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Thursday, October 3, 2024
Tuesday, September 3, 2024
The Enduring Impact of Colonial Governance Structures on Post-colonial States
The persistence of political clientelism, nepotism, and bureaucratic inefficiency in The Bahamas and the wider region can be traced back to their colonial past, where these practices were instrumental in maintaining control over the population...
The Enduring Legacy of Colonial Bureaucracy in Post-Colonial States: A Comparative Analysis of CARICOM, The Bahamas, Singapore, and India
Nassau, NP, The Bahamas
Refreshed Date: 03 September, 2024
Abstract
This paper explores the enduring effects of colonial governance structures on post-colonial states, with a particular focus on The Bahamas and the wider Caribbean Community (CARICOM), alongside Singapore and India. The study contrasts the experiences of these former British colonies, highlighting how each region has navigated its colonial legacy. While Singapore and India have successfully reformed their colonial systems to foster economic growth and political stability, many CARICOM nations, including The Bahamas, remain entrenched in bureaucratic and nepotistic frameworks that stifle innovation and development. The paper further investigates the role of political clientelism, nepotism, overregulation, and other colonial-era practices in maintaining these legacies across CARICOM, and offers insights into potential pathways for reform.
Introduction
The legacy of colonialism continues to shape the political, economic, and social landscapes of many post-colonial states, particularly in the Caribbean. The Bahamas and other member states of the Caribbean Community (CARICOM) provide compelling case studies of how colonial governance structures can persist long after independence, resulting in political systems characterized by nepotism, bureaucratic inefficiency, and a lack of innovation. This paper contrasts these CARICOM states with other former British colonies, such as Singapore and India, which have successfully transitioned away from colonial governance models, fostering robust economic growth and political stability.
A Stern Charge to the Politicians of CARICOM
Nation-building in the Caribbean is hampered by various socio-political factors, chief among them being political clientelism, which often teeters on the edge of democracy by default. This issue, deeply embedded in the fabric of Caribbean politics, has exacerbated poverty across the region, a phenomenon noted by scholars such as Hinds (2018) and Lewis (2007). Nepotism and the "big shot" syndrome further entrench this quagmire, stalling meaningful progress and perpetuating decadence in governmental hierarchies (Premdas, 1996).
A closer examination of Guyana, Jamaica, and Haiti reveals the stark failures of political structures with no immediate remedies in sight. CARICOM, the regional body established to foster economic integration and political cooperation, has been largely ineffective. Scholars like Payne and Sutton (2001) have argued that CARICOM's institutional framework is weak, and its successes are limited, with The Bahamas and Cuba being the few exceptions. An example, after the Cuban revolution in 1959 Cuba has established over 3,000 institutions that are still benefiting the Cuban population today, such as science, education, medicine and healthcare. In the case of The Bahamas we still maintain our dollar on par with the US— The Bahamas is coupled with debt, bureaucracy and overregulation. The underlying cause of this failure is political clientelism—a systemic issue that we, as Caribbean nations, must acknowledge and address.
In this critical juncture of Bahamian development, it is imperative to distinguish between politics and development. The bureaucratic system, particularly in developing countries, including those in the Caribbean, has strangled national development. This is evident in the works of scholars such as Girvan (2010), who critiques the bureaucratic paralysis that plagues the region's governance structures.
Colonial Legacy and Political Clientelism in CARICOM
One of the most significant issues facing post-colonial states like those in CARICOM is the persistence of political clientelism. This system, where political leaders use state resources to secure the loyalty of clients, often at the expense of broader national interests, is deeply rooted in colonial practices. In countries like The Bahamas, this has resulted in a political environment where nepotism thrives, and decisions are often made based on personal connections rather than merit. The issue of political clientelism is not unique to The Bahamas; it pervades the entire CARICOM region, severely hampering development efforts.
Bureaucracy and Overregulation in CARICOM
The colonial legacy in CARICOM is also evident in the pervasive bureaucracy that hinders economic development and innovation. British colonial administration was known for its rigid and hierarchical structures, designed to maintain control over the colony's population. This bureaucratic culture has persisted in many CARICOM nations, where red tape and overregulation are common complaints among businesses and investors. Similar to The Bahamas, other CARICOM states have inherited complex bureaucratic systems from their colonial past, often criticized for inefficiency and corruption. While some nations like Jamaica have made efforts to reform their bureaucracies, progress remains uneven across the region.
