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MONDAY, NOVEMBER 15, 2021
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‘Unprecedented’ tourism boost via COVID upgrade
Bahamas ‘plight’ means no S&P outlook comfort
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
RESORTS are eyeing “unprecedented” Christmas occupancies after the US upgraded The Bahamas’ COVID status, a top hotelier said yesterday, with many on pace to beat prepandemic levels. Robert Sands, the Bahamas Hotel and Tourism Association (BHTA) president, told Tribune Business that he expected “the phones to start ringing again” with inquiries for meeting, group and convention-related bookings after the federal health authorities decided to remove the ‘Level 4’ “do not travel” advisory on this nation. Speaking after the Centres for Disease Control and Prevention (CDC) upgrade was unveiled by the Government on Friday, Mr Sands warned that The Bahamas “cannot rest on our laurels” and be satisfied with ‘Level 3’ status. This still means there is a “high”
THE Bahamas does “not have enough control over our own plight” to take comfort from Standard & Poor’s (S&P) belief that COVID devastation has “bottomed out”, it was argued yesterday. Matt Aubry, the Organisation for Responsible Governance’s (ORG) executive director, told Tribune Business this nation was “still too far off” from full recovery to take confidence from the credit rating agency’s decision to upgrade this nation’s economic outlook to “stable”. That action provided the one positive for The Bahamas amid S&P’s decision to further push this nation into “junk” status territory, as it downgraded the country’s sovereign
ROBERT SANDS level of COVID-19 in this nation, and he asserted that it would be “even better” for the economy’s recovery prospects to hit ‘Level 2’. Reiterating that group business was “very important to the success of mid to large-sized hotels”, typically accounting for between 25-40 percent of their occupancies, the BHTA chief said many hotels were “ahead of or meeting” pre-COVID business levels for Thanksgiving
SEE PAGE 10
• ‘Stable’ upgrade no sign COVID has bottomed out • Downgrade ‘inevitable’; critical to ‘right the ship’ • Politicians warned over ‘cavalier’ fiscal statements creditworthiness from ‘BBB-’ to ‘B+’. The “stable” outlook, based on the country’s economic recovery prospects, indicates the rating agency will take no further downgrade action over the next 12 months. “The stable outlook reflects our view that an improving economy will bolster government revenues even in the absence of meaningful fiscal reforms,” S&P said. “The stable outlook reflects our view that the economic recovery
presently underway will support government revenues and reduce pressure on government expenditures, supporting a gradual decline in fiscal deficits over the next 12 months. We expect continued, but decelerating, growth in the national debt.” Mr Aubry, while agreeing that S&P’s action “does give us breathing room in terms of what’s coming down the pike”, nevertheless argued that The
SEE PAGE 9
GOWON BOWE
MATT AUBRY
Cable targets $80m New Providence fibre roll-out By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
ENJOY LIFE KNOWING WE HAVE YOU COVERED
CABLE Bahamas plans to invest $80m over the next two-three years on rolling out its New Providence fibre-to-the-home network, its top executive has revealed. Franklyn Butler, the BISX-listed communications provider’s president and chief executive, told Tribune Business it was working to finalise its roll-out strategy for the country’s most populated island as part of efforts to improve customer
FRANKLYN BUTLER connectivity and data access post-COVID. “We are right in the thick of really making a commitment to fibre-to-the-home for New Providence,” he
SEE PAGE 8
BOB: Unleash us for commercial lending By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Nobody Does it Better!
INSURANCE MANAGEMENT
(BAHAMAS) LIMITED. INSURANCE BROKERS & AGENTS
BANK of the Bahamas’ managing director is urging the Central Bank to “level the playing field” by removing the restrictions imposed on its commercial lending in the wake of its near-collapse. Kenrick Brathwaite told Tribune Business that the BISX-listed institution was “still paying for the sins of those who have gone before us” despite having a lending policy and staffing structure that was “as sound as any other bank” in this nation. With Bank of The Bahamas restricted from lending
to businesses since 20132014, he argued that lifting it would enable the institution to be “less aggressive” in seeking out consumer borrowers and other forms of lending and have a more balanced credit portfolio. “My only hope now is the Central Bank releases that restriction on us for commercial credit, so we can level the playing field. Once they level the playing field we can be less aggressive in consumer lending and more aggressive in commercial lending,” Mr Brathwaite told this newspaper. “They put that restriction on in 2013-2014. That’s a long time. They haven’t
SEE PAGE 7
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Monday, November 15, 2021, PAGE 3
GB POWER TARGETS 13% RETURN ON RATE CHANGES By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net GRAND Bahama Power Company is seeking returns of close to 13 percent in its proposed revision to the island’s electricity tariffs, it can be revealed. The disclosure was made in financial filings by its 100 percent owner, Canadian utility giant, Emera, which confirmed it expects the Grand Bahama Port Authority (GBPA) will take a decision on whether to approve its application before year-end. This would enable the changes to take effect in line with GB Power’s January 1, 2021, implementation schedule. Grand Bahama’s electricity monopoly is seeking returns of between 8.5 percent to 9 percent on its base rate tariff, and a 12.84 percent return on equity (ROE), both of which it says are permissible under its supervisory framework with the GBPA, its regulator.
“On September 23, 2021, GB Power filed an application for rate review with the GBPA. The application seeks a revision in base rates, charges and tariff classifications effective January 1, 2022, for a three-year period ending December 31, 2024,” Emera said. “GB Power’s proposed rates would reinstate the amortisation of regulatory assets, which had been deferred as part of the fiveyear rate stabilisation plan. Rates were designed based on an 8.5 per cent to 9 per cent allowable regulated return on rate base, and a target regulatory return on equity of 12.84 per cent. A decision is expected from the GBPA by the end of 2021.” GB Power has already faced a furious backlash from the Government, businesses and civil society groups over its revised tariff proposals, with the Davis administration repeatedly emphasising that it
GRAND BAHAMA POWER COMPANY HEADQUARTERS is opposed to increasing electricity rates on Grand Bahama. However, it has no regulatory or legal authority over the matter, and has to rely on pressure and moral suasion. Meanwhile, Emera’s results for the 2021 third quarter and nine months to end-September 2021 show GB Power’s contribution to its net income has risen significantly year-over-year. This tripled in the third
quarter, jumping from $1m to $3m, and quadrupled for the year-to-date - jumping from $2m in 2020 to $8m for the first nine months of 2021. “Other electric utilities Canadian dollar contribution to consolidated net income in the 2021 third quarter increased $2m to $8m, compared to $6m in the 2020 third quarter, due to higher other income at GB
Power,” Emera said. This “other income” was not described further. Pastor Eddie Victor, head of the Coalition of Concerned Citizens (CCC), a long-time GB Power opponent, said his organisation was “targeting” December for a demonstration - likely to be held during the month’s first week - and other activities as it had anticipated this was when the GBPA would decide whether to approve the rate application. Praising the Government for its rapid response, which “has not been the norm in dealing with the Power Company, Pastor Victor said “all options are on the table” in opposing the proposed rate increases and restructuring. Reiterating that Grand Bahama’s economy “is in very bad shape”, he added that further raising energy prices will worsen the impact on consumers already grappling with higher rising food prices
and product shortages the latter resulting from the global supply chain backlog. “The money people have, the little people have, it’s a struggle,” Pastor Victor said. “Today, I spoke to a government employee and they have still not gotten their home together from Hurricane Dorian. She is applying for help wherever she can to get assisted. That’s a typical story in Grand Bahama. “Once you increase your power rates, you’re are not only increasing the amount the consumer has to spend but there will be a domino effect because businesses have to pay the same cost. I have to pay more for electricity at home, I am paying a storm recovery charge I did not have to a year ago, and businesses will have to pass the costs on. “It trickles right through the economy. If you increase electricity rates, we’re already unattractive
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GOV’T AND OPPOSITION TRADE BLOWS OVER S&P DOWNGRADE By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government’s attempt to blame the former Minnis administration for The Bahamas’ latest downgrade “does not line up” with Standard & Poor’s (S&P) analysis, an ex-Cabinet minister says. Kwasi Thompson, former minister of state for finance, in a statement last night argued that the rating agency, in downgrading this nation’s sovereign creditworthiness further into “junk” status, had blamed the actions of “successive governments” - not just one - for failing to implement “timely and effective fiscal reforms” even prior to COVID19. He spoke out after Senator Michael Halkitis, minister of economic affairs, responded to S&P’s action by slamming the Minnis administration for “ill-conceived debt management strategies” and “imprudent policy choices” that have significantly increased The Bahamas’ external debt through over-reliance on foreign currency borrowing. “The rating reflects the continued economic and fiscal impact of Hurricane
Dorian and COVID-19, as well as the failure of the previous administration to implement meaningful fiscal reforms to existing revenue models and ill-conceived debt management strategies,” Mr Halkitis said in a statement. “The imprudent policy choices related to borrowing over the past four years have increased our external indebtedness despite the existing domestic capacity.” He hit out after S&P downgraded The Bahamas’ sovereign credit rating, already at non-investment grade status, further to ‘B+’ from ‘BB-’ However, Mr Thompson last night refuted the Government’s narrative, saying: “Standard & Poor’s report does not line up with comments made by the Government. S&P did not blame the FNM administration but successive governments for failure to implement timely and and effective reforms to public finances. “However, it does state than thanks to the recovery already underway, which was as a result of the Free National Movement’s (FNM) recovery plan, a ‘stable’ outlook has been given to The Bahamas.”
