Opposition Leader Michael Pintard raised concerns yesterday regarding the Davis administration’s energy reform exercise, arguing that while some elements underwent competitive bidding, other critical aspects blatantly disregarded procurement laws.
Energy and Transport Minister JoBeth Coleby-Davis informed Parliament during her budget debate contribution on Wednesday that the government has contracted Pike Corporation via its Bahamian management firm Island Grid Solutions for a 25-year upgrade and management of Bahamas Power and Light’s (BPL) transmission and distribution network.
Pintard was not satisfied that the process for choosing Pike was fair to all interested parties.
“The government is on the verge of committing to a 25-year obligation involving significant state assets crucial to our public infrastructure. Given the magnitude of this endeavor, the government should have ensured an open and transparent competitive bidding process, irrespective of legal obligations,” Pintard remarked in his budget debate contribution, arguing: “This would have guaranteed the best deal with the most qualified technical providers for the Bahamian people.”
He added: “The absence of competitive bidding raises concerns. Laws exist to ensure the best outcome for Bahamians. Furthermore, reports on business and political affiliations of certain individuals involved in the BPL privatization exercise are troubling. Open bidding helps prevent insider manipulation, safeguarding against unfair advantages.”
Pintard suggested the government agreed to unfavorable terms, transferring over $100 million of BPL assets to Island Grid.
Coleby-Davis disclosed that under a joint venture partnership, the government will own 40 percent of Bahamas Grid Company, with Island Grid Solutions holding 60 percent.
“BPL will contribute its New Providence transmission and distribution assets valued at $100 million, for 40 percent of the shares in the SPV, while Island Grid, as the T&D manager, will raise $130 million from private investors for 60 percent of shares,” Coleby-Davis stated.
Pintard contended: “The Davis administration should acknowledge this as privatization of BPL’s transmission and distribution network.”
“In March, the Prime Minister pledged no privatization. Yet, months later, $100 million of sovereign assets shift from state to private control,” Pintard asserted.
He argued: “Transferring state-owned assets to a private majority-owned entity constitutes privatization. Until state control is restored, this remains privatization. At least $100 million of BPL assets have been privatized. The honesty of the Prime Minister and his team in denying BPL’s privatization is questionable.”
Pintard also queried the government’s removal of the tariff for the first 200 kWh of usage for BPL consumers. Given the utility’s financial strain, he noted the loss of nearly $3 million per month. Also, with increased rates affecting primarily small businesses, he raised concerns about its impact on business costs.
SAINT LUCIA IS NOT YET SIGNATORY TO THE CARICOM PERMANENT JOINT COUNCIL ON PUBLIC PROCUREMENT (PJCPP).
The CARICOM Permanent Joint Council on Public Procurement (PJCPP) convened its second meeting in Saint Lucia to advance discussions on the protocol governing public procurement in the CSME. While Saint Lucia has not yet signed the protocol, it participated as an observer during the meeting, signaling its interest and commitment to the deliberations.
Saint Lucia played host to a pivotal meeting of the CARICOM Permanent Joint Council on Public Procurement (PJCPP) on April 18 to 19, 2024, held at the Finance Administrative Centre in Pointe Seraphine, Castries.
Titus Preville, Director of the CARICOM Single Market and Economy (CSME) Unit, highlighted the significance of the gathering, noting that the PJCPP would focus on adopting its rules of procedure. Additionally, the meeting aimed to approve proposals encompassing rules, guidelines, norms, and standards outlined in the protocol for administering public procurement. Furthermore, the PJCPP intended to scrutinize its work programme for the period spanning 2024 to 2026, along with proposals for integrating E-Procurement into the Community Public Procurement Notice Board.
“At the moment seven member states Antigua and Barbuda, Barbados, Belize, Dominica, St. Kitts and Nevis, St. Vincent and the Grenadines and Suriname have signed the protocol on public procurement and the declaration to provisionally apply the protocol since it was approved by the Conference of Heads of Government in St. Kitts and Nevis in 2019. Of the seven Barbados and Belize have moved to ratify the protocol. In keeping therefore with article 36 of the protocol, once at least 5 member states have signed the protocol and the declaration to provisionally apply the protocol, the protocol is determined to be provisionally applied among these parties. As a consequence of that provisional application of the protocol, under article 30 of the protocol the permanent joint council can be established.”
