Gov. Defends BPL Purchase Agreement, Reveals $7M Land Purchase By FNM Gov.

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NASSAU, BAHAMAS – During debate in the House of Assembly this morning, Prime Minister Philip Davis defended his government’s recent agreements with FOCOL Limited and Shell.

Davis said the agreements began under the former FNM administration and were a bad deal to start with, until his government cleaned up the deal.

Philip Davis – Prime Minister
“FOCOL, they were renting generation from them, it was costing the Bahamian people up to 40 million dollars or more a year. That went directly to the bottom line of BPL, not passing on. We have converted it now to ensure a capacity charge is what it is. So that’s where it started.”

His response came during Opposition Leader Michael Pintard’s contribution to the Automatic Exchange of Financial Information Bill.

Just last week, the government signed a purchase agreement with FOCOL to develop an LNG terminal at Bahamas Power and Light’s Clifton Pier Plant. The deal is expected to save Bahamians up to $180 million.

Pintard questioned if the recent deals went through the competitive bidding process.

Michael Pintard – Leader, Free National Movement

“Where is the competitive bidding that allows multiple persons to have an opportunity to bid on generating wealth? With respect to the solarization projects, yes in the Family Islands, competitive bidding, in New Providence, competitive bidding.”

The Prime Minister maintains the documents relating to the deal will be tabled and laid in Parliament at the appropriate time.

But Pintard didn’t stop there. He referenced aspects of the deal, adding that he doesn’t believe the minister nor the Prime Minister fully understands the deal.

It prompted this bombshell revelation from Energy Minister JoBeth Coleby-Davis.

JoBeth Coleby-Davis – Minister, Energy and Transport

“BPL is financially strapped. If the FNM had looked at the entire transformation of BPL, they would not have entered into a land-purchasing deal and paid $7 million out of BPL’s already cash-strapped bank book to a company who was selling land and never closed the deal. The cost was $14 million, they paid $7 million, and we got no land. The person still holds the land, they have our $7 million, and this was a part of their energy reform plan.”