By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
FOCOL Holdings is in negotiations with a US government-owned institution to finance its “nine-figure” investment in transforming New Providence’s baseload energy generation, its chairman revealed yesterday.
Sir Franklyn Wilson told Tribune Business that the BISX-listed firm and its affiliates are in talks “at a very high level” with the US Export-Import Bank, the federal government arm that funds and underwrites credit for American exporters, over financing pipeline and power plant projects where “the first of the nine figures is not one, two or three”.
Speaking after it was disclosed that FOCOL and its Bahamas Utilities Holdings affiliate will construct a 13.5 mile pipeline to move both liquefied natural gas (LNG) and diesel fuels from Clifton
Pier to Blue Hills, where they will also build a new 177 mega watt (MW) power plant, he pledged that both facilities will adopt “the highest possible standards” to mitigate any safety and environmental concerns.
Dexter Adderley, FOCOL’s president and chief executive, confirmed to this newspaper that its role in the Government’s energy reforms will “be in full swing next year” once all necessary permits and approvals are obtained
for both the pipeline and power plant.
Explaining that the pipeline will largely follow the route of BPL’s existing fuel transportation mechanism, which it will ultimately replace, he reassured residents in nearby residential communities that it will be constructed to North American and global standards to allay any safety concerns.
A study on the potential environmental impacts, produced by Bahamas-based JSS Consultants and dated
August 6, 2024, said: “The FOCOL diesel and natural gas pipelines project is a proposed 13.5-mile pipeline project in Nassau, New Providence, The Bahamas. The site is located between the BPL Clifton power plant and the BPL Blue Hills power plant.
“The proposed site is not currently inhabited but is near established roadways,
Atlantis, Baha Mar target $8m energy saving by ‘25
By FAY SIMMONS
Tribune Business Reporter
jsimmons@tribunemedia.net
ATLANTIS and Baha Mar are expecting to enjoy a combined $8m in annual energy cost savings by next year amid industry calls yesterday for a further 43 percent slash in electricity rates. Robert Sands, the Bahamas Hotel and Tourism
Association’s (BHTA) president, said the sector is finally “seeing some action” on energy reform and expects the country’s two mega resorts to see a multi-million dollar reduction in their electricity bills by 2025.
Speaking during a panel discussion at the Ministry of Energy and Transport’s energy forum, Mr Sands said Baha Mar and Atlantis spent a
combined $64m on electricity in 2023 but expect to see that amount slashed to $56m by the end of next year.
“Consistent, reliable, cost effective, environmentallyfriendly electricity is very important, not only for our sector but for every single citizen of the Commonwealth of The Bahamas,” said Mr Sands.
LPIA hit by 900% hike from Water & Sewerage
By FAY SIMMONS Tribune Business Reporter
THE BAHAMAS’ main airport gateway suffered a 900 percent increase in its Water & Sewerage bills during its 2022-2023 financial term as total utility costs surged by $1.5m year-over-year. Kevin McDonald, the Nassau Airport Development Company’s (NAD) vice-president of maintenance and engineering, told a panel discussion at the Ministry of Energy and Transport’s energy forum that the Lynden Pindling International Airport (LPIA) operator’s total utility expenses rose by 45 percent - from $3.3m to
$4.8m - during that financial year. He explained that this was due to the combination of Bahamas Power & Light (BPL) hiking its fuel costs by up to 163 percent to recover previous unbilled sums via its socalled ‘glide path’ strategy, while the Water & Sewerage Corporation introduced the metering of sewerage effluent. As a result of the latter’s move, NAD was almost billed in one month what it had been charged for the previous full year.
Mr McDonald said the introduction of BPL’s ‘glide path’ increased the airport’s electricity bills by 160 percent. And, due to the billing changes at the Water and
PAGE A17
Freeport electricity battle is ‘difference of opinion’
By FAY SIMMONS Tribune Business
A SENIOR official with the Attorney General’s Office yesterday branded the legal dispute over who has regulatory authority for the energy
ity resides with the Grand Bahama Port Authority (GBPA) or the Utilities Regulation and Competitive Authority (URCA). Speaking on a panel discussion at the Ministry of Energy and Transport’s energy forum, Mrs ParkerWallace said the Attorney General’s Office is not involved directly in the dispute as URCA was instead named as the respondent party while the Grand Bahama Power Company was the plaintiff. “There’s a difference in opinion, and who the regulator is really depends. The answer that you will get will depend on who you ask,” said Mrs Parker-Wallace. “So let me just explain what
‘Seismic’: Amazon in free delivery Bahamas threat
By NEIL HARTNELL and ANNELIA NIXON Tribune Business Reporters
BAHAMIAN retailers, courier companies and freight forwarders were yesterday put on alert over a “seismic” competitive threat after Amazon confirmed it is offering ‘free international delivery’ to this nation.