Comparative Analysis: CARICOM vs. Singapore and India
Singapore, India, and the CARICOM nations provide a striking contrast in how post-colonial states can either transcend or remain trapped by their colonial legacies. Singapore's success in overcoming its colonial past can be attributed to its emphasis on meritocracy, strong legal institutions, and a strategic focus on economic development. India, while facing significant challenges in its post-colonial journey, has also made notable progress in reforming its governance structures, particularly through economic liberalization and the strengthening of democratic institutions. On the other hand, many CARICOM nations, including The Bahamas, have struggled to move beyond their colonial inheritance, with political and economic systems that reflect the same inefficiencies and corruption that characterized the colonial era.
The difference in outcomes between these former colonies underscores the importance of institutional reform in the post-colonial context. While Singapore and India have made strides in implementing reforms that foster growth and stability, CARICOM continues to grapple with the challenges of political clientelism, nepotism, and overregulation.
A Critical View on CARICOM's Single Market Initiative
The idea of a "single market" for the Caribbean is flawed, as the dynamics of global capitalism and the liquidity of global capital are too complex for CARICOM to manage effectively. Scholars like Worrell (2008) have critiqued the overly ambitious nature of the single market initiative, pointing out that the European Union, despite its vast resources, continues to struggle with its common market vision. The EU's challenges, despite its historical development and financial superiority, underscore the futility of a similar initiative in the Caribbean.
Foreign investment decisions are typically based on specific national criteria rather than regional affiliations. This reality undermines the rationale for a CARICOM common market. As pointed out by Alleyne and Ivey (2014), investors are primarily concerned with factors such as geographic location, amenities, safety, legal integrity, and the robustness of financial markets—all of which vary significantly across Caribbean nations.
Given these complexities, the suggestion of hemispherical integration—political and judicial rather than purely economic—is worthy of consideration. Political and judicial integration could lay a stronger foundation for future trade agreements, avoiding the pitfalls that doomed NAFTA, which lacked a political instrument to prevent multinational exploitation (Pastor, 2001).
The Bahamas, by refraining from joining a CARICOM single market economy, has positioned itself as a potential leader in the region. The Christie Administration's decision reflects an understanding of the nuances of market forces in a small economy and offers a pragmatic approach to resolving the region's economic and social challenges (Bethell, 2017). The Bahamas can best serve the region by sharing its insights on market economies, emphasizing that size and arrogance are not synonymous with success.
Conclusion
The experience of CARICOM highlights the enduring impact of colonial governance structures on post-colonial states. The persistence of political clientelism, nepotism, and bureaucratic inefficiency across the region can be traced back to its colonial past, where these practices were instrumental in maintaining control over the population. In contrast, Singapore's success in breaking free from its colonial legacy, and India's ongoing efforts to reform its inherited systems, demonstrate the potential for growth and stability when a nation is able to reimagine its governance structures. For CARICOM to move forward, significant reforms are necessary to reduce bureaucracy, promote meritocracy, and create environments that encourage innovation and investment. The continued reform efforts in India should serve as a model, focusing on further reducing bureaucratic inefficiencies and tackling political clientelism to sustain its growth trajectory.
Works Cited
Alleyne, Dillon, and Stephen Ivey. Economic Policy in the Caribbean: The Impact on Growth and Development. Palgrave Macmillan, 2014.
Bethell, John. "Ethics and Accountability in the Caribbean: The Case of The Bahamas." Commonwealth and Comparative Politics, vol. 55, no. 3, 2017, pp. 398-414.
Girvan, Norman. CARICOM: The Struggle for Economic Integration. Ian Randle Publishers, 2010.
Harsch, Ernest. Africa’s Governance Crisis: Failures and Opportunities. Palgrave Macmillan, 2001.
Hinds, David. Ethnopolitics and Power Sharing in Guyana: History and Discourse. New Academia Publishing, 2018.
Lewis, Gordon K. Main Currents in Caribbean Thought: The Historical Evolution of Caribbean Society in Its Ideological Aspects. University of Nebraska Press, 2007.
Payne, Anthony, and Paul Sutton. Charting Caribbean Development. Macmillan Caribbean, 2001.
Pastor, Robert A. Toward a North American Community: Lessons from the Old World for the New. Peterson Institute, 2001.
Premdas, Ralph R. Ethnicity and Identity in the Caribbean: Decolonization and Cultural Diversity. University of the West Indies Press, 1996.
Worrell, DeLisle. "The Single Economy and the Caribbean Single Market and Economy." Caribbean Development Bank, 2008.
Thursday, August 22, 2024
Does A Picture Really Tells A Thousand Words?
Dennis Dames Picture of Many Words
DAD Words in Picture
A bona fide picture of me which says many fitting words of love, and positive vibrations. It is an actual image of a merry life with the esteemed tribe - that is greatly valued and appreciated.