MICHAEL HALKITIS
KWASI THOMPSON
S&P’s report on The Bahamas lends some weight to the east Grand Bahama MP’s push back, as it blamed multiple administrations - both FNM and PLP - for this nation’s fiscal deterioration, which has merely been accelerated by the combination of Hurricane Dorian and COVID-19. “Although successive governments have continued to work on policies and legislation to support their fiscal responsibility mandate, they have not enacted material revenue measures or sustained expenditure cuts,” S&P said, adding that it anticipated the 10 percent VAT rate cut will be “revenue neutral”.
“We believe the new administration will take time to assess the country’s fiscal and debt situation, which may further delay the implementation of new fiscal measures,” the rating agency added. “We believe the country’s track record of slow progress in reforming public
finances and key sectors of the economy has contributed to the weakening of its financial profile over many years, and hurt its economic performance. Most notably, failure to advance public financial reform has led to a marked increase in the sovereign’s debt burden.” What the S&P report confirms is that there is sufficient blame to go around on both sides of the political divide for The Bahamas’ fiscal predicament. And, while its contents may favour Mr Thompson and the former Minnis administration in blaming successive governments, they do not explicitly credit it for the initial signs of economic turnaround detected by S&P. Mr Halkitis, too, criticised the former administration for over-reliance on foreign currency
borrowing that was billed as critical to support the external reserves, and thus the one:one exchange rate peg, at COVID-19’s peak when tourism was shutdown and foreign exchange earnings had slowed to a trickle. The minister of economic affairs is correct that, on paper at least, there is significant “domestic capacity” to lend to the Government with $2.4bn in excess commercial bank liquidity at end-September 2021. However, as previously revealed by Tribune Business, many commercial banks and other institutional lenders are at or near their regulatory and prudential limits in terms of what they can lend to the Government. Mr Halkitis, meanwhile, promised that the Davis
SEE PAGE 5
PAGE 4, Monday, November 15, 2021
BAHAMAS ‘15% AHEAD’ OF PRE-COVID FOR HOLIDAYS By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net
THE Ministry of Tourism’s director-general yesterday said The Bahamas is “15 percent ahead” of pre-COVID business volumes for the upcoming Thanksgiving and Christmas season. Joy Jibrilu, speaking at the Caribbean Hotel Investment Conference & Operations Summit (CHICOS), said the Caribbean is “leading the way” on tourism’s recovery with the region just 25 percent down compared to 2019 bookings. This, she added, placed the Caribbean ahead of the wider Americas region, where bookings are
at 63 percent of pre-COVID levels. “But if you look at Thanksgiving and Christmas for The Bahamas, we are ahead 15 percent of where we were in 2019, which was a record year. So the future really looks bright, and it’s not just in the immediate short term,” Mrs Jibrilu said, with 2022 first quarter bookings for airlines having “exceeded” projections. She added: “So we’re now ramping up. We work six months ahead. So we’re ramping up for summer 2022. Come January, February, we’re going to be looking at winter 2022 to ensure that we keep this pace of flow. “But feedback has been strong for The Bahamas, and it is not just Nassaucentric but a multiplicity of
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JOY JIBRILU islands. The Family Islands are booming, and that’s because they have an incredible product that appeals to people now. The traveller is so sensitive to sustainable tourism, so they love the models of our Family Islands and also the possibility for social distancing. “We have been working to a plan, and that plan in 2020, we were looking at tourism readiness and recovery,” Mrs Jibrilu continued. “That was putting in place all of the health protocols that were needed to ensure that we had a safe reopening of tourism. I think you’ve seen that rolled out very well. “At the beginning of 2021, when we recognised this pent-up demand, when we saw what was happening in terms of the attraction for Bahamas vacations, we then started to change our marketing focus. “So in 2020, we were out in the marketplace marketing, but it had a completely different feel. We were just letting the world know that we were still here. We were not selling The Bahamas, but we were ensuring that
The Bahamas was top of mind for everyone. “We we’re just showing beautiful images of the islands of The Bahamas, our water, anything that would just appeal to people who were locked up and wanted to get away,” she added. “But now we have ramped up our marketing completely, and so we’re really now sort of capitalising on this ramped-up marketing.” This marketing will be targeted at key source countries, targeting more airlift from Europe, the UK and Canada. “We’ve got some great plans for 2022,” Mrs Jibrilu added. She said the Ministry of Tourism also plans to exploit potential synergies with Bahamas Invest, the Government’s new investment promotion agency, which now comes under the same ministry. “I’m delighted that Bahamas Invest actually has a booth here,” Mrs Jibrilu said. “They have investment officers here, and while people have been meeting with us, and certainly I’m having conversations with people and letting them know that the opportunity exists for them to have those conversations with Bahamas Invest, we are ensuring that they speak to the right people. “We don’t want to be a bottleneck, we’re there to support. I’m glad that the Ministry of Tourism was able to be the sponsor of this, and it was fortuitous that it just marries both of those areas of the minister’s portfolio. But we’re really, really here as the support act to Bahamas Invest.”
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GOV’T IN TALKS OVER WHO PAYS FOR COVID TESTING By YOURI KEMP Tribune BUSINESS REPORTER ykemp@tribunemedia.net THE deputy prime minister has confirmed the Government is initiating talks with the hotel industry over whether unvaccinated staff should pay for their weekly COVID-19 tests. Chester Cooper, also minister for tourism, investment and aviation, said that while the Government has not made vaccinations mandatory, the issue of testing - and who should pay for it - remained an open question. He indicated, though, that the Davis administration’s planned roll-out of free COVID testing might provide an answer. “It is a question that we have begun to talk with all of the properties,” Mr Cooper said.”The Government of the Bahamas has started a pilot programme in terms of testing in some of the islands of The Bahamas. “We’re speaking with the hotel unions, and we hope to be able to advance that programme even further. Suffice to say, we’re talking with the employers. We’re talking with the unions and we’re moving in the right direction. “I started to talk about vaccinations because we believe that vaccination uptake is the right way to go. We’re encouraging all of our citizens to vaccinate. It’s not mandatory, but we are encouraging them to do so,” he continued. “It’s good for our health, and it’s good for the economy. And research shows the tourists like to go to destinations where there’s a high vaccination uptake. So it’s good for tourism. It’s good for the economy, and it’s good for our health.” Mr Cooper’s comments came one day after Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, issued “a clarion call” for The Bahamas to eliminate legal stipulations that mandate
CHESTER COOPER
GRAEME DAVIS employers must pay for their workers’ COVID-19 testing. He used the Accountants Week seminars to challenge both the Government and trade unions to at least work with the private sector on reforming the Health and Safety at Work Act’s section nine, which includes language that blocks employers from requiring their employees to pay towards any element of workplace safety. Graeme Davis, Baha Mar’s president, yesterday doubled down on what Mr Sands said, adding that he wants employees “certainly paying for testing” if they are unvaccinated. He said: “We want to encourage associates to work in a safe environment and be vaccinated where they can, unless there’s underlying medical conditions. We believe, you know, that that creates a safe work environment for them.”
