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THURSDAY, OCTOBER 21, 2021
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Tourism rides supply chain ‘roller coaster’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net TOURISM’S post-COVID rebound will not be undermined by global supply chain woes, a top hotelier reassured yesterday, despite the industry enduring a logistics “roller coaster”. Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, told Tribune Business that this nation’s main economic driver was witnessing disruption across “the entire gamut” of product orders with some deliveries now taking three times’ as long to arrive compared to pre-pandemic expectations. With orders that normally arrive in 30 days now taking 90 or more, he added that the resort industry had learnt “to become even more creative” by planning earlier, ordering “long lead” items quicker
• Hotel chief reassures rebound not endangered • But sector sees disruption ‘across entire gamut’ • Orders taking three times’ longer to arrive and switching to alternative supply sources should the need arrive. Voicing optimism that The Bahamas “will not get to that particular point” of the visitor experience being impacted, Mr Sands said the hotel/tourism industry was also being impacted by price increases especially on inputs that are in high demand, but minimal supply. Suggesting that supply chain woes will be present as long as COVID-19 is around, the BHTA chief added that
“working through the problems” had caused the industry ongoing frustration but had yet to impact operations as it targets a return to full prepandemic visitor volumes by the 2022 first quarter. “There’s no question that certainly the supply chain has impacted the timeliness of delivery, and hotels have had to make adjustments in that vein, and also adjust in terms of lack of availability of certain items and brands,” Mr Sands told this newspaper, “but it has not been to
BAHAMIANS wanting to access a $10m interest-free loan facility to finance investing in the Nassau Cruise Port can only do so if their employer “qualifies” for a salary deduction programme. Michael Maura, Nassau Cruise Port’s chief executive,
explained to Tribune Business that the imminent $25m initial public offering (IPO) will be structured such that those seeking to access the loan facility must demonstrate they have the capacity to repay via salary deductions through their employer. Government employees already meet these requirements, but Mr Maura said the $10m loan facility was accessible to others if satisfactory
salary deduction-related payment terms could be worked out with their employers. “The Government employees are definitely included in the pool of qualified potential investors that could apply for a portion of the $10m interest-free loan,” the cruise port chief explained. “It’s not limited to government employees, and companies that are willing and prepared to provide a
ROBERT SANDS the detriment of being able to deliver the experience to customers.” Asked which products and sectors had been impacted, he replied: “It’s multiple areas. The food chain, supplies for operations, construction materials, which is key for areas where improvements
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salary deduction programme, and satisfy the Bahamas Investment Fund they can honour this commitment, there’s also a possibility they could be included as a qualified employer.” Mr Maura moved to provide clarity after a note sent on Monday by Angelo Butler, senior analyst at CFAL, the cruise port’s financial
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Electricity rate rise ‘extra burden’ for GB revival leaders By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net GRAND Bahama Power Company’s planned electricity rate increases will impose “an extra burden” on the very businesses the island is relying on to pull it out of recession, it was argued yesterday. Greg Laroda, the Grand Bahama Chamber of Commerce president, told Tribune Business that “the timing just isn’t right” for the electricity monopoly to levy a base rate rise on all companies given the severity of the economic devastation inflicted by COVID-19 and Hurricane Dorian.
GREG LARODA And, warning that increasing energy costs could deter the job-creating investment that Grand Bahama badly needs, he added that both the utility and the Government need
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‘Next hurricane can wipe us out’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas “must be at the table” in developing a financial compensation mechanism for climate change, a top official said yesterday, adding: “The next hurricane can wipe us out.” Rochelle Newbold, the Department of Environmental Planning and Protection (DEPP) director, argued that The Bahamas’ presence at the upcoming 2021 United Nations Climate Change
conference was vital to try and seek redress for environmental change this nation is not responsible for. With The Bahamas having suffered an estimated $3.4bn in economic losses and damage as a result of Hurricane Dorian, Ms Newbold told a press conference at the Prime Minister’s Office that this nation bore no responsibility or influence over the global warming thought to be producing sea level rise and increasingly more
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URCA: Renewable policies not working • Admits pricing formula ‘not attractive’ to investors • Provider: Told you it was ‘non-starter’ from 2019 • Proposal to switch larger systems to net billing
Salary deduction needed for $10m cruise IPO loan By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIAN energy regulators have conceded their renewable policies are “not attractive” for companies and investors seeking to enter the sector, and are proposing a pricing structure switch. The Utilities Regulation and Competition Authority (URCA), in its just-released consultation on “cost effective tariffs” for the fledgling renewable energy industry, unveiled a move away from the “buy all/sell all” pricing that one provider yesterday described as “a non-starter” from the very outset. The regulator, in a much-criticised compensation proposal for larger grid-tied renewable energy systems, last year mandated that those capable of producing more than 500 kW (kilowatts) were to compensated by Bahamas Power & Light (BPL) for selling energy to the grid via a “buy all, sell” method. This required participants with such systems, mainly larger businesses and government facilities, to not consume any electricity generated by their renewable systems. They instead had to export all energy they generated to BPL, and consume all the electricity they need from the state-owned monopoly at the standard retail tariff levied on all its customers. Those who “sell all” under this arrangement have been compensated by the equivalent of BPL’s appropriate monthly fuel charge, which normally accounts for just 50-60 percent of customer bills. Such a mechanism was vehemently opposed by private sector renewable
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DIGITAL IS FINANCIAL FUTURE IN BAHAMAS By MARGARET BUTLER Citibank country officer The Bahamas ith the rise of smartphone adoption across the Caribbean, many industries have sought innovative ways to engage consumers by digitising their services. The banking industry is no different, as companies seek to establish future financial trends. As proven by the launch of the Sand Dollar, the world’s first Central Bank Digital Currency (CBDC), the Bahamas’ financial services sector is now looking to transform its legacy infrastructure by going digital to improve its security, lower costs and grow the customer base. Initially rolled out in Exuma and Abaco, as of March 2021, nine digital wallet providers circulated $130,000 worth of digital Bahamian dollars throughout the entire archipelago. Several trends are pushing Caribbean banks to accelerate their digital initiatives. First, mobile telephone and broadband rates have improved appreciably. Excluding Haiti, the share of individuals using the Internet
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in the Caribbean rose from 27 percent to 53 percent between 2008 and 2016, while the average mobile cellular penetration rate is over 110 percent, drastically increasing the need for reliable and secure digital banking services. For example, MonCash, a mobile phone-based digital wallet, is used by households and rural farmers to increase access to financial services in Haiti. An estimated 14 percent of Haitians now own these accounts, while 38 percent of adults receive or send domestic remittances through their mobile phones. Likewise, the COVID-19 pandemic curtailed customers’ retail banking activities. This triggered a customer shift from traditional banks to fintech (financial technology) start-ups. The Bahamas’ relatively high banking rate of 80 percent is further expediting current trends. A survey of 105 Latin American and Caribbean banking executives found that data security is their primary incentive for digitisation. This has been a persistent concern for financial institutions, as the region is particularly vulnerable to cybercrime.
