Ten Years Worth of Deals, Restructuring, and Purchasing at BPL

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NASSAU , BAHAMAS – As residents continue to endure constant blackouts in the middle of the summer heat, we’re taking a look back at the efforts of successive governments to deal with the long-running crisis at Bahamas Power and Light.

From privatization and international partnerships to the purchase of new equipment and even the formation of new companies, successive governments have tried different approaches to solve the power crisis.

But despite those efforts, the problems continue.

Our Joshua Williams took a look back at some of those deals and the direction the current Davis administration is now heading.

It’s no secret that Bahamas Power and Light has had its struggles for decades.

Much of those troubles have been blamed on aging equipment, an issue successive governments have been trying to address for the past decade.

Back in May 2015, the Christie-led administration signed a management services agreement with North Carolina-based company PowerSecure International to take over the day-to-day management of energy generation, transmission and distribution.

Utility Infrastructure President Ronnie Brannen said at the time, the company had its hands full.

Ronnie Brannen – Utility Infrastructure President, PowerSecure

“Aging infrastructure, higher operating cost, we have some expensive and inefficient fuel. We have organizational inefficiency. We need to deal with some geographical challenges that are very unique that we need to understand it and work on.”

But the marriage was short-lived.

When the Free National Movement took over in 2017, the Minnis-led administration canceled the deal, citing concerns over high executive compensation and a desire for local management and cultural knowledge.

Public Works Minister Desmond Bannister made the announcement in the House of Assembly.

Desmond Bannister – Former Minister, Public Works

“The MSA is therefore terminated. PowerSecure had agreed to leave their personnel in place until as late as 31st December 2017 to facilitate an orderly transition.”

The Minnis administration then shifted its focus, entering an agreement with power giant Wärtsilä in 2021.

The deal included the purchase of a 132-megawatt power plant from the company, featuring seven large internal combustion engines installed at Station A at the Clifton Pier plant.

Those generators and other upgrades are still in use today.

However, in 2023, a BPL report revealed what the now Davis administration described as deficiencies in the deal.

The government then announced a 25-year joint venture agreement with U.S.-based Pike Corporation, through its Bahamian subsidiary, Island Grid Solutions, to upgrade and manage Bahamas Power and Light’s transmission and distribution network in New Providence.

The partnership led to the formation of the Bahamas Grid Company, with the government holding 40 percent ownership and Pike holding 60 percent.

Jobeth Coleby-Davis – Minister, Energy

“This partnership is not merely about maintaining the status quo. It’s about stepping into the future with a grid that is prepared for the energy challenges of tomorrow.”