WEDNESDAY, DECEMBER 28, 2016
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Union’s threat to Water Corp deal By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Says $8.9m contract breaches industrial terms
A trade union is threatening legal action over the Water & Sewerage Corporation’s $8.9 million water plant deal with a BISX-listed company, amid an outcry that Bahamian groups were not given a proper chance to bid. Ednol Rolle, the Water and Sewerage Management Union’s (WSMU) president, told Tribune Business that the agreement to give Consolidated Water a new 15-year contract to operate the Windsor reverse osmosis plant breached its own
BISX-listed firm’s rivals query why no public tender Say 15-year award ‘flies in face’ of ‘Bahamians first’ industrial agreement with the Corporation. Promising that the union will
challenge the deal, Mr Rolle confirmed that it would “most likely” result in legal action, as this was the only method to overturn the contract award. The Corporation’s decision to renew its relationship with Consolidated Water also angered a rival Bahamian investor group, which questioned why the Windsor plant contract had not been the subject of a proper public tendering process that was open to rival bidders. Don Demeritte, principal of the EPS Consultants’ consortium, told Tribune Business that the Corporation’s decision “flies in the face of everything that speaks to empowerment of
Bahamians and entrepreneurial development for Bahamians”. Tribune Business revealed last month that Consolidated Water, which has local ownership via Bahamian Depository Receipts (BDRs) that are traded on BISX, had agreed a new 15-year deal to supply the Corporation and its thousands of New Providence customers with water from the Windsor plant. Leslie Miller, the Corporation’s chairman, suggested then that the deal would produce annual savings of up to $4 million per year, and was “in the best interests of the See pg b7
Sir Franklyn: ‘No positive Govt warned: Don’t spin’ for junk downgrade take all credit for jobs By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A well-known businessman says “no positive spin” can be placed on the Bahamas’ junk downgrade, adding that it showed this country is failing to tackle long-standing structural weaknesses in its economy. Sir Franklyn Wilson bluntly told Tribune Business that Standard & Poor’s (S&P) decision to strip the Bahamas’ of its ‘investment grade’ status five days before Christmas was “not good news”, with reactions from the different political parties all-too predictable. The Arawak Homes and Sunshine Holdings chairman, while criticising the Opposition parties for failing to offer solutions to the problems highlighted by S&P, also warned against placing too much reliance on Baha Mar’s promised April 2017 opening. While acknowledging that Baha Mar’s arrival and several thousand hirings will help the stagnant economy, Sir Franklyn said those who See pg b6
Arawak boss: Nation failing on ‘systemic problems’ ‘Short-sighted’ to see Baha Mar as ‘full answer’ Bahamians not adjusting, Opposition gives no solutions
Sir Franklyn Wilson
Entrepreneurs challenged to exploit Bank’s rate cut By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Sir Franklyn Wilson has questioned whether the Bahamas has sufficient entrepreneurial risk-takers capable of exploiting the Central Bank’s interest rate to create new businesses and jobs. The Arawak Homes and Sunshine Holdings chairman said that despite interest rates having already been at near-record lows for the previous five-and-a-half years, there was little evidence that this had helped to stimulate the moribund Bahamian economy. Pointing to the commercial banking system’s $1.472 billion in surplus liquid assets available for lending at end-November 2016, Sir Franklyn challenged budding entrepreneurs to “find the answers” through greater innovation and creativity. He acknowledged, though, that the 50 basis point (0.5 percentage point) cut to the Central Bank’s discount rate, dropping this to 4 per cent, would only produce positives for Bahamians and local companies. Apart from reducing monthly repayments for hard-pressed mortgage and commercial borrowers, Sir Franklyn said the move would also reduce costs for companies whose debt securities were tied to the Bahamian Prime rate. He added that BISXlisted FOCOL Holdings, which he chairs, would enjoy a $250,000 reduction in annual interest payments to
Sir Franklyn: ‘Who’s going to create the ideas, jobs?’ Says of drop: ‘It ain’t the good old days, but it helps’ Urges Bahamians: ‘Take control of your lives’ holders of its $50 million in perpetual preference shares - money that can now be reinvested in the company, or drop straight to the bottom line. “In terms of that contributing to economic growth, there’s no way to put spin on that,” Sir Franklyn told Tribune Business of the Central Bank’s interest rate cut. “While there’s no way to put a good spin on S&P, there’s no way to put a bad spin on this.” He then, though, challenged Bahamian entrepreneurs and the private sector to step up and exploit the reduced cost of capital and borrowing, implying that they had failed to respond to the last Central Bank rate cut in June 2011. “Where are the entrepreneurs? Where are those who are going to do something?” Sir Franklyn asked. “Interest rates were already new record lows, yet we have all See pg b5
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Government cannot take sole credit for the 31,735 jobs added to the labour force since its May 2012 election, the Chamber’s chief executive warning that businesses “cannot feel they are working just to pay taxes”. Edison Sumner told Tribune Business that the private sector needed to be given “due recognition” as the Bahamas’ primary job creator, given that it employed the majority of the 217,750-strong workforce. He spoke out after learning that “some circular is going around that the Government has created 31,735 jobs” during its four-and-a-half years, a claim that was repeated by Bahamas Information Services (BIS) director, Elcott Coleby, in his weekly blog. “Let’s look at that in perspective,” Mr Sumner told Tribune Business. “The pri-
Chamber chief: Private sector chief growth creator Businesses ‘cannot feel working just to pay taxes’ Govt sector largest industry at 30% of workforce vate sector generates the jobs in the marketplace, and it’s the private sector that carries the burden of meeting payroll every week or month.” He added that as the Bahamas’ largest generator and creator of jobs, it was “incumbent upon the Government to pay close attention to private sector employers to ensure they get the help they need”, especially when See pg b4
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Capital markets await $70-$100m in fund raisings ‘Much higher level of activity’ predicted for 2017 Banker predicts full-year equity returns of 10-15% Economy, markets boosted by Baha Mar and rate cut By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Bahamian capital markets could see between $70-$100 million in fundraising activity during the 2017 first quarter, an investment banker is predicting, with equity securities set to generate fullyear returns of 10-15 per cent. Michael Anderson, RoyalFidelity Merchant Bank & Trust’s president, told Tribune Business that the Central Bank’s interest rate cut would likely make investments in BISX-listed stocks more attractive in 2017. With returns on bank deposits and debt securities, such as preference shares, set to drop because they are linked to the now-lower Bahamian Prime, Mr Anderson predicted that investors would be attracted to equities as they sought higher Michael Anderson yields. “If you take into account that fixed income securities will drop off by 0.5 percentage points, it should make equities slightly more attractive,” he told Tribune Business. “The dividend yields are somewhere between 3.5-6 per cent on equities, based on the average prices on the [BISX] market, and that should become more attractive. “We should see stock prices increase between 5-10 per cent next year, and dividend yields of between 3.5-6 per cent, so the overall returns on equities should be north of 10 per cent. It should be in the See pg b8
PAGE 2, Wednesday, December 28, 2016
THE TRIBUNE
Airports critical to Out Island growth By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
Family Island airport development is essential to the overall growth of the Bahamian economy, a local aviation consultant telling this newspaper: “Build it and they will come.” Kevin Turnquest, Aviation Consultants’ president, told Tribune Business that airports, such as Deadman’s Cay in Long Island, possessed significant potential. “Long Island is moving 60,000 passengers. That is obviously between tourists and local travellers,” he said. “The Deadman’s Cay airport is the only one in the Bahamas that small, which is a non-port of entry, that is producing those numbers. In fact, it is an anomaly. It has more activity than the airports across Mayaguana,
Inagua, Crooked Island and Acklins. I think it’s just been overlooked.” His comments came in the wake of remarks by tourism executives at the Long Island Business Outlook conference earlier this month, during which they said air arrivals to the island had seen a steady but miniscule rise over the past decade. Mr Turnquest said Long Island has two airports, Stella Maris in the north, and the Deadman’s Cay Airport located in the centre of the island, with both receiving approximately 3,000 tourists per year. “The stopover visitors for central and aouth Long Island clear in Nassau, then proceed onward to Deadman’s Cay. Many, I am told, end up missing their connecting flights due to flight incompatibility and end up overnight in Nassau,” Mr Turnquest said.
