The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Bahamas Power & Light’s (BPL) chairman yesterday voiced confidence that the utility’s mammoth $535m refinancing will be executed by year-end 2021 despite the potential general election interruption

Dr Donovan Moxey, speaking at a press conference yesterday, said all the “required legislative amendments” to the proposed Rate Reduction Bond (RRB) legislation “have been completed” and BPL’s Board is just waiting for Parliament to reconvene in October following the election.

“We’re waiting for the next sitting of Parliament, and hopefully that gets on the agenda very quickly and, when that does, we can move that through,” Dr Moxey said of the long-awaited $535m RRB issue that will refinance BPL and place it on a more sustainable footing. 

“We’ve done everything that is needed. The book runners are in place, the potential investors are aware of the deal. All of the other professional service providers are available, and so as soon as the Government makes a decision to move that process through parliament and make the amendments, then from our perspective we should be able to close the bond relatively quickly. Our goal is still right now to get that bond closed before the end of this calendar year. “ 

However, it may not be so simple - especially if a Progressive Liberal Party (PLP) administration is elected. BPL’s Board will almost certainly change, and the new government will likely want to take time to assess the bond terms and determine if it wishes to alter them or even proceed at all. At the very least, the bond’s issuance will probably be pushed into 2022. 

Another deal’s fate that could be impacted by the election, and its outcome, is Shell North America’s takeover of New Providence’s baseload generation and the new power plant at Clifton Pier, together with the liquefied natural gas (LNG) storage and regasification facility that will accompany this.

Dr Moxey said: “The Shell negotiations have gone on. Obviously we have concluded certain pieces and portions of that negotiation. There are other stakeholders that are involved in that process and so we’re just working through the process over time. 

“We don’t know when a final decision will be made, but we will certainly let the Bahamian people know as soon as those final decisions have been made.” Rejecting the notion that the upcoming general election is further delaying agreement with Shell, Dr Moxey said: “All I know is that there are other stakeholders that are responsible for being a part of the decision-making process and so we’re just working through the process step by step.” 

Turning to progress on BPL’s solar initiatives, Dr Moxey said: “We hope to announce very shortly a solar renewable energy development framework for the country. So we’re very excited about the possibilities both in New Providence as well as the Family Islands as well. 

“Ragged Island, as you know, was the first solar project that we’ve kicked off, and obviously we’ve had some significant delays due to a piece of equipment that had to be custom-made for that project. We should have delivery of that grounding transformer this week.

“We are doing everything we can to fully commission the Ragged Island solar system by early November, and Ragged Island should be up and running with 96 percent to 97 percent of their power from solar energy and renewable energy sources.”