MARGARET BUTLER, CCO at Citibank in The Bahamas. According to a report by the Organisation of American States (OAS),at least nine out of ten banking entities suffered cyber incidents during 2018, while 37 percent of banks in the
region were victims of successful attacks.The total annual cost of banking entities’ digital security incident response and recovery was approximately $809m in 2017. Digitisation allows
companies to base their infrastructure in the cloud through platforms such as Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure, thereby ensuring constant security updates. In contrast, legacy in-house systems’ lack of agility can make them more susceptible to hacks and other cyberattacks. Digital banks leverage technology to reduce operating costs. Large traditional banking institutions have an average cost-to-income ratio (CIR) of between 45 percent and 55 percent, while leading digital banks run a CIR of 32 percent to 40 percent. Though initial digital and cloud migration costs may be high, they can drop by up to 70 percent and deliver a return on investment (ROI) of 15 percent within the first years. Moreover, traditional banks spend an average of $150 to acquire each new customer, while their digital competitors only spend $30. This allows digital banks to offer lower service fees and cater to a broader sector of the population in the region. Moreover, a Mambu study found that medium to large-sized traditional
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banks (approximately five million customers) could lose up to 30 percent of their customer bases over five years as clients seek more digital services. Therefore, not going digital practically guarantees a steady erosion of traditional banks’ customer bases coupled with a stagnant market share. Banks must continue building a solid strategy focused on adapting and innovating given the issues facing many countries within the region, so as to support financial infrastructure developments, focus on digitising the economy and the future of digital currency. As part of its long-standing commitment of 117 years in Central America and the Caribbean, and more than 60 years in The Bahamas, Citi has been holding virtual forums focused on sharing the recent and current technologies to provide the best practices that countries can adopt to stimulate digitisation, effective digital payment systems and propel economic growth and digital investment. Going digital is giving millions of people in the Caribbean access to banking services, where a 10 percent increase in digital investment can lead to a 2 percent to 3 percent increase in economic growth and a 2.6 percent increase in productivity. As such, it is clearly the future of finance in The Bahamas and throughout the region. Traditional banks that recognise and act upon this fact will secure that future for themselves, while more reticent competitors will continue to shed customers, market share and profits. NB: Margaret A. Butler has led the Bahamas franchise as Citi country officer since June 2005, with responsibility for managing its interest in the country. She has responsibility for the domestic corporate banking business and also leads the offshore booking centre, which supports the offshore product delivery of Latin American businesses. She joined Citi in 1994, heading up the legal vehicle management team of the Latin American offshore processing centre, and assumed the legal vehicle controller role for the 14 booking entities in 1998. In 2002, she was promoted to lead both the Panama and offshore processing services, and in 2004, added the role of portfolio analysis and control head. Prior to joining Citi, she worked as the assistant director for Banque de la Societe Financiere Europeenne in Paris, France where she had responsibility for the management of a Latin American loan portfolio and a trading portfolio of distressed debt. Ms Butler began her banking career as a credit analyst with S.F.E. Banking Corporation in Nassau.
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Thursday, October 21, 2021, PAGE 3
PROSPECT RIDGE PROJECT WAS FASTEST EVER-MOVER By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Minnis administration’s Prospect Ridge young professionals community progressed as far as having architectural sketch plans completed, an FNM senator yesterday. Viana Gardiner, former chairman for the initiative under the Minnis administration, argued that the project was “advanced further and faster than any similar subdivision” given that the concept was only formalised earlier this year. With the committee she headed only formed in April 2021, Ms Gardiner said the former administration had completed the necessary legal steps to secure the land as well as the procurement/bidding process for architectural and infrastructure drawings. Islands by Design, she added, was selected following a tendering process to conduct the Environmental Impact Assessment (EIA), which was completed and submitted to the Department of Environmental Planning and Protection (DEPP) for its review. “The DEPP completed its review and advised the Office of the Prime Minister on the eve of the general election that the environmentalists needed to augment the EIA with topography studies,” Ms Gardiner said. To the Minnis administration’s critics and its opponents, the Prospect Ridge community was designed as a pre-election ploy to obtain votes. However, Ms Gardiner argued that it was designed to help rebuild our middle class” through being targeted at persons who she said were “over-qualified” for other government housing projects such as the Carmichael Village Subdivision. “We structured this project in a unique way which
makes home ownership affordable and accessible to a group previously sidelined,” she added. “If the Government does not complete the Prospect Ridge community or delays it considerably, that is entirely because they choose not to make housing/land ownership a reality for young Bahamian professionals.” Ms Gardiner also told Tribune Business: “Those 1,500 applications were reviewed. There was an independent review done by accounting firms and that process was done to determine who actually qualified and that all of their documents were in order. “The Environmental Impact Assessment for the project was completed and the first set of drawings for the community were done, but detailed architectural drawings were to be carried out next.” She spoke out after JoBeth Coleby-Davis, minister of housing and transportation, indicated that the newly-elected Davis administration may adopt a different approach that would result in lot prices increasing for prospective buyers. Under the Minnis administration, lot prices were to be discounted to levels around $40,000 to $50,000 so that buyers had increased equity to pledge to lenders as collateral for home construction loans. As a result, the Government would have absorbed a significant amount of the cost involved in putting in infrastructure and developing the community, essentially incurring a loss. However, Mrs ColebyDavis has indicated that buyers may have to pay more for their lots, although no details have been provided. She told the inaugural press briefing at the Prime Minister’s Office: “We’ve had a number of meetings related to this project with my technical
JOBETH COLEBY-DAVIS team, and they also went out to do a site visit for me to determine where we are and how we could respond to the demands that presently exist and all of the applications that we presently have. “Unfortunately there is a lot of ground work that must be done that has yet to be started as it pertains to that project... work as it pertains to a master plan. I’ve spoken to the company that was previously engaged by the former administration and absolutely nothing has been done yet. “In fact, they got a letter notifying them that they have been awarded this project probably two or three days before the election. So nothing has been done in terms of creating a master plan to do the work at Prospect Ridge, to begin to draw out how it will actually look,” Mrs ColebyDavis continued. “There has been no feasibility study and no topography study to actually provide us with the lay of the land, and where the lumps and bumps presently exist and where we would have to fill it in. So we’re not in a position to determine the infrastructural cost. We think it will be great, but that is yet to be determined and we will get all of that information from the feasibility and topography study.”