“The low growth rate in stopover visitors to Long Island is indeed unacceptable in this day and age. The lack of growth in stopover visitors is due to the lack of international airlift. The lack of international airlift is a direct result of inadequate facilities. “San Salvador and Exuma are success stories, with Club Med and Sandals, due in part to their runways, which are 7,000 and 8,000 feet respectively, and their modern terminal buildings designed to facilitate international arrivals.” Mr Turnquest added: “Deadman’s Cay airport has a flooding issue due to inadequate drainage and some buildings which are to close to the runway, but these can all be resolved and there is sufficient space to extend the runway another 3,000 feet or so. “The tiny little terminal building was built in
the 1960’s, and the 4,000 feet runway is simply too short to accommodate the 34-seater turbo props currently flying from Florida, and regional jets or larger commercial jet traffic from the US, Canada or Europe. “This problem is not just confined to Long Island. I understand both the IMF and IDB have advised that the development of the Family Island airports are essential to the overall growth of the tourism product and the economy of the Bahamas. The Government is aware of this. There are some 26 airports in the Family Islands and they all need attention. The Bahamas is an archipelago. The country has limited resources. “My understanding is the Government has entered in Public-Private Partnership (PPP) agreements for the management of various airports including Bimini,
Eleuthera, Abaco and Exuma, and also a PPP for the design and building of a new airport at New Bight, Cat Island. Hopefully this will be used as a template when completed for other airports.” Mr Turnquest said that despite its shortcomings, the Deadman’s Cay airport is in the ‘top 10’ in the Bahamas for domestic travel, and facilitates more passengers than all seven airports located in Rum Cay, Ragged Island, Mayaguana, Inagua and Arthur’s Town annually combined. “The only reason that the other destinations, like Exuma, have an anchor project is because of the airport,” he added. “The airport in San Salvador was out there specifically to accommodate Club Med. In the case of Exuma, Exuma International was in existence prior to Sandals, but if there was no Exuma Inter-
Bahamians can switch mobile carrier Feb 14
national there would be no Sandals because of direct flights from the US mainland, for instance. “It’s a proven fact that the most successful touristic destinations in the Bahamas are those with the airport capabilities. Those seem to go together. If you look at the IMF/IDB studies they seem to suggest that the development of the Family Island airport is absolutely essential to the overall growth of the economy. “I don’t think that is something that is lost on the Government. I think the Government understands that, but it boils down to economics. I believe considerations is going to be given to Deadman’s Cay, and they are going to be looking at it in earnest. It is absolutely essential to have the airport. You can’t do it the other way around. Build it and they will come.”
And keep same number, as choice, competition, aided URCA sets launch date for number portability Sets fixed penalties to avoid fixed-line delay repeat By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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Consumer choice and competition have received a boost after regulators set February 14, 2017, as the launch date for mobile number portability in the Bahamas, accompanied by fixed penalties for non-compliant operators. The Utilities Regulation and Competition Authority (URCA), in unveiling its determination on the start date, revealed that it opted for a fixed penalty system after Bahamians had been “unacceptably delayed” in being able to switch fixedline providers while keeping their existing numbers. Number portability, which allows fixed-line customers of the Bahamas Telecommunications Company (BTC) and Cable Bahamas to keep their existing numbers when switching between providers, is vital to facilitating competition, and URCA is anxious to avoid a repeat with the mobile market. The regulator is proposing that a breach of ‘number portability rules’ that delays customers switching provider be punished by a fine equal to average revenue per daily user (ADRPU), which is then multiplied by 5 and the number of days involved. Breaches that cause a consumer not to fulfill their desired provider switch, URCA added, will be punished by a fine equal to ADRPU multiplied by 30. Total fines levied during a single year will be capped at 1 per cent of a See pg b9
THE TRIBUNE
Wednesday, December 28, 2016, PAGE 3
Ex-Minister: Set BPL renewable price now By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
A former Cabinet Minister has called for a set retail price at which Bahamas Power & Light (BPL) will compensate consumers under its small-scale renewable generation proposal. Phenton Neymour, a former minister for the environment under the Ingraham administration, told Tribune Business: “There are a number of initiatives
that need to be made very clear. “The first thing that is not made clear is at what retail price BPL will purchase energy generated by consumers for. For instance, we are paying a price for BPL’s service, but when one feeds back into the grid, what will that price be, because that price determines the profitability of one using a renewable source or the benefits. It affects significantly the benefits to the customer.” As previously reported
by Tribune Business, Bahamas Power & Light (BPL) will initially be allowed to “undervalue” the price it pays to purchase renewable energy generated by its residential customers. The Utilities Regulation and Competition Authority (URCA), in unveiling the public consultation on BPL’s plans to facilitate small-scale renewable generation, said the utility monopoly is proposing to purchase power via a ‘net billing’ arrangement, although renewable energy
URCA struggles with early assumption of electricity regulation By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
The Utilities Regulation and Competition Authority (URCA) has effectively admitted that its “earlier than expected” takeover of energy regulation left it struggling to cope, amid a lack of technical expertise and human resources. The regulator, in its draft annual plan for 2017, conceded that “the limited availability of locally trained resources” had hampered recruitment for its newly-created Department of Utilities and Energy (DUE), established to oversee the energy sector. It also admitted that the
Had ‘adverse impact’ on other sectors overseen BPL to get 15-year supplier licence in 2017 Regulator mulls universal service (USO) overhaul addition of electricity regulation to its workload had produced an “unexpected adverse impact” on other areas, likely meaning the communications industry
which is already overseen by URCA. Describing 2016 as “a year of significant change”, URCA said the coming into effect of the Electricity Act 2015 and URCA (Amendment) Act 2015 on January 28, 2016, had given it responsibility for an entirely new industry. “While URCA anticipated this change, it took place earlier in 2016 than expected, resulting in an unexpected adverse impact on other work streams,” the regulator’s 2017 annual plan said. “URCA also weathered internal reorganisation connected to the changes in regulated sectors, increased See pg b11
providers have expressed a preference for net metering. Consumers will be allowed to sell excess renewable energy to the BPL grid, but at a price that is lower than the utility’s retail tariff rates. While agreeing that net billing was “preferable” to the other option, net metering, URCA said the standard practice is for energy utilities to base the price they pay for renewable energy on their ‘avoided cost of generation’. URCA proposes to com-
mence a review of BPL’s avoided cost of generation, and once completed (including necessary consultation), the regulator will determine the net billing tariff based on the outcome of that review. URCA said it planned to complete its review by November 2017, which is when BPL is due to launch phase two of its small-scale generation programme. Mr Neymour, though, argued that the retail price should be set upon initiation of the programme - not
in November 2017. He said: “That is one thing that needs to be determined. I have always promoted the fact that individuals should have the right to be tied to BEC’s grid, and get a fee for feeding back into the system. “I have always stated that for private residents and small energy producers to begin to produce energy through alternative sources would be a benefit to BPL in the short term.”
