By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE New York legal clash between Baha Mar’s main contractor and Sarkis Izmirlian involving claims of fraud and breach of contract wrapped up with the contractor claiming that debt led to a $1.5bn loss and not construction delays - a claim contended by Mr Izmirlian’s legal team.
China Construction America (CCA) contended that the primary cause of the financial loss was Baha Mar’s excessive debt, not delays in the building process. However, lawyers for Sarkis Izmirlian say it was due to CCA concealing construction delays and intentionally sabotaging the March 27, 2015, completion date and plunging into a liquidity and financial crisis.
CCA’s attorney, Mark Goodman, argued that BML Properties Ltd’s debts and its decision to file for bankruptcy led to the liquidation losses not CCA, asserting “the plaintiff really brought this on itself”.
Attorneys said the losses were due to BML’s financial mismanagement and said the trial did not present
evidence that CCA intentionally slowed down construction.
“The evidence has shown that the plaintiff overleveraged the project with almost $2.5bn in debt [and] spent far in excess of its budget,” said Mr Goodman.
“It faced interest payments that it just didn’t have the resources to cover. The partial opening on March 27 would not have cured any of these fundamental problems.
Minister: URCA has authority for regulating energy sector
By FAY SIMMONS
Tribune Business Reporter jsimmons@tribunemedia.net
MINISTER of Energy and Transport JoBeth Coleby-Davis has maintained the regulator for the country’s energy sector is the Utilities Regulation and Competition Authority - including in Grand Bahama.
Speaking to reporters, Ms Coleby-Davis said she is unsure why there is “confusion” about whether the Grand Bahama Power Company (GBPC) is under the regulation of URCA or the Grand Bahama Port Authority (GBPA).
She said the Electricity Act 2024 clearly sets out
that URCA is the regulatory body for the electricity sector contrary to Opposition Leader, Michael Pintard’s assertion that the Hawksbill Creek Agreement (HCA) places that position with the GBPA.
Loans for women, young and people with disability
By FAY SIMMONS Tribune Business
Reporter
jsimmons@tribunmedia.net
THE Bahamas Development Bank (BDB) will soon offer low-interest loans to micro, small, and medium enterprises (MSMEs) owned or led by women, youth, and people with disabilities, starting this month. The programme will provide loans with interest rates ranging from 0 to 2 percent, specifically targeting businesses in agriculture, sustainable tourism, and creative sectors. Applications for the loans will be accepted until
September 13, with the programme set to run until October 1. The concessional financing allows businesses to benefit from the low interest rate for the first two years. After this period, or for loans exceeding $100,000, standard BDB interest rates will apply. This initiative arises from a partnership between BDB and the United Nations Entity for Gender Equality and the Empowerment of Women Multi-Country Office - Caribbean (UN Women MCO Caribbean).
UN Women, through project funding from the Joint Sustainable Development
MONDAY, AUGUST
Rising bank fees spark FNM call for reform
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
OPPOSITION leader Michael Pintard said the “ever-increasing” banking fees are concerning to his party and if elected would see to a reformation of the sector.
“The Free National Movement remains deeply concerned about the everincreasing consumer fees in the domestic banking sector and, more broadly, the state
of retail banking in The Bahamas,” said Mr Pintard.
“Bahamians continue to pay higher fees, charges, and interest rates, but too many find that the quality and access to banking services keep getting worse.”
This issue of increasing fees by commercial banks has sparked feedback from the chairman of the Clearing Banks Association, Gowon Bowe who said the country is “moving towards a communist state” when discussing regulating bank
JOBETH COLEBY-DAVIS
MICHAEL PINTARD
BAHA MAR RESORT AND CASINO
Stubbs: National Development Plan needs update to address emerging priorities
By LEANDRA ROLLE Tribune Chief Reporter lrolle@tribunemedia.net
FELIX Stubbs, chairman of the National Development Plan (NDP) Secretariat, said efforts are underway to update the plan to address emerging priorities such as climate change, irregular migration, and crime.
He said a draft plan released in 2016 must be revised to reflect current events and incorporate public feedback.
His comments followed Friday’s IDB workshop on the NDP, where stakeholders and policy specialists proposed solutions and priority actions for the plan’s full implementation.
Economic Affairs Minister Michael Halkitis outlined the government’s priorities for Vision 2040, including tackling climate change, diversifying the economy, strengthening food security, and building a resilient nation.
