputy prime minister suggested that a wide range of incentives and

initiatives was now required to put Dorian-ravaged communities back on their feet, and he floated ideas such as “low interest loans, loan guarantees and grants for small businesses” as potential contenders.

Acknowledging that “a tremendous amount” of persons would need help to recover from Dorian, Mr Turnquest said The Bahamas’ building codes - and where and how persons built - would again need to be assessed in the Category Five storm’s aftermath.

“This is not going to be a short-term, easy road,” he emphasised. “This is going to be a patient, disciplined recovery to make sure we get it right.” Mr Turnquest said The Bahamas had to look beyond rebuilding what was there only for another storm similar to Dorian to come along and inflict a repeat.

Focusing on a “resilient” restoration, Mr Turnquest said: “We’re looking at what kind of subsidies and incentives we can give to the local business community to get them up and going as quickly as possible.

“The Abaco problem is a massive problem because their entire built infrastructure is flat on the ground.

It’s almost like rebuilding a whole city. Residents have to be patient.”

US stock indexes end mostly higher after late buying burst

By ALEX VEIGA Associated Press MAJOR US stock indexes closed mostly higher yesterday, erasing much of an early slide, as investors favoured smaller, US-focused companies for the second straight day.

Industrial, energy and health care stocks helped power the market higher.

Banks also notched solid

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

TUESDAY, 10 SEPTEMBER 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,179.60 | CHG: 6.64 | %CHG: 0.31 | YTD: 70.15 | YTD%: 3.33 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 20.91 7.00 5.92 2.60 2.00 5.47 11.75 6.17 4.64 12.50 2.81 2.64 10.00 7.35 15.60 9.30 3.75 14.20

52WK LOW 3.50 19.17 4.90 4.46 1.00 0.19 2.00 9.17 6.15 3.60 7.00 2.35 1.75 7.51 6.10 12.10 6.20 3.01 13.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Class A Focol Class B

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

52WK HI 2.25 4.31 2.06 191.61 158.55 1.63 1.77 1.71 1.17 7.89 9.35 6.80 11.39 12.15 10.63 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.56 1.68 1.65 1.09 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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)

MUTUAL FUNDS

MARKET TERMS

LAST CLOSE 4.10 17.43 6.00 5.92 2.46 1.80 5.22 11.06 6.16 4.07 7.50 2.93 2.64 10.43 7.00 15.55 9.20 3.40 14.20

CLOSE 4.10 17.43 6.00 5.92 2.46 1.80 5.22 11.06 6.16 4.12 7.50 2.93 2.64 10.45 7.00 15.55 9.20 3.40 14.20

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.05 0.00 0.00 0.00 0.02 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00

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

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

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 Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

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

VOLUME

4,670 4,524

300

4,063

VOLUME

NAV 2.25 4.31 2.06 191.61 158.33 1.63 1.77 1.71 1.17 7.89 9.35 6.80 11.39 12.15 10.63 9.92 8.68 11.38

EPS$ 0.239 0.932 1.760 0.323 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.000 0.728 0.816 0.939 0.203 0.631

DIV$ 0.160 1.260 0.000 0.250 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.068 0.060 0.328 0.240 0.540 0.200 0.120 0.610

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

P/E 17.2 18.7 N/M 18.3 N/M N/M -11.9 15.3 13.7 22.4 53.6 28.7 5.7 N/M 9.6 19.1 9.8 16.7 22.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 3.90% 7.23% 0.00% 4.22% 0.00% 1.11% 0.00% 6.51% 3.57% 2.91% 0.00% 2.32% 2.27% 3.14% 3.43% 3.47% 2.17% 3.53% 4.30% 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% 2.15% 3.88% 1.61% 4.11% 1.53% 2.74% 3.85% 6.28% 7.12% 2.08% 1.91% 4.55% 1.45% 4.30% 1.67% 4.21% 4.75% 7.44% 5.53% 8.48% 8.12% 12.28% 3.03% 4.85% 9.83% 0.60% 3.92% 3.72% 2.47% 3.16% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%

NAV Date 31-Jul-2019 31-Jul-2019 26-Jul-2019 30-Jun-2019 30-Jun-2019 31-May-2019 31-May-2019 31-May-2019 31-May-2019 31-Jul-2019 31-Jul-2019 31-Jul-2019 31-Jul-2019 31-Jul-2019 31-Jul-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

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

gains amid a broad pullback in demand for US government bonds, which pushed yields higher. The yield on the ten-year Treasury note climbed to 1.73% from 1.62% late on Monday, a big move.