PAGE 4, Wednesday, December 28, 2016
Govt warned: Don’t take all credit for jobs
From pg B1 representations were made to it. These representations,
Mr Sumner said, included “lowering the bureaucracy, lowering the barriers to entry, lowering the barriers for getting business done; the ease of doing business”. “We hope to have a chance to revisit and review the taxation system, so businesses don’t feel they are just working to pay taxes,” he told Tribune Business. “That is a very frustrating place for businesses to be, especially in a challenged economy. It’s important that the Government side understands this fact, and does what is necessary to ease the frustration, so companies can increase productivity and profitability. “Once that happens, they will increase the level of employment. If they feel they are working to pay taxes and increase the Government’s revenues, we will have challenges and frustrations,” Mr Sumner continued. “The fact is that the jobs created in this country come in the private sector, and the private sector ought to be given recognition that in these challenging times. “We can only get unemployment lower if investing in human capital pays off in terms of increased profitability and the ease of doing business in the country.” The November 2016 Labour Force survey, though, said less than two-thirds of the country’s workforce is employed by the private sector, pegging this percentage at 62 per cent or just over 140,000 of the total. In what could be interpreted as an indication of the ‘size of government’, the Department of Statistics survey said the largest employer in the Bahamas was the ‘community, social and personal service’ industry, accounting for 30 per cent of the workforce. It added that this sector included the “civil service, police service and domestic service”. Mr Sumner, meanwhile, emphasised that Bahamian employers were “not going
THE TRIBUNE
Edison Sumner to hire for the sake of hiring’, which he described as “a socialist system”, but only if the additional workers were going to deliver returns in terms of increased productivity and profits. “Many of them are coming out of the schools without the required skills employers are looking for,” he said. “As many high school leavers come out without qualifications and training, they will be employed at the minimum wage, and not have opportunities to train themselves up.” The Government, especially following the downgrade of its creditworthiness’ to ‘junk’ status, by Standard & Poor’s (S&P), has been eager to talk up any positives - including the 1.1 percentage point drop in the official unemployment rate to 11.6 per cent in November 2016. This compared to 12.7 per cent in May, and Mr Sumner agreed that the decline was “encouraging” for the Bahamas and the private sector, given that the jobs created were “more sustainable” than those that produced the last decline. The Chamber chief executive said that while May’s unemployment numbers may have received a boost from the temporary jobs created by Junkanoo Carnival, the latest figures - as acknowledged by the Department of Statistics - had benefited from the rebuilding post-Hurricane Matthew.
“It certainly was a good thing,” Mr Sumner said of the fall, describing the November numbers as “more realistic as far as employment is concerned”. He explained: “In comparison with the last numbers, which gave a lot of weight to temporary jobs from the Carnival, these jobs are a little more sustainable, a little more long lasting... “They will be lasting a little longer than for Carnivaltype activities. They will be more sustainable, and last several months, rather than a few weeks or days.” The November Labour Force survey said 1,385 persons had been employed as a direct result of Hurricane Matthew rebuilding efforts, with the construction industry seeing a 16 per cent growth since May 2016. “That gives a little more confidence, even though we’ve seen quite a few layoffs from the hotel sector,” Mr Sumner said, referring to the jobs losses at the likes of the One & Only Ocean Club and Treasure Bay casino, which will not have been picked up by the survey. Also encouraging for the Government will have been the fact that November’s decline will have occurred despite the inclusion of 3,00-5,000 high school leavers, who would not have been counted in the May survey.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, RESHANDER LAROSE PATRICE KNOWLES of Rocky Pine Road, Rockwell Estates, P.O. Box SB-50739 intend to change my name to RECHANDER LAROSE PATRICE THOMPSON-KNOWLES. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.
NOTICE
Naperose Ltd.
(In Voluntary Liquidation) Notice is hereby given that, in accordance with Section 138 (4) of The International Business Companies Act 2000 the abovenamed Company is in dissolution, which commenced on the 22nd, day of December 2016. The Liquidator is Kim Thompson of Nassau Bahamas.
Kim Thompson (Liquidator)
PUBLIC NOTICE This is to inform the general public that the private roadways and parking areas situated in the Harbour Bay Shopping Centre between East Bay Street and Shirley Street will be closed on Sunday 1st, January, 2017 in order to preserve the right of ownership thereof. The Owners
THE TRIBUNE
Wednesday, December 28, 2016, PAGE 5
Entrepreneurs challenged to exploit Bank’s rate cut From pg B1 this money in the bank. “The point I’m making is who’s going to start the foundation, build the foundation, build the hotel? Who’s going to do things? Who’s going to come up with the ideas? Who’s going to create the jobs?” Commercial banks, given a non-performing loan pile that peaked at $1.2 billion, have become increasingly risk averse and shy about lending to the Bahamian economy’s productive sectors, particularly the housing market and private sector. Outstanding Bahamian dollar mortgage and commercial credit again declined in 2016, dropping to $3.021 billion and $711 million respectively at endNovember 2016, compared to $3.073 billion and $753 million the year before. Commercial banks have imposed an increasingly stringent criteria on loan applicants, making it much harder to obtain credit, even though the supply of financing is plentiful. Sir Franklyn, though, argued that this should be no obstacle, adding: “Entrepreneurs find ways around this. Those who look for excuses don’t have money. There are always answers if you are serious about doing something.” Private sector confidence, though, has experienced a sustained battering since the 2008-2009 recession, with the economy’s consistently low growth and increased imposition of government bureaucracy and taxation taking a heavy toll. The Central Bank’s rationale for reducing the Discount rate, which is the rate at which it lends to commercial banks, is that the move will reduce capital costs for Bahamian companies planning to expand and take advantage of Baha Mar’s phased opening in 2017, plus other resort-related projects. The regulator is also hoping that its action will help to
stimulate a domestic housing market still burdened by almost $600 million in nonperforming mortgage loans, with the rate cut reducing monthly payments for existing borrowers, while potentially helping new ones to qualify. The interest rate cut, which the Central Bank has ordered the commercial banks to pass on to borrowers via a 0.5 percentage point reduction in the Prime rate to 4.25 per cent, represents a ‘wealth transfer’ from savers to borrowers. The latter, many of whom are highly or overly-leveraged, will see an increase in their disposable incomes as a result of lower debt servicing costs, which could also boost economic activity. Bahamian companies, too, will see a drop in payments on their loans and debt securities, helping them to increase profits or invest in job-creating expansions.
“It ain’t the good old days, but a 0.5 percentage point reduction will certainly help,” Sir Franklyn told Tribune Business. “A lot of people’s mortgages are going to go down, and that will help in a very significant way, as a 0.5 percentage point differential on $100,000 will account for something. More and more people can qualify, even in a tough job market. It helps everybody.” He added that the Central Bank’s rate cut would also “put more pressure” on institutional investors, and asset managers, to find better-yielding investments and returns, which also “ought
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to create more opportunities for entrepreneurs”. Sir Franklyn, assessing the combined impact of the rate cut and S&P downgrade, urged Bahamians to “take control of their lives” and, in so doing, help to improve
the country’s situation. “If I had to summarise my position between the two, good news and bad news, it’s my prayer at this holiday season that more people take control of their own lives, find answers, don’t
look for excuses, gamble less and discipline yourself in terms of bad credit,” he told Tribune Business. “It will help to build your own circumstances, and in the process strengthen our own economy.”
