Pintard condemns “blatant disregard” for procurement laws in BPL reform process
Bahamas
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.
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