Lenders rely on higher yields to set more lucrative interest rates on loans. Bank of America rose 2.5%, Goldman Sachs gained 1.7% and State Street vaulted 9%.

For the second day in a row, traders unloaded technology stocks and shares in companies that rely on consumer spending. Microsoft dropped 1.1%, as did payment processors Visa and Mastercard, losing 2.8% and 3.9%, respectively.

“It seems like a complete reversal of what’s kind of been the theme over the last few months, where it’s been more about higher quality, higher market cap,

higher growth, more stable growth and lower volatility,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. “Things that had been doing well just completely got sold and the things that had been lagging completely got bought.”

The S&P 500 index inched up 0.96 points, or less than 0.1%, to 2,979.39. The Dow Jones Industrial Average rose 73.92 points, or 0.3%, to 26,909.43. The average was briefly down 118 points.

The Nasdaq, which is heavily weighted with technology stocks, slid 3.28 points, or less than 0.1%, to 8,084.16.

Investors continued to flock to smaller-company stocks. They’re seen as being better shielded from the fallout of the costly trade war between the US and China than large multinationals.

NOTICE PLUSHVILLE LTD. Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas Registration Number 126658 B (In Voluntary Liquidation) Notice is hereby given that the above-named Company is in dissolution, commencing on the 6th day of September A.D. 2019.

Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Randy Jenkins, Winterbotham Place, Marlborough & Queen Streets, Nassau, The Bahamas, P.O. Box N-3026. Persons having a Claim against the above-named Company are required on or before the 6th day of October A.D. 2019 to mail their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the benefit of any distribution made before such claim is proved.

Dated this 9th day of September A.D. 2019 _________________ Randy Jenkins Liquidator

NOTICE NADANOLLI LIMITED Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas Registration Number 134384 B (In Voluntary Liquidation) Notice is hereby given that the above-named Company is in dissolution, commencing on the 6th day of September A.D. 2019.

Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Randy Jenkins, Winterbotham Place, Marlborough & Queen Streets, Nassau, The Bahamas, P.O. Box N-3026. Persons having a Claim against the above-named Company are required on or before the 6th day of October A.D. 2019 to mail their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the benefit of any distribution made before such claim is proved.

Dated this 9th day of September A.D. 2019 _________________

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

Randy Jenkins Liquidator

THE TRIBUNE

Wednesday, September 11, 2019, PAGE 7

Italy’s new pro-EU govt wins vote, now faces 2020 budget ROME Associated Press ITALIAN Premier Giuseppe Conte’s new proEurope government won a final confidence vote yesterday in the Senate, clearing a key hurdle as it prepares to draft a painful budget law that risks splitting the already shaky coalition.

After easily clinching a first confidence vote on Monday in the lower Chamber of Deputies, Conte successfully sought support in the Senate, where his coalition commands a slimmer majority. He won 169 to 133. Five senators abstained, including at least one apiece from the two main parties in the new coalition: the populist 5-Star Movement and the centerleft Democrats.

The two parties have long been archrivals. But they banded together, along with a tiny left-wing party, to forge a coalition that shut out of power Matteo Salvini, the leader of the right-wing League party, which has been soaring in popularity.

The next challenge comes quickly. The Italian government must get to work on the painful task of drafting a budget law, which must be approved by Parliament by the end of the year. The government hopes the new budget can avert a planned 23 billion euro ($25.2bn) sales tax hike that would prove very unpopular with voters and would further hurt Italy’s weak economy.

In the Senate debate, Salvini blamed Conte for having “betrayed Italians”

To advertise in The Tribune, contact 502-2394

ITALIAN Prime Minister Giuseppe Conte sits at the Senate during a second confidence vote on his coalition government, in Rome yesterday. Conte won the second of two mandatory confidence votes on his four-day-old coalition of rival parties, after a day of fielding insults during a boisterous Parliament session from an opposition outraged that Italy got a new government instead of a new election.

Photo: Gregorio Borgia/AP for assembling a new coalition that deprived him of an early election that he had hoped would launch himself into the premiership.

Salvini’s League now sits in opposition, after he pulled the plug on the previous coalition between the League and the 5-Stars, triggering a political crisis that backfired and led to the creation of Conte’s new cabinet.

“I’m proud of not being part of this government,” Salvini said in a heated Senate speech. “Sooner or later, Italians will head back to the polls. Whoever fears

their judgment has a guilty conscience.”