NOTICE IN THE ESTATE of JOAN ELEANOR HANNA, late of the Western District of the Island of New Providence, one of the Islands of The Commonwealth of The Bahamas, deceased. Notice is hereby given that all persons having any claim or demands against the above named Estate are required to send their names, addresses and particulars of the same duly certified in writing to the undersigned on or before the 6th day of December A.D., 2021, and if required, prove such debts or claims, or in default be excluded from any distribution; after the above date the assets will be distributed having regard only to the proved debts or claims of which the Administrator shall then have had Notice. And Notice is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the aforementioned date.
MICHAEL A. DEAN & CO., Attorneys for the Administrator Alvernia Court, 49A Dowdeswell Street P.O. Box N-3114 Nassau, The Bahamas
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Monday, November 15, 2021, PAGE 5
The Metaverse By RICARDO EVANGELISTA
F
ACEBOOK recently changed its corporate name to Meta. This is a move that is more than just an attempt to deal with the brand erosion suffered over the last few years, as the controversy surrounding the social network increased due to hard targeting of users and accusations that its algorithms contribute to the polarisation of society through the dissemination of radical views and false information. The choice of name, Meta, hints at the future envisaged by Mark Zuckerberg for the company. Meta obviously alludes to Metaverse, which is a term currently being used to describe a future version of the Internet that will incorporate virtual worlds where human avatars play, work, do business and establish meaningful relationships. Think Sims (the old virtual reality game where each player would live a second life through its avatar), but on a much larger scale and in 3D. Mark Zuckerberg
THE METAVERSE who, together with pretty much every other big tech personality, has been a loud advocate for the concept, recently described it as being an Internet where users are inside rather than just looking from the outside. The world wide web which, if you exclude a
restricted group of early adopters, has been around for barely 20 years, has profoundly altered our lives. Social media, digital currencies, online shopping and dating etc have deeply changed the global economy and social dynamics. So, imagine we introduce a new dimension: A shared
space where we all exist through avatars and, just like in the physical world, we own virtual property, which one can create, as well as sell and buy; all this in 3D. Flat screens will be a thing of the past, replaced by virtual or augmented reality headsets.
Participants will be part of this new dimension, rather than looking at it through a bi-dimensional screen, and actually “feeling” the presence of other 3D avatars occupying the same space. The Metaverse, also called Internet 3.0, may end up completely replacing the 2D internet of today, with users’ Avatars interacting with each other at corporate meetings, live streaming of sporting events and shopping. Just like in the late 1990s, when the Internet began to gain global traction and no one foresaw all the changes that were to reshape our world over the following two decades, it is impossible to predict what will be the full impact of this revolution. However, one scenario stands out as being very likely: Blockchain will become much
more mainstream than it is today. The need for security in online interactions between avatars in the Metaverse will be even greater than for today’s Internet. If users are going to completely immerse themselves in a virtual world, the underlying platforms must offer protection against hazards such as hacks, data breaches and impersonation. Blockchain will offer instant confirmation of any information being exchanged, as well as cryptographically securing and protecting transactions. So we can expect blockchain and crypto assets, such as currencies and NFTS (nonfungible tokens), to gain even more prominence in our daily lives as they become one of the corner stones of this new technological frontier.
GOV’T AND OPPOSITION TRADE BLOWS OVER S&P DOWNGRADE GB POWER TARGETS 13% RETURN ON RATE CHANGES FROM PAGE THREE
FROM PAGE THREE to potential investors because of the cost of electricity, so you’re making it worse. I had a conversation with a company representative; they looked at coming to Grand Bahama years ago, but the cost of electricity was too high for them to consider putting a plant here,” he added. “That’s the dilemma we have. There’s a lot of people still living without electricity. I spoke with a woman this week when I went to the Power Company, as I had to pay my bill. It’s just her and her fiancee living in a home, and she was showing me how expensive the electricity rate was at her home. “You cannot be paying $700 a month when there are two people in a home with a gas stove and there is one A/C in the house. She was paying more than my wife and I. She was living for several months without electricity until they got money to put on the bill. She was living without electricity for nine months, but there are people living without it for years.” The GBPA previously said its decision will be
communicated to GB Power no later than December 1, 2021, having received the proposal on September 23. GB Power previously said residential customers faced with electricity base rate increases would only see a modest rise in their monthly bills. Asserting that 42 percent of residential customers will see either a decrease or no change in their base rates, GB Power said the other 58 percent faced with an increase will see their monthly bills rise by an average of between $7 and $20 depending on consumption. “As noted in today’s release, 42 percent of residential customers will see a decrease or no increase in their bills,” the utility reiterated. “Customers who consume 600 kWh (kilowatt hours) per month can expect an increase of about $7 per month under the proposed rate structure. “Those who consume 800 kWh on average will see an increase of about $12 per month. Those who consume 1000 kWh on average will see an increase of about $20 per month.”
administration “understands the urgency” created by the S&P move “and the need for immediate action to reverse the trend of consecutive downgrades in recent years”. As examples of this action, he cited the supplementary Budget that is designed to align the Government’s finances with the administration’s spending policies but not increase the deficit or national debt. “Economic recovery and growth are our first priorities in addressing this issue,” the minister said. “We remain committed to strengthening the Fiscal Responsibility Act and public financial management legislation, as well as enhancing revenue administration and reimagining revenue policy. “We have retooled the Revenue Enhancement Unit and are launching the expert-driven Revenue Policy Committee to propel these efforts. Our goal is to have a 25 percent revenueto-GDP ratio by 2025. We are also in the process of implementing debt reduction strategies, and facilitating more effective debt management guided by the Public Debt Advisory Committee.” Mr Thompson, meanwhile, attacked the Government’s planned VAT
rate slash to 10 percent as ill-timed given The Government’s revenue needs. He cited a report prepared by the University of The Bahamas’ Public Policy Institute for the Ministry of Finance, which found cutting the VAT rate to 10 percent will cause “only slight improvement” in job creation and economic growth. The report had nevertheless recommended that the tax cut be “pursued”, but Mr Thompson said: “The key and inescapable critique of S&P is that demonstrated action needs to be taken to close the fiscal gap and reduce the deficits and debts. But, instead, this government has gone in the opposite direction by deciding on a
broad-based tax cut at a time when it needs more revenue, not less.” Mr Thompson referred, in particular, to the report’s findings that there would be “a worsening of the current account, the fiscal deficit and the debt-to-GDP ratio”. He added: “Put simply, this government’s plan will not be revenue neutral according to their own published study,” he said. “Their study and report concluded that the fiscal situation will be worse.... “So the bottom line is that their study has told them that their plan won’t work to stabilise the fiscal situation or to allow them to achieve their economic and fiscal targets.”
However, as pointed out by this newspaper, it was unclear whether the university’s VAT cut modelling accounted for the multiple exemption and zero-rating eliminations planned by the Davis administration, making it impossible to judge whether the report was assessing the exact 10 percent structure that will be passed by Parliament. The Davis administration believes that returning to a lower-rate, broad-based VAT will make the tax much simpler to administer and enforce, thereby enhancing compliance and reducing the scope for revenue leakage, fraud, evasion and mis-reporting.
