The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

WASHINGTON DC - PRIME Minister Perry Christie yesterday confirmed he wanted to “absolutely guarantee” that the Obama administration could vouch for the integrity of the US firms it was backing in the Bahamas Electricity Corporation (BEC) reform process.

Mr Christie, who delivered a speech at the first ever Caribbean Energy Security Summit, told Tribune Business that while he had not had any discussions with US officials over the BEC reform process, he had received backing for two American firms from top Embassy officials in Nassau. This had dealt with the integrity of one US firm, in particular.

Mr Christie’s comments came after Tribune Business reported on Monday that the BEC reform process has been delayed because the Government wants to ensure there is no truth to unsubstantiated “integrity concern” rumours that have been raised over its preferred bidder.

Tribune Business revealed that US company, Carolinas-based Power Secure, is effectively the only contender remaining at the table for the BEC management contract.

However, highly-placed sources, both within the Government and inside the BEC process, have disclosed to this newspaper that the Christie administration has delayed confirming Power Secure as the winner due to “scorched earth” tactics employed by persons associated with rival bidders.

While not identifying the US firms he was referring to, Mr Christie said yesterday: “I have received written support from the Embassy in Nassau, from the deputy secretary of state and the Secretary of State of the US government [John Kerry] with respect to a particular applicant, certifying their integrity.

“It is important that I say that because issues arise as to what is happening, and especially when personalities, particularly those of us who are involved in politics, have our names called.

“I wanted to absolutely guarantee that we had the certification of the American government as to the integrity of the entities that we are dealing with. That has been forthcoming. To that extent we have been engaged with the American government.”

Mr Christie added: “I had said that I did not want to go to Washington for a conference to impact energy reform with a decision just having been made, in the event that we hear something that gives us an advantage in terms of the process we are engaged in.”

Mr Christie said the trip to Washington had made him realise that BEC, and wider energy reform, needs to move at a much quicker pace than it has.

The Government has moved away from splitting the Corporation into separate generation and transmission and distribution (T&D) arms, as initially proposed in August 2013, and is instead moving forward with a business model that mirrors the Nassau Airport Development Company’s (NAD) arrangement for Lynden Pindling International Airport’s (LPIA) management.

Under that arrangement, the Government will retain 100 per cent equity ownership of BEC even after the private sector manager is in place.

The Government effectively wants to ensure it selects the right manager to turn BEC around, and that its decision is one beyond reproach and stands up to all scrutiny. It does not want to make a choice, only for this to later come back to haunt it.

Power Secure is understood to have withstood all scrutiny to-date. Tribune Business sources said a key meeting with the Government was held on December 29, at which time it was presented with US Justice Department and US State Department documents and certification attesting to the company’s bona fides.

Power Secure is also a public company listed on the New York Stock Exchange (NYSE), which means that it is subjected to greater scrutiny, transparency and due diligence than privately-owned counterparts.

The US firm, Tribune Business understands, is the ‘last man standing’ in the BEC process. Of the other two bidders who made the ‘final three’, sources suggested Caribbean-based Inter-Energy had fallen away, while China State Construction - the Baha Mar/British Colonial Hilton investor - had only been interested in building a new power plant as opposed to managing BEC.