NASSAU FLAGSHIP DRIVES 1/3 OF PARENT’S INCOME

region during its 2023 financial year, Nassau accounted for the vast majority of both the area’s $40.5m in adjusted revenue and $29m in adjusted EBITDA given that the southern Caribbean nation only contributed just over $6m to the former figure and received only 600,000 passengers.

Adjusted revenues and EBITDA were up 174 percent and 474 percent, respectively, compared to the prior year when the cruise industry was just starting its post-COVID recovery. With Nassau Cruise Port leading the way on both those percentage increases, Mr Maura told Tribune Business of The Bahamas’ importance to Global Ports Holding: “It’s material.

“Nassau’s operating revenue for that reporting period was $34.2m. We are a large contributor to the group’s overall financial performance. In terms of revenue, Nassau represents 29.4 percent of group revenue for this particular reporting period for port operations. Nassau also received 3,814,850 passengers, which represents 41.4 percent of the total group passenger volumes.”

Mr Maura also confirmed that Nassau Cruise Port’s EBITDA for the 12 months to end-March 2023 stood at $22.692m, which was equivalent to 31.2 percent - just under one-third - of Global Ports Holding’s total $72.7m in adjusted EBITDA. Nassau’s passenger count accounted for 86 percent of the Americas region’s total, and over 41 percent of the group’s 9.2m visitors.

“Nassau’s revenues were $34.2m from operations driven by 3.8m passengers landed during the period,”

Mr Maura told this newspaper. “Nassau’s revenue and operating performance are expected to improve further driven by stronger passenger volume growth of 4.2m in 2023 and 4.6m in 2023. With respect to Nassau’s future performance compared to other ports in the portfolio, Nassau will remain a strong contributor to the group’s income.”

Global Ports Holding’s annual report also disclosed that Nassau Cruise Port generated $19.23m in total comprehensive income for the year to end-March 2023. However, the 41-plus percent share of total cruise passengers did not translate into the same share of Global Ports Holding’s adjusted revenue and EBITDA (operating income).

Mr Maura noted that other ports in Global Ports Holding’s portfolio, namely Ege in Turkey, have a different rate structure which means they deliver a higher per passenger impact and contribution than Nassau. He added that “a very material objective of the company”, as well as the Government and all downtown Nassau tourism stakeholders, was to increase per capita cruise passenger spend.

The Nassau Cruise Port chief said this goal will be aided when all its restaurant, and food and beverage tenants, commence full operations now that the port’s own construction activities have been completed. He added that the attractions and activities offered by the port itself will also serve as a catalyst to attract more Bahamians, and stopover visitors staying at the likes of Atlantis and Baha Mar, to visit Bay Street and the surrounding area, and spend their money.

“There are very active discussions going on among downtown stakeholders, of which Nassau Cruise Port is one, and the Government. It is about improving the product of downtown given the legacy challenges we’ve had from passenger surveys and so forth,” Mr Maura said.

“While the company’s construction activities as part of this phase have been completed, we still have a few - less than a handful of tenants - almost exclusively on the food and beverage side in the process of completing their fit-out and getting operational. That’s going to have a material impact on passenger spend and the amount of time people spend in the area.

“The Island Port restaurant is expected to open in two weeks. Bamboo Shack is expected to open in about a month. Obviously that has a very strong brand from a Bahamian perspective. We have Chef Simeon Hall Junior and his partnership with the University of The Bahamas. Construction activity within that restaurant space is underway and that is likely not going to be completed until September,” Mr Maura added.

“They were delayed getting started, but that will be a big draw for our visitors and Bahamians coming down. We have two bar areas, modular in terms of construction, being constructed away and, when they come in, it will be a plug and play. We don’t expect them to come in until September. The food and beverage and bar element in the cruise port will have a material benefit to all aspects of the cruise port and, really, Woodes Rogers Wharf.

“The more there is to do in the downtown area, the more reason there is to come downtown and spend money. One of the principal objectives is to encourage Atlantis guests, Baha Mar guests and Bahamians to come downtown, enjoy the waterfront and spend time downtown.”

Mr Maura said reaction to the newly-unveiled Nassau Cruise Port had to-date been largely positive, especially from passengers. Pointing out that the city is “the largest transit port in the world for cruise passengers”, due to its US proximity, with many regular cruisers having visited multiple time, he said many visitors were “coming off the ship taking selfies and pictures of this new waterfront and downtown experience”.

Mehmet Kutman, Global Ports Holding’s chairman and chief executive, in his message to shareholders, wrote: “Nassau Cruise Port benefited from its proximity to the key home ports in Florida and the cruise lines’ near-term desire to operate a higher volume than normal of short cruises in this area at the expense of longer itineraries to other parts of the Caribbean. This decision helped Nassau Cruise Port report a 196 percent increase in cruise passengers to 3.8m.

