NASSAU, BAHAMAS – The Opposition’s Shadow Finance Minister has sharply criticized the Davis administration for what he describes as poor management and lack of commitment to the country’s Public-Private Partnership (PPP) policy and framework, following a recent Inter-American Development Bank (IDB) report that ranks The Bahamas 17th out of 26 regional countries in PPP development.
East Grand Bahama MP Kwasi Thompson noted in a statement: “The so-called Public Private Partnerships (PPPs) that are underway by this administration were not acknowledged in the recently released Economist Impact Infrascope IDB report that assessed the countries in the region on their progress in implementing effective PPP programs.
“None of the so-called PPP roadworks throughout the islands were acknowledged by the IDB because, as we in the Opposition have pointed out, these initiatives are simply off-the-book loans taken out with unknown terms through the contractors for these projects – with interest rates and terms that this PLP government refuses to share with the Bahamian people.”
He continued: “The IDB report in many different ways demonstrates clearly how the Davis Administration’s handling of the Public-Private Partnership (PPP) program is a betrayal of the public trust – operated totally contrary to the Government Policy for PPP established in 2018. Despite all of their talk and bluster, the PLP has received a failing grade from the IDB study, leaving The Bahamas lagging behind its regional peers.”
The recently released report, commissioned by the IDB, evaluates the capacity of Latin American and Caribbean countries to develop efficient and sustainable Public-Private Partnerships (PPPs). Using the Infrascope index, the report ranked The Bahamas 17th out of 26 countries, scoring it at 38.5 out of 100. The report states: “The Bahamas has an overall index score of 38.5 out of 100 (17th of 26 in the region), demonstrating emerging potential in its public-private partnership (PPP) capabilities. The Bahamas has a relatively favorable risk environment and passed a new PPP policy in 2018; however, most institutional aspects of the policy have yet to be implemented.” It also noted that although a PPP policy was established in 2018 to provide guidance, full implementation remains incomplete, with notable deficiencies in organizational management and agency cooperation.
Thompson added: “This report confirms what we in the Opposition have been saying: The PLP has ignored established Government PPP Policy and has not implemented most of what is in the policy. The PPP Steering Committee and the PPP Operational Unit, mandated to provide leadership and oversight, have not been established. The report also mentions the Public Procurement Act that has been completely ignored in the Davis Administration’s PPP initiatives. This is a clear betrayal of the Government’s commitment to establishing a functional and efficient PPP framework.”
He continued, “The Government’s lack of commitment is further evidenced by the chronic understaffing and lack of training within the PPP unit. Despite acknowledging the need for skilled personnel to manage complex PPP projects, the report points out that the Government has failed to invest in building the necessary capacity. This neglect has undermined the effectiveness of the PPP program and signifies a disregard for the potential benefits that PPPs could bring to The Bahamas. The Government’s actions amount to a dereliction of duty. They have broken their promises to the Bahamian people, squandering a valuable opportunity to drive economic growth, improve infrastructure, and enhance the quality of life for all citizens. The Opposition demands accountability for this betrayal of trust.”
Thompson urged the government to “stop the secret off-book deals and come clean with the Bahamian people.”
“These secret so-called PPP deals are contracts with the vendors to pay for the work in installments over several years, usually with interest rates much higher than the government would be able to secure from agencies that lend for public infrastructure. They are no bid and secret, and Bahamians deserve better,” said Thompson
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