0

EDITORIAL: When does a good deal become a bad deal?

BACK in July 2018, there was a bold promise.

A “very imminent” deal between Bahamas Power & Light and Shell North America would, we were told, bring Nassau “out of the dark ages”.

Goodness knows we’ve too often been left in the dark by BPL for ages, but this was a deal that would transform our energy sector.

We’re not sure what “very imminent” means to some, but more than two years on, it’s looking more likely there will be a divorce rather than a marriage between the two sides.

Two years ago, Minister of Works Desmond Bannister was saying that Shell’s solution was the “best option” and “we haven’t gone back to look at anything else since. We have no reason to”.

Yesterday, Mr Bannister is instead talking about not selling “the Bahamian people short” in negotiations and trying “to ensure every possibility is covered in protecting the country’s interest”.

Indeed, Mr Bannister goes so far as to talk about the prospect of “Shell, another partner or no partner”.

“We are dealing with an agreement that is going to last 20-25 years, so we have to ensure every possibility is covered in protecting our country and protecting our people,” Mr Bannister added. “Our people know exactly what to expect, and have done comparisons with similar projects. They know what they ought to be committing to and ought not to be committing to.”

This deal was supposed to be a game changer – instead now Mr Bannister is talking up the effect of the new Wartsila engines and the likely short-term benefit of a worldwide drop in oil prices. We absolutely need to get the best deal for the nation – but we also ought to know why the best deal two years ago is suddenly not the best deal now.

We barely seem to go a week without a reminder of the importance of sorting out our electricity supply. In the aftermath of Hurricane Isaias, which thankfully did no major damage, we were still left with prolonged power outages for many and intermittent outages since.

Everyone knows the frustration of years on end with little confidence that the next year, the next summer would be any different than the last. Last year’s constant power problems were the last straw – destined, we were told, to be resolved by the Wartsila engines and the Shell deal. One of those has happened, the other is in the balance.

What the hiccup has been that has derailed plans has not been disclosed – and Shell seems to be losing patience, judging by noises coming from its representatives, including an opinion piece this week by its marketing general manager.

Will any light be shed on those problems? It seems unlikely at the moment. Coming out of the dark ages seems further away right now – but when it comes to the reasons why, it would be good not to be left in the dark.

Comments

alfalfa 3 years, 8 months ago

Real far away. Nine hour power cut last night in Western New Providence. No explanation provided.

0

johnmcntsh 3 years, 8 months ago

It is important to understand that Shell Global does not play. They need to make a profit. They do not do kickbacks, they do not play games. The expect a profit no different than any other major corporation. They are required, as a public corporation, to make a profit for their stockholders or they will be replaced. They cannot give their services away for free. The Bahamas is being told loud and clearly that they need to make a decision soon or they can deal with the Oban types which will cost you dearly.

1

DWW 3 years, 8 months ago

so is it union, management or govberminet?

0

birdiestrachan 3 years, 8 months ago

speaking of bad deals. OUR Lucaya and BTC

0

Sign in to comment