“Nassau Cruise Port, on some days, is now hosting six cruise ships simultaneously, utilising the new berthing that was created as part of our significant investment into the port. On February 27, 2023, the port welcomed a record 28,554 passengers in a single day.

“Our investment in the transformation of Nassau Cruise Port continued..... Our vision for this iconic port is becoming a reality, and we believe this port will stand as a testament globally to our cruise port and destination development capabilities. Due to the major US cruise lines focusing on short cruises close to the southern US home ports throughout the winter 20222-23 cruise season, the recovery rate in passenger volumes at southern Caribbean cruise ports was less strong.

“For Global Ports Holding, this meant Antigua Cruise Port’s cruise operations recovered at a slower pace than that experienced by Nassau Cruise Port. Cruise passenger volumes at Antigua Cruise Port of 556,000 in the reporting period were up 135 percent from the 237,000 during the prior reporting period.” by key personnel i.e. Partners, Directors, etc., and other team members, the proposed schedule for submission of progress reports, and follow up timelines.

�eferences of Comparable �ngagements � list of references of similar or comparable engagements should be provided with the proposal. �t least three (�) references should be provided and each reference must be clients retained for a minimum of twelve (��) months. � summary of the pro�ect and client names and contacts should be provided to enable the Bank to contact references if re�uired.

�pplicants must declare any areas that may constitute conflict of interest related to this proposal

� Scope of �ork

�e�uest for Tender� Compliance Services

�e�uest for Tender� Compliance Services

�uly ��th, ����

Sub�ect� Compliance Services

���� Compliance Services

� Purpose

The Bahamas Development Bank (“the Bank”) is seeking to appoint an independent service provider (“the service provider”) to execute the compliance function on behalf of the Bank. The service provider will create a plan for and execute the compliance program for the Bank.

The independent service provider will design, implement, and execute the compliance program for the Bank. The service provider will meet with �xecutive �anagement to discuss the structure and intended design of the compliance framework The service provider will be responsible for designing the new framework and updating the Compliance policies and procedures to support it The service provider will also be responsible for development and execution of an integrated annual compliance program for the function.

The service provider will provide a proposed plan of action to achieve the ob�ectives of the compliance function Services and deliverables expected include�

�. �erification of compliance with policies, procedures and controls relating to money laundering activities;

�. Completion of compliance on boarding approval of new accounts;

�. Periodic due diligence review of client’s accounts;

�. �ssessing risks relating to ����C�T re�uirements;

Purpose Bahamas Development Bank (“the Bank”) is seeking to appoint an independent service provider (“the provider”) to execute the compliance function on behalf of the Bank. The service provider will plan for and execute the compliance program for the Bank.

�. �onitoring and responsibility for ��C and compliance risk rating ;

The Bank invites eligible vendors to submit competitive �uotes for the provision of these services. �ailure to provide a �uote that meets the minimum specifications re�uired may lead to dis�ualification of a bidder from selection.

� Background

The primary purpose of the Bahamas Development Bank is to assist in the economic development of The Bahamas by providing financial and technical assistance in areas including �griculture, �isheries, Tourism, �ndustry, �ousing and Business Development �or more information see� www.bdb.gov.bs

�. Prepare monthly and �uarterly compliance reports ;

�. Drafting and updating the Bank’s compliance policies and procedures in accordance with regulatory re�uirements and best practices;

�. �aintaining a log of suspicious activities and reports;

�. �acilitating the compliance training program for all relevant staff members;

��. �onitoring developments and changes in legislation and regulations that affect the Bank; invites eligible vendors to submit competitive �uotes for the provision of these services. �ailure �uote that meets the minimum specifications re�uired may lead to dis�ualification of a bidder selection.

��. �iaising with regulators, external auditors and other interested parties to ensure compliance matters addressed

� Subcontractors

� Terms and Conditions

�here a firm or company intends to submit a proposal, the re�uirements, and terms, including all instructions, re�uirements, and specifications, provided in this ��P should be reviewed in their entirety ound purpose of the Bahamas Development Bank is to assist in the economic development of The providing financial and technical assistance in areas including �griculture, �isheries, Tourism, �ousing and Business Development �or more information see� www.bdb.gov.bs and Conditions

The Bank shall incur no liability in the case of failure of a proposing firm or company to understand the contents of the ��P. �t is the service provider’s duty to properly understand and examine the ��P and re�uest any clarification or make any reasonable in�uiry and satisfy itself as to the completeness and sufficiency of its response.