The Government is now accepting bids to conduct these studies, Ms ColebyDavis said, and the timeline for completion of this project is yet to be determined but the government is still moving ahead with it once the necessary works are carried out. Ms Gardiner, though, added: “This project was done in an exceptionally short period of time. I think it was four to five months from inception to bring it to the public and, during that period of time, the EIA was executed and, right before the elections, the EIA was submitted to the Department of Environmental Planning and Protection. “I cannot speak to what’s happened in the last four weeks, but just to let the public know that the
architectural sketch-plan was a part of the environmental review and study and that was being done.” With the EIA critical to project progress, Ms Gardiner explained: “There were discussions being had as to when there would be the public consultations coming out of the EIA, which is necessary for any approval to be given. “Same thing with the party that was going to be doing the architectural and infrastructural design work. All of this was put into the public domain and, once you Google it, you will find it - the timelines on where the project was and what was being done. “It wasn’t as if any of the applicants were not aware that the EIA was being done first, and that
a proper procurement was being done on the party that would carry out the designs.” Christine WallaceWhitfield, president of the Bahamas Real Estate Association (BREA), said: “This is good news that the current government will keep this project. There are a lot of individuals and firsttime homebuyers that are still hoping and wishing that they could have a chance at obtaining their dream. “This is definitely a sigh of relief as a lot of people have done their due diligence and gotten all of their ducks in a row and gotten the finances sorted out, so I think going ahead this is definitely encouraging news.”
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PRICE CONTROLS WORSEN SUPPLY CHAIN PROBLEM By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A BAHAMIAN wholesaler yesterday warned that price control regulations are worsening the supply chain crisis and product shortages in food stores. Jeff Albury, Island Wholesale’s managing director, told Tribune Business that breadbasket items and other price-controlled products are having to sit in warehouses until the Price Control Commission approves price increases to compensate for higher shipping and other expenses.
With supply chains tightening due to raw material shortages, and shipping costs more than tripling, he explained: “The majority of our product comes out of the US. The problems I’m having now are that manufacturers are facing raw materials shortages. All of my suppliers have had to take their product line and reduce the number of items they are producing down to the major sellers.” Forecasting that raw material shortages will last well into 2022, and that the problem will get worse before it eases, Mr Albury said: “What happens is, if I’ve got a container that’s cost me $5,000 out of China
for things like mackerel, now it’s costing me $15,000, I can’t sell mackerel at the same price I was selling it for in 2021.” Corned beef, evaporated milk, tuna and other breadbasket items will also be affected, and these are the products that “lower income people survive off of, cheaper canned goods”. Mr Albury explained: “These items are price controlled. I’m sitting on a container right now that I’ve applied for a new price for cooking oil, and last week you couldn’t even find a bottle of cooking oil. “The price of cooking oil has doubled, and then what happens is that I’ve
got a container now sitting in one of my warehouses that I cannot touch because I have to wait for the Price Control Commission (PCC) to give me the permission to sell it at the new price.” Mr Albury said he would be selling the entire shipment at a loss were he to remove it from the warehouse now. However, obtaining approval from the Price Control Commission can take anywhere from two weeks to two months, he argued. “With the new government in I’m not sure how long they will take because some of the people aren’t there any more. But we’re going to have to change our eating habits in some fashion anyhow because there are certain things that aren’t
available and, if they are, then they’re also available at a much higher price,” Mr Albury said. “Unfortunately everything we do depends on imports as we don’t manufacture anything to feed our people. Everything we do is an input to our economy.” As a result, he warned that the situation may become worse as US manufacturers focus on supplying their domestic needs first. Debra Symonette, Super Value’s president, told Tribune Business yesterday that the supermarket chain’s prices will not dramatically increase because it has “a lot of food stacked in our warehouse”. She added: “There is a back-up, but fortunately we have a well-stocked
warehouse so we have supplies on hand, which we are hoping will take us through the crisis. As far as we know our shelves are going to be stocked and there should be no shortage.” Shoppers are sticking with national brands, and not switching to generic or substitute products yet, Ms Symonette added. “I think it’s going to take a while for them to get used to them, but as they try them they’re going to realise that some of them are really just as good as the other brands. I guess gradually they’re going to start using them more,” she added.
