The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Opposition’s deputy leader is questioning whether the Government’s model for the Bahamas Electricity Corporation (BEC) will benefit Bahamian consumers in the long-term, telling Tribune Business: “There is no free lunch.”

K P Turnquest said that while selecting a management/operating partner for BEC, in the shape of Carolinas-based Power Secure, was an option, it was not the best solution for BEC at this time.

“There is no free lunch, and to the extent that Power Secure is going to come in and risk its capital, because I think part of this management deal is that they are going to somehow put forward the financing for the upgrades necessary, that is not going to come free,” he told Tribune Business.

“There is going to be a cost associated, and the Bahamian people are going to be made to bear that cost, which is the same situation with the Nassau Airport Development Company (NAD).

“On top of that there is going to be a management fee. No one does anything for free, no one come here because they love us. They come here to make money. In my mind it is somewhat unfortunate that we continue to promote foreign is better. We continue to suck money out of our economy with these kind of arrangements. I just don’t believe it is the best solution at this point.”

The Government has opted to apply the so-called ‘NAD model’ as the chosen pathway for BEC reform. This will see it retain 100 per cent equity ownership, with Power Secure running and managing the asset on its behalf.

Mr Turnquest said the “devil is in the details” as it relates to the actual arrangement between the Government and Power Secure. “The devil is definitely in the details. I am personally somewhat dismayed that once again we seem to have taken the view that foreign is better; I reject that,” he added.

“I think we have qualified individuals who are quite capable of turning BEC around once the political interference is removed from the equation.”

Mr Turnquest said further: “We can look to the NAD model as a guideline of what is intended. If you follow the NAD model, we have a very nice airport ,very well ran and efficient. However, it is also very expensive.

“If that is the model we are going to follow, I don’t see how that is going to work to the benefit of the Bahamian people in the long-term. We need solutions that are going to reduce the cost of electricity.

“We need an alternative source of fuel, which is the main driver of the cost of electricity, and we need a sensible reinvestment plan that is going to not only replace the current generation equipment but also a replacement plant that ensures there are reserves being built up every year to account for the modernisation and replacement of equipment as we go along.”