The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas has been urged to use the damage inflicted by Hurricane Joaquin as an opportunity to upgrade “desperately needed infrastructure” in the Family Islands.

Edison Sumner, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, told Tribune Business that many of the islands hit hardest by Hurricane Joaquin were already “facing hardship” and reduced economic activity.

The absence of infrastructure essential to a thriving private sector has long impeded the development of Family Island economies, Mr Sumner citing the absence of piped running water in southern Long Island as one such example.

He is thus suggesting that the Bahamas, and the Christie administration, exploit the damage caused by Joaquin to end practices such as the reliance on water trucks in southern Long Island - a development that will boost the quality of life for residents and the ease of doing business.

“The islands that are the worst affected are already facing hardship and a decrease in economic activity,” Mr Sumner told Tribune Business of Joaquin’s impact.

“There’s a desperate need for infrastructure upgrades in those islands.... The Government, through whatever means necessary, needs to put in place the infrastructure required.

“When these natural disasters occur, they exacerbate the situation further, as whatever infrastructure is in place is deteriorated by these events.”

Airports, roads, bridges and docks, and communications and electricity systems, will be among the key infrastructure assets needing to be rebuilt or replaced in the central and southern Bahamas, following the two-day pummeling last week from Joaquin’s 130 mile per hour winds.

The islands most affected - Acklins, Crooked Island, Long Island, Rum Cay and San Salvador - are among the most sparsely populated in the Bahamas, but all possess infrastructure assets vital to supporting residents. And, in the case of Long Island, they are spread over 130 kilometres, adding to the restoration difficulties.

But, suggesting the Bahamas could turn a major negative into a positive, Mr Sumner said it could use Joaquin to go beyond just replacing existing infrastructure, and instead add to and upgrade existing facilities for long-term gain.

“We need to take advantage of this opportunity to upgrade the infrastructure as best we can,” he told Tribune Business.

“This is not only for the well-being of the private sector, but is also of essential importance to consumers as well.”

He added: “We’re hoping and praying the damage is mitigated, even though it was a severe storm, and after they’ve done the damage assessments hopefully the Government agencies will move with haste to restore this infrastructure and, where there are opportunities for upgrades, they will be taken as well.”

Mr Sumner said Joaquin would also reveal whether the Government had taken out catastrophe insurance coverage for its buildings and other public infrastructure.

He added that if this had not occurred, and the Government lacked the resources to meet Joaquin’s fall-out, it may be forced to seek loans and debt financing from multilateral institutions such as the Inter-American Development Bank (IDB).

“The Government should treat assets like the private sector and get the necessary level of insurance on its buildings and infrastructure,” Mr Sumner told Tribune Business.

“In instances like this, where these disasters come up, there should be contingencies built into the Budget to take care of these eventualities.”

The Chamber chief executive said that while it might “seem to be an additional cost”, Joaquin should serve as a reminder to Bahamian businesses to take out adequate insurance coverage against hurricane-related losses and disruption.

Mr Sumner suggested this protection should include catastrophe cover for real estate assets, plus business interruption and consequential loss insurance.

“Businesses that find themselves without that protection are exposed to the risk of a great deal of hardship,” he said. “These [insurances] are necessary in business, need to plan with these kind of contingencies in mind and make provisions for them in their annual budgets.”