PAGE 6, Monday, November 15, 2021
COLINA SHAREHOLDERS IN 26.5% PROFITS INCREASE A BISX-listed insurer says the economy’s postCOVID re-opening has helped to drive a 26.5 percent year-over-year increase in profits for its ordinary shareholders. Colina Holdings (Bahamas), parent of life and health underwriter, Colina Insurance Company, said net income attributable to ordinary shareholders for the nine months to endSeptember 2021 stood at $12.4m or $0.50 per ordinary share. This compared to $9.8m, or $0.40 per ordinary share, for the same period in 2020 when the pandemic and its economic fall-out peaked. In particular, Colina benefited from a rebound in
investment income and not having to repeat writing down the value of its securities holdings, which it was forced to do in 2020. Net investment income totalled $22.7m for the nine months ended September 30, 2021, almost tripling the $8.2m it earned during the same period last year. COVID-19 required the insurer to incur “mark-tomarket” valuation losses on its investment portfolio in 2020, negatively affecting the prior year’s net investment income. Premium revenues, meanwhile, rose to $96.4m for the nine months ended September 30, 2021, increasing by 2.2 percent over the prior
TERENCE HILTS year’s gross written premiums of $94.3m. These increases produced a 17.1 percent year-overyear rise in total revenues to $127.1m for the nine
months ended September 30, compared to $108.5m for the same period in the prior year. Net policyholder benefits increased to $64.4m for 2021’s first nine months, compared to $60.1m for the same period in the prior year. Colina Holdings (Bahamas) said September 2020 net benefit payouts were below expected levels due to the restrictions that were implemented due to COVID-19. It added that additional reserves of $8m were booked during the period to increase the provision for future policy benefits to $480.3m, as opposed to $471.6m at December 31, 2020.
Colina also said it was rebalancing its investment portfolio, and sold some securities during the period. Proceeds from these sales are reflected in the increase in cash at September 30, 2021, relative to December 31, 2020. Total assets as at endSeptember were $810.1m, with invested assets remaining the largest component of total assets, comprising 74.4 percent of the total. Shareholders’ equity totalled $181.9m at endSeptember 2021, which was net of dividend distributions to its Class ‘A’ preference shareholders that totalled $1.8m and dividends to the ordinary shareholders of
LARGE BAHAMAS DELEGATION ATTENDS FINANCIAL CONFERENCE A LARGE Bahamian financial services delegation attended this year’s annual Society of Trust and Estate Practitioners (STEP) Latin America conference that was recently held in Mexico. Christina Rolle, the Securities Commission’s executive director; John Lawrence,
conference president; Rosella Grilli-Dack of Lighthouse Asset Management; and other members from the STEP Bahamas branch all participated. The STEP Latin America conference is a “centre of excellence” event that is hosted every year in a different location, and has been held previously in
Panama, Brazil, Colombia and Uruguay. Some 175 delegates attended this year’s conference, representing countries in Latin America, the Caribbean, US, UK and Europe. “This is one of the biggest and most widely-attended international conferences on the STEP calendar, and it was very important to
have this strong representation from our financial services sector,” said Mr Lawrence. STEP Worldwide, known as the Society for Trust & Estate Practitioners, has more than 20,000 members and is considered the leading international professional association for those providing financial
advice to families worldwide for generations. Ms Rolle addressed delegates on The Bahamas DARE Act. DARE is short for the Digital Assets and Registered Exchanges Act 2020, and is legislation designed to regulate the digital assets space. The Ministry of Economic Affairs was a major conference sponsor. Senator Michael Halkitis, Minister of Economic Affairs, presented to the
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$5.4m or $0.22 per ordinary share. “The positive economic effects of the reopening of The Bahamas are reflected in the company’s financials,” said Terence Hilts, Colina Holdings (Bahamas) chairman. “As the country continues to navigate the ongoing pandemic, Colina Holdings (Bahamas) remains focused on strategies that will further strengthen its balance sheet and capital position to provide the company with the flexibility it needs to continue to meet the needs of policyholders and customers within this changing economic environment.” conference remotely and gave an overview of the country’s financial services sector. Mr Halkitis underlined that The Bahamas is determined to stay on top of emerging trends in financial services, especially in the Latin American markets. He said the country has demonstrated this dedication through the implementation of the Bahamas SMART Fund, which was followed by the Bahamas ICON (investment condominium) legislation.
CHRISTINA Rolle (fourth from left), the Securities Commission’s executive director, is pictured with her team and (fifth from left) John Lawrence, President of STEP Latam Conference, at this year’s event
SCOTIABANK UNVEILS NEW CARD PAYMENTS SYSTEM By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net SCOTIABANK (Bahamas) has introduced a payment system that allows customers to convert large credit card purchases into smaller monthly installments. “Scotia SelectPay is a new concept that allows any cardholder to make high value purchases and repay them in smaller instalments over time,” said Scotiabank (Bahamas) retail banking director, Na-amah Barker. “As one of the first banks in the region to offer this feature, we are confident that Scotia SelectPay will greatly benefit our customers’ needs.” Credit card purchases of $250 or more are eligible for Scotia SelectPay, which is being introduced just ahead of the Christmas shopping season. “Customers will be charged a lower interest than their usual credit card rates, and will have monthly payment options to choose from ranging from three, six, nine and 12 months,” said Ms Barker. “Payments are
provided based on purchases made 26 days from the next statement date.” The bank said Scotia SelectPay provides flexibility and the convenient financing of planned or unplanned purchases, while giving customers greater control over payment options with no need for credit checks or financing applications. After making a credit card purchase, customers can log in to the Scotiabank app, or online banking, immediately after a purchase is posted (within the same credit card cycle) and select their Scotiabank credit card. Then then tap the ‘SelectPay’ icon, choose any eligible purchase, review the summary and submit. “We think this product will be a game changer for us. Not only is this new feature more convenient, but it will afford cardholders a great way to save on interest costs, manage larger purchases and help with monthly budgeting, which can add to even more savings,” Ms Barker added. Credit card holders whose accounts are in good standing can enjoy the initiative’s benefits.
THE TRIBUNE
BOB: UNLEASH US FOR COMMERCIAL LENDING
FROM PAGE ONE
been back to do a full review and comment on whether we have addressed all the areas that were deficient..... All banks are not equal. We’re still paying for the sins of those who have gone before us.” The Central Bank first has to complete an assessment to determine whether Bank of The Bahamas’ risk controls and other critical procedures are sufficiently robust to give it confidence there will not be a repeat of the huge commercial loan delinquency that almost led to the institution’s collapse. Some observers will likely argue that the restriction should remain in
place indefinitely given the $300m-plus cost imposed on the Bahamian taxpayer from two government bail-outs of Bank of The Bahamas, plus a $40m initial public offering (IPO) that the Government had to pick fully pick up via the Public Treasury and the National Insurance Board (NIB). Mr Brathwaite said the few commercial borrowers left in Bank of The Bahamas’ lending portfolio had continued to pay their loans, adding: “We’ve been able to squeeze a couple of dollars out of them to keep them in the portfolio. It’s a far cry from where we want to be, but at least it’s allowed us not to drop off
the cliff with commercial credit. “I think the restrictions were warranted based on what the portfolio was doing, and no adherence to risk management, but our structure is now sound. It’s probably more sound than any other bank’s structure. There is more awareness of risk, and a complete separation between risk assessment and the actual lending. I think we should be in a position to lend.” Mr Brathwaite said Bank of The Bahamas’ staff would compare well to those at other banks, and added that it was impossible to quantify the impact the continued commercial lending restrictions
are having on the BISXlisted institution and wider economy. He spoke after Bank of The Bahamas recorded $0.4m in net income for the three months to-end September 2021, noting that its share price stood at more than $2 at the date of his report - a jump from a low of $1.30 in the previous financial year. “Total operating income during the first quarter of financial year 2022 showed a net increase of $1.3m (12.1 percent) compared to the first quarter of financial year 2021,” Mr Brathwaite said in his message to shareholders. “These positive changes are due to higher net interest and non-interest income, mainly as a result of the growth in consumer loans while enhancing other existing revenue streams. The bank’s operating expenses increased by $0.5m (6.36 percent) during the first quarter compared to 2021, mainly due to higher staff costs
Monday, November 15, 2021, PAGE 7
and IT-related expenses as the bank invested in human resources, system innovation and upgrades to support the bank’s planned growth and strategic initiatives. “Net credit loss expense of $2.7m was recorded in the current quarter while net credit loss reversals of $0.06m was recorded in the first quarter of 2021’s financial year as provision reversals were more than the credit loss expense for that period.” Bank of The Bahamas is presently performing better than the likes of Commonwealth Bank, which suffered a $23.9m loss for the nine months to end-September 2021 - a near-$50m turnaround from the prior year’s $25.3m profit. William Sands, Commonwealth’s executive chairman, in a message to shareholders said: “The primary contributor to the results has been the bank’s loan impairment expense of $74.8m, which when
BANK OF THE BAHAMAS
compared to the same period in 2020 reflects an increase of 92 percent. “While the bank maintains a well-diversified loan portfolio, our customers in good standing that were granted extensions to participate in our loan payment deferral programme have been concentrated in the sectors of the economy most impacted by the pandemic, namely the hotel and leisure sectors.” He added: “Our regulatory ratios remain very strong. The bank is required to hold a minimum liquidity ratio of 20 percent (the level of liquid assets against possible liquidity risk). As of September 30, 2021, the bank’s liquidity ratio is 59 percent. “Additionally, regulatory capital adequacy ratios (capital levels to absorb exceptional losses) are set at 17 percent. At over 26 percent, the bank’s capital adequacy ratio is also well in excess of this Central Bank requirement.”