Brent Burrows II, CBS Bahamas’ vice-president of retail and sales, told Tribune Business that “now’s the time” for operators in these industries to develop a survival strategy after the world’s largest online retailer and e-commerce marketplace confirmed that the free delivery on purchases of “eligible products” worth $49 or more currently has no end date.
“The ‘International Free Delivery’ is available on eligible products shipped to The Bahamas (all major islands) and are part of orders worth $49 or more,” Amazon wrote in reply to this newspaper’s inquiries. “Not all items are eligible for the Free Delivery promotion. Look for ‘FREE Delivery to Bahamas’ when you spend over $49 on ‘eligible items’ throughout your shopping journey.
“Once you have a cart with eligible items and exceed the threshold, you will see the ‘Free Delivery’ promotion option at checkout. The promotion is part of our continuous effort to provide greater value to our customers worldwide, and we have not announced an end date to this promotion.”
So-called ‘eligible products’ were not defined, but Mr Burrows said Amazon’s move is a wake-up call for Bahamian retailers, couriers and freight forwarders to quickly assess and adjust their business models to remain competitive and differentiate themselves from global corporate giants given that others will likely follow Amazon’s lead.
Writing on Page 18 in Tribune Business today, he called on companies in those sectors to stay close to customers and their needs. From a retail perspective, Mr Burrows suggested that merchants assess their product offerings and focus on those goods that are
SIR FRANKLYN WILSON
ROBERT SANDS
BAHAMIAN BUSINESS MUST RISE TO AMAZON CHALLENGE
Many do not realise that the retail landscape in The Bahamas is on the verge of a seismic shift. Amazon has quietly introduced ‘Free International Delivery’ on orders of $49 or more - including to The Bahamas. This development offers immense benefits to consumers through true door-to-door service, seamless checkout and no hassles with Customs clearance, paperwork or freight forwarders.
A Boon for Consumers
With this initial roll-out, Amazon provides a curated yet extensive selection across various categories such as apparel, automotive, home improvements and more. In true Amazon fashion, pricing remains highly competitive, and is now enhanced by free shipping. Duties are calculated seamlessly at checkout and included as an ‘Import Fees Deposit’, representing Amazon’s best estimate which is typically on the higher side. If actual duties are lower, the
customer receives a refund. If higher, Amazon covers the difference. Needless to say, and in true Amazon fashion, the entire process is remarkably straightforward and extremely customerfriendly.
The Challenge for Bahamian Businesses
But what does this mean for local retailers and freight forwarders?
The implications are clear: An entire industry risks obsolescence. The
convenience and affordability of Amazon’s service will undoubtedly draw customers away from traditional brick-and-mortar stores and freight forwarders, impacting even the emerging e-commerce sector. Only businesses that are agile, innovative and relentlessly customer-focused will withstand this new level of competition.
Addressing the Sceptics
Some may express criticism, citing concerns that
the door-to-door process with DHL is too slow or that the product selection is too limited. However, these are no more than temporary growing pains. As the programme matures, we can expect faster delivery times and a broader array of products, eventually leading to the majority of Amazon’s catalogue becoming available. Logistics will improve, and the customer experience will become increasingly efficient and user-friendly. There is no
reason why Amazon’s service to The Bahamas will not eventually mimic the seamless and lightningquick experience offered within the continental US.
Adapting to a new retail era
This shift places inventory strategy at the forefront for local retailers, necessitating a more refined approach. My personal belief is that as consumer habits evolve, we will see somewhat of a ‘reversal’ in what draws customers through the doors. With this habit swap, customers will increasingly turn to Amazon for popular, highvisibility items rather than sourcing them from local shops. Instead, they will visit local stores primarily for unique or urgent essentials - specialised items needed to complete a task or solve a specific problem. Once in-store, customers may then pick up additional products - the items that used to serve as the main draw - as secondary purchases.