�f a proposer intends to subcontract some of the work to another company or individual for any reason, the Proposer must identify the work items that they intend on subcontracting, to whom, and the experience and �ualifications of the organi�ation or individual. The Bank reserves the right to approve all subcontractors.

The Bank and its officials, officers, employees and advisors are not liable or responsible in any way for any costs, expenses, losses, damages or liabilities incurred in the preparation of a proposal in response to this ��P. This includes but is not limited to costs associated with preparing the submission of its proposals, costs associated with the undertaking of any due diligence, and any other costs associated with this ��P process �esponses to this ��P and any acknowledgement of receipt of proposal shall not constitute an obligation on the part of the Bank to award a contract for any services or combination of services. �ailure of the Bank to select a contractor by way of this ��P shall not result in any claim whatsoever against the Bank

� Schedule of �ork and �xpected Deliverables

The Proposer should present a preliminary work plan outlining key tasks, schedules and anticipated start and completion dates for each deliverable within the scope of work re�uested.

� �eporting and Communication firm or company intends to submit a proposal, the re�uirements, and terms, including all re�uirements, and specifications, provided in this ��P should be reviewed i n their entirety shall incur no liability in the case of failure of a proposing firm or company to understand the the ��P. �t is the service provider’s duty to properly understand and examine the ��P and clarification or make any reasonable in�uiry and satisfy itself as to the completeness and of its response.

The Proposer will report directly to the �anager, �overnance, �isk and Compliance �t is expected that the selected team will submit periodic progress reports with recommendations on mutually agreed upon dates throughout the engagement period. The Bank may re�uest additional reports over the course of the contract period.

�� Pricing Structure and �ees

The Bank reserves the right, in its sole and absolute discretion, to re�ect any or all proposals in part or in full, without assigning any reason. The Bank may, at any time, vary the ��P process or abandon the ��P process without assigning any reason thereof and without notice.

The information provided by the Bank in connection with this ��P is for the sole purpose of this solicitation and is to be considered confidential. �ny information learned by a Proposer in connection with this solicitation will not be revealed by such service provider or used for any purpose other than the preparation of their proposal.

Proposers should provide a separate financial proposal outlining all proposed fees and the proposed pricing structure to complete the work effort. The financial proposal should be itemi�ed by expected engagement deliverables and should be inclusive of any ongoing costs. The contracted rate and any necessary scope changes will be reviewed by the Bank annually. The annual contracted fee will be paid on a �uarterly basis.

�� �valuation Criteria

The Bank will consider the following factors in the evaluation and selection of proposals.

�. Completeness of Proposal;

�. �ppropriateness of �pproach to �ngagement and�or �ethodology;

�. �uality and Depth of �esponse;

This ��P shall be governed by the laws of The Bahamas. �ny legal action or proceedings arising out of or in connection with such terms and procedures shall be sub�ect to the exclusive �urisdiction of the courts of The Commonwealth of The Bahamas.

The Bank, in its sole discretion, may modify the re�uirements, terms, and conditions for this ��P and its officials, officers, employees and advisors are not liable or responsible in any way for any expenses, losses, damages or liabilities incurred in the preparation of a pr oposal in response to this includes but is not limited to costs associated with preparing the submission of its proposals, costs with the undertaking of any due diligence, and any other costs associated with this ��P process to this ��P and any acknowledgement of receipt of proposal shall not constitute an obligati on of the Bank to award a contract for any services or combination of services. �ailure of the Bank contractor by way of this ��P shall not result in any claim w hatsoever against the Bank

� Contract Term

The initial contract period will be for two (�) years. The Bank reserves the right to extend the contract for �uality management, including updates, enhancements, and maintenance services

� Conditions� information for applicants

These instructions are provided for general information for the preparation of the proposal. Proposals should be concise and contain the sections described below Proposals that fail to adhere to or comply with the prescribed format may be excluded from the evaluation process. The pr oposal should be submitted in �nglish and must include the following� Proposal �etter �ll proposals must be submitted with a duly signed proposal letter, which should include the signatures of the individual or individuals authori�ed to legally bind the firm or company (“the authori�ed person”).

Business Profile The proposal must include an overview of the firm�company i.e. Business profile. The profile must include� o Type of Business (i.e. Company, Partnership, etc.) o Date of incorporation�formation; o �ddress of registered office; o �ame of key contact person and address for communication (i.e. phone contact and email); o Business Status; and o The name and position of key personnel (Partners�Directors�C��) and team members along with an attachment of their �ualifications, including professional licenses or certifications (i.e. Curriculum �itae).

�n �xecutive Summary of the proposal should also be provided for ease of reference.