PAGE 6, Wednesday, December 28, 2016
Sir Franklyn: ‘No positive spin’ for junk downgrade From pg B1 saw the $3.5 billion project as “the full answer” were “short-sighted”. He warned that it would require “a lot more” than Baha Mar to turn the Bahamian economy around, and position this nation for sus-
tainable, long-term growth. “Obviously, there’s no spin to be put on that. That’s bad news,” Sir Franklyn told Tribune Business of S&P’s ‘junk’ downgrade. “In the context of attempting to understand why it happened, we’ve heard the predictable statements;
the Government saying S&P did not do a good analysis, and the Opposition saying it is bad public policy. “My own view is that it’s more complicated than that, and it points to the fact we’re not doing anything to address systemic problems,” he added. “The Opposition is not saying enough about how to address these systemic problems. That’s the real is-
sue. In my humble opinion, the systemic problems adversely affecting the economy run a lot deeper.” Sir Franklyn said there were “several” so-called “systemic problems” when asked to identify them by Tribune Business, although he did not go into detail. Many, though, are wellknown to Bahamians, especially businessmen and entrepreneurs in the private sector, who have to grapple with the economy’s structural deficiencies on a daily basis. These weaknesses include the Bahamas’ extremely high cost base, especially for energy and labour; the inconsistent supply and relatively low productivity associated, respectively, with each; the high levels of bureaucracy and red tape encountered by businesses in dealing with the Government, as shown by the Bahamas’ 121st ‘ease of doing business’ ranking; the ‘D-’ grade average achieved by BGCSE exam candidates; entrepreneurial access to credit; and an ever-increasing taxation burden. Sir Franklyn, meanwhile, argued that too few Bahamians had adjusted to the ‘new norm’ following the 2008-2009 recession, with lifestyles and spending habits still reflecting ‘pre-credit crunch’ levels. He recalled how his wife, the Senate president, had recently attended a conference of senior female Parliamentary figures, where they were treated to a presentation from a leading economist. “This economist was of-
fering the view that the impact of the last recession, which has really not abated since 2008-2009, has been so profound that she thinks there’s just too much denial going on all over the world,” Sir Franklyn said of the economist’s conference presentation. “If you were 100 before this recession hit, and you managed to get back to 50, you’re probably better than average.” He further explained: “The point I’m making is that in the case of our economy, there are still too many people acting as if they are still in the circumstances of 2007-2008, and we’ll get back to it. That’s not the case. “Just today I met with someone about to lose his home. He used to make $5,000 a month, and now he makes $2,000, yet he never adjusted his lifestyle to the fact he’s now making $2,000. “That served to bring home the reality with this; there are a lot of families in that situation just not making the tough decisions.” The Christie administration’s immediate response to the S&P downgrade last week effectively gave the impression that the Bahamas’ hopes for an economic rebound are pinned exclusively on the Baha Mar project. It was the only major development referenced by the Government in its release, which touted the project’s purchase by Chow Tai Fook Enterprises’ (CTFE), and the subsequent rampup that will involve the di-
call 502-2394 to advertise in the tribune today!
THE TRIBUNE rect employment of 3,300 Bahamians by summer 2017. The Government’s seeming obsession with Baha Mar was criticised as “dangerous” by Gowon Bowe, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman, given that it reinforced perceptions that the project is ‘the only game in town’. Sir Franklyn expressed similar misgivings, telling Tribune Business that the Cable Beach-based project was not the sole cure or ‘silver bullet’ for all the economic ills plaguing the Bahamas. “Baha Mar will help, but to see Baha Mar as a full answer is short-sighted,” he argued. “It’s going to take a lot more to turn this economy around in a sustainable way.” S&P downgraded the Bahamas to so-called ‘junk’ status because economic growth, and the pace of the Government’s fiscal consolidation, had, respectively, proven weaker and slower than initially projected. While acknowledging that Baha Mar’s opening would provide an economic boost, S&P said these benefits would take time to materialise, and will not be felt fully until 2018. The credit rating agency also lowered its 2016 GDP growth estimate for the Bahamas to 0.3 per cent, bringing it into line with both the IMF’s and the Government, the latter of which had forecast 0.5 per cent pre-Hurricane Matthew. S&P is projecting that the Bahamian economy will expand by 1 per cent in 2017, and by an average of 1.3 per cent over the next two years.
THE TRIBUNE
Wednesday, December 28, 2016, PAGE 7
Union’s threat to Water Corp deal From pg B1
Bahamian people”. No further confirmation or information was forthcoming, though, until a Consolidated Water regulatory filing with the Securities & Exchange Commission (SEC) on December 19, 2016, said it had signed a deal with the Corporation (WSC) six days before. While Consolidated Water now has a secure, longterm 15-year agreement to own and operate the Windsor plant, the Corporation and its customers in return will be supplied with 14 million gallons at an 18 per cent discount to the current price. The BISX-listed company also has to invest $8.9 million in upgrading Wind-
sor, one of two reverse osmosis plants that supply the Corporation’s New Providence customers, to ensure it meets performance targets. “On December 13, 2016, the company and the WSC executed a Letter of Acceptance, pursuant to which the WSC accepted the company’s proposal to extend the water supply agreement for 15 years on a take-or-pay basis for a minimum of 14 million gallons per week,” Consolidated Water said. “Pursuant to the Letter of Acceptance, the company will be required to complete capital improvements to the Windsor plant, which the company estimates will cost approximately $8.9
LEGAL NOTICE
NOTICE
International Business Companies Act (No. 45 of 2000)
Delft Emerging Markets High Yield Fund Ltd. (the “Company”)
Notice is hereby given that, in accordance with Section 138 (8) of the International Business Companies Act, No.45 of 2000, the Dissolution of Delft Emerging Markets High Yield Fund Ltd. (IBC No. 170077 B) has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was the 23rd day of December, 2016. Valerio Marega Junior Liquidator LEGAL NOTICE
NOTICE
International Business Companies Act (No. 45 of 2000)
NORFOLK INVESTMENT FUND LTD. (the “Company”)
Notice is hereby given that, in accordance with Section 138 (8) of the International Business Companies Act, No.45 of 2000, the Dissolution of NORFOLK INVESTMENT FUND LTD. (IBC No. 169571 B) has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was the 23rd day of November, 2016. Cristiano Freire Amorim Liquidator LEGAL NOTICE
NOTICE
International Business Companies Act (No. 45 of 2000)
PLURIMI INVESTMENT FUND LTD. (the “Company”)
Notice is hereby given that, in accordance with Section 138 (8) of the International Business Companies Act, No.45 of 2000, the Dissolution of PLURIMI INVESTMENT FUND LTD. (IBC No. 169597 B) has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was the 23rd day of December, 2016. Bruno Mafra da Gama Liquidator
LEGAL NOTICE
International Business Companies Act (No. 45 of 2000) In Voluntary Liquidation
Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act, (No.45 of 2000) that ITACOATIARA INVESTMENT FUND LTD. (IBC №. 169658 B) is in dissolution. The date of commencement of the dissolution is December 23rd, 2016. Mr. Wladyslaw Zwiazek Carneiro Ribeiro is the Liquidator and can be contacted at Rua Humaita, 275, Humaita- CEP 22261-005, Rio de Janeiro, Brazil. 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 January 21st, 2017. Wladyslaw Zwiazek Carneiro Ribeiro Liquidator
million, to ensure that the plant can meet its performance guarantees. “The per gallon price for the water to be supplied under the extended agreement, excluding the pass-through energy component, is approximately 18 per cent less than the current price. The remaining terms of the extension are substantially consistent with those of the original agreement.” Consolidated Water had been operating the Windsor plant for three-and-ahalf years on a month-tomonth basis, following the July 2013 expiration of its previous supply contract. The Christie administration had seemingly been unable to make a decision on whether to renew the relationship or find another operator, but Consolidated Water’s SEC filing said it submitted a new proposal in August 2016. The Windsor plant gener-
