It is beyond insulting to the Bahamian people that the Davis Administration is trying to hide and gloss over the apparent collapse of their ill-fated privatization of BPL’s New Providence Transmission & Distribution (T&D) Grid.
The issue is another sign of the demise of any significant so-called energy reform on the PLP’s watch. Instead of the progress they promised, energy reform is stalled and is in a shambles.
Island Grid Ltd was not simply a contracted management firm for Bahamas Grid. It was instead the majority partner in this no-bid sweetheart deal that was from day one set up to benefit a selected few.
The majority partners have apparently stepped away, and all we get is a sad public relations spin from the government.
Imagine the blatant contempt for the Bahamian people – who are still 40 percent owners of Bahamas Grid – that the government has refused to explain what exactly has led to the abandonment of Island Grid/Pike after two years of a 25-year arrangement.
It is our understanding that this deal has apparently collapsed all the way back on or about March 23rd. In the House of Assembly, I asked JoBeth Coleby Davis, the minister responsible, about the then rumor that Pike had pulled out of the arrangement.
She and the Prime Minister and Minister of Finance chose to keep the Bahamian people in the dark for four weeks. And still, the Bahamian people do not know what has happened.
We are advised that while the unfortunate killing of a Pike employee certainly caused understandable distress to Pike and its colleagues, that sad incident was not the sole or even the primary catalyst for their pulling out of this deal.
Instead, we understand that Pike had simply had enough of this inept and waffling government. We understand that there were issues with timely payments and with management control.
We also understand that there may be another serious issue with the underlying integrity of the agreement.
However, on behalf of the Bahamian people – and of the Bahamian bondholders who have lent significant money to Bahamas Grid, we demand immediate answers:
What are the exact circumstances that led to the apparent collapse of this arrangement? What are the financial implications of this fiasco? Does Island Grid – and the Pike group in particular – have any continuing ownership stake in Bahamas Grid?
Has any part of their stake been sold or committed to any other person or entity? If so who and for how much? Has any party to the deal breached the agreement in any way, to trigger any “out clause”?
Did the government know on or before March 25th that Pike/Island Grid either had abandoned the arrangement or was intending to do so? If not, when did the government become aware.
We will have more to say on this as we continue to uncover the facts for the Bahamian people.