RETAILERS FRET ON CHRISTMAS STOCK By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net BAHAMIAN retailers yesterday said the global supply chain crisis is making them fret over whether Christmas product orders will arrive in time for the festive season. Margo Farrington, chief marketing officer at Lorene’s Department store, told Tribune Business the retailer requires at least three to four weeks lead time to bring inventory into the country and place it on its shelves. This allows for clearing Customs, offloading, pricing and shelf placement. She predicted she may not receive all stock before December 1, which is the deadline to have it in time for this Christmas season. Ms Farrington said: “We’re having a lot of delays, but I’m crossing my fingers that we will have stock in time for Christmas. I know a lot of our suppliers have told
us to expect delays, but it’s going to be tight. “People ideally start shopping for Christmas at the end of November. We know it takes a while with shipping to get here. So we need to have it in by December 1. We’re trying to do our best to deal with the prices, but our vendors have also gone up on their prices. It’s not just shipping, but it’s also product has gone up. So we’re dealing with a lot.” Multiple factors triggered by the COVID-19 pandemic are responsible for the worldwide backlogs and delays. Labour shortages at US ports have delayed the offloading of containerised goods, while a similar lack of heavy goods vehicle drivers is impacting the haulage industry and causing price spikes there. With the demand unleashed by the end of COVID-19 lockdowns outstripping supply, and manufacturers dealing with order backlogs, shipping containers have also been hard to obtain coming out of the Chinese market.
Jack Moree, owner/operator of Sandy’s Department Store, added: “The problem is container prices have gone up so high to about 400 percent, so it makes it difficult. But other than that we’re doing okay.” Asked if consumers should expect higher prices this Christmas season, Mr Moree said: “Despite container prices, we will try to keep our prices as low as we can. Some items we had before and we’re not going to market any differently, not now and not this year.” Pia Farmer, owner and marketing director for Customs Computers, said: “I think everybody’s experiencing some back orders and shipping delays, and I can’t say that we’re not, but we seem to be coping with it. “Plus we’ve just opened a new store in the Caves Village and that’s doing very well. We’re getting ready for Christmas and marketing is set, we’re just waiting for a good Christmas season.”
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Thursday, October 21, 2021, PAGE 5
PUTTING FAVORITE FORMATS ON FILE P
NG (portable network graphic) is a type of image file that is often favoured in web design and creative projects involving Photoshop or similar software. It is a type of file that allows an object to be placed into software with a clear background or as a partially transparent image, making it especially useful when creating a graphic from multiple layers. PNG is one of my favourite image files. PNGs tend to take up more space than alternative image files, so you may want to limit how many you use if storage is an issue. This is because they offer far greater detail, and also support grey scale, as well as both the 24-bit RGB and 32-bit RGBA colour spaces. They are not designed to be compatible with CMYK models, though, and it is not recommended to use them when dealing with printed materials. This wider range of supported spaces
contributes to the larger PNG file size versus other types. Another benefit of using PNGs is that they are more easily accessible when it comes to copyright, given that they take the form of an open format that can be more widely used without requiring a license. GIF has almost completely replaced PNG in publishing, partly because they are so popular for sharing multi-frame images, and also for compressing down the size of an image file. However, unlike GIF, PNG files do not support animations. The very similar MNG (Multipleimage Network Graphics) format does, but has yet to gain the kind of popularity that GIF or PNG files have. What is PNG format used for? The Portable Network Graphic (PNG) file format is ideal for websites, digital art (flat images, logos, icons), and uses 24-bit colour as a foundation. The
ability to use a transparency channel increases the versatility of this file type. How big is a PNG file? Sometimes a PNG can be too large in size, and not only use unnecessary disk space or make it harder to e-mail, but can also drastically slow down a web page if you are using one. Notably, a full-size PNG has a file size of 402KB (kilobytes). It is wise to check if the image quality benefits are enough to sacrifice that space (or slow web page loading). Because a PNG file does not compress the image like other lossy formats, such as JPEG, quality does not diminish as much when the image is in the PNG format. Moreover, JPEG files are useful when the image is low contrast, but PNGs are better when dealing with sharp contrast. This happens when there are lines or text in the image, as well as large areas of solid colour. Screenshots and
Air Canada Vacations unveils Exuma return EXUMA will receive a Christmas surge in Canadian visitors after Air Canada Vacations confirmed direct flights to the island from Toronto will start on December 19. The Airbus A220-300 flights will operate once a week on Sundays until April 17, 2022, departing at 9.30 am from Toronto’s Pearson International Airport and arriving in The Bahamas by 1 pm. Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, said: “We are excited to welcome new and returning Canadian visitors who want to escape the winter weather to visit
and enjoy the beautiful Out Island of Exuma. “Air Canada Vacations’ direct flight from Toronto Pearson to George Town not only benefits travellers but also the local community on Exuma.” Nino Montagnese, Air Canada Vacations’ vicepresident,said: “As the demand for leisure travel continues to grow, we’re ready to advance the recovery of our industry by meeting the needs of travellers from all walks of life. We want to entice Canadians to dream of relaxation, adventure and sunnier days ahead. Exuma provides the perfect breathtaking backdrop for those dreams.”
Effective November 8, 2021, Air Canada will also be offering daily flights from Toronto to Nassau and, beginning in December, weekend flights will be available from Montreal to Nassau.
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illustrations are best in PNG format while “real” photos are best as JPEG/JPG. You might also consider using the PNG format over JPEG when you are dealing with an image that needs to be edited over and over again. For example, since the JPEG format undergoes what is called generation loss, editing and saving the file again and again will result in a lower quality image over time. This is not true for PNG because it uses lossless compression. Can you edit a PNG file? Unfortunately, in order to edit it extensively, PNG needs to be converted into a more manageable file type. There are lots of extensions that allow for further editing but Illustrator is a lot more complex. How do I make a PNG file? Open the image you want to convert into PNG by clicking File > Open. Navigate to your image and then
click “Open”. Once the file is open, click File > Save As. In the next window make sure you have PNG selected from the drop-down list of formats, and then click “Save”. What is difference between PNG and JPG? Ultimately, the main difference between JPG and PNG is the compression algorithms they use. JPG uses a lossy compression algorithm that discards some of the image information in order to reduce the size of the file. PNG image quality will not change, but the size of the file will be larger. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game. NB: Columnist welcomes feedback at deedee21bastian@gmail.com ABOUT COLUMNIST: Deidre M. Bastian is a professionally-trained graphic designer/brand
By
DEIDRE
BastiaN marketing analyst, author and certified life coach with qualifications of A.Sc., B.Sc. and M.Sc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of The Bahamas, Nova Southeastern University, Learning Tree International, Langevine International and Synergy Bahamas.