PAGE 8, Monday, November 15, 2021
THE TRIBUNE
CABLE TARGETS $80M NEW PROVIDENCE FIBRE ROLL-OUT
FROM PAGE ONE
disclosed. “We’re doing some now, and we’re really trying to finalise that now so we have a more comprehensive strategy for fibre-to-the-home for New Providence. “We’ve already rebuilt 90 percent of Abaco, and are putting fibre-to-the-home in there. We are really aggressively connecting out there, and ratcheting up our level of support for Abaco.” As for the nation’s
capital, Mr Butler affirmed that Cable Bahamas is planning to invest “somewhere around $80m” in upgrading its network infrastructure to fibre-to-the-home. “We plan to do that over the next two to three years,” he added. “Our focus with providing that is we’ve got to make sure customers, coming off the pandemic, it’s really important that they have the right level of connectivity and access to data.”
Mr Butler said Cable Bahamas’ fibre-to-thehome priorities are New Providence, its largest customer market, and Abaco post-Hurricane Dorian. As to whether the technology will be deployed to other islands where the company operates, he replied: “I think we’d like to do it wherever else we operate but our focus is on New Providence and Abaco at the moment. “That will keep us busy for quite some time, and
depending on what happens with hurricanes, we’d love to upgrade Eleuthera and Grand Bahama but those are not our priority at this stage in the game. Abaco and New Providence are our core areas of focus.” The Cable Bahamas chief spoke out after the group’s annual 2021 financial statements revealed a net loss of just over $28m due solely to the continued ‘red ink’ generated by its mobile subsidiary, Aliv. The latter suffered a near$41m loss for the year to end-June 2021. Cable Bahamas holds a 48.25 percent equity stake, and Board and management control, in the mobile phone operator which ended the Bahamas Telecommunications Company’s (BTC) monopoly, but Mr Butler reiterated that shareholders need to be patient for the Aliv investment to pay off. Aliv’s revenues rose 8.5 percent year-over-year to $83.314m, compared to $76.811m for the year to end-June 2020, and the Cable Bahamas chief added: “Aliv’s growth continues. The Aliv story has been a lot of capital up front, and we financed that through debt. “As revenues grow on the mobile side, EBITDA (earnings before interest, taxation, depreciation and amortisation) and net income will continue to grow. We don’t anticipate any raising of new financing.” Aliv’s operating expenses, meanwhile, remained flat at $70.558m for the 12 months to end-June 2021 as opposed to $70.834m in the prior year. What drove Aliv to its net loss was continued interest expense on the debt incurred to buildout its nationwide mobile network infrastructure, plus the depreciation and amortisation charges associated with this capital investment. They stood at $19.886m and $26.517m, respectively, combining to account for $46.4m worth of expenses.
CABLE BAHAMAS HQ This compared to over $42m in 2020, and Mr Blackburn said these numbers would reduce over time as Aliv increased revenues and paid down its debt. “Our plan is to keep knocking it down,” he added. Also impacting Cable Bahamas’ results is the accounting requirement to consolidate the Government’s losses with its own. By virtue of its 51.75 percent equity stake, the Government’s share of Aliv’s 2021 financial losses was pegged at $22.107m in 2021. That represented a 17.3 percent decline from the prior year’s $26.573m share of the mobile operator’s ‘red ink’, with the Government having suffered a collective $70.403m loss over the near-five years since Aliv launched in November 2016. Mr Butler, though, said Cable Bahamas was moving in the right direction. “If you look at our last four to five quarters, you can see a pattern of EBITDA growth,” he told this newspaper. “This quarter was another example of growth of revenue and EBITDA, with revenues up 11 percent versus last year and we see a fair amount of upside going forward.”
Cable Bahamas’ 2022 first quarter results indicate that both group and Aliv’s performance have improved subsequent to the 2021 year-end with the mobile operator likely losing around $8m for the period based on the $4.522m hit taken by the Government. And, while Cable Bahamas suffered a $2.009m group net loss for the three months to endSeptember 2021 based on having to incorporate the Government’s loss in its accounts, that represented a 64 percent year-over-year reduction on the $5.524m impact suffered in the 2020 first quarter. The communications provider’s share of Aliv’s losses also appears to have been dwarfed by profits from its other business segments, as “net and comprehensive income” attributable to its own operations stood at $2.513m. Mr Butler, meanwhile, based his optimism on the economy’s continued re-opening from the COVID-19 pandemic and the end to the nighty curfew after almost 20 months. He added that “business solutions” clients likely accounted for around 20 percent of Cable Bahamas’ clients, and hotels some 10 percent of its customer base.
