NASSAU, BAHAMAS- The Office of the Prime Minister, in a statement Wednesday night, criticized Opposition Leader Michael Pintard’s comments on the Davis administration’s energy reform process after the two traded shots over the handling of Bahamas Power and Light (BPL), with Pintard calling for a debate in Parliament on the issue.
Pintard told Parliament: “If the Prime Minister and the Minister with responsibility for energy are truly committed to educating the Bahamian people on the massive, extremely complex, multifaceted privatization of BPL, I invite them, I challenge them to have one day dedicated in this house to debate that particular deal so that we can, in a fulsome, transparent way, discuss this deal.” Pintard slammed the government for its lack of transparency in handling BPL, having been vocally critical of the recent awarding of LNG contracts to Shell and BISX-listed FOCOL, calling for the Davis administration to provide more and better details, including pricing and terms.
Energy and Transport Minister JoBeth Coleby-Davis stated that when she assumed responsibility for BPL, she recognized the financial struggles BPL faced. She emphasized that if the FNM had fully assessed BPL’s transformation, they would not have entered into a land purchasing deal that cost $7 million, with no land acquired and the deal ultimately left incomplete. “The cost was $14 million. They paid seven million, and we got no land. The person still holds the land, they have our seven million dollars, the deal never closed, and this was part of their energy reform plan,” said Coleby-Davis.
In a statement Wednesday night, the Office of the Prime Minister asserted that Pintard has never put forward a credible energy plan and never will. The statement noted that the Davis administration inherited a deeply troubled Bahamas Power and Light (BPL) – $500 million in debt, with essential parts of the nation’s electricity grid in danger of collapse, an unfunded pension liability exceeding $120 million, insufficient generation capacity, and substantial operational challenges, including no capacity to transmit cleaner energy and extreme vulnerability during storms.
The statement also criticized the Minnis-Pintard record when it comes to BPL, noting many big promises that were not kept. The administration’s efforts the statement noted included acquiring Wartsila engines, which were touted as “tri-fuel” capable but were delivered without the ability to use LNG. Additionally, the engines were installed in a structurally unsound building. The statement also referenced a failed Rate Reduction Bond process, a $70 million VSEP package that weakened BPL’s operations, and a $7 million deposit paid for land that was never acquired.
The statement continued: “With what authority does the Leader of the Opposition launch his attacks, given his administration’s record of fiasco and failure? An internal report they commissioned themselves (FTI Consulting) describes their time in charge of BPL in the following way: a ‘lack of a coherent approach,’ ‘disorganization,’ and ‘confusion,’ not to mention ‘deficient policy management,’ missing documentation, and approval irregularities when it came to the tendering process. How can Mr. Pintard now speak about LNG, when the engines he and his government touted as central to their strategy weren’t even capable of running on LNG? During his long-winded speeches attacking the country’s partnership with Shell, does he internally experience shame or discomfort, knowing that not only did his administration partner with Shell, but they also intended to give over Station A at Clifton Pier to Shell entirely?”
The statement concluded: “Mr. Pintard has never put forward a credible energy plan, and never will. His specialty is talking, not working, with a subspecialty in negative attacks. Until now, for most Bahamians, their monthly electricity bill has been second only to their housing costs as a burden on family and business finances. High electricity bills have acted as an obstacle to growth, development, and diversification, with high operating costs impacting investment decisions and the capacity of local businesses to expand and create new jobs. When we decided to take on the whole sector – to leave behind the short-term fixes, to replace stopgap solutions with innovative and comprehensive solutions – we did so because of our unshakeable belief that the Bahamian economy can be so much more – more competitive, more successful, more dynamic, and above all, more inclusive – with more paths to security and prosperity for more Bahamians.”