ated $4 million in revenues during the nine months to end-September 2016, but the new agreement will likely increase that. “The company and the WSC intend to execute a formal amendment to the water supply agreement, until which point the Letter of Acceptance, together with the company’s proposal, will serve as a binding agreement,” Consolidated Water said. Mr Rolle, though, argued that the Consolidated Water deal would breach his union’s industrial agreement with the Corporation. This requires that WSMU members be given ‘first shot’ at all Corporation outsourcing contracts - a position that was upheld by the Supreme Court in January 2016. Then-Acting Justice Brian Moree QC held that the Corporation had previously violated provisions giving union members a
Legal Notice
NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)
AMERICAN TRADE SUGAR INCORPORATED In Voluntary liquidation
Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000), AMERICAN TRADE SUGAR INCORPORATED, has been dissolved and struck off the Register according to the Certificate of Dissolution issued by the Registrar General on the 8th day of December, 2016. ROCKWELL LTD #25 Mason Complex, Stoney Ground P. O. Box 193, The Valley British Anguilla Liquidator
‘90-day exclusivity’ period on two Family Island projects, rejecting its argument that the relevant industrial agreement section - Article 29 - only applied if WSMU members were made redundant. Mr Rolle expressed surprise upon learning from Tribune Business that the Consolidated Water agreement had been completed, having initially said: “That deal ain’t finalised.” He added that he had written to Mr Miller, following Tribune Business’s November article, to discover the status of negotiations with Consolidated Water, but received no reply. “We’re going to challenge it,” Mr Rolle said of the Consolidated Water deal. When asked whether this meant legal action, he replied: “Most likely. That’s the only way we can challenge it.’ Mr Rolle then added: “It can’t be good based on their [Consolidated Water’s] prior history. It can’t be a good deal. “I don’t know if they modified the contract to deal with some of the issues under the old contract. The big issue is the water quality issue. That will be part of the legal side. “We’re very concerned based on the fact we had water quality issues with them that were never corrected, and the Corporation is planning for them to continue.” With Consolidated Water also operating the other Nassau-based reverse osmosis plant, Blue Hills, the Windsor contract effectively confirms its status as the monopoly wholesale supplier on New Providence to the Corporation and its customers. Mr Demeritte, the for-
mer Corporation chairman who headed the rival EPS Consultants group in its bid to take over Windsor, said he was “extremely disappointed” by Consolidated Water’s new contract. He added that both EPS and the union had offered the same terms and proposal to the Corporation, and said: “At the very least, in this economic climate, you’d expect that they would have put this out to tender. “It flies in the face of everything that speaks to the empowerment of Bahamians and entrepreneurial development for Bahamians.” Mr Miller, though, previously told Tribune Business that a deal with EPS Consultants or any other rival bidder “makes no sense”, as they would have to build “a brand new plant” due to terms previously agreed with the BISX-listed company. Once Consolidated Water hit the Windsor water production target set by its last contract in July 2013, the Water & Sewerage Corporation could either agree a five-year extension or take one of two other options. These were to either acquire the Windsor plant, and all associated materials and equipment, from Consolidated Water at an agreed price, or for the latter to effectively dismantle the facility and remove all assets. Given the cash-strapped position that the Water & Sewerage Corporation and the Government find themselves in, these terms could be viewed as amounting to a ‘poison pill’ that favoured a new contract for Consolidated Water over any rival buyers.
PAGE 8, Wednesday, December 28, 2016
Capital markets await $70$100m in fund raisings From pg B1 10-15 per cent area in terms of equities.” Bahamian investors, though, have traditionally been risk averse, tending to favour investments they see as more secure and stable - bank deposits and fixed income securities - as opposed to potentially higheryielding, but more volatile, equities. Still, Mr Anderson said the capital markets would also benefit in 2017 from
the “stimulus” provided by Baha Mar’s long-awaited opening, plus the recent Central Bank interest rate cut. The RoyalFidelity president said that, based on the announced rationale for the cut, the Central Bank believed that the anticipated increased foreign currency inflows associated with Baha Mar opening to tourists and other new projects would offset any increase in consumer spending and import demand.
The Central Bank also believes that with unemployment still relatively high, and numerous restrictions on how much Bahamians can borrow, there are plenty of safeguards against a consumer ‘credit boom’. Together with the increased foreign currency inflows, its analysis is that external reserve levels, which support the one:one fixed exchange rate peg with the US dollar, will not be undermined by the US rate cut. Based on Baha Mar ramping up to 5,000 fulltime staff, and an average salary of $20,000, Mr Anderson said the project’s
wage impact alone could be $100 million per annum by year-end 2017. “Baha Mar will employ more people, and as it grows through the year you should start seeing more people getting hired,” he explained. “It looks to be about a $100 million injection into the economy next year just for salaries alone. The drop in the interest rate, and hiring of people at Baha Mar, will be stimulative for the economy, and I think equity prices will benefit from the increased spending power people have. “Banks will be able to lend more money, the overall environment will be more stimulative for growth, which will be of benefit to equities and companies doing business in the Bahamas.” Many observers have questioned the timing of the Central Bank’s 50 basis point cut in interest rates, given that it came just two
days after Standard & Poor’s (S&P) cut the Bahamas’ sovereign credit rating to ‘junk’ status’. They see it as a panicky, knee jerk response to S&P and potential government pressure, although this was denied by Central Bank governor, John Rolle. Others are also questioning why it took five-and-ahalf years for further Central Bank action, given that there had been a constant clamour for more cuts to aid the economy, and struggling businesses and consumers, since the last cut in June 2011. Mr Anderson, though, said the Bahamas’ loss of ‘investment grade’ status would not impact the Bahamian economy or most local companies, with the only affects felt by those who maintained US dollar facilities or were seeking foreign currency credit. The RoyalFidelity chief, meanwhile, said he was aware of several companies
NOTICE
NOTICE is hereby given that SHAWN BRENVILLE SMITH of #81 Gambier Drive, Freeport, Grand Bahama, Bahamas is 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 21st day of December, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
THE TRIBUNE who are set to tap capital markets investors in early 2017 for debt and equity financing. He declined to identify them, but Tribune Business has already reported that Aliv, the new mobile operator, will be seeking financing. And HoldingCo, its 51.75 per cent majority shareholder, is also seeking to replace the Government with private investors in a $70 million capital raising. Tribune Business has also learnt that the University of the Bahamas (UOB) is seeking capital to replace the financing that it was previously due to receive from the Caribbean Development Bank (CDB), under the latter’s ‘transformation project’ for the institution. “Going back to capital raisings I’m aware of, we should see between $70$100 million in the first three-four months of next year; between the start of the year and April,” Mr Anderson told Tribune Business. He added that there would be a “much higher level of activity” in the capital markets in 2017 compared to this year, partly because a number of fundraisings had been delayed or not come to fruition in 2016. “There were promises, but no real deals came to market. There wasn’t a lot of activity,” Mr Anderson said.