This admired picture of me depicts a dedicated soul in peaceful balance and in harmony with the divine outdoors. I'm rightfully endorsing nutritious family life and closeness. I'm living in the love of God, I am celebrating the upliftment of family time, as I am in the wonderful company of very pleasant friends, neighbours and well-wishes.
I'm openly revealing my bounteous gratitude in the faithful exercise of kinkeeping. I'm smiling thankfully because I am happy and rich in the favour of a good life.
I'm confidently showing the brilliant colours of genuine thankfulness and freedom for all the goodness that they are worth. I'm surely ignoring the busy toxic spirits, and embracing the ever-preferred clan unity and wholesome memories of the beloved bunch.
I am truly rejecting the deadly poisons of negativity and deceitful division. I'm holding hands dedicatedly with the noble qualities of common sense and fruitful worthwhileness.
My positive thumbs are up because I really approve of the hopeful positivity in the atmosphere. I want the world to know that I am assuredly relishing in the niceness of the heavenly peace and ongoing high spirited life with caring people.
I am declining unpleasant disunity and ongoing bloody wars. I am saying without doubt - that people who are gathered in honourably abiding family values - are deservingly strong and secured for years to come.
I am proudly showing that I care to be here. I am presenting complete delight which I am proud to portray here - faithfully with a smile.
I am saying that if this photo is going to be about a thousand words - then those words must be filled with the righteousness of oneness. I am seeing hope and an enriching future in our group's commitment to stay dutifully together for the lasting benefit of every member.
I am clothed gloriously in love - so I'm using the photo opportunity to say thank you to everyone who would have held me up strong and optimistic throughout the years. I have good reasons to be thankful to so many kind folks, and a photo opp of exultation to the good-hearted is always an ideal way to say, 'respect!'
I feel comfortable at home while being without regret - away from my home. I am posing approvingly for a friendly photo shot as if I am in my very own sacred backyard. There are so many other ideal places that I call home, for I am made to feel that royal way by all welcoming hosts.
I am boldly holding my head up as I have a lot to be happily grateful about. I'm wearing clean clothes that are neatly pressed, and I have not sat on and broken any useful shades or glasses for a while.
The brilliant colours of my shirt blend agreeably with the rest of the calm, cool, and colourfully collected environment. I am outfitted compatibly for the occasion.
My tan hat is in full agreement with the wholesome treats of the happenings. The togetherness program is a familiar thing from head to toe - that is worthy of the jubilant repetition.
This is a legit photo of complete soberness in an arena of great liquified temptation. It does not mean that I will not give in to the enticement later. The thing that's on my mind - is hidden somewhere behind me.
My moustache is now salt and pepper of the colour. So is my beard. The living is pleasing nonetheless - so cheers.
The naturally salt and pepper coloured looking wall behind me is part of an almost 400 years old fortress on a hill in the city of Nassau - overlooking the main harbour entrance. It was built in the late 18th century by the British colonial governor, Lord Dunmore - after the American Revolution - to fend off invaders - like pirates and Spaniards. The fort was named in honour of Charlotte, the wife of King George III.
Fort Charlotte is the largest fort among a few well preserved others on the island of New Providence. Fort Charlotte has never seen action. It is well kept and preserved, and is a popular tourist attraction.
The soulful music plays, and its uplifting and stirring sounds resonate in the open air - complementing an already groovy setting. The approval of the music sets the right continence for the day. I am all smiles because it's another beautiful one.
My pleasurable thoughts are focusing fully on the cloud nine event - on the here and now exclusively!
The coolers are fitfully filled with ice between the protective walls of the fort, and we are all set for the long-haul fest - until. The pic is truly a reflection of our typical well-blended gathering; the mood is always one of merriment and sunny solidarity.
I know that there is more to this photo than what I have told above. I am aware that I have a passive reading issue when it comes to text documents. It follows therefore, that the same might apply to photos. Hence, I have committed myself to more looks at the subject image from time-to-time - with the view of expanding its story.
Yes, show-and-tell the good news is the name of the game without more of the same. An optimistic story or a picture worth sharing - is something that one should see as a noble cause in the interest of fertile literature, and the living peace over the losing wars of the dead.
The captioned photo says, 'Let the good time roll in peace.' And it did - as the status quo remained pleasantly unbroken throughout.
22 August, 2024
Sunday, July 21, 2024
Why We Call It Artificial Intelligence (AI)?
Will Artificial Intelligence - AI replace Humans?