Enhancing the In-Store experience
Beyond inventory, two factors become essential for local retailers to stay competitive: The opportunity for customers to physically interact with products and the expertise of store associates. As well-priced online options become more accessible and appealing for standard purchases, the in-store experience must deliver value that e-commerce and low prices cannot replicate. This shift requires a higher standard for merchandising and store layout. Attractive displays, pointof-purchase materials and thoughtfully designed environments become critical - not just to showcase products but to help customers visualise solutions and inspire confidence in their purchase decisions. Every aspect of the store should be curated to
Directly marketing these “must-have” or “feature” items, which previously may have been responsible for a large draw of customers, will begin to prove less effective, as local retailers often cannot compete with Amazon’s pricing, and demand significantly diminishes with reduced urgency and convenient online access. This new landscape demands a strategic focus on unique, practical offerings that keep customers coming through the doors.
MARINE FORECAST
Bahamian business must rise to Amazon challenge
enhance the experience, making it a destination rather than just a place to buy things. Hiring also takes on new importance. Retail associates will no longer be entry-level workers or individuals supplementing other pursuits. These roles will demand specialised skills, including deep product knowledge, technical expertise and exceptional customer service. Associates must serve as advisors and problem-solvers, guiding customers with insights that add genuine value to their in-store experience.
As a result, retail positions must be reimagined
as career paths, with competitive compensation and ongoing training. For retailers, investing in highly-skilled associates and thoughtful merchandising is not just a tactic - it is essential for sustaining relevance in a market that Amazon is actively reshaping.
Embracing Innovative Strategies
To remain viable in this new landscape, I implore local retailers to think outside the box and modernise their approach to meet evolving consumer expectations. For example, introducing a rental programme can offer customers access to products they may not want to purchase
outright, fostering loyalty and repeat business. Implementing price-match guarantees assures shoppers they are getting the best deal locally, reducing the temptation to turn to online competitors. Additionally, adopting lenient return policies can enhance customer satisfaction and build trust, making the local shopping experience more appealing. By embracing these innovative strategies, retailers can provide unique value propositions that set them apart from giants such as Amazon, encouraging consumers to continue supporting local businesses.
A Call to Action for the Government
While many may be looking to the Government to solve such an issue through regulation, I would argue for exactly the opposite. To support Bahamian businesses in remaining competitive in an increasingly globalised market, it is imperative for the Government to reduce restrictions and streamline regulatory processes that currently burden local enterprises. Excessive red tape, complex import procedures and restrictive trade policies place Bahamian businesses at a disadvantage, especially as international giants such as Amazon expand their services here. By easing these restrictions, simplifying tax
structures and fostering a more business-friendly environment, the Government can empower local companies to compete on a level playing field. This approach would not only strengthen the economy but also ensure that Bahamian retailers and service providers can innovate, grow and meet the evolving needs of their communities in a truly free market.
The Path Forward Change is inevitable, and resisting it is futile. The arrival of Amazon’s ‘Direct to Bahamas’ programme is not just a challenge but an invitation for local businesses to innovate and improve. Businesses that have relied on outdated models or have been slow to adopt new technologies will find themselves left behind. By embracing competition and focusing on areas where they can excel beyond the capabilities of an online giant, businesses can not only survive but flourish. In the end, consumers stand to benefit the most from this evolution, enjoying better services, more options and competitive pricing. It is up to local businesses to rise to the occasion, adapt to the changing landscape and continue to play a vital role in our economy.
Freeport electricity battle is ‘difference of opinion’
I meant by that. So two things, one, to be clear, the Electricity Act of 2024, a large part brought forward some of the provisions of the Electricity Act 2015.
“One of those provisions would have been that the Act applied to the entire Bahamas. So that was part of the law from 2015, and recently brought forward in the 2024 legislation. So, as far as URCA and the Government is concerned, Parliament has spoken.
“It’s been almost been ten years. Parliament has stated what its position is,
and URCA as regulator is trying to ensure the laws of The Bahamas are complied with. So, from our perspective, that would be what our position would be.” Mrs Parker-Wallace, though, said that from GB Power and the GBPA’s perspective they have been granted certain privileges under the Hawksbill Creek Agreement, Freeport’s founding treaty. They believe the Electricity Act is “inconsistent with that vision”, so GB Power asked the courts to determine who Freeport’s electricity regulator is.