www.ub.edu.bs
NOTICE
FACULTY VACANCIES Suitably qualified candidates are invited to apply for the following positions at University of The Bahamas: Senior Management • Dean, Continuing Education and Lifelong Learning • Dean, Faculty of Liberal and Fine Arts • Dean, Faculty of Business, Hospitality and Tourism Studies • Dean, Faculty, Northern Bahamas Campus • Associate Vice President, Northern Bahamas Campus
A PRIVATE BANKING INSTITUTION is looking for a
Credit Manager Core Responsibilities The credit manager position is accountable for the entire credit granting process, including the consistent application of a credit policy, periodic credit reviews of existing customers, and the assessment of the creditworthiness of potential customers, with the goal of optimizing the mix of company sales and bad debt losses. • • • • • •
Oversee the lending process of the bank, including the initial application review, underwriting and the disbursal or denial of the request. Determine the interest rate, loan term and maximum dollar amount the bank is able to offer. Monitor the repayment progress and lead collections initiatives for delinquent accounts Maintain the corporate credit policy and recommend changes to senior management Create a credit scoring model Manage customer credit files
Reports to the COO The position is open to candidates who match the following profile: • Bachelor’s Degree in Finance, economics, accounting or business • Minimum 5-7 years of credit experience in a similar role • Possess strong analytical and mathematical skills to review applications and make appropriate credit decisions based on the risk level • Thorough knowledge of credit-related laws. • Excellent communication skills to interact effectively with customers and co-workers • Ability to work under pressure • Ability to work Independently • Flexibility in office hours and hands-on approach when required • Proficiency in Microsoft Office Interested persons should submit their curriculum vitae along with a cover letter by November 30tiest, 2016 addressed to:
Private & Confidential Senior Credit Officer c/o The Tribune Box P.O.Box N-3207 Nassau, Bahamas
Only those candidates meeting the above criteria will be contacted for an interview.
Management • Executive Director, Culinary Arts and Tourism Studies Middle Management • Grants Coordinator Staff • Grants Writer Faculty • Faculty of Business, Hospitality & Tourism Studies o Assistant Professor, Accounting (full-time) o Assistant Professor, Management/Marketing (full-time) • Faculty of Communication and Creative Arts o Assistant Professor, Spanish (full-time) o Assistant Professor, French (full-time) o Assistant Professor, French and Haitian Creole (full-time) o Associate Professor, Choral Conducting/Piano (full-time) o Media Lab Technician (full-time) o Part-Time Lecturer, Art (Ceramic Art) o Part-Time Art Studio Technician • Faculty of Pure and Applied Sciences o Associate Professor, Agriculture (full-time) o Assistant/Associate Professor Architecture (full-time) o Assistant/Associate Professor, Biology (full-time) o Assistant /Associate Professor Chemistry o Assistant/Associate Professor Electrical Engineering/Engineering Technology (full-time) o Assistant/Associate Professor, Physics o Assistant/Associate Professor Applied Mathematics (full-time) • Faculty of Social and Educational Studies o Assistant Professor, History (full-time) o Assistant Professor, Law (full-time) o Assistant Professor, Law and Criminal Justice (full-time) o Assistant Professor, Psychology (full-time) o Assistant Professor, Sociology (full-time) o Assistant/Associate Professor, Education (full-time) o Assistant/Associate Professor, Mathematics Education – Elementary (full-time) o Assistant/Associate Professor, Mathematics Education – Secondary (full-time) o Assistant/ Associate Professor, Special Education (full-time) • Faculty of Liberal and Fine Arts o Assistant Professor, Rhetoric and Composition (full-time) o Assistant Professor, Rhetoric and Composition and Caribbean Studies (full-time) o Assistant Coordinator, Language Resource Centre (full-time) • University Libraries o Law Librarian (full-time) o Campus Librarian, Librarian II – Northern Bahamas Campus (full-time) For more information visit http://www.ub.edu.bs/about-us/career-opportunities/ Materials should be submitted electronically, attention Office of Academic Affairs, University of The Bahamas via e-mail at facultyapply@ub.edu.bs by March 6, 2017. Send all documents together, including: 1) cover letter describing academic philosophy and vision, research and publications; 2) curriculum vitae; 3) sample course syllabus; 4) official copy of all academic records; 5) representative sample of research, publication or creative work; 6) at least one letter of recommendation; and 7) a UB application form. Note the position in the subject field of the email. Hard copy submissions will not be accepted. Incomplete files will not be considered.
THE TRIBUNE
Wednesday, December 28, 2016, PAGE 9
US home prices rise 5.1 percent in October WASHINGTON (AP) — U.S. home prices rose again in October as buyers bidding for scarce properties drove prices higher. The Standard & Poor's CoreLogic Case-Shiller 20-city home price index, released Tuesday, rose 5.1 percent in October from a year earlier after climbing 5 percent in September. Prices for the 20 cities are still 7.1 percent below their July 2006 peak. The broader Case-Shiller national home price index was up 5.6 percent in October and has fully recovered from the financial crisis. Prices rose 10.7 percent annually in Seattle, 10.3 percent in Portland and 8.3 percent in Denver. New York registered the smallest year-over-year gain: 1.7 percent. Home sales and prices have been helped by healthy demand, tight supplies and low mortgage rates. The National Associa-
tion of Realtors said last week that fewer than 1.9 million homes were on the market in November, down 9 percent from a year earlier. The tight supply pushed the median price of existing homes to $234,900 last month, up 6.8 percent from a year ago. But the cheap loans may be vanishing. The rate on the benchmark 30-year, fixed-rate mortgage last week reached 4.30 percent, the highest since April 2014. Rates have surged since the Nov. 8 election of Donald Trump. Investors have bid rates higher because they believe the presidentelect's plans for tax cuts and higher infrastructure spending will drive up economic growth and inflation. And the Federal Reserve, citing improvement in the U.S. economy, this month raised short-term U.S. interest rates for only the second time in a decade.
NOTICE
NOTICE is hereby given that DIEBONEL ALEXANDRE of Marsh Harbour, Abaco, Bahamas is 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 19th day of December, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE Pursuant to the provisions of Section 138 (4) of the International Business Companies Act (as amended), NOTICE is hereby given that Norristown Enterprises Limited is in dissolution and the date of commencement of the dissolution is 23rd December, 2016. Miles Evans and Magdaline Carey LIQUIDATORS c/o Clairmont Trust Company Limited Pineapple Grove #5 Lyford Cay P.O. Box SP-64284 Nassau, Bahamas
NOTICE
NOTICE is hereby given that WATSON TASSY of Golden
Gates #2, P.O.Box CB-54802, New Providence, Bahamas is 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 21st day of December, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that ALEX MEDDER of 12360 NW, 29 Monor, Sunrise, Florida, United States is 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 20th day of December, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that OMAR ROBERT BRYAN of Faith Avenue, Carmichael Road, P.O Box CB-12854, Nassau, Bahamas is 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 20th day of December, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that KERLY SAINTILHOMME of Washington Street, P.O.Box N-326, New Providence, Bahamas is 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 19th day of December, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
Bahamians can switch mobile carrier Feb 14 From pg B2
carrier’s annual turnover. Aliv, the Bahamas’ new mobile operator, and BTC’s first rival in the segment, previously told Tribune Business that the introduction of number portability was a key element in its growth plans. Damian Blackburn, Aliv’s chief executive, said number portability was essential for Aliv to make inroads into the corporate market, and expressed hope it would become a reality for thousands of Bahamian subscribers early in the New Year. URCA appears to have granted his ‘New Year’s wish’, with both BTC and Aliv given until February 10, 2017, to be ready for
mobile number portability. The launch to consumers will take place four days later on February 14. Acknowledging Aliv’s concerns, URCA said any rules breach was “likely to be highly prejudicial to the successful implementation and operation of mobile number portability in the Bahamas”. Recalling the experience with BTC and Cable Bahamas on fixed-line number portability, the regulator added: “URCA has noted that there have been several instances where licensees involved in fixed number portability have failed to comply fully with the Business Rules (now superseded by the local number portability business rules), and ports have
NOTICE
as a result failed or been unacceptably delayed. “URCA notes that the delay or failure of ports has the impact of undermining public confidence in local number portability. URCA notes that failed or delayed ports are often a direct result of a failure to comply with the business rules, and therefore considers it appropriate to directly link compliance with the local number portability business rules with successful porting in accordance with the agreed and established timelines.” URCA added that delays could “undermine the reputation” of the carrier
DIROSIE of
customers are switching to, and weaken confidence in the regulatory regime, while also encouraging Bahamians to remain with their existing provider. URCA said the switch from one mobile provider to another should “be set at” two hours from the date on which the transfer is requested. It added that the communications industry’s working group on number portability had also agreed that the photo identification required to switch providers did not need to be Bahamas governmentissued.