Francis Fontenelle, Permanent Secretary in the Department of Finance, acknowledged that while Saint Lucia has not yet signed the protocol, the country has made significant strides in modernizing its procurement reform processes. He noted that Saint Lucia has introduced a new Public Procurement Act and accompanying regulations, as well as standardized tender documents to streamline compliance. Additionally, an E-Procurement Platform has been implemented to enhance accessibility, record-keeping, and reporting, aligning with parallel efforts within the CSME.
“We are very grateful that we are afforded observer status to the functioning of the Permanent Joint Council. This affords us insight into the direction in which the concept of regionally integrated public procurement is headed. We wish to recognize the contributions made by the CARICOM Secretariat and by the CSME Unit to the development of public procurement in the region.”
The Permanent Joint Council, consisting of Senior Trade and Public Procurement Specialists from member states, is tasked with implementing the provisions outlined in the community protocol on public procurement. This council holds the responsibility for overseeing the execution of the protocol’s mandates and regularly reports to the Council for Trade and Economic Development (COTED) on the protocol’s performance.
“Now is the time for the remaining CARICOM, CSME Member States to sign the protocol and be part of the design of the framework of what will govern the parties to the protocol in the future,” said Preville.
“We will continue to pursue some internal steps to ensure that the policies are sufficiently understood and accepted prior to assimilation into our policy framework. In essence, we want all concerned parties to be comfortable that this is acceptable to us and that it is not being adopted solely to meet an external requirement,” Fontenelle said.
Under the 11th European Development Fund, the European Union persists in its support for the enhancement of public procurement within the CSME, bolstering the Framework for CARICOM Integration and Cooperation Processes Programme. The recent hybrid meeting held in Saint Lucia marked the second gathering of the Permanent Joint Council on Public Procurement, signaling continued efforts towards strengthening collaboration and progress in this critical area.
The Joint Consultative Council (JCC) is concerned about Procurement Regulator Beverly Khan’s failure to issue an annual report as required by section 24 of the Public Procurement and Disposal of Public Property Act, which was operationalised in April last year.
In a press release on Monday, the council, through its president Fazir Khan, shared its concern, while also saying this was important given Finance Minister Colm Imbert’s projected $9 billion deficit.
In a June 4 press release, the International Monetary Fund (IMF) – which welcomed Trinidad and Tobago’s sustained economic recovery – commended the proclaimed Procurement Act, which it said “should help improve the efficiency of public spending.”
The council’s release said the independent report should have been submitted to Speaker Bridgid Annisette-George, Senate president Nigel de Freitas and Imbert in December 2023.
It added that eight items were to be included in that report, including a figure representing the total value of contracts awarded by public bodies, another representing the cost of the total value of procurement-contract variances for 2023 and the number of unfulfilled contracts awarded by public bodies in respect of procurement.
Other items to be included were a summary of public procurement transactions for each public body, including subsections with the number of procurement contracts awarded; the number of procurement contracts varied; the quantum of those variances; number of unfulfilled procurement contracts and cost incurred; a brief description of the projects for procurement, the awardees, the value, scope of works and the expected deliverables of projects,as well as the lessons learnt from the management of procurement contracts.
The report also should have included the names of public bodies failing to comply with the act, an assessment of the overall performance of the procurement system and a summary of unresolved issues to be addressed as well as recommendations needing action on the part of the procuring entity.
The release said that report would have supplied critical data and information to Parliament and the public.
“Only then can any assessment of the efficacy of the new legislation be determined and adjustments can be made.
“This is even more dire at this time, when the 2024 mid-year budget review presented by the Finance Minister now projects a $9 billion deficit. Procurement reform is supposed to eventually realise savings in the vicinity of $4 billion-$5 billion annually.”
On June 18 at 8:30am (EDT), the forum “Haiti Now: Development Priorities and Interventions” will discuss recent developments in #Haiti.
Panellists will share views on how the new interim council, as well as the new administration might work with international and regional partners to restore stability and maintain peace.
The forum’s objectives are:
(a) to outline the current socio-economic/security situation in Haiti;
(b) to share World Bank’s approach to development in Fragile States;
(c) to reiterate the Government of Haiti’s Development Plans and Priorities; and
(d) to highlight CDB’s Haiti Programme and its alignment with Haiti’s Priorities and CDB’s Strategic Objectives.