NOTICE
NOTICE is hereby given that YUBERY SALA-PEREZ, Bozine Drive off Harold Road, Nassau, Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 8th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
“However, we understand that Grand Bahama Port Authority (GBPA) and its affiliates would have a different position because they expressed that. Shortly after the 2015 legislation was passed, litigation commenced. The GBPA, one of their affiliates, brought an action against URCA as regulator in respect of the Electricity Act 2015, and that litigation of some form is still ongoing,” she explained.
“Their position in law, just to summarise, it is simply that if there exists the Hawksbill Creek Agreement that was done
between the Government and the Grand Bahama Port Authority, and in the GBPA’s view there’s certain rights and powers and privileges that will afford them under the Hawksbill Creek Agreement, the Electricity Act is simply inconsistent with that vision.
“And so they have done what any other citizen or entity would do; they simply asked the courts to adjudicate and make a decision. So that’s really all.”
GB Power, in its stilllive Supreme Court action, sought an injunction to prevent URCA “from regulating, or seeking to exercise
NOTICE is hereby given that TINA NICOLAS, Bacardi Road, Nassau, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 1st day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
licensing and regulatory authority” over it. GB Power’s action is founded on the basis that, as a GBPA licensee, it is licensed and regulated by the latter via the Hawksbill Creek Agreement - and not by URCA and the Electricity Act 2015.
It is arguing that the previous Electricity Act’s sections 44-46, which gave URCA the legal right to licence and oversee energy providers, “are inconsistent, and conflict with, the rights and privileges vested in [GB Power] and the Port Authority” by the Hawksbill Creek Agreement.
GB Power’s statement of claim argues that itself and the GBPA “have been vested with the sole authority to operate utilities”, including electricity generation and transmission and distribution, within the Port area until the Hawksbill Creek’s expiration in 2054. Cable Bahamas, too, also has a separate legal action contesting URCA’s jurisdiction and authority to regulate its Freeport subsidiary.
The GBPA, too, asserted earlier this year: “The Hawksbill Creek Agreement, a cornerstone of our governance structure, granted GBPA the right and responsibility of regulating all utilities within the City of Freeport.
“In 1993, with the execution of the east and west agreements, this mandate was extended to include government territories
on the island of Grand Bahama. Since the inception of the Hawksbill Creek Agreement, no Act of Parliament has superseded its provisions.
“Under Clause 2 (21) and 2 (23) (a) of the Hawksbill Creek Agreement, GBPA and GB Power - as a licensee of GBPA - have been vested with the sole authority to operate utilities, including electricity generation, transmission and distribution, within the Port area until the Hawksbill Creek Agreement’s expiration in 2054 without having to obtain a permit or licence from the Government of the Bahamas or any department or licensing thereof.”
Applying this to the Government’s recent legislative reforms, the GBPA added: “As such, the Electricity Act, which attempts to give URCA the legal right to licence and oversee energy providers, is inconsistent with - and conflicts with - the rights and privileges vested in GB Power and the GBPA by the Hawksbill Creek Agreement.
“An action was commenced in the Supreme Court to challenge URCA’s ability to licence and regulate on the basis that these conflict with the provisions of the Hawksbill Creek Agreement as Freeport’s founding treaty. We will continue to defend our positions, and it is important to point out that there have been over a dozen successfully litigated cases that have set a judicial precedent for the GBPA’s exclusive regulatory authority in Freeport.”
NOTICE
NOTICE is hereby given that DEAN GERALD ALMIRA, P.O. Box SS19522 #4 Buen Retiro Road, Nassau, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 1st day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that JORRIS ANASTAL , Keywest Street, Nassau, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 1st day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that NICKOY OMAR BOWEN, #105 Jacaranda Street, Pinewood Gardens, Nassau, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 1st day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
FOCOL in energy reform talks with US Gov’t bank
agricultural lands and populated urban areas... The proposed works include the construction of modern diesel and natural gas pipelines and associated infrastructure.” The study noted that the pipelines’ proposed route will take it close to two national parks managed by the Bahamas National Trust (BNT).