call 502-2394 to advertise today! NOTICE
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 21st day of December, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE is hereby given that SHAQUILLE JERMAINE SMITH of #81 Gambier Drive, Freeport, Grand Bahama, Bahamas is 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 21st day of December, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE
Pursuant to the provisions of Section 138 (4) of the International Business Companies Act (as amended), NOTICE is hereby given that Hershey Ventures Limited is in dissolution and the date of commencement of the dissolution is 23rd December, 2016.
Pursuant to the provisions of Section 138 (4) of the International Business Companies Act (as amended), NOTICE is hereby given that Cranbrook Ventures Limited is in dissolution and the date of commencement of the dissolution is 23rd December, 2016.
Miles Evans and Magdaline Carey LIQUIDATORS c/o Clairmont Trust Company Limited Pineapple Grove #5 Lyford Cay P.O. Box SP-64284 Nassau, Bahamas
Miles Evans and Magdaline Carey LIQUIDATORS c/o Clairmont Trust Company Limited Pineapple Grove #5 Lyford Cay P.O. Box SP-64284 Nassau, Bahamas
NOTICE is hereby given that DILIANA
Lincoln, Blvd.,New Providence, Bahamas is applying
MARKET REPORT FRIDAY, 23 DECEMBER 2016
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 1,937.79 | CHG 2.18 | %CHG 0.11 | YTD 113.84 | YTD% 6.24 BISX LISTED & TRADED SECURITIES 52WK HI 4.25 17.43 9.09 3.55 4.70 0.12 8.22 8.50 6.10 10.60 15.50 2.72 1.60 5.82 9.30 11.00 9.00 6.90 12.25 11.00
52WK LOW 2.50 17.43 8.19 3.50 1.77 0.12 5.50 8.05 5.50 7.69 12.59 2.18 1.31 5.60 6.70 8.56 6.12 6.35 11.81 10.00
1000.00 1000.00 1000.00 1000.00
900.00 1000.00 1000.00 1000.00
PREFERENCE SHARES
1.00 106.00 100.00 106.00 105.00 105.00 100.00 10.00 1.01
1.00 105.50 100.00 100.00 105.00 100.00 100.00 10.00 1.01
SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00
52WK LOW 100.00 100.00 100.00
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +
SYMBOL FBB17 FBB18 FBB22
Bahamas Note 6.95 (2029) BGS: 2014-12-3Y BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y
BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
MUTUAL FUNDS 52WK HI 2.01 3.91 1.93 169.70 140.34 1.46 1.67 1.56 1.10 6.94 8.65 5.92 9.94 11.15 10.46
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.41 1.61 1.52 1.03 6.41 7.62 5.66 8.65 10.54 9.57
LAST CLOSE 4.06 15.85 9.09 3.52 1.77 0.12 5.60 8.50 5.83 10.44 13.23 2.13 1.60 5.82 9.30 10.95 8.74 6.75 11.93 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01 LAST SALE 100.00 100.00 100.00 108.67 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
CLOSE 4.06 15.85 9.09 3.52 1.77 0.12 5.60 8.50 5.83 10.49 13.23 2.18 1.60 5.82 9.30 10.95 8.74 6.75 11.93 10.00
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.05 0.00 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.11 100.00 100.00 100.00 10.00 1.01
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CLOSE 100.00 100.00 100.00
CHANGE 0.00 0.00 0.00
109.02 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
0.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund
VOLUME
15,000
VOLUME
NAV 2.01 3.90 1.93 169.70 140.34 1.46 1.66 1.56 1.07 6.94 8.65 5.92 9.59 11.15 9.57
EPS$ 0.304 1.351 1.086 0.220 -1.134 0.000 0.185 0.551 0.508 0.541 0.528 0.094 0.166 0.510 0.612 0.960 0.650 0.703 0.756 0.000
DIV$ 0.090 1.000 0.000 0.160 0.000 0.000 0.187 0.260 0.200 0.360 0.610 0.060 0.040 0.240 0.275 0.000 0.280 0.120 0.640 0.000
P/E 13.4 11.7 8.4 16.0 N/M N/M 30.3 15.4 11.5 19.4 25.1 23.2 9.6 11.4 15.2 11.4 13.4 9.6 15.8 0.0
YIELD 2.22% 6.31% 0.00% 4.55% 0.00% 0.00% 3.34% 3.06% 3.43% 3.43% 4.61% 2.75% 2.50% 4.12% 2.96% 0.00% 3.20% 1.78% 5.36% 0.00%
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%
INTEREST 7.00% 6.00% Prime + 1.75%
MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022
6.95% 4.00% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%
20-Nov-2029 15-Dec-2017 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022
YTD% 12 MTH% 3.11% 4.17% 3.28% 4.34% 2.07% 2.93% 4.73% 5.64% 5.70% 7.66% 3.56% 3.91% 2.22% 2.79% 2.80% 3.18% 2.99% 2.26% 4.05% 8.28% 5.93% 13.53% 2.73% 4.73% 3.97% -3.53% 2.96% 4.33% -4.26% -6.22%
NAV Date 30-Sep-2016 30-Sep-2016 30-Sep-2016 30-Sep-2016 30-Sep-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016
MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings
YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful
TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225
THE TRIBUNE
Wednesday, December 28, 2016, PAGE 11
URCA struggles with early assumption of electricity regulation From pg B3 workload and material changes in staff at all levels. Accordingly, URCA’s achievements were significantly impacted by matters outside URCA’s direct control.” URCA said “significant progress” in recruitment for its Department of Utilities and Energy was expected in early 2017, and it will share resources with the communications department “to the greatest extent possible” so that economies of
scale can be achieved. “URCA’s recruitment efforts in the UE Department have been slowed by the limited availability of locally trained resources,” the draft annual plan said. “As such, URCA has made extensive use of external consultants to supplement its energy sector resource needs in 2016, and we anticipate continuing to do so in 2017, with gradual reduction in reliance on external consultants from 2018 onwards.” Looking ahead to 2017,
URCA said the initial one-year Public Electricity Supplier Licence issued to Bahamas Power & Light (BPL) will be replaced by a 15-year licence in the New Year. The regulator also promised to “progress... in the best interests of persons in the Bahamas” the legal action launched by Grand Bahama Power Company, which is challenging URCA’s jurisdiction to regu-
late utilities in Freeport’s Port area. On the communications front, URCA signalled its intention to overhaul the regulatory framework for Universal Service Obligations (USO), which requires providers such as BTC and Cable Bahamas to offer services in far-flung communities that are unprofitable. “URCA had scheduled work on the additional regulatory measures which
KEEPING SCORE: Germany’s DAX gained 0.1 percent to 11,464 and the CAC 40 of France was up 0.2 percent at 4,849. Markets in Britain are closed for Boxing Day. Wall Street looked set for a quiet open, with Dow and S&P 500 futures roughly unchanged. TOSHIBA’S TRIBULATION: Shares of electronics and energy giant Toshiba Corp. fell 13 percent after the company announced it expects to record a loss of "several hundred billion yen" (several billion dollars) related to Westinghouse Electric Co.’s purchase of CB&I Stone & Webster, Inc. It said Westinghouse found costs for completing U.S. nuclear power projects will "far surpass" original estimates. Tokyo-based Toshiba also is enmeshed in an accounting scandal. ITALY BANKS: Shares in troubled Italian bank Monte dei Paschi di Siena were suspended since the government agreed Friday to rescue the company. Monte dei Paschi had been
trying, but failed, to raise 5 billion euros in new capital. On Monday, it said that the estimated amount it needs to raise is even higher, at 8.8 billion euros. The amount should be covered by 20 billion euros the Italian government has set aside, but the jitters have weighed on financial stocks. ASIA’S DAY: Tokyo’s Nikkei 225 was nearly flat at 19,403.06 and the Kospi of South Korea rose 0.2 percent to 2,042.17. India’s Sensex added 0.8 percent to 26,009.86. The Shanghai Composite index slipped 0.3 percent to 3,114.66. Shares gained in Southeast Asia. Markets in Hong Kong and Australia were closed for Boxing Day. CURRENCY: The dollar rose to 117.41 yen from 117.18 yen on Monday. The euro fell to $1.0441 from $1.0453. ENERGY: Benchmark U.S. crude gained 15 cents to $53.17 a barrel in electronic trading on the New York Mercantile Exchange. Oil markets were closed Monday for the holiday. On Friday, benchmark U.S. crude gained 7 cents. Brent crude, used to price international oils, advanced 1 cent $55.17 a barrel.
