BPL needs $1 billion to address its debt, upgrade aged infrastructure says minister

During her mid-year budget contribution, Coleby-Davis stated: “BPL has over $500 million in debt. It owes banks, it owes the government and its employees’ pensions are underfunded by $120 million dollars. Big change is needed!”

Coleby-Davis noted that BPL operates 29 power stations on 17 Islands, and over the next five years, BPL will need an investment of over $500 million to upgrade its infrastructure: $300 million in new generation in New Providence and the Family Islands, $130 million in transmission and distribution in New Providence in the next two years alone, $35 million in advanced metering infrastructure, and $70 million in other costs.

She added: “To fix BPL we need over $500 million to address its debts and over $500 million to upgrade and improve our aged and deteriorated infrastructure. That’s over a billion dollars. We must fix BPL. We must rescue this sector. We have a plan, and we believe that our plan is transformative and market-leading.”

According to Coleby-Davis, the government’s plan for the energy sector includes incorporating solar, replacing and upgrading much of the transmission and distribution system in New Providence to improve reliability and reduce cost, and ensuring that New Providence has 340 MW of power to meet demand now and be in a better position to meet forecasted growth in coming years.

Coleby-Davis stressed that the government plans are not an effort to privatize BPL.

“BPL is not for sale. We are going to leverage strategic partners to ensure that BPL remains a viable energy utility meeting the current and future needs of all Bahamians. It is not an attempt to lay off Bahamian workers or deny their rights under their union agreements. There will be no BPL layoffs. Instead, we are creating new and exciting roles and training opportunities for BPL’s staff so that they can help transform BPL’s reputation into a premier service provider. It is not an attempt at union busting. BPL will continue to honor the terms and conditions set out in the current industrial agreements with the BEUMU and the BEWU.”

Prime Minister Davis noted in his mid-year budget debate contribution that energy reform is at the heart of his administration’s efforts to reduce the cost of living and create more economic opportunities.

“Prices are too high, interruptions to service are too frequent, and our aging energy grid cannot handle current needs, let alone growing needs. To create a successful 21st-century economy, we need a 21st-century energy grid. Transforming, modernizing, and upgrading our old, deteriorating energy infrastructure is a matter of real and serious urgency. At the same time, and as you will hear in more detail from the Minister of Energy, BPL’s financial condition is dire – saddled with legacy debts and unfunded obligations. To add to the complexity and challenge, we are moving to upgrade our grid to be more efficient and to accommodate renewable energy at the same time that many countries in the world are attempting to do the same, and waiting times for critical materials are growing.” Davis said that in the coming weeks, the government will be concluding negotiations and the RFP process.

During his contribution, Opposition Leader Michael Pintard argued that the Davis administration’s plans for BPL are not transparent.

“We are still not clear on what the nature of the arrangement is. What is true is if we are to grow more than 1.1 percent or 5 percent, which is ideal for our economy, the energy sector requires a vision and timelines on where we intend to take the sector and what we intend to do with BPL,” said Pintard.

“We know there was no request for proposal concerning what is being proposed in terms of who would generate power and who would be responsible for transmission and distribution.”

Pintard stressed that BPL workers and consumers need answers.

The Ministry of Energy and Transport, in a statement, said that it had advised the Cabinet Office on Tuesday of the resignations of two members of the Bahamas Power and Light (BPL) board. Christina Alston and Dylan Sawyer as Directors have been appointed as their replacements. Alston’s appointment as a director marks nearly five years since she abruptly resigned as Chief Operating Officer of BPL, less than two years after taking the position. According to the statement from the Ministry of Energy and Transport, Alston possesses over three decades in the electric utility sector and brings to BPL an unparalleled depth of international experience.

The statement noted that Sawyer is known for his multi-disciplined approach and entrepreneurial success in the petroleum, real estate, and manufacturing industries, bringing a fresh perspective to BPL.

“His expertise in managing complex capital projects, optimizing operations, and implementing cost-effective strategies is expected to contribute significantly to reducing operational costs and, by extension, energy costs for the Bahamian people. His commitment to sustainable practices and strategic procurement will be instrumental in steering BPL towards a more robust and future-proof organization. With a distinctive background in the financial sector, Dylan offers a fresh perspective crucial for BPL’s financial and operational turnaround. His expertise in managing complex capital projects, coupled with his innovative approaches to supply chain management and procurement, will address BPL’s current challenges head-on.”

BPL’s Board of Directors now includes Mr. Pedro Rolle (Executive Chairman), Mrs. Nadia Storr (Deputy Chairman), Mr. Errol Davis, Ms. Reneika Knowles, Mr. Anthony Farrington, Mrs. Christina Alston, and Mr. Dylan Sawyer.

Mrs. Alston and Mr. Sawyer replace Mrs. Cheryl Simms and Mr. Dirk Simmons.