“The FOCOL diesel and natural gas pipelines project does not fall within the boundary of a national park but is located north of the Primeval Forest National Park (PFNP) and south of the Harold and Wilson Ponds National Park,” the report by JSS Consultants said.
“The Primeval Forest national park is 7.5 acres of old growth, dry broadleaf evergreen forest with poignant karst features. Harold and Wilson Ponds national park is 237 acres of inland freshwater wetland habitat. These sites are managed by The Bahamas National Trust (BNT).”
Sir Franklyn explained that the pipeline project will replace aged BPL infrastructure, which is long past its expiry date, with a fuel transportation mechanism that is more modern and resilient in the face of climate change impacts.
“There is considerable, real and serious expertise within FOCOL, and the company’s directors are retaining additional expertise to check, scrutinise and execute,” he said of the new pipelines and power plant.”This is a very transformative thing. A big part
of this initiative is replacing something that must have been there for 50 years. BPL must have been there for 50 years. At some point we have to get rid of it.”
While unable to give a timeline for when construction will start, as this depends on the planning and environmental approval processes, Sir Franklyn promised that it will be built to “the highest possible standard. I speak on behalf of the Board of Directors when I say the highest possible standards will be involved”.
He was echoed by Mr Adderley, who asserted that the existing fuel line between BPL’s Clifton Pier and Blue Hills plants is “overdue for replacement”. He explained that the track for new pipelines “goes mostly through the pine forest in parallel with the transmission and distribution lines” belonging to BPL.
According to the FOCOL chief executive, the proposed pipelines will follow and parallel Frank Watson Boulevard in south-west New Providence before crossing Coral Harbour Road and then moving past Carmichael Village as they track Carmichael Road. They will then turn north up Gladstone Road, then turn east across Fire Trail Road before heading to the new Blue Hills facility.
“We’re not deviating from the existing transmission and distribution route” between Clifton Pier and Blue Hills, Mr Adderley said. “These will be built to the same standards they are built to in North America
and anywhere else in the world.
“Natural gas is very safe. We are using world class organisations, world class companies to design and build it so it will be extremely safe. At the public consultation [on the environmental study] we’ll have a demonstration where we show all the safety components of the project, all the details of how it will be built and be ready to address any concerns the public might have.”
The LNG fuel for Bahamas Utilities Holdings’ new power plant will be offloaded from vessels at Clifton Pier before being taken to Blue Hills. Mr Adderley said the company hoped to start construction of the pipelines “within a couple of months” of obtaining all necessary permits, adding that they will “take more than half a year” to build. The construction pace will be aligned with the 177 MW power plant’s progress and needs.
Sir Franklyn, meanwhile, told this newspaper that the Government will retain “significant control” over the pipelines FOCOL and its affiliates will construct, although he did not provide any details. “At the end of the day, the Government will pretty much control,” he added. “This is almost a matter of national security. The Government’s influence will not be insignificant.”
As for financing the power plant and pipelines, the FOCOL chairman revealed: “I can confirm
LPIA hit by 900% hike from Water & Sewerage
Sewerage Corporation, the latter’s bill ballooned from $28,000 annually to $24,000 monthly.
“When we look at the period from 2022 to 2023, BPL introduced their fuel surcharge glide path and our budget was already set for that year,” he added.
“But what we saw within the next 10 to 12 months was the fact that our fuel surcharge went up from about 10.5 cents (per kilowatt hour) to a high of 27.6 cents or something in that area.
“Now appreciate that the airport consumes on average about 15 gigawatt hours of power annually, and so when we talk about an increase that equates to roughly about 160 percent within one calendar period, that is significant.
That resulted in a hit to the bottom line of just under $900,000.
“In addition to that, Water and Sewerage Cooperation decided that they would introduce the actual metering of our sewage effluent. We went from where we were paying annually, to Water and Sewerage, about $28,000 per annum to paying them $24,000 per month. So that was about a 900 percent increase in terms of sewerage processing fees.”
Mr McDonald said that although NAD saw a 20 percent increase in passengers during the same 2022-2023 financial year
this did not offset the sharp rise in operating costs.