Conte has asked lawmakers to back his plans for radical reforms aimed at returning Italy to growth.

On Monday, he unveiled a political platform that tries to combine flagship measures of both the 5-Stars and the Democrats, who have frequently clashed over key policies.

In his second mandate as premier, Conte also stressed that Italy wants to regain a key role in the European Union’s reform process. He called for less confrontation with Brussels

and pledged he would work with Italy’s EU partners to reform the bloc’s stringent budget rules.

In a clear sign of warmer ties with the EU, former Premier Paolo Gentiloni yetserday was designated as the new European Commission’s economy commissioner, a key portfolio in negotiations over EU nations’ budget plans.

Analysts see Gentiloni’s appointment as good news for Italy, as the debt-burden country will need to negotiate more financial flexibility with Brussels to be able to pass an expensive 2020 budget law. That law needs to be submitted to the commission by mid-October.

Conte travels to Brussels today, where he will meet the next Commission head Ursula von der Leyen.

“The budget will be done in Italy,” Conte declared, hitting back at Salvini, who has accused him of being manipulated by EU’s powerbrokers.

Among the main measures in his government’s ambitious agenda, Conte has cited creating a minimum wage and social policies to help poorer families and reduce youth unemployment. He also announced a “Green New Deal”, aimed at fighting global warming, and a renewed battle against Italy’s widespread tax evasion.

Conte said the new budget will be drafted in accordance with EU budget rules but stressed the need to target “sustainable growth”, a clear break with Italy’s earlier austerity policies. The Italian government will have to approve spending cuts or negotiate with Brussels to let Italy have an higher deficit than the EU normally allows if they want to avoid the pending sales tax increase.

CALIFORNIA SENATE APPROVES BILL TO CAP RENT INCREASES SACRAMENTO Associated Press CALIFORNIA lawmakers yesterday moved to cap annual rent increases statewide for most tenants as a limited housing supply in the country’s most populous state continues to drive up the cost of living while pushing more people to the streets.

The California Senate voted 25-10 to cap rent increases at 5% each year plus inflation for the next decade while banning landlords from evicting tenants without just cause.

Democratic Gov Gavin Newsom says he will sign the bill into law, but first it must survive a final vote in the state Assembly where the California Association of Realtors is pushing to defeat it. Lawmakers must act by Friday.

California’s largest cities, including Los Angeles, Oakland and San Francisco, have some form of rent control, but a state law passed in 1995 has restricted new rent control laws since that year. In most places, landlords can raise rents at any time and for any reason, as long as they give advance notice.

In Pomona, about 30 miles east of Los Angeles, Yesenia Miranda Meza says her rent has jumped 20% in the past two years. Monday, she marched with other tenants through the halls of the state Capitol chanting: “Once I’ve paid my rent, all my money’s spent.”

“I’m a rent increase away from eviction, and that’s with me having two jobs,” she said “So if this (bill) doesn’t go through and I get another rent increase, I really don’t know what I’m going to do. I’m either going to be homeless or I’ll have to cram into a room with a whole bunch of other people.”

Opponents have likened the proposal to rent control — a more restrictive set

of limitations on landlords.

California voters overwhelmingly rejected in a statewide ballot initiative to overturn the 1995 law last year.

California Association of Realtors President Jared Martin said the group’s 200,000 members strongly oppose the bill because it will “reduce the supply and quality of rental housing”.

It’s an argument echoed by Republican Sen Jeff Stone, who said developers would have no reason to build new housing if they can’t make money off their investment.

“We’ll see even a greater housing crisis because of the low supply of housing,” Stone said. “Either this will force our constituents to join a 60,000 homeless population that we see in the LA area, or they will simply just move to another state.”

But supporters say the bill includes lots safeguards to prevent that from happening. The rent caps don’t apply to new construction built within the last 15 years — a provision that prompted the California Building Industry Association to drop its opposition.

Plus, the caps don’t apply to single family homes, except those owned by corporations or real estate investment trusts. And duplexes where the owner lives in one of the units are also exempt.

“We all desperately want to build more housing. It was a very important aspect of this bill,” Democratic Assemblyman David Chiu said.

But even some Democrats who voted for the bill yesterday signaled they didn’t like it, a sign the bill is not guaranteed to pass.

Sen Steve Glazer, a Democrat representing a district in the San Francisco Bay area, cited a 2018 study by Sanford University showing landlords under rent control are more likely to nudge tenants out by spending less on maintenance.