Artificial Intelligence, AI is not smart like humans
The Difference Between Human Learning and Machine Learning
The Evolution of AI: From Theory to Practical Applications
Thursday, July 4, 2024
A Real Success Story of E-commerce in the Southern Cone of Argentina, Brazil, Chile, Paraguay, and Uruguay
The future holds further growth and greater opportunities for companies in Latin America and the Caribbean as they continue to consolidate their position as major players in global e-commerce
E-commerce in the Southern Cone
by Florencia Attademo-Hirt - Fabrizio Opertti
In recent years, a boom in e-commerce has swept the world, transforming how businesses operate and people shop.
The Southern Cone countries—Argentina, Brazil, Chile, Paraguay, and Uruguay—are no strangers to this digital revolution. E-commerce is becoming increasingly important in these economies, creating new opportunities for businesses to reach customers worldwide, diversify their export markets, and boost sales. It’s also driving growth in logistics, payment systems, and financial services.
The spread of e-commerce is hugely significant. According to the latest estimates, e-commerce sales in Latin America and the Caribbean will exceed US$117 billion by 2023 and are expected to almost double by 2028. This growth could potentially lower the cost of products for Latin Americans by increasing efficiency, cutting out intermediaries, and reducing transaction costs. It also gives consumers access to a greater quantity and variety of goods and services.
The region is still facing challenges: the data shows that domestic and cross-border e-commerce in Latin America and the Caribbean represent just 0.77% of GDP, one of the lowest shares in the world, compared to 3.11% globally. There are also significant differences between countries: Argentina, Brazil, and Mexico alone account for more than 70% of the region’s e-commerce.
To better understand the progress made by companies in this field in the Southern Cone, a new IDB report takes stock of the current status of this form of trade. The report is based on data on the adoption of e-commerce and online transactions, as well as a proprietary survey examining how companies in the five countries use e-commerce and the challenges they face in building their online sales. It also discusses the outcomes of specific government policies and makes several policy recommendations to boost cross-border online sales.
The survey led to some interesting findings:
- E-commerce is widespread: almost half of microbusinesses use a marketplace as part of their sales operations to individual consumers, while that percentage is around 70% for medium and large companies. Companies of all sizes, from small businesses to large corporations, are embracing the opportunity to reach consumers online.
- International expansion: One third of the companies surveyed that use marketplaces for sales report that they are expanding their operations internationally through e-commerce. This approach enables companies to enter new markets, increase their opportunities for growth, and diversify their revenue streams.
- Greater customer acquisition, revenues, export opportunities, and lower costs: whether through marketplaces or their own online stores, sellers report that e-commerce brings significant benefits in terms of new customers, sales, and export opportunities. They’ve also forged closer ties with local suppliers, which positively impacted their communities. About one-fifth of companies selling through online marketplaces have hired new services in their home markets, and one-fourth have increased the services they use as a result of selling online. In contrast, companies using social networks as a sales channel are less likely to see these benefits. However, even these businesses say that they have gained new customers, improved the customer experience, and increased sales to existing customers due to using these channels.
- Logistics challenges: 60% of companies selling goods say that high domestic logistics costs have cost them growth, while 57% attribute this loss to the quality of international logistics and 56% to the cost of these.
- Data movement and cybersecurity challenges: the top challenges for services companies are moving data across borders (64% of respondents), the quality of internet connections (60%), managing market access rules (55%), and cybersecurity (54%).
The survey reveals that e-commerce is a real success story in the Southern Cone. Businesses of all sizes are using this online revolution to expand their operations. However, the private sector’s logistical, regulatory, and data security challenges should not be overlooked.
The future holds further growth and greater opportunities for companies in Latin America and the Caribbean as they continue to consolidate their position as major players in global e-commerce.
For these reasons, the IDB is deeply committed to strengthening e-commerce in Latin America and the Caribbean. We firmly believe in creating and nurturing connections between Latin American and Caribbean companies and helping them find new business partners and export markets. To achieve this, we build business networks, create spaces for dialogue, and facilitate matchmaking among companies in the region. We also help generate empirical evidence to inform public policy. For example, we’ve carried out studies on logistical barriers to e-commerce, financial tools for businesses, and the challenges of online payments. We’ve also emphasized the importance of rules defining online intermediaries’ work and responsibilities and their impact on the digital economy, including creating and distributing third-party content used by platforms and access to this.
We also created ConnectAmericas, a regional and global platform that has become the region’s leading online network for entrepreneurs. It has more than 800,000 registered users and received more than 14 million visits. Online platforms like ConnectAmericas play a crucial role in reducing search costs, which makes it easier for companies to export. A study of companies using ConnectAmericas found that their exports increased by 17% after joining the platform.
E-commerce is not only a critical export channel for the region, it’s also a potentially significant growth engine for businesses.