“When we look at the period from 2022 to 2023, thankfully we were coming out of the pandemic. We saw about a 20 percent increase in our passenger numbers year-over-year, but the thing about airports that a lot of folks don’t realise is that we have a very high minimum operating cost,” said Mr McDonald.
“If we have a few dozen passengers in the terminals, or we have thousands of passengers in the terminals, the terminals have to be lit, they have to be cooled, all of the systems that are required to move passengers and bags must be functional, so energy for us is very important.”
Mr McDonald said NAD will continue to improve its resilience and reduce energy costs through the implementation of a solar plant that will be unveiled next year. He added that the company recently closed a bidding process for the solar plant which, when implemented, will ensure the airport gateway can continue to operate its equipment and service clients effectively during a power outage.
“We continue to evolve our energy conservation plan, and we just recently closed an RFP (request for proposal) for the design of a scalable one mega watt (MW) to five MW solar plant that will be introduced at LPIA in calendar year,
WEALTH MANAGEMENT INC. In Voluntary Liquidation
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, MONTCLAIR WEALTH MANAGEMENT INC. is in dissolution as of October 31, 2024
International Liquidator Services Ltd. situated at 3rd Floor Whitfeld Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.
it’s at a level where we are in negotiations with the US Export-Import Bank at a very high level to execute on this project; to do this, where we’re in very serious discussions with the US Export-Import Bank at a very high level, and they have very high standards.
“The investment thing, there’s no point in breaking it out into bits and pieces. This initiative is a nine-figure initiative, and the first figure is not one, the first figure is not two or three.”
Various Cabinet ministers in the Davis administration have estimated that BPL needs around $500m in fresh investment in its nationwide generation and grid assets, with New Providence alone needing at least $300m of that.
The Government, through outsourcing New Providence’s baseload energy generation and grid, is handing the task of financing and delivering more affordable, reliable, cleaner and environmentally-friendly energy to the private sector via its industry-wide reforms.
It is unclear whether Donald Trump’s election to the US presidency will have any impact on the US Export-Import Bank talks, and Sir Franklyn did not comment on this aspect yesterday. However, Mr Adderley said Bahamas Utilities Holding’s 177 MW power plant - still in the development stages - is “what is needed to upgrade the infrastructure and provide cleaner, more reliable power generation to the community”.
He added: “The engineering work is in process. We’re now in the engineering and permitting phase; the early stages. You’ll see work starting early in the New Year. The team are working aggressively, and it’s our commitment to have it [the power plant] completed as soon as it is practical. It will be rolled out in phases, and as each phase is complete the benefits will start to accrue.
“We have been hiring, recruiting all year practically. We’ve been beefing up. We’re ensuring a significant amount of job opportunities for Bahamians. We are literally hiring people every day. It’s an ongoing process. We have a team dedicated to recruiting new talent and we’re committed to maximising opportunities for Bahamians.”
Mr Adderley did not provide figures for the number of construction and fulltime jobs that FOCOL and Bahamas Utilities Holdings’ projects will generate, and referred this newspaper to the Ministry of Energy and Transport when asked for a price range at which the 177 MW plant will sell energy to BPL.
However, he did confirm that the BISX-listed firm will be installing another 30 mega watt (MW) turbine made by General Electric (GE) at the existing Blue Hills power plant in 2025. This follows behind the original two GE engines, with a combined 60 MW output capacity, that were introduced at Clifton Pier last month.
“That was phase one,” Mr Adderley said. “That was completed and those two units are online currently. Next year we’ll be rolling out and installing an additional turbine at Blue Hills in preparation for the transition to natural gas. They are much more efficient and gas ready. They will be dual fuel and ready to consume natural gas from day one. Next year we’ll be in full swing once we have all the permits in place.”
Sir Franklyn also sent Tribune Business a video in which Festus Ayeni, GE Vernova’s services business head for north, central and south America, described The Bahamas as a potential “showcase” for the turbine manufacturer in terms of what its engines can do.
Revealing that GE is negotiating a 30-year service agreement with FOCOL to take care of the units it has supplied, Mr Ayeni said: “We believe The Bahamas can be a showcase for us globally; to showcase the power partnerships, working with FOCOL, working with GC, and just the capabilities of our units.
“This will be one of the first baseload projects that we have here in the islands where we are powering the whole island, so we’re super excited and looking forward to this being a test case for years to come. I think this is going to be a unique test case and unique opportunity for us to demonstrate working with a sovereign government, sovereign country....”
through faith, of 2025,” said Mr McDonald.