THE TRIBUNE
Monday, November 15, 2021, PAGE 9
BAHAMAS ‘PLIGHT’ MEANS NO S&P OUTLOOK COMFORT FROM PAGE ONE Bahamas should not be lulled into a false sense of security that the worst of COVID-19’s economic fallout is over. “I wouldn’t say we have enough sense that we are in control of our own plight to feel that’s something to be comfortable with,” he added of the rating agency’s Bahamian outlook. “It’s not something where we can confidently say we are there, and are going to go. “We have to be very careful in how we look at this.... It’s still too far off to say that we’re at a levelled-off position. We cannot be satisfied with that position, and have to keep pushing for growth.” The ORG chief was backed by Gowon Bowe, Fidelity Bank (Bahamas) chief executive, who warned that this nation could just as easily regress further if it became “lackadaisical and nonchalant” about how it manages its fiscal deficit and national debt woes. “I would caution us to say we should not look at that and believe that. If we don’t stay on the same trajectory, that will change,” he said of S&P’s more optimistic assessment of the country’s economic prospects. “We must not get too high or too low. Have we plateaued or bottomed out? I wouldn’t see it that way.” Mr Bowe said S&P’s downgrade was likely “inevitable”, given that The Bahamas’ sharp COVID-related economic contraction had dropped 2020’s economic output to around $10bn. At the same time, the $1.348bn deficit had driven the national debt to $10.356bn, sparking a major deterioration in the ratios that the rating agency uses to compare The Bahamas to similarly-rated countries. “I don’t think it should have come as a surprise to The Bahamas that the rating agencies would have found us to have slipped a bit on our credit rating,” he added. “What’s most important is not to respond to the S&P rating, but how do we right the ship? “There are a number of things around that we have to bring to fruition. We have to demonstrate we have a debt management strategy and there’s a private sectorled committee working on it. We have to demonstrate we are tightening our revenue collection and reforms, and while there are expenditure demands we cannot allow demand to outstrip our ability to pay for them.” Mr Bowe, who headed the private sector’s Coalition for Responsible Taxation, said the S&P downgrade appeared to have provoked numerous
emotional responses on social media suggesting that The Bahamas do away with the credit rating agency’s assessments or form its own rating agency. He, however, argued that this did not reflect “the real world” and there was no reason for the likes of S&P or Moody’s to give The Bahamas a free pass. “We are not dealing with monopoly money,” Mr Bowe said. “These are real investors, real lenders, looking at real actions.” The Fidelity Bank (Bahamas) chief said that while S&P’s analysis showed it was not swayed by Parliament’s political rhetoric, such as the recent fingerpointing over whether there was a “$1bn difference” between the former administration’s pre-election report and the fiscal reality, he warned that “cavalier” statements could ultimately disrupt external fiscal perceptions. “S&P’s report indicates they don’t pay attention to the theatrics in Parliament,” he told Tribune Business. “They don’t read that type of rhetoric. But we have to be careful that we don’t disrupt the narrative, and be cavalier about our fiscal status, because there will come a time when external observers really don’t have evidence to the contrary.” The rating agency cited “the failure of successive governments to implement timely and effective” fiscal reforms even prior to COVID-19 as the main rationale for downgrading The Bahamas’ sovereign creditworthiness, with the national debt increasing by $2.4bn in only two years. Interest (debt servicing costs), it added, account for 21 percent of budgeted expenses. S&P also predicted that the Bahamian economy will expand by the equivalent of 3.7 percent of gross domestic product (GDP) in 2021, a rate that is higher than projections by both the International Monetary Fund (IMF) and the Central Bank of The Bahamas. But, while its 8.6 percent GDP growth projection for 2022 is also higher than others’ estimates, S&P voiced concern that “slow progress” in enacting fiscal reforms had undermined the Government’s finances even before the double blow inflicted by COVID and Dorian. “Although successive governments have continued to work on policies and legislation to support their fiscal responsibility mandate, they have not enacted material revenue measures or sustained expenditure cuts,” S&P said, adding that it anticipated the 10 percent VAT rate cut will be “revenue neutral”.
“We believe the new administration will take time to assess the country’s fiscal and debt situation, which may further delay the implementation of new fiscal measures,” the rating agency added. “We believe the country’s track record of slow progress in reforming public finances and key sectors of the economy has contributed to the weakening of its financial profile over many years, and hurt its economic performance. Most notably, failure to advance public financial reform has led to a marked increase in the sovereign’s debt burden.” S&P added that any financial reforms enacted by the newly-elected Davis administration will take time to work, saying: “We do not expect financial reforms will reverse the recent deterioration in public finances in the next one-two years. Instead,the economic recovery is expected to be the main cause for smaller fiscal deficits..... “The Bahamas has faced two large negative shocks in three years, placing significant pressure on government finances and testing the Government’s resolve to put the nation’s finances on a sustainable path. “The rapid increase in debt over the past few years means The Bahamas’ previous fiscal consolidation plans will likely be insufficient to meet the country’s debt targets without material new revenues, significant cost cutting or economic growth well above historical averages. Furthermore, the country remains vulnerable to environmental risks that elevate The Bahamas’ need for fiscal resiliency.” Turning to the country’s growth prospects, S&P added: “Despite fairly strong real GDP growth expected in 2021 and 2022, we believe it will take several years for nominal GDP to reach pre-pandemic levels. We expect GDP per capita will be $27,300 in 2021. The pandemic, low historical growth, and repeated natural disasters have weighed on the country’s economy. “The contraction in 2020 lowered government revenues by more than 10 percent, while health care spending and social transfers drove an increase in expenditures of 11 percent. We expect the fiscal deficit this year will be 8.7 perrcent of GDP, down from 15.4 percent in the previous year. “We also expect that the change in general government net debt will average 4.2 percent of GDP during 2021-2024. In the short term, we do
not anticipate meaningful new revenue measures. We believe a recovering, but still weak, economy could limit the Government’s ability to raise meaningful revenues in the short-term.” S&P added that it did not expect any new taxes “imminently”, and said: “The deficits will continue to spur the Government’s net debt burden higher to about 86.6 percent of GDP by the end of 2021, while interest payments will remain above 15 percent of government revenues for the next three or more years.
“The government’s interest payments, at 21 percent of revenues, reduce its flexibility to meet economic and social spending goals...... We expect The Bahamas will refinance existing domestic debt internally, but will need to rely on external borrowing to meet its incremental borrowing needs. “Domestic commercial banks’ exposure to the public sector accounts for almost 20 percent of their assets, which may lessen their ability or appetite to absorb additional exposure. The country’s
external debt has risen in recent years, and foreign currency-denominated debt is 44 percent of total debt, underscoring the importance of generating sufficient foreign exchange to meet debt service needs,” it continued. “We expect the external debt of the public and financial sectors, net of usable reserves and financial sector external assets, will be about 118.8 percent of current account receipts in 2021. These figures include the government’s $2.475bn in external bonds.”
PAGE 10, Monday, November 15, 2021
THE TRIBUNE
‘UNPRECEDENTED’ TOURISM BOOST VIA COVID UPGRADE
FROM PAGE ONE and the Christmas festive season prior to ‘Level 4’s’ removal. Suggesting that the upgrade could potentially put the Bahamian resort and tourism industry over the top for the winter season, he added that “certainly by the end of the 2022 first quarter” the sector will have fully recovered” from the devastation inflicted by the pandemic. “That’s exciting news, and certainly the industry is very happy about that change for The Bahamas,” Mr Sands told this newspaper of the CDC upgrade. “It speaks to the fact we have been managing COVID well in our recent past, and the lag that had been introduced on the group bookings is removed. “I think that with some of those impediments that were in place now gone, it puts us back on the pace with forward bookings.
First of all, the US travellers are no longer faced with a ‘do not travel to The Bahamas’ syndrome. That’s an immediate positive sign, and the other positive one is for group business. “That speaks volumes to the direction the tourism industry is headed in, and if we continue to control COVID and follow the protocols put in place, we are poised for an excellent year in 2022.” The Bahamas’ upgrade to ‘Level 3’ status with the CDC was announced by Dr Pearl McMillan, the chief medical officer, on Friday afternoon although checks by this newspaper showed the federal health authority’s advisory on this nation had yet to be updated as of yesterday evening. Mr Sands, though, said the improvement will boost the tourism industry and wider economic recovery “across the length and breadth of the archipelago”
when it came to attracting more tourists in every travel segment. “I would say they were lagging in terms of forward bookings,” he added of ‘Level 4’s’ impact on the group and convention business. “Many US corporations did not want to travel to a destination where that impediment was in place, and with its removal the phones will start ringing again and interest will pick up. I have no doubt about that. “We like our group bookings to be anywhere from 25-40 percent of our business. That base is extremely important. In large hotels it impacts gaming revenues, it impacts food and beverage, it impacts everything. It assists with managing, and yield managing, our rates in the times we have that business in. It’s a very important element, certainly to the success of mid to large hotels.”