Scope of �ork The proposing firm or company should respond to all re�uiremen ts outlined in the re�uested scope of work in a comprehensive and clear manner. This should include any information or supplemental material that may clearly outline how the scope of work will be approached and how the team will address all re�uirements specified.

Proposed Schedule of �ork The proposal should include a schedule of work with proposed timelines for the specified work period of one year. The schedule should include work to be done by key personnel i.e. Partners, Directors, etc., and other team members, the proposed schedule for submission of progress reports, and follow up timelines.

�eferences of Comparable �ngagements � list of references of similar or comparable engagements should be provided with the proposal. �t least three (�) references should be provided and each reference must be clients retained for a minimum of twelve (��) months. � summary of the pro�ect and client names and contacts should be provided to enable the Bank to contact references if re�uired.

�pplicants must declare any areas that may constitute conflict of interest related to this proposal

�. �ualifications and �xperience of �ey Personnel;

�. �uality of �eferences and Demonstrated �elevant �xperience in the Provision of Compliance Services;

�. �eputation of the �irm or Company;

�. �uality of Preliminary �ork Plan and Schedule; and

�. Pricing and �ee structure.

The Bank reserves the right to evaluate the proposals either by itself and�or in coordination with and�or by engaging any external consultants.

�� Contract �ward

The Bank reserves the right to make no award, make a partial award, make multiple awards, or to award in aggregate or by line item in scope of services as determined by the Bank to be in its best interest, sub�ect to determination that the price proposal is fair, reasonable, and provides the best value to the Bank given the re�uirements of the pro�ect.

�ppointment as a successful contractor shall be sub�ect to the parties agreeing to mutually acceptable contractual terms and conditions. �n the event of the parties failing to reach such agreement, the Bank reserves the right to appoint an alternative service provider.

�� Contract Completion Criteria �here a contract results from this ��P, such contract will be considered complete when the Bank has approved and accepted all assigned contract deliverables.

�� �nsurance Coverage

The selected contractor is to provide professional liability insurance covering the services described in the contract.

�� Deadline The due date for submission of the tender is ��th �uly, ���� �ate submissions will be returned unopened to the sender.

Please send all tenders clearly marked “Compliance Service Proposal” to �mail� careers�bdb.gov.bs Person� Submit by hand in the tenders’ box at BDB’s reception, add address.

�or any complaints regarding the tenders please refer to the Complaints section on the BD B website.

Government might struggle to meet its deficit and other fiscal targets if the Bahamian economy fails to grow by the projected 4 percent in 2023. He said: “The truth is we don’t necessarily have to get to a 0.9% deficit. In my mind, a 1 percent deficit would work. Something a little bit larger would work as long as it’s not moving in a direction where it’s increasing significantly.

“It is my submission to you that the numbers are positive, but the increase in the [economic] growth rate which is underlying this Budget, the deficit moving into surplus, is kind of different from the historical growth rate that we have experienced.

“And the IMF and the governor of the Central

Bank of the Bahamas said The Bahamas runs the risk of moving back to its historical levels of growth, which is kind of like 1.5 percent to 2 percent. When you look at the Budget, it is assuming a growth rate of about 3-4 percent. We have to get that. If that doesn’t materialise, then we could find some weaknesses.”

While the 2023-2024 Budget was billed as having no new or increased taxes, Mr Edwards said it creates a “cautionary circumstance” as all taxes must be sustainable and work. He added that The Bahamas has been warned that it must reduce spending and increase revenue to avoid a further credit rating downgrade.

Mr Edwards said: “The Bahamas, through this administration, has decided that there will be no new taxes and, as a result of no new taxes, it creates in my mind a cautionary circumstance. Because while taxes have increased in absolute terms, the fact that there were no new categories of taxes introduced, it says to us that those which we are working with today, as announced in the Budget they must be sustainable, and they must work.

“The response from this Budget, I think, goes directly to credit rating agencies, especially Moody’s and then S&P. Because in the last couple of months, when we were last downgraded as a country, there were some statements made. And one of those statements, which stands out very, very clearly, and very vividly, is the fact that The Bahamas, in order to avoid downgrades going forward, must demonstrate its ability to secure additional revenue and to become sustained in reducing its expenditure.”

Mr Edwards predicted that, unless a major or catastrophic event happens, the Budget “should be ‘good”. He added that the Budget shows The Bahamas is focused on increasing revenue and reducing spending. “This Budget sent a very, very clear signal to the world that The Bahamas appreciates, and knows, the problem that it has, and has set out to find greater revenue,” the ORG executive said.

“At the end of the day, right now as we speak, the biggest problem The Bahamas has is finding revenue