Energy Reform in the Bahamas

Prime Minister Phillip Davis (Left) and Opposition Leader Michael Pintard (File Photo)

Introduction to the Energy Crisis

NASSAU, Bahamas, CMC -Prime Minister Phillip Davis says the former Free National Movement (FNM) government “never had a viable, structured plan for energy reform” in the Bahamas and that his administration had to secure a US$100 million loan urgently when it came into office in 2021 to keep the Bahamas Power & Light (BPL) afloat.

Davis responded to a statement by FNM and Opposition Leader Michael Pintard, who accused the ruling Progressive Labour Party (PLP) of spreading “misinformation” about the last administration’s energy reform strategy.

Response to the Opposition Leader

He said the Hubert Minnis administration had “a real, structured plan for energy reform” even though it was never fully implemented.

“The PLP, on the other hand, has wasted nearly four years without publishing a comprehensive energy plan with clear financial projection,” he said.

The State of the Country in 2021

However, the Office of the Prime Minister said in a statement that the country was in crisis when the Davis administration took office in September 2021.

“The new government inherited a fiscal emergency, hospitals in disrepair, schools shuttered, record unemployment, and a failing BPL, which was saddled with more than $500 million in debt. The government had to loan BPL $100 million to keep it afloat urgently,” it said.

Criticisms of the Previous Administration

The government said just before the election that the Minnis-Pintard administration kept spending money “they didn’t have” on a reckless US$14 million land deal tied to a project they knew had no path forward.

“Bahamas Power & Light (BPL) had made it clear: the only way to close the land deal was with proceeds from the Rate Reduction Bond (RRB). The same RRB the FNM had failed to execute — and knew wouldn’t happen.”

The government said that despite this, in August 2021, weeks before voters went to the polls, the Minnis government was still “throwing big money at it.”

“In October 2020, they had already authorized a $5.26 million payment and signed a $9.8 million promissory note. Then, in April 2021, they paid an additional $2 million for a short extension. The original closing date was December 1, 2020.”

Consequences of the Previous Administration’s Actions

Davis said that when his government took office, “the promissory note had already been amended three times.”

He said BPL’s lawyers attempted to renegotiate “to at least retain a portion of the land equal to the seven million dollars already spent,” but the vendor silenced those efforts.

“No legal safeguards were put in place in this arrangement under the previous government. There are no protections for public money. No guarantees to recover what had already been spent.”

The government said that during the COVID-19 pandemic, significant clean energy investments were made across the region but not in The Bahamas.

“But weeks before the election, with sky-high unemployment and suffering across the country, they were rushing forward with a land deal worth millions — despite no funding, project, or protections.

“This wasn’t a transition failure. It was an outgoing administration’s deliberate, reckless decision,” it added.

Call to Action

Prime Minister Davis said that Pintard “knows the FNM never had a viable, structured plan for energy reform. If he disagrees, he should make it public. The Bahamian people deserve to see a plan they were promised repeatedly but never received”.

Conclusion

In conclusion, the energy crisis in the Bahamas is a pressing issue that requires urgent attention. The previous administration’s lack of a viable plan and reckless spending have put the country in a difficult position. The current government must take swift action to address the crisis and ensure a sustainable energy future for the Bahamas.

Frequently Asked Questions

Q: What is the current state of the energy crisis in the Bahamas?

A: The energy crisis in the Bahamas is severe, with the Bahamas Power & Light (BPL) facing significant debt and the country lacking a comprehensive energy plan.

Q: What did the previous administration do to address the energy crisis?

A: The previous administration did not have a viable plan for energy reform and instead spent money recklessly on a land deal tied to a project with no path forward.

Q: What is the current government’s plan to address the energy crisis?

A: The current government has not yet released a comprehensive energy plan, but has taken steps to address the crisis, including securing a US$100 million loan to keep BPL afloat.