business@tribunemedia.net
MONDAY, NOVEMBER 13, 2023
$6.10
$6.11
Up to $100m targeted in Abaco ports investment By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government is eyeing a combined $100m investment to transform Abaco’s two commercial shipping ports into facilities that meet global best practices and standards. The public-private partnership (PPP) tender documents for both the Marsh Harbour and Cooper’s Town ports, which have been seen by Tribune Business, reveal that bidders on the former must show they have combined equal capital and access to debt financing of “at least $60m”. For Cooper’s Town, the figure is slightly less at $40m in collective equity and debt funding. Several sources, speaking to Tribune Business on condition of anonymity, have described both figures as being on the high side. The sum sought for Cooper’s Town almost matches the $41m investment in its initial construction, which was completed by China Harbour Engineering Company (CHEC). The tender documents, known as Requests for Proposal (RFPs), reveal
t 1VCMJD UP HFU JO .BSTI )BSCPVS $PPQFS T 5PXO t /PSUI "CBDP QPSU IBT TMJQ NBSJOB QPTTJCJMJUJFT t 111T UP MBTU ZFBST XJUI WBSJFUZ PG GFFT NVMMFE that the Government wants the ownership structure for both Abaco port PPPs to mirror that which was put in place for BISX-listed Arawak Port Development Company (APD), operator of the Nassau Container Port. APD revealed to Tribune Business it has submitted a bid to take over management and operations at the Marsh Harbour port only. For both the Marsh Harbour and Cooper’s Town ports, the RFPs stipulate that a combined 20 percent
equity ownership will be “offered for sale to the general public” although it does not specify whether this will be via an initial public offering (IPO) or other method. The remaining 80 percent ownership interest will be split evenly between the Government and winning PPP bidder, with each holding 40 percent. This split matches APD’s structure, where the Government and shipping industry each hold a 40 percent stake. Meanwhile, among the expansion opportunities identified at the Cooper’s Town port is a 120-slip marina together with international and domestic warehouses, although no such opportunities were identified at Marsh Harbour, which remains the island’s prime commercial shipping port and cargo point-of-entry despite the devastation inflicted by Hurricane Dorian. Both RFP documents state that each port will be leased to the winning bidder for a 25-year period, in an attempt to ensure they get a return on their upfront capital investment,
SEE PAGE B8
Gov’t eyes purchase of Freeport’s Bazaar By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government is exploring the potential acquisition of Freeport’s derelict International Bazaar site as the location for its proposed African-Caribbean products marketplace. Ginger Moxey, minister for Grand Bahama, who touted the Marketplace’s creation earlier this year after she headed a trade and investment mission to West Africa, did not respond to Tribune Business messages and phone calls seeking comment but well-placed sources confirmed the Davis administration has
expressed initial interest in purchasing the site. Chris Paine, president of the International Bazaar Owners Association, when contacted by this newspaper confirmed there had been preliminary contact and meetings with the Government but no agreement was imminent. He explained that the initial talks had sought to “familiarise the Government with the somewhat complicated ownership of the Bazaar” with no less than 13 separate entities involved, including the likes of the Bahamas Hotel, Catering and Allied Workers Union (BHCAWU),
SEE PAGE B8
ArawakX ‘good undeniable’ yet KC confident on full winding-up By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ARAWAKX’S president says “nobody can deny the good” it achieved as Securities Commission attorneys hailed the appointment of provisional liquidators as vital to “protecting the capital markets”. D’Arcy Rahming senior, head of The Bahamas’ first-ever crowd-funding platform, told Tribune Business that he and and his colleagues had shown themselves to be “pioneers in this field” and “innovators” despite the Chief Justice last week ordering that they - for the moment
D’ARCY RAHMING SNR at least - surrender control of the company. That, though, is not how Michael Scott KC, who represented the Securities Commission in its successful bid to have a provisional liquidator take charge of ArawakX, sees things.
SEE PAGE B10
$6.01
$6.17
BTC cell tower sale to help finance 5G t 4FMM BOE MFBTFCBDL EFBM GPS TJUFT UP GVOE ACFUUFS DVTUPNFS TFSWJDF By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government wants “part of the proceeds” from the sale and leaseback of all the Bahamas Telecommunications Company’s (BTC) 345 cell tower sites to be reinvested in improving services and 5G technology. Valentine Grimes, BTC’s vice-chairman, told Tribune Business last night this was “the intent” of the Davis administration after BTC’s ultimate parent on Friday unveiled a $355m deal to sell, then rent back, some 1,300 cell tower sites spread across six jurisdictions including The Bahamas. The deal, which will see Florida-based Phoenix Tower International take over the towers’ ownership while assuming responsibility for their upkeep and maintenance, blindsided BTC’s management
and line staff unions who described the arrangement with Liberty Latin America, their carrier’s parent, as “very troubling” (see article on Page 3B). However, Mr Grimes told this newspaper there was nothing sinister about the deal, which he described as a growing trend in the international telecommunications industry. Besides monetising the value of key infrastructure assets, he added that it will also enable BTC and other Liberty Latin America affiliates to focus on improving the quality of mobile services they deliver to consumers. Mr Grimes, who together with three other directors represents the Government’s 49 percent equity interest in BTC, confirmed that Board members have signalled “their approval” of the Phoenix sale and leaseback, and then final
SEE PAGE B6