Mr Sands said The Bahamas’ upgrade will also positively impact segments of the leisure travel market that are influenced by health advisories when deciding which destination to visit, and added: “All around it’s a very positive position for The Bahamas. “We must continue to work to get that [CDC] level reduced further because it will be even better for us. We cannot rest on our laurels here, and must work to get that CDC rating down to a ‘Level 2’, which will be even better for the destination. There’s only one direction that The Bahamas wants to head in, and that’s down to ‘Level 1’. We don’t want to regress. “What I mean is everyone taking COVID-19 management seriously, and working collectively to ensure the protocols are always in place. If we do that I think we can achieve our ultimate goal of even
being better than a ‘Level 3’. We must not be satisfied be satisfied with a ‘Level 3’, and must work to be better than a ‘3’.” Mr Sands added that The Bahamas’ CDC upgrade would make already-strong winter tourism prospects even better. “I can tell you that bookings for this winter and Thanksgiving even with the ‘Level 4’ rating, and removing that will make them even stronger,” he said. “That means we may see unprecedented levels of occupancies; maybe not for Thanksgiving, but certainly for the festive and winter season. I think in some instances many properties are exceeding their pace and reaching levels from 2019 for Thanksgiving and the festive season.” While unable to give figures, as they varied between properties, Mr Sands added: “What we are beginning to see is we will reach
the pre-COVID levels that we’ve anticipated, and our move from ‘Level 4’ to ‘Level 3’ will contribute to the winter season exceeding 2019 levels. “I’m thinking we’re on pace or slightly better, ahead of or meeting 2019 levels. I would say certainly by the end of the 2022 first quarter we would be fully recovered.” While some resorts, such as Sandals Royal Bahamian and the Melia Nassau Beach, will be closed during Thanksgiving and the Christmas/ New Year period, Mr Sands said demand was “very high” based on available inventory. “I think you’re going to see unprecedented levels of occupancy in the Family Islands, and principally because we see increased airlift going into those islands to support demand, as we see increased airlift coming to New Providence as well,” he added.
BUTTIGIEG’S STAR RISES AS $1T BIDEN AGENDA SHIFTS TOWARD HIM By HOPE YEN, TOM BEAUMONT AND JOSH BOAK Associated Press WASHINGTON (AP) — Pete Buttigieg, the transportation secretary who holds the purse strings
to much of President Joe Biden’s $1 trillion infrastructure package, was holding forth with reporters on its impact — the promise of more electric cars, intercity train routes, bigger airports — when a pointed question came.
NOTICE NOTICE is hereby given that SHANTEL MERONE of, Bethel Avenue 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 15th day of November, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
How would he go about building racial equity into infrastructure? The 39-year-old former mayor of South Bend, Indiana, and 2020 Democratic presidential candidate laid out his argument that highway design can reflect racism, noting that at least $1 billion in the bill will help reconnect cities and neighborhoods that had been racially segregated or divided by road projects. “I’m still surprised that some people were surprised when I pointed to the fact that if a highway was built for the purpose of dividing a white and a Black neighborhood ... that obviously reflects racism,” he said. Racial equity is an issue where Democratic priorities and Buttigieg’s future align. One of his greatest shortcomings as a White House candidate was his inability to win over Black voters. How he navigates that heading into the
2022 midterms will probably shape the fortunes of Biden’s agenda and the Democratic Party, if not his own prospects. Republicans seeking to exploit the issue pounced on Buttigieg’s words. “I heard some stuff, some weird stuff from the secretary of transportation trying to make this about social issues,” said Florida Gov. Ron DeSantis. “To me, a road’s a road.” Texas Sen. Ted Cruz tweeted sarcastically: “The roads are racist. We must get rid of roads.” But Buttigieg didn’t engage and was off to his next stop, the climate summit in Scotland. There he stood for almost a dozen interviews as he promoted provisions of Biden’s bill that would build a network of electric vehicle charging stations. He also engaged with young climate activists and took photos with former President Barack Obama.
TRAFFIC moves on the Parkway North during a stay at home order April 7, 2020, in Pittsburgh. As President Joe Biden gets set to sign a $1 trillion infrastructure package, many eyes are turning to Transportation Secretary Pete Buttigieg. The law will make the 39-year-old former mayor and former Democratic presidential candidate one of the more powerful brokers in Washington. He'll be handling the largest infusion of cash into the transportation sector since the 1950s creation of the interstate highway system. Photo:Andrew Rush/AP On racism in roadways, he said simply: “I don’t know who it hurts to acknowledge that harm was done and to propose doing something to fix it.” His department later announced it would grant extra discretionary aid to help as many as 20 U.S. communities remove portions of interstates, redesign rural main streets and repurpose former rail lines. That could help places from Syracuse, New York, where many residents back a plan to tear down portions and build a walkable grid, to racially divided areas in New Orleans and St. Paul, Minnesota.
As Biden prepares to sign the infrastructure bill on Monday, eyes are turning to the man still best known as “Mayor Pete,” a newcomer whose promise of “generational change” and real-world sensibility of fixing potholes launched him to the top of the early Democratic primary contests during the 2020 campaign. Quickly endorsing Biden after abandoning the race, Buttigieg now stands to become one of the more powerful brokers in Washington, handling the largest infusion of cash into the transportation sector since the 1950s creation of the interstate highway system.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, ANDREA BRENDEN TAYLOR of Western District, Nassau, The Bahamas, intend to change my name to ANDRE BRENDEN TAYLOR. 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.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, DAYNA MICHELE VANIA ROLLE of Kool Acres, Kerland Close, P.O. Box EE-15448 Nassau, The Bahamas, intend to change my name to DAYNA-MICHELE VANIA ROLLE. 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 MAXO CAMILLE of Podoleo 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 8th day of November, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
THE TRIBUNE
Monday, November 15, 2021, PAGE 11
DUBAI AIR SHOW OPENS TO INDUSTRY ON THE MEND AMID COVID-19
By AYA BATRAWY AND ISABEL DEBRE Associated Press DUBAI, United Arab Emirates (AP) — Dubai’s biennial Air Show opened Sunday to a world still reeling from the pandemic and an aviation industry hardhit by the coronavirus, but on the mend. Boeing and Airbus have traditionally been the stars of the aviation trade show, competing for multibilliondollar Gulf-based airline purchases and hammering out final details minutes before back-to-back press conferences. This year, however, the five-day exhibition is expected to be more muted than in the past due to the subdued state of flying and travel amid the COVID-19 pandemic. Rather, the air show’s first day drew eyes toward defense and military hardware from countries like Russia and Israel. The day’s blockbuster commercial deal by Airbus was a sale of 255 new aircraft to Indigo Partners’ various low cost carriers. The agreement sees budget carriers Wizz Air purchase 102 new planes, U.S. Frontier with 91, Mexico’s Volaris with 39 and South American JetSmart with 23. The package includes a mix of A321neo and A321XLR aircraft. At Airbus’ prepandemic list prices, the order would clock in at well above $30 billion. The company declined to provide any details on the sale price. Airbus also secured an order for two additional A330 aerial refueling aircraft with the United Arab Emirates’ Air Force, bringing to five the country’s
RUSSIAN officials unveil a mockup of the Sukhoi Su-75 Checkmate stealth fighter jet, a competitor to the American F-35, at the Dubai Air Show in Dubai, United Arab Emirates, Sunday, Nov. 14, 2021. The biennial Dubai Air Show opened Sunday as commercial aviation tries to shake off the coronavirus pandemic. Photo:Jon Gambrell/AP Airbus multirole tanker transport fleet. The star on the tarmac outside the exhibition hall was Russia’s Checkmate fighter jet, which was shown to the press in a custombuilt hangar with a display of laser lights bouncing off a mirrored ceiling. The jet, with a baseline $35 million price tag, is a less costly competitor to the U.S. F-35, which the UAE has been trying to acquire since formally recognizing Israel last year in a deal brokered by the Trump administration. That sale has slowed under U.S. President Joe Biden. In a dramatic promotional video, the Checkmate soared through burnt orange skies, blasting away targets in the desert as music blared in the
background and a thundering voiceover rattled off the plane’s features. “The idea was born as we used all the experience that Russia got during its Syria operations and many of the features of the aircraft came from realistic situations that we experienced,” said United Aircraft Corporation CEO Yuri Slyusar through a translator at the unveiling. In Syria’s devastating civil war, Russian fighter jets have supported President Bashar Assad’s forces. UAC is a holding company of state-owned Rostec, Checkmate’s parent company. Production of the jet is expected to start in 2025. Also, more than 100 American companies are
exhibiting at the air show, including defense giants Lockheed Martin and Raytheon. “We are committed to deepening and strengthening this vital strategic relationship,” said Sean Murphy, the U.S. Embassy’s charge d’affaires. At the opening of the U.S. pavilion, he also thanked the UAE for its help in the U.S.-led evacuations out of Afghanistan. Meanwhile, Brazil’s President Jair Bolsonaro roamed the tarmac outside the booth of iconic Brazilian aerospace company Embraer, inspecting the interior of the company’s hulking C-390 Millennium transport aircraft, smiling and waving to crowds of reporters.