“For us, one of the worst things that can possibly happen is for the Customs hall to be pitched into darkness while a first-time guest is waiting on their bags to arrive on the carousel. Additionally, the airport itself has a lot of sophisticated systems that are required to move bags and passengers, so those power outages are very disruptive.
“Notwithstanding the fact that we have a lot of redundant emergency capacity, our generators take 15 seconds in terms of coming on and coming up to full speed for the power to be transferred. And so that is why this initiative is very important, and then it will also assist us in terms of the uptime serviceability of that critical equipment and then, naturally, when you think about LPIA as a consortium of businesses.
“LPIA is one of the major gateways into the capital and serves as number one industry, tourism. And so it is critically important for us to transition where we have renewable energy at LPIA, and so it’s progressing well and we’re getting to the point where we are excited about the fact that within about a year from now we should see the real fruits of our labour.”
Notice is hereby given that, in accordance with Section 138 (4) of the International Business Companies Act, KALMIA LIMITED (the “Company”) is in dissolution. The date of commencement of the . Gabarone Consulting Inc. is the Liquidator and can be contacted at Ground Miles Phillip S W
All persons having claims against the above-named Company are required to send their names, addresses and particulars of their debts or claims to the Liquidator before
LYNDEN PINDLING INTERNATIONAL AIRPORT (LPIA)
‘Seismic’: Amazon in free delivery Bahamas threat
either “unique or urgent essentials” or ones that shoppers traditionally like to test and try-on before purchasing.
And, to gain further competitive advantage, he argued that Bahamian retailers may have to move up-market and focus on higher-end, specialist items to escape having to compete with the likes of Amazon on price. This, in turn, will require the industry to improve customer service and no longer rely on “entry level staff” as consumers will want to engage with workers knowledgeable about what they are selling.
While some were likely to call for regulatory intervention by the Bahamian government, Mr Burrows dismissed such an approach. Instead, he argued that it must now create a ‘level playing field’ for Bahamian companies to compete as equals by eliminating unnecessary red tape, bureaucracy and regulations that add to already-high expenses and undermine ‘the ease
of doing business’ in this nation. Mr Burrows, in a subsequent interview with this newspaper, said he had tried out and completed - but not submitted - an ‘international free delivery’ application on Amazon’s website. Bahamian import duties are “calculated seamlessly” at checkout and, if the actual payment is lower, Amazon refunds the difference. If the duties are higher, the online marketplace also covers the balance.
The CBS Bahamas chief added that such a system has already been proven as effective by Starlink, the satellite Internet provider created by billionaire entrepreneur and now prime Donald Trump backer, Elon Musk. Bahamians, he said, can go on Starlink’s website, put in their address, “the price sets itself” as a full price with no import duties added, and good ordered are delivered via DHL.
Stating that Starlink’s operation has been going on for about a year, Mr Burrows said there was nothing to stop the likes of
Wal-Mart, Home Depot and Target following its and Amazon’s lead and using their buying power, economies of scale and market clout to launch similar operations that undercut local operators on price.
“People need to understand that now’s the time to figure out what they’re going to do about this, and it’s only going to get harder with more competition,” Mr Burrows warned. “It’s time to figure out what goods are working for them, and position yourself so that you don’t get left behind from a retail point of view.
“People need to look at what they’re doing, what is bringing in customers through the door. It’s something we’re worried about as well, but it’s also a cool opportunity as well.” He explained that CBS Bahamas is focusing on the goods and items for which shoppers seek advice from its associates for as these will not be such popular sellers on online marketplaces such as Amazon.
Amazon’s move was greeted with a mixture of
trepidation and uncertainty by Bahamian retailers, couriers and freight forwarders yesterday, with many declining to comment amid suggestions - which proved incorrect - that this nation was not being targeted for ‘free international delivery’.
Mr Burrows said such scepticism “worries me”, as local businesses then get complacent and lulled into a false sense of security, thinking that the delivery and logistics process takes too long or that there are insufficient products available. “
“They’re going to get it to work pretty quickly,” he added of Amazon, “and then there will be Wal-Mart, Home Depot and Target, so there’s no reason to think they can’t get it to work that way..... It’s a good eye opener and something to prepare for.