PAGE 6, Thursday, October 21, 2021
URCA: RENEWABLE POLICIES NOT WORKING FROM PAGE ONE
energy players on the basis that producers will not be fully compensated for what they produce. They have argued at the time that reducing the rate of return on utility investments in such a fashion will discourage Bahamians from investing in renewable systems, and URCA now appears to agree based on the results of a study it commissioned from independent consultants, The Cadmus Group and Energynautics. “The current RESG (Renewable Energy SelfGeneration) policy design is likely not attractive for larger projects that are
compensated at fuel rates under a buy-all/sell-All arrangement,” URCA concluded. “While the current RESG policy design is cost effective for smaller projects that can offset significant electric purchases with self-generated energy, the current design is likely insufficient to attract participation for larger projects that are not able to offset electric purchases and are compensated at a fuel rate which is insufficient to cover project development expenses and provide system owners with the required rate of return.” Philip Holdom, president of Alternative Power Supply (APS), told Tribune
Business the study’s conclusion totally vindicated arguments he has been making since 2019 while suggesting that another year has been wasted when it comes to developing a Bahamian renewable energy industry. “It is what I said from day one. I told them from day one that the RESG would never fly off the ground. It was a non-starter. There was no value to the business,” he said. “We were very clear that no business would sign up for such a thing. Obviously from the amount of sign-offs they got that was true. “If the Government [BPL] is buying all of your electricity that you are
producing, and they sell it back to you at double the cost, why would anyone sign up to that? It was selfevident at the time. What business would sell you something at half the cost and buy it back at double the cost? “It was a non-starter. Anyone signing up for that does not know renewable energy and does not know business.” URCA is now proposing to go with a net billing compensation structure for grid-tied renewable energy systems capable of producing 500 kW and 1 Mega Watt (MW), which is the same as that currently offered to those between 100 kW and 500 kW. Net billing enables persons with grid-tied systems to “net off” the difference between what they supply to, and consume from, BPL. However, Mr Holdom
added: “Even net billing is not reasonable. In America it is net metering, not net billing. “If business is not leading the way, renewable energy cannot be expeditiously expanded. There’s two kinds of renewables. There’s renewables led by government, which means borrowing and debt, and renewables led by business, which means jobs and growing the economy. Which one do you want?” Net metering credits grid-tied solar system users for the energy they sell to the grid. URCA, in unveiling the buy all/sell all compensation structure, acknowledged that it was only a temporary solution until the “cost effective tariff” study was completed, but a year has now been lost to a mechanism that
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is likely to have deterred investment in the sector. The proposed net billing switch comes as the Davis administration placed significant focus on renewable energy both in its Blueprint for Change election manifesto and the Speech from the Throne. In particular, it is aiming to revive the target of generating 30 percent of The Bahamas’ energy needs from renewable sources by 2030. Many observers believe that will be a tough target to achieve, and URCA’s compensation switch is another illustration of how far The Bahamas has to travel to attain such goals. The regulator, meanwhile, added that buy all/sell all compensation at cost-based rates will give renewable investors more certainty but increase costs for consumers. “A buy-all/sellall arrangement with cost-based rates may offer certainty to project investors that they will cover project expenses and earn a return on investment, but rate payers will purchase solar PV electricity that is more expensive than the existing generation, which will increase electric rates,” URCA added.
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Thursday, October 21, 2021, PAGE 7
SALARY DEDUCTION NEEDED FOR $10M CRUISE IPO LOAN FROM PAGE ONE advisers, seemed to imply that the $10m loan facility was solely accessible to government employees. “The equity offering for the Nassau Cruise Port via the Bahamas Investment Fund is scheduled to take place shortly. CFAL will be raising $25m, which will be matched by Global Ports Holdings. Of this sum, $10m will be reserved for civil servants through a deferred payment programme,” he wrote. Such salary deduction initiatives are not unheard of in The Bahamas as a means to encourage retail investors to participate in share offerings. The technique was used for Arawak Port Development Company’s (APD) offering in 2011,
when the Government again advanced its employees the funds to buy shares that were repaid via salary deductions. The Bahamas Investment Fund, which is the vehicle that will hold a collective 49 percent ownership stake in the Nassau Cruise Port, will be the entity issuing shares to Bahamians via the IPO. The interest-free loan is being provided by Global Holdings, the project’s controlling shareholder, which will also hold 49 percent of the equity. A foundation targeted at good causes will hold the remaining 2 percent. With investors required to invest a minimum $1,000, Mr Maura said up to 10,000 individual Bahamian investors could potentially benefit from
the interest-free loan facility. “The intent is to allow as many Bahamians to participate in this offering,” he added. “In recognising these are difficult times, the $10m loan will be distributed among 10,000 Bahamians that have jobs and the capacity to invest in this through the Bahamas Investment Fund.” Mr Butler’s e-mail confirmed: “The allocation will be on a bottom-up basis with each investor receiving their initial $1,000 investment prior to any additional subscriptions being accepted. The minimum investment for individuals and institutions will be $1,000 and $10,000, respectively with minimum increments of $500 and $2,500 respectively.”