“They reflect our commitment to building a Bahamas that is stronger, more resilient, and more prosperous than ever before,” he said. “By focusing on these areas, we can ensure that our nation not only survives but thrives in the years to come.”
Free National Movement leader Michael Pintard highlighted areas such as enhancing the country’s storm resilience, developing a framework to boost human capital, improving public and social infrastructure, and “providing a roadmap for a merit-based civil service” to increase accountability and transparency.
“We cannot and must not shortchange this process. We must take the time and we must do the work,” Mr Pintard said.
“There must be earnest engagement of political parties and the smaller
upstarts.”
Mr Stubbs said recommendations from the workshop will be compiled into a report by the IDB, which is expected to be released in several weeks. He added that several agreements were reached at the workshop, including the need for funding and establishing the technical team to continue the plan’s work.
Ambassador Joseph Curry has been recommended to lead the technical team as executive director. Mr Stubbs also mentioned that the steering committee will be reappointed, adding: “Once we’ve done that, we can then begin our meetings again to complete the original draft from 2016.”
He expects the team to be fully engaged by the
end of September.
He said a small group has already begun some work, but the full team will be coming together soon. He said the appointments need to be finalised through the government, and the team is working out short-term payment arrangements. Additionally, they need to find office space, which will take a couple of weeks.
Coleby-Davis: Efforts underway to prevent repeat of widespread recent power outage
By LEANDRA ROLLE
Tribune Chief Reporter lrolle@tribunemedia.net
AFTER a major blackout plunged half of New Providence into darkness on Thursday night, Energy Minister JoBeth Coleby-Davis said efforts are underway to prevent a recurrence and enhance power reliability.
The outage, which affected several areas in the eastern and western part of the island, was reportedly caused by a cable fault at Bahamas Power and Light’s (BPL) Clifton Pier Station, which triggered a generation trip.
In a statement, BPL described the blackout as “unpredictable” but noted that quick action from its teams led to full restoration
“within a short period of time”. BPL said while some areas had power restored quickly, others experienced prolonged outages due to additional work required on the company’s transmission lines.
Mrs Coleby-Davis said the recent power cuts highlight the country’s urgent need for electricity reforms.
“The state of the country’s infrastructure, transmission, and distribution lines is strained, trying to meet the high demand for power from homes and businesses,” she told reporters on the sidelines of an event Friday.
“There is great urgency to focus our efforts on addressing these challenges and to communicate with the public about the work we are doing.”
She emphasised that BPL’s teams have been working to address critical areas needing upgrades, especially with hurricane season underway.
She also reiterated BPL’s commitment to ensuring power reliability for all customers should any unexpected issues occur.
“Our teams at BPL have been working to address these challenges quickly and to prevent a repeat of Thursday evening’s outage,” the minister added. “We do not expect this to be a consistent issue. We are working to ensure that system improvements are made, increasing reliability while reducing costs.”
The Davis administration has introduced several initiatives to reform BPL, including transferring New
Providence’s electricity grid to Bahamas Grid Company, now 60 percent privately owned. Island Grid, managed by Eric Pike, will oversee operations, with Pike Electrical providing the necessary workforce, equipment, and resources.
Pike’s teams and trucks have already begun arriving in The Bahamas.
On Friday, Mrs Coleby-Davis said the government’s plans are progressing “pretty well” but acknowledged that more work remains.
“We still have many technical discussions happening. Planning and designing are ongoing, and as things ramp up, there will be a need for more public consultation on the technical plans that will be implemented,” she said.
The Christie administration planned to pass a National Development Plan Bill before the 2017 general election, believing the plan would be a groundbreaking document central to the nation’s development. The plan is supposed to include accountability mechanisms, with the University of The Bahamas expected to release regular reports on milestones. A comprehensive 491page draft of the NDP was released in December 2016. In early 2023, Prime Minister Philip “Brave” Davis announced the reappointment of the NDP committee.
Mr Stubbs said he spoke to Mr Davis over the weekend and is expected to meet with him in about two weeks to chart the way forward.
MINISTER of Energy and Transport
JoBeth Coleby-Davis speaks to reporters during an event to discuss a National Development Plan hosted by the Inter American Development Bank (IDB) at The Island House on Friday.
Photo: Dante Carrer/Tribune Staff
NATIONAL Development Plan Secretariat chairman Felix Stubbs speaks during an event to discuss a National Development Plan hosted by the Inter American Development Bank (IDB) at The Island House on Friday.