on transitional provisions contained in the Communications Act, and the thensector policy. Technological and market changes in the intervening seven years have rendered those provisions dated and ineffectual. “URCA notes that 2017 will see the conduct of a review of the Electronic Communications Sector Policy, which may have direct implications for the universal service framework.”
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Global stocks mostly gain in thin trading ahead of New Year TOKYO (AP) — Global stocks mostly edged higher as the last week of trading for the year began Tuesday after Christmas holidays.
would comprise this framework for 2016,” the regulator said. “However, recent reviews of the universal framework proposals has highlighted that the proposals on which these documents are founded may not be appropriate for the evolving environment in the Bahamas. “It is noteworthy that the universal service framework which URCA intended to implement is based
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PAGE 12, Wednesday, December 28, 2016
Cuba sees economic slump despite US detente HAVANA (AP) — Cuban officials announced Tuesday that the island’s economy shrank this year despite an increased opening with the United States. Economy Minister Ricardo Cabrisas told Parliament that the island’s gross domestic product fell nearly 1 percent after seeing a growth rate of nearly 3 percent from 2011-2015. He blamed the slump on shrinking exports and financial troubles in allied Venezuela. The last time official figures showed a fall in Cuba’s gross domestic product was in 1993 after the Soviet Union collapsed, abruptly stripping away much of the country’s aid and trade. A global drop in petroleum prices has slammed Venezuela’s oil-dependent economy, forcing it to cut back sales of crude oil to Cuba, with exports dropping from 115,000 barrels daily in 2008 to 90,000 in recent years to 40,000 a day in the past few months. In addition, the number of contracts for professional services with Venezuela has dwindled and some payments have not been made, Cabrisas said. A large number of Cuban doctors have long traveled to Venezuela,
with their salaries going directly to the Cuban government. “This confirms what we had said about Venezuela’s situation leading to a recession,” Cuban economist Pavel Vidal, a professor at a university in Colombia, told The Associated Press. Cabrisas, whose speech was partially transmitted on public TV, also blamed the economic slump on U.S. sanctions on Cuba, with officials previously saying that the 55-year-old embargo has cost the island $125.9 billion, including $4.6 billion last year. Tourism, however, has been thriving ever since U.S. President Barack Obama ordered the restoration of diplomatic relations between Washington and Havana two years ago. Overall visitor numbers spiked more than 15 percent in 2015 and again this year. Cabrisas said he expected the island’s gross domestic product to grow by 2 percent next year if the government cuts costs, increases exports and finds alternatives for certain imports. Vidal, however, said he was surprised by the prediction.
THE TRIBUNE
US stocks close higher as Nasdaq hits record high, oil rises AP Business Writer – A day of quiet trading on Wall Street ended Tuesday with the Dow Jones industrial average inching closer to 20,000 and a record high for the Nasdaq composite. Materials and technology companies led U.S. stocks slightly higher overall. Energy companies also rose as the price of crude oil moved higher. Utilities and phone company stocks edged lower. Trading was light following the long holiday weekend, with less than 1.9 billion shares traded on the New York Stock Exchange. That’s the lightest full day of trading since October 2015. “Markets are moving toward 20,000 and bond yields are up; there’s a little bit of buoyancy in oil prices,” said Erik Davidson, chief investment officer at Wells Fargo Private Bank. “(But) trading is very, very thin.” The Dow added 11.23 points, or 0.1 percent, to 19,945.04. The Standard & Poor’s 500 index gained 5.09 points, or 0.2 percent, to 2,268.88. The Nasdaq rose
The Wall Street entrance of the New York Stock Exchange. Stocks moved modestly higher in early trading yesterday, as U.S. markets reopened following the holiday weekend. Materials and energy companies were among the biggest gainers, while utilities and real estate stocks headed lower. A key gauge of housing values showed U.S. home prices increased again in October. (AP Photo) 24.75 points, or 0.5 percent, to 5,487.44. The tech-heavy index’s previous record high was 5,483 on Dec. 20. The three major indexes are on pace for solid gains for 2016, led by the Dow, which is up 14.5 percent. The S&P 500 is on track for an 11 percent gain, while the Nasdaq is headed for a 9.6
percent gain. Small-company stocks are up even more. The Russell 2000 is up 21 percent so far this year. While little new major economic or company data is expected this week as 2016 winds to a close, investors did get some fresh figures on consumer confidence and home prices Tuesday. The Conference Board said its consumer confidence index climbed to 113.7 in December, up from 109.4 in November and the highest since it reached 114 in August 2001. The latest reading is another sign consumers are confident in the aftermath of a divisive election campaign. Meanwhile, the Standard & Poor’s CoreLogic CaseShiller national home price index rose 5.6 percent in October, as buyers bidding for scarce properties drove home prices higher. “The tone to the data was certainly positive and speaks to underscore why we’d have a little bit of a bid to the market this afternoon,” said Bill Northey, chief investment officer of the Private Client Group at
U.S. Bank. Several homebuilders posted gains following the reports on home prices and consumer confidence, which bode well for home sales. Lennar led the pack, gaining 80 cents, or 1.9 percent, to $43.36. D.R. Horton added 37 cents, or 1.3 percent, to $27.93. PulteGroup rose 24 cents, or 1.3 percent, to $18.62. Nvidia posted the biggest gain in the S&P 500 index. The chipmaker surged $7.54, or 6.9 percent, to $117.32. Traders also gave a boost to other technology stocks, including Fitbit. The company climbed 7.4 percent after the fitness tracker’s app became the second-most downloaded in the iTunes store. The stock added 54 cents to $7.83. Some drug companies also made big moves. Endologix plunged 26.7 percent after the drugmaker said that the Food and Drug Administration has ordered it to cease shipping a device used to treat abdominal aortic aneurysms because of manufacturing problems.