These terms could be changed to accept smaller institutional investor contributions, he added. The Nassau Cruise Port IPO now only awaits Securities Commission approval of its offering document and prospectus, a process that is now in “its final stages”. Mr Maura, meanwhile, told Tribune Business that Nassau Cruise Port is aiming to close on the remaining $55m in debt financing it needs “within the next 30 days”. This, and the IPO’s completion, will mean it closes the financing for Prince George
Wharf’s $250m ($289m with financing costs) transformation before year-end 2021 and ahead of the project’s second quarter 2022 finish. “We’re in the middle of securing that, which will be done in the next 30 days,” he confirmed of the outstanding bond financing. “We have been very fortunate that the US markets have blessed us with their financial support. “We’re very fortunate that in the midst of the pandemic and difficult press the cruise industry has had, Nassau is extremely strategic to the sector, is blessed
by geography and the project is one-of-a-kind at this point in time in the Caribbean and world. The stars kind of lined up for us.” Mr Butler’s note added: “Nassau Cruise Port has raised $55m of the remaining $110m debt financing for the project, and is in discussion to conclude the final $55m with international investors. As such, we anticipate that by the end of 2021, Nassau Cruise Port will have completed all of its fundraising activities with an expected completion of the 2022 second quarter.”
PAGE 8, Thursday, October 21, 2021
TOURISM RIDES SUPPLY CHAIN ‘ROLLER COASTER’
FROM PAGE ONE
are taking place. It’s across the entire gamut. “It’s not just shortages, but with business
momentum picking up and demand, most items are increasing in price. Some hotels have to order out front for those items that have long lead times for
delivery. It can vary. If your order took 30 days, you now may be looking at 90 days. It depends from product to product.”
Pointing out that Bahamian hotels are “at the whim” of local wholesalers and other suppliers, and their ability to source product, Mr Sands added: “It’s a question of managing the process. While it’s a somewhat frustrating process, working through it has not been to the detriment of operations. “It’s plan out longer and source things to get them here for whenever they are require. Other items are coming back as various parts of the supply chain generating world economy get back to work. It’s a roller coaster situation. It’s not across the board, but it has created challenges and opportunities for the hotel sector.” The “opportunities” include developing alternative supply sources, with better prices and improved delivery times. Multiple factors, stemming from the COVID-19 pandemic, have resulted in global supply chain disruption that many believe will last well into 2022 before it begins to ease. Labour shortages at US ports and in the ground transportation are being blamed for late deliveries and increasing costs, while the price of shipping containers from China has either doubled or tripled depending on which merchant is speaking. Manufacturer order backlogs stemming from COVID lockdowns, as well as the post-pandemic demand surge, are other factors in a volatile mix. “I can honestly say it’s a problem we wish we did not have,” Mr Sands told Tribune Business of the supply
chain issues. “It’s part of the new normal and we have to manage ourselves accordingly. “Some of this is coming with increases in prices, which is not the way we would like goods and services to go, but with supply and demand, if there is small supply and high demand, with price yield management the prices of those items will be more than they were a year ago. All individual properties will cost out their business and make adjustments accordingly.” Asked whether these woes will ultimately impact the quality of visitor experiences, the BHTA president replied: “It has not gotten to that particular point. I don’t think we’ll get to that point if we put in place reasonable timelines for receiving these goods, and also the ability to find substitutes and make changes wherever possible to fill the void. “This has taught the hotel industry and businesses to become even more creative and pay extra attention to their trade so that these types of issues do not interrupt sustainable operations. A lot of this is directly related to COVID-19, and appearance of COVID, so as long as COVID is with us this will be an issue for us as well.” Mr Sands was unable to provide figures on the price increases being experienced by the resort sector. Harbour Island hotelier Benjamin Simmons, proprietor of The Other Side and Ocean View properties, yesterday said he had experienced no supply chain setbacks yet “touch wood” as he prepares for today’s re-opening ahead of the winter tourism season. “We’re a small business,” he added. “I would feel a lot more nervous if I was a 100-room hotel trying to
THE TRIBUNE
get large volumes of stuff. I haven’t had any issues so far, but other vendors have. My mum’s store was trying to stuff in and there were delays. I haven’t really heard of anybody else in the industry having issues like that. Fingers crossed we don’t, but we’ll see. “We’ll rely on local vendors if we need to. It’s about time we think about local product, self-sufficiency as a nation. We have to think more local than global. We’re up to the challenge.” However, Kerry Fountain, the Bahamas Out Island Promotion Board’s (BOIPB) executive director, told Tribune Business that the global supply chain crisis was “particularly” pinching his member resorts and others on Abaco still trying to recover and rebuild from Hurricane Dorian. “The problem is exactly what you said, whether its furniture or whatever,” he added. “Not only are orders or shipments delayed but it’s the matter of supply and demand that, if if you have greater demand than supply, prices are going up. There’s a delay in receiving goods and the cost you’re paying is now much higher than it was pre-Dorian and pre-pandemic, especially on Abaco.” Mr Fountain described the price increases as “noticeable”, and added that resorts doing refurbishment and renovations are “feeling the pinch” more than their counterparts focusing solely on operations. “The only consolation is that everybody is going through the same thing,” he said. “Even here in south Florida we have people talking about delays in receiving items ordered and noticeable price increases, so it’s not just us.”
LIQUIDATION SALE OF PARTS INVENTORY Detailed Parts Inventory listing can be found at
HELP WANTED RETAIL STORE MANAGER A successful retail business is looking to strengthen its team through the addition of a Retail Manager, responsible for all aspects of the daily operations of the business, based on the following requirements:
• • • • • • • • •
At least 5 years retail managerial experience Excellent communication skills Customer management skills Problem solver and results oriented Computer literate with strong POS systems skills Professional and well groomed Dynamic, energetic, disciplined and highly motivated Leadership skills Ability to motivate sales team through training and mentorship
Candidates who meet the above-mentioned requirements ON LY are invited to submit their resume to Bahamas.com@gmail.com.
SALES ASSOCIATE/CASHIER A successful retail business is looking to strengthen its team through the addition of a Sales Associate/Cashier, based on the following requirements:
• • • • • • •
25-40 years old At least 3 yrs experience in retail sales Provides outstanding customer service Able to operate cash registers and computer literate Assists with inventory A team player Well-groomed and punctual
Candidates who meet the above-mentioned requirements ON LY are invited to submit their resume to Bahamas.com@gmail.com.
