NASSAU, BAHAMAS — The government is establishing a National Investments Fund that will maximize this nation’s assets and provide a clear regulatory framework for private-sector partnerships, Prime Minister Philip Davis said yesterday.
While delivering communication in Parliament on the legislation, Davis noted that modernizing the country’s infrastructure, investments in food security, as well as the energy sector, require enormous levels of investment.
“That means we need to do things smarter, better, than they’ve been done in the past,” said Davis.
He explained that the legislation will allow The Bahamas to maximize the nation’s assets, investing and deploying our own capital to expand access to additional capital and opportunities.
He continued: “If we only finance projects with government revenues or borrowing, fiscal constraints will significantly limit how much and how ambitiously we can build. Partnering with the private sector greatly expands the number and scope of infrastructure projects we can take on, allowing us to move forward on more projects on more islands simultaneously.
“Mobilizing private capital in partnership with Government is the most effective way to see a significant advancement in expensive projects. Instead of the public having to contribute or borrow every penny for roads, schools, hospitals, airports, and homes, we will invite the private sector to partner with us. Instead of the public having to contribute or borrow every penny to expand renewable energy, or improve our defences against hurricanes, we will invite others to partner with us to strengthen our resilience. These partnerships can provide enormous advantages, but it’s crucial that they are managed and overseen in the country’s best interests.”
Davis noted that the National Investment Funds bill sets up for the first time in our country a clear regulatory framework for such arrangements.
“We are doing so in line with the recommendations made by the IDB, which advised setting up investment funds and vehicles to deal with national investment revenue and expenditure in a way that is transparent and in line — both from a structuring and governance point of view — with international best practices,” he said.
“This is an essential first step in taking a comprehensive approach to national investment. The new framework brings together a number of different strands of government fiscal operations relating to investments, and puts them into properly structured entities that enable partnerships with the private sector.”
Davis noted that the first objective is to authorize the establishment of National Investment Funds, for the purpose of advancing the blue, green, and orange economies of The Bahamas.
The second objective is to provide for the effective and transparent management of the natural resources of The Bahamas, along with private investments held by the Government of The Bahamas.
“In order to achieve these objectives, funds created pursuant to this Bill are designed to ensure that investments and private shareholdings of the Government are managed professionally for the short, medium, and long-term benefit of citizens of The Bahamas. The prescribed fund structure is also designed to ensure that revenues from the assets of The Bahamas will contribute to the economic certainty of the country. Upon passage of this Bill, we will immediately proceed with the formation of The Bahamas Resilient Infrastructure Fund, fulfilling our commitment to create a fund to promote partnerships for the development — and in many instances re-development — of our Family Island infrastructure,” said Davis.
As part of the Bahamas Resilient Infrastructure Fund, the government will create, at a minimum, a Growth Fund for the Family Islands, a Food Security Fund, and a Renewable Energy Fund.
Centerville MP Jomo Campbell tabled in Parliament a Bill for an Act to repeal and replace the Sovereign Wealth Fund Act of 2016 and to provide for the establishment of a national investment fund for a purpose specified in the Act.