French Defense Minister Florence Parly surveyed the range of helicopters and maritime patrol aircraft at the Airbus pavilion, surrounded by French airmen in uniform. Boeing brought its new 777-9 passenger jet from Seattle in the longest flight to date for the aircraft as it undergoes continued tests and awaits regulatory approval. Boeing says it will be the world’s largest and most efficient twin-engine jet. The Middle East’s largest carrier, Emirates, has ordered 126 of this 777X, but the Dubai-based airline has expressed frustration with delays around its delivery, which is not expected before late 2023. Airbus took journalists through a version of the A320neo, which had been converted into a luxury corporate jet replete with a large bed, walk-in shower and sprawling sitting area with couches and coffee tables. China’s state-owned defense firm CATIC displayed a range of anti-aircraft missiles, munitions and fighter jets. An Emirati airman inspecting a U.S.-made Chinook CH-47 noted that the transport helicopter had been supporting Emirati forces on recent missions in Yemen and Afghanistan. Israeli companies displayed their hardware for the first time at the air show following Israel’s normalization of diplomatic ties with the UAE last year. The state-owned Israel Aerospace Industries company showed off a range of manned and unmanned naval and aerial drones. Israel’s Rafael Advanced Defense Systems displayed
its “drone dome” that detects and destroys drones with lasers. Emirati defense officials were seen asking about the range and weight of the anti-drone system at the Israeli pavilion. In all, six Israeli companies are taking part in the air show. Israeli Defense Minister Benny Gantz described the UAE-Israel partnership as a “strategic asset,” saying in a statement that the Defense Ministry’s participation “reflects the deepening relations” between the two nations. The two countries share deep concerns over Iran, which is set to resume negotiations over its tattered nuclear deal with the U.S. and other world powers. The air show is taking place near Dubai’s Al Maktoum Airport, a second and smaller international hub to Dubai’s main airport, which is the world’s busiest for international travel. With vaccine rollouts ongoing in many nations worldwide, the airline industry as a whole is recovering from last year’s roughly $138 billion net loss. Still, the industry continues to face losses this year and next. The International Air Transport Association forecasts a net loss of $11.6 billion for airlines in 2022, and nearly $52 billion in losses this year. Although commercial travel remains uncertain amid the pandemic, cargo volumes are already above pre-pandemic levels. Some airlines have ripped out seats on their grounded passenger flights and transformed their aircraft into cargo planes.
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White House confident Biden’s bill will pass House this week By HOPE YEN Associated Press WASHINGTON (AP) — President Joe Biden's top economic adviser expressed confidence Sunday that the White House's $1.85 trillion domestic policy package will quickly pass the House this week and said approval couldn't come at a more urgent time as prices of consumer goods spike. "Inflation is high right now. And it is affecting consumers in their pocketbook and also in their outlook for the economy," said Brian Deese, director of the National Economic Council. "This, more than anything, will go at the costs that Americans face," he said, before adding that the House will consider the legislation this coming week. "It will get a vote, it will pass." The House has been moving toward approval of the massive Democrat-only-backed bill even as the measure faces bigger challenges in the Senate, where Sens. Joe Manchin, D-W.Va., and Kyrsten Sinema, D-Ariz., have insisted on reducing its size. In a letter Sunday to Democratic colleagues, Majority Leader Chuck
Schumer, D-N.Y., counseled "time and patience" for working through a bill of this size. Consumer prices have soared 6.2% over the last year, the biggest 12-month jump since 1990. Deese acknowledged that prices may not fully return to a more normal 2% level until next year due to the lingering effects of COVID-19, but he said the measure will go a long way toward "lowering costs for American families." "We're confident this bill, as it moves through the process, is going to be fully paid for, and not only that, it's actually going to reduce deficits over the long term," he said. Biden on Monday planned to sign a related $1 trillion infrastructure bill, a bipartisan effort that was passed earlier this month after the president and House Speaker Nancy Pelosi, D-Calif., pledged action on Biden's broader package expanding health, child, elder care and climate change by mid-November. House progressives had threatened to hold up the infrastructure bill without a firm commitment of immediate action on the broader package.
“Somehow, I don’t think we’re going to get these answers ... for Pelosi to get the votes set before the end of the week.” Rep. Fred Upton
PRESIDENT Joe Biden walk to his motorcade vehicle with Col. David D. Bowling after arriving on Marine One at Fort Lesley J. McNair in Washington, Sunday, Nov. 14, 2021, as he returns from Camp David, Md. Photo:Carolyn Kaster/AP House centrists say they will vote for the package as early as this week if an upcoming Congressional Budget Office analysis affirms White House estimates that the bill is fully paid for. The measure would be covered with changes to corporate taxes, such as a new corporate minimum tax, while raising
taxes on higher-income people. On Friday, Pelosi wrote Democratic members reaffirming her plan to push ahead soon, noting that CBO estimates released so far on pieces of the plan have been consistent with White House projections. "We are on a path to be further fortified with
numbers from the Congressional Budget Office," she said. Rep. Fred Upton, R-Mich., one of 13 House Republicans who voted for the infrastructure bill, said he's not convinced that the broader package will get House approval this week. "I don't think the votes are there yet," he said. "A
good number of Democrats had demanded and are going to receive a CBO report as to whether is, it really paid for? What does it do when you expand Medicare? What does that do to the solvency?" "Somehow, I don't think we're going to get these answers ... for Pelosi to get the votes set before the end of the week." The bill is expected to face changes in the Senate. With Republican opposition and an evenly split 50-50 Senate, Biden has no votes to spare. Manchin in particular has been vocal about the risk of aggravating budget shortfalls and already has managed to bring the bill down from Biden's original $3.5 trillion price tag.
PAGE 14, Monday, November 15, 2021
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UK’S JOHNSON: CLIMATE DEAL SOUNDS ‘DEATH KNELL’ FOR COAL LONDON (AP) — British Prime Minister Boris Johnson hailed the U.N. climate summit as a “gamechanging agreement” that sounded the “death knell for coal power” on Sunday -- although he added that his delight at the progress on fighting climate change was “tinged with disappointment.” Johnson said it was “beyond question” that the deal coming out of the Glasgow conference marks an important moment in the use of coal because most of western Europe and North America have agreed to pull the plug on financial support for all overseas
fossil fuel projects by this time next year. But in a major shift demanded by coal-dependent India and China, the Glasgow Climate pact used watered-down language about “phasing down” the use of coal instead of “phasing out” coal. Johnson, however, said the compromise did not make “that much of a difference.” Ending coal is seen as the key to reducing greenhouse gas emissions, which cause the Earth to warm up and produce rising seas and more extreme weather including droughts, storms and wildfires.
COAL is loaded into a truck at an open-cast mine near Dhanbad, an eastern Indian city in Jharkhand state, Friday, Sept. 24, 2021. On Saturday, India asked for a crucial last minute-change to the final agreement at crucial climate talks in Glasgow, calling for the “phase-down” not the “phase-out” of coal power. Photo:Altaf Qadri/AP
“It’s an immense thing to get a commitment from 190 countries to phase down or phase out coal,” Johnson told a press conference. “The direction of travel is pretty much the same.” Still, he acknowledged that some countries did not live up to the ambition of the summit. He accepted that the Glasgow summit did not deliver the “full solution” to climate change, but said the world was “undeniably heading in the right direction.” “We can lobby, we can cajole, we can encourage, but we cannot force sovereign nations to do what they do not wish to do,” he said.
“It’s ultimately their decision to make and they must stand by it.” He and conference President Alok Sharma both underlined that the Glasgow Climate Pact was the first time that coal had been mentioned in U.N. climate agreements. But Sharma said China and India would have to “justify” their actions. “On the issue of coal, China and India are going to have to justify to some of the most climate vulnerable countries what happened,” he told Sky News on Sunday.