THE TRIBUNE
Thursday, October 21, 2021, PAGE 9
ELECTRICITY RATE RISE ‘EXTRA BURDEN’ FOR GB REVIVAL LEADERS FROM PAGE ONE to increase their respective customer and revenue bases rather than imposing additional costs on alreadystruggling households and businesses. Suggesting that GB Power’s rate increase proposal could “make the difference” between a small business closing or staying open, Mr Laroda said: “I understand why they are saying they need a rate increase in terms of being able to maintain their systems, the integrity and efficiency of the system, moving forward into the future.; “I also see where they’re trying to put most of the burden on larger and commercial users. But, as they would have mentioned in their write-up, no one wants to see a rate increase. We were hoping to see a reduction as opposed to an increase. “The timing is bad for it. While they seem to be directing most of the burden at the high-end users and commercial customers, they are probably the very ones that don’t want to see a rate increase at this time. They are the ones carrying Grand Bahama at this time,” he added. “I don’t think the timing is right to put an extra burden on them, even though the Power Company will say these increases are not that large. These companies are struggling already.” GB Power, in a statement, said its electricity rate application would protect the most vulnerable households and individuals in Bahamian society from any rate increase. “The application proposes a 3.2 percent rate reduction for residential customers who consume up to 200 kilowatt hours (kWh) per month, representing about 18 percent of customers,” said Nikita Mullings, GB Power’s chief operating officer. “In addition, there is no change in base rates proposed for residential customers consuming between 201 to 350 kilowatt hours per month, representing 24 percent of customers. Together, this pricing structure will result in 42 percent of residential customers having a decrease or no change to the base tariff.”
However, GB Power added that the extent of any rate increase for other residential customers will depending on their monthly consumption. Persons consuming 351 to 800 kilowatt hours per month, representing about 32 percent of customers, will see a base rate increase ranging between 0 percent to 7.5 percent. The utility continued by saying customers consuming more than 800 kilowatt hours per month, representing about 26 percent of its customers, will experience a base rate increase of 7.5 percent to 8.9 percent. So-called “general service large” customers will see an increase of 3.5 percent to 4 percent, and commercial customers would feel across-the-board increases of 4.4 percent. Yet Mr Laroda argued that both GB Power and the Government needed to expand their income bases rather than continuing to suck funds from a dwindling number of households and businesses. “I’m probably speaking more to the Government than the Power Company, but the message is the same to both,” he added. “I understand the Power Company needs to get more revenue to maintain the equipment they need to, just as I understand the Government need for more revenue. “With both of them they need to focus more on increasing the revenue base, meaning for the Power Company, and they mention it, the amount of persons consuming power has significantly decreased. They need to focus more on how do they increase the customer base, just like the Government needs to focus on how to improve their revenue base. “Yes, they need revenue, but if you continue to tax the same people you will reduce their contribution to that revenue. It’s the same with the Power Company. Small businesses are struggling to keep their doors open with power rates now. When you increase them, that could make the difference between staying open for business now and closing down.” Dave McGregor, GB Power’s president and chief
operating officer of Emera Caribbean, its immediate parent, acknowledged the decline in electricity demand in Grand Bahama over the past five years due to a combination of hurricanes and continued decline in the economy. “The generation plan shows that, with a notable drop in load over the past five years, there is no need for significant generation
investments,” said Mr McGregor. “However, this is an opportune time to make investments in small utilityscale solar plants where and when it makes sense for our customers from a cost perspective. That is, where the cost of solar would be less than or equal to the cost of fuel.” Still, Mr Laroda reiterated: “We have to be very
careful with the timing of an increase with the way the economy is now. We’re already paying a hurricane restoration charge to the Power Company. The timing just isn’t right for this. We need to focus on strengthening the economy, getting investment in, and strengthening demand for power. “It’s very critical to get investment into Grand
Bahama and Abaco, places that are suffering, so those in position to pay taxes and operate businesses have an easier go of it because more persons are contributing.” The Chamber chief also backed the Government’s swift response to the GB Power proposal, and warning that it would not support any increase in base rate electricity tariffs.
PAGE 10, Thursday, October 21, 2021
THE TRIBUNE
‘NEXT HURRICANE CAN WIPE US OUT’ FROM PAGE ONE
frequent and powerful hurricanes. Asserting that “even if The Bahamas did 100 percent of what we ought to do” in living up to its Paris climate accords commitment, she added that this nation was “a drop in the
bucket” when compared to major green house gas emitters such as China, the US and major industrialised nations. “We need to be there to ensure The Bahamas gets a fair share,” Ms Newbold said, referring to talks on a potential funding mechanism that would potentially
NOTICE International Business Companies Act (No. 45 of 2000) SNOOPY PTC LTD. Formerly CASA PTC LTD. Registration No. 205223 B Pursuant to the provisions of Section 138 (8) of the International Business Companies Act, 2000 notice is hereby given that SNOOPY PTC LTD. Formerly CASA PTC LTD. has been dissolved and struck off the Register of Companies with effect from the 13th day of September, 2021. GALNOM LTD. Liquidator
LEGAL NOTICE
NOTICE LADYBUG INVEST LTD. NOTICE is hereby given as follows: (a)
Ladybug Invest Ltd. is in Voluntary Dissolution under the provisions of Section 138(4) of the International Business Companies Act 2000.
(b)
The Dissolution of the said Company commenced when the Articles of Dissolution were submitted to and registered by the Registrar General of the Commonwealth of The Bahamas.
(c)
The Liquidator of the said Company is Beatus Limited, P.O. Box N7776-348, N.P., Bahamas. Dated 20th day of October, 2021.
Beatus Limited Liquidator
help compensate small island developing states (SIDS) for losses and damage stemming from hurricanes and other climate-related events. The Bahamas has consistently struggled to access grant financing and other forms of development funding for several decades due
to its high per capita income levels, and the DEPP director warned that this nation could suffer the same fate on climate change if it was not present in Glasgow at COP26 to make its case. “People look at The Bahamas and say we’re too rich, we have all these hotels, drive all these
LEGAL NOTICE
NOTICE COZAMA LTD.