“Amazon quietly added The Bahamas’ option a few months ago. It’s only gaining traction because they have just started shipping orders. The main beneficiary here is the customer. They’re either going to have reduced costs with the Amazon experience
Atlantis, Baha Mar target $8m energy saving by ‘25
“If you were to look at a snapshot by numbers of two major businesses in this country, Baha Mar and Atlantis, who spent last year over $64m in electricity costs between two
companies, and are now realising savings that, maybe by the end of the next year, will take us to about $56m. We now have available for productive use some $8 m as a result of reform action and also a strategic plan that will go into place.”
Mr Sands said hotels use the same amount of electricity regardless of occupancy levels, and any reduction in fixed costs such as energy will allow them to be more competitive, grow and invest in upgrading their
or a much better customer experience locally as local businesses try to keep up.
“It will be interesting to see. A lot of people in true Bahamian fashion will expect the Government to come in and regulate this. My hope is that the Government steps in to make it easier to do business in The Bahamas and, if done, that will be the proper solution.”
Writing in Tribune Business today, Mr Burrows said: “While many may be looking to the Government to solve such an issue through regulation, I’d argue for exactly the opposite. To support Bahamian businesses in remaining competitive in an increasingly globalised market, it is imperative for the Government to reduce restrictions and streamline regulatory processes that currently burden local enterprises.
“Excessive red tape, complex import procedures and restrictive trade policies place Bahamian businesses at a disadvantage, especially as international giants like Amazon expand their services here. By easing these
properties and the visitor experience.
“Tourism in general is faced with inelasticity. Whether we’re running 20 percent occupancy, whether we’re running 100 percent occupancy, our electricity usage does not change gradually. That is why the unit cost of such a provision is important for this particular sector,” said Mr Sands.
“The inelasticity of our business means that electricity is almost a high fixed cost per month, and in this day and age where we’re becoming more competitive, to drive for occupancy and rate. Our opportunity to grow the bottom line, more than often, is not in additional sales that we create, but in how we manage those fixed costs.
“Seeing the relief that has taken place is now allowing us to flow a little bit better at the bottom line because these fixed electricity costs
are being reduced.” Mr Sands stressed that the resort industry is hoping for a further 43 percent reduction in electricity rates via ongoing reform as it seeks to “bridge the divide” between its target and the present 28 cents per kilowatt hour (KWh). He added that a further reduction in electricity rates in line with international benchmarks would allow companies operating in The Bahamas to further increase their profitability.
“When we look at our kilowatt hour cost today, which has dropped from say 30 cents-plus last year to about 28 cents this year, and when we look at international rates being around 16 to 18 cents, we would like the powers that be to work together to bridge this divide somewhere between 16 and the 28 we achieved,” Mr Sands said.
“We would like to be under 20 cents. That will give citizens of The Bahamas and companies a level of productive money to
restrictions, simplifying tax structures and fostering a more business-friendly environment, the Government can empower local companies to compete on a level playing field.”
Warning that “resistance to change is futile”, the CBS Bahamas chief said Amazon’s move was both a challenge and an invitation for Bahamian businesses to innovate and improve.
“Businesses that have relied on outdated models or have been slow to adopt new technologies will find themselves left behind. By embracing competition and focusing on areas where they can excel beyond the capabilities of an online giant, businesses can not only survive but flourish,” Mr Burrows added.
“In the end, consumers stand to benefit the most from this evolution, enjoying better services, more options and competitive pricing. It’s up to local businesses to rise to the occasion, adapt to the changing landscape and continue to play a vital role in our economy.”
spend.” He added that it is critical for Bahamas Power & Light (BPL) to meet the timelines promised to consumers as large companies use that information to plan their annual budgets.
“The only concern that I have for the energy sector is that, once we commit to a timeline, we have to live up to that timeline. Companies like ourselves depend on that information and plan as a direct result,” said Mr Sands.
He added that many resorts and large companies have also installed energy efficient appliances to allow greater savings and complement the Government’s efforts to implement more sustainable energy solutions.
“Many of the companies, such as the larger hotels, are employing energy efficient air conditioning cooling systems, which are major users of electricity, and they are state of the art, and we will continue to do so,” said Mr Sands.
