The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

FOCOL Holdings and its international partners yesterday pledged to save the Bahamas “in excess of $100 million per annum” through their multi-fuel power plant proposal that is currently before the Government.

Franklyn Wilson, the BISX-listed petroleum products supplier’s largest shareholder, told Tribune Business that the joint venture proposal involving Canadian power giant, Emera, and Wartsila, the manufacturer of electrical engines and turbines, could “compete against anybody”.

Acknowledging that the Government had received energy proposals from rival “world class companies”, Mr Wilson said the trio’s submission met all the requirements detailed in Genting’s recent report on industry reforms.

Emphasising that FOCOL and its partners were not interested in acquiring the Bahamas Electricity Corporation (BEC), especially given the “philosophical opposition” to the Government’s initial privatisation foray, Mr Wilson said their proposal presented “a win-win for everybody”.

The trio are proposing to construct a power plant, capable of generating at least 100 Mega Watts (MW) of electricity, on FOCOL-owned land in New Providence.

They would construct it, at no cost to the Government or BEC, under a build/own/operate (BOO) arrangement. All power generated would be supplied to BEC via a power purchase agreement.

And its ability to use a variety of fuels in power generation is being eyed as the key ingredient in generating cost savings for BEC and its consumers, as the plant will be able to switch to the fuel ‘of the moment’ that is most efficient and economical.

“The bottom line is that we believe we have submitted a special proposal that we think offers the potential of saving nine-figure monies per annum for the country,” Mr Wilson told Tribune Business.

“It would be Bahamian controlled and managed, and would save the country well in excess of $100 million per annum.

“We have the financial and technical capacity to meet whatever the needs of the country could possible be. With these two partners, we can meet any needs the country asks.

“Scale is not an issue for us. Let us know what you need. The group has the capacity to bring whatever quantum of money the country needs, and create a very special situation.”

Mr Wilson indicated that all three partners ‘brought something to the table’. “We didn’t stumble on that combination,” he added.

Apart from fuel supply and logistics, FOCOL Holdings also “owns property and knows the country”.

Wartsila, a Finnish-headquartered company, brings its expertise as “the largest engine manufacturer in the Caribbean” for power plants, while Emera offers the technical and administrative capacity to operate the power plant.

Both Wartsila and Emera have deep financial pockets, while the latter also knows the territory as the 80 per cent-plus majority owner and operator of Grand Bahama Power Company.

Emera has long wanted to expand its involvement and assets in the Bahamas, and produced a consultant’s report on BEC’s inner workings - its weaknesses and needed reforms - for the previous Ingraham administration. The Canadian power giant was also keen on taking over BEC, either via a management agreement or outright purchase.

“We have no doubt we can meet whatever the country needs and drive down its energy costs significantly,” Mr Wilson told Tribune Business, suggesting their proposal aimed to create a public-private sector partnership with BEC.

“We do not interfere with the structure of the Government owning BEC,” he added.

“We’re conscious of the fact there was widespread philosophical opposition to selling BTC, and we suspect it will be similar with BEC.

“We’re not interfering with BEC, and our concept is the private sector can do for BEC what it can do more efficiently. It’s a win-win for everybody. We’re in position to move immediately, or at least in very short order.”

Mr Wilson acknowledged that the Government had “received literally dozens of proposals, and we understand the Government has some proposals from some companies that are world class, and some of the proposals are pretty stunning for what they intend to do”.

Suggesting that the proposal by FOCOL and its partners could stand up against all-comers, he told Tribune Business: “Our bottom line point is that we’re prepared to compete against any company from anywhere in the world.

“We’re in a position, if the playing field is level, to compete against anybody from anywhere in the world, and let the chips fall where they may. Let the best man win.”

Mr Wilson said the group’s proposal was consistent with the recommendations submitted to the Government by Genting Energy, which were that any new power plant should be large enough to meet the country’s needs and “be modern enough to operate with more than one type of fuel”.

“At different times, different types of fuel may be more economical,” he added.