(IN VOLUNTARY LIQUIDATION)
Notice is hereby given that, in accordance with Section 138 (4) of the International Business Companies Act, (No.45 of 2000), Cozama Ltd. (the “Company”) is in dissolution. The date of commencement of the dissolution is 7th October 2021. Jessica A. Gardner is the Liquidator and can be contacted at 299 Park Avenue, 16th Floor, New York, New York 10171, U.S.A. All persons having claims against the abovenamed Company are required to send their names, addresses and particulars of their debts or claims to the Liquidator before 8th November, 2021. . DATED this 19th October, 2021 JESSICA A. GARDNER LIQUIDATOR
NOTICE International Business Companies Act (No. 45 of 2000)
Renaude PTC Ltd. Registration No. 205225 B Pursuant to the provisions of Section 138 (8) of the International Business Companies Act, 2000 notice is hereby given that Renaude PTC Ltd. has been dissolved and struck off the Register of Companies with effect from the 7th day of October, 2021. GALNOM LTD. Liquidator
fancy cars and do all these things,” she added. “We do need money. The next hurricane can truly wipe out this country.” Ms Newbold said The Bahamas also needed to exploit potential opportunities such as carbon credits, particularly given its large coastal sea area - something she branded as the biggest in the region, and more expansive than all other Caribbean countries combined. She explained that The Bahamas now has an opportunity to use its sea grass, mangroves and coral reefs as “currency” when it came to carbon credits, adding: “The environment is our
economy. It’s important for us to be there. It’s financially important, it’s socially important, and it’s important to ensure we are part of this global discussion. “If you are not part of the international discussions, you do not exist on this planet. We have to be there in order to have a voice. We’re going to COP26 to talk about this [financing] mechanism for loss and damage. We suffered damage and loss. We suffered the event [Dorian]. “If we are not there to ask the question, and who pays, they will say it’s your country, your damage and you should pay.”
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PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, ELDA ORDEUS of Kelly Lane, Johnson Road, Nassau, The Bahamas, Parent of ELJOELEINA ALAINE ORDEUS A minor intend to change my child’s name to ELJOELINA ALAINE ORDEUS If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, GARTH DEREK TAYLOR of Settlement of Clarence Town, Long Island The Bahamas, intend to change my name to GARTH JOSEPH MERLANDER. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.
NOTICE NOTICE is hereby given that ROBERTSON ROMAGE of #233 Jansel Court Condominiums, Freeport, Grand Bahama, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 14th day of October, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE NOTICE is hereby given that KELSON DOLCE of Carmichael Road, Nassau, The 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 21st day of October, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
October 30th, 2021
PAGE 12, Thursday, October 21, 2021
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REYNOLDS HOPES RULE CHANGES WILL PUSH JOBLESS BACK TO WORK By DAVID PITT Associated Press ADEL, Iowa (AP) — Unemployed Iowans would be required to meet weekly with state case managers, conduct twice as many weekly work searches and undergo audits to prove they’re actively looking for work under a new proposal announced Wednesday by Gov. Kim Reynolds. Unemployment payments could be frozen if unemployed workers fail to meet the new criteria, an Iowa Workforce Development spokesman said.
“Unemployment benefits were never intended to provide long-term support and with the current workforce shortage exacerbated by COVID Iowa cannot afford for workers to be disconnected from our state’s economy,” IWD Director Beth Townsend said at a news conference at which she and Reynolds announced the proposed changes expected to be enacted next year. The event was held at Iowa Spring Manufacturing, a factory in Adel that manufactures springs for garage doors, agricultural equipment and other devices. Tim
Bianco, the president and CEO of the company who attended the gathering, has donated to Reynolds and other Republican candidates. Townsend said more than 86,500 job openings are posted on the IWD website spanning all industries statewide. She said nearly 68,000 Iowans remain unemployed. Historically, Iowa workforce officials wait for unemployed people to come to them to request assistance, but given today’s high demand for workers, the state must be more proactive in helping the unemployed get back to work, she said.
Reynolds was among several Republican governors to cut off extended federal unemployment benefits to jobless workers last spring. The state ended the additional $300-a-week unemployment payment in June even though it was scheduled to run through early September. Reynolds said the benefits were causing a labor shortage — a charge echoed by conservative groups and Republican governors in Alabama, Arkansas, Montana and South Carolina. Data released in September by the U.S. Department of Labor suggested there
was little difference in job growth in states that ended benefits early and those that kept the benefits in place. The number of unemployed Iowans actually increased by 300 in August to 67,900, but that was still 18,100 lower than the year-ago level of 86,000. Iowa’s unemployment rate remained at 4.1% in August, down from 5.3% a year ago. The U.S. unemployment rate fell to 5.2% in August. Townsend said the agency will hire 18 more workers to meet with and monitor the progress of unemployed Iowans. Sen. Nate Boulton, the ranking Democrat on
the Senate Labor & Business Relations Committee, questioned Reynolds’ approach. “Reynolds’ idea of having the government assign jobs to Iowa workers is all wrong,” Boulton said. He said the state should be partnering with underemployed and unemployed Iowans to help them find the right jobs for them and their families. Reynolds also said the state would spend $30 million in federal funds to provide grants to help manufacturers retain existing workers and recruit new employees.
THE TRIBUNE
Thursday, October 21, 2021, PAGE 13
Minister tours key areas of portfolio CLAY SWEETING and Leonardo Lightbourne meet with Caribbean Agricultural Research and Development Institute country head, Dr Michelle Singh. Photos:Kendea Smith
Clay Sweeting, minister of agriculture, marine resources and Family Island affairs, recently toured the Department of Fisheries and the Gladstone Road Agricultural Complex. LEONARDO LIGHTBOURNE, parliamentary secretary in the Ministry of Agriculture, Marine Resources and Family Island Affairs, greets staff at the Gladstone Road Agricultural Complex (GRAC).