In light of this positive outlook, we at the IDB will continue to work closely with the private and public sectors to foster this momentum. Our goal is to help build a more inclusive and developed region where e-commerce drives progress and prosperity for all.
Tuesday, June 11, 2024
The Bahamas Government Announces Comprehensive Energy Reforms
Announcement of New and Comprehensive Energy Reforms across the Commonwealth of The Bahamas by Hon. JoBeth Coleby-Davis, M.P., Minister of Energy and Transport
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Our specific reforms include:
▪ Building of utility-scale solar power in the Family Islands
▪ Expansion of solar projects on New Providence
▪ Modernization of the Electricity Grid and Transmission and Distribution Network for New Providence, through a partnership between BPL and Island Grid
▪ Transforming Energy Generation through LNG Implementation in New Providence
and
▪ Equity Rate Adjustment. Reform
Reform 1: Building of utility-scale solar power in the Family Islands
In December 2023, the Government of The Bahamas and BPL launched a Request for Proposals (RFP) Family Island New Energy Generation via Micro- Grids, Clean Fuel & Renewables.
The goal of the RFPs is to create more independence in energy generation on all our islands, utilizing clean fuel and renewables.
We invited bids from respondents interested in offering renewable energy based Independent Power Producer projects for multiple systems in Abaco, Andros, Bimini, Eleuthera, Exuma, Long Island, San Salvador, and The Berry Islands.
The projects aim to regulate resource management, improve energy storage capacity, facilitate new generation capabilities, and enhance sustainability efforts. The development of microgrids on these various islands will ensure consistent and reliable power output for its inhabitants, 24 hours a day.
Each project will be managed locally to minimize wastage, reduce generation costs, and will ultimately drive each island involved toward the goal of self-sustainability.
All proposals were thoroughly reviewed and scored by an Evaluation Committee, with broad experience in the public service, energy, and legal fields.
I am pleased to share that the recommended IPP for Abaco is Verdant and Consus, Andros is Providence Advisors, Eleuthera is Verdant and Consus, Exuma is INTI Corporation and Osprey Construction, and Long Island, San Salvador, and The Berry Islands is Wilkem Technologies and Roswall Incorporation.
Currently, we are negotiating the power purchase agreements.
Each island has unique energy requirements and geographical constraints, necessitating a customized energy solution. To ensure the most suitable approach, each island's technical specifications were thoroughly reviewed for applicability. We have finalized the design criteria in terms of agreement and selected both the microgrid controller and the communication profile. Long lead time supply chain equipment has been identified and their specifications have been submitted to the respective manufacturers. We anticipate that ground-breaking will begin by the end of 2024.
To ensure operational efficiency, every Independent Power Producer was required to submit a rigorous training programme for BPL staff. This included operating and maintaining gas engines, utility-scale solar, battery energy storage systems, microturbines and biomass to electricity. These leading-edge technologies will put BPL at the forefront of the global energy transformation.
Reform 2: Expansion of Solar Projects on New Providence
The New Providence RFP invited independent power producers to interconnect more renewable energy options to the national grid.
This initiative provides a green energy solution for the existing battery energy storage while adding renewable energy to the overall energy mix.
Approximately 70 MW of solar power and 35 MW of battery energy storage systems will be integrated into the existing grid. 25MW of the solar energy will be paired with the 25MWH of battery energy storage system at the Blue Hills Power Station.
I am pleased to share that the recommended independent power producer for New Providence are Eco Energy, INTI, and Compass.
The power purchase agreements are currently being negotiated.
Reform 3: Modernization of the Electricity Grid and Transmission and Distribution Network for New Providence, through a partnership between BPL and Island Grid
To understand reform 3, permit me to share a few irrefutable facts:
• BPL operates 29 power stations on 17 islands.
• In less than a decade, BPL/ BEC amassed almost $500M in debt.
• BPL has loan interest payments of more than $28M annually and a $122M pension liability.
• BPL has about 90MW of aged/obsolete generation assets teetering on the edge in New Providence and another 30MW in the family islands.
• To augment its generation needs in New Providence and the Family Islands, BPL relies on 145MW rental generation between New Providence and the Family Island costing about $42M annually.
• BPL’s T&D infrastructure is in desperate need of upgrades as much of it dates to the 1980s and early 1990s with few enhancements to reduce significant system losses.
• BPL’s present infrastructure is crippled by the effects of climate change with soaring temperatures and natural disasters having a detrimental effect on the company’s assets.
• Finally, BPL is not well positioned to complement the country’s growth projections for the next 5-10 years as generation projections call 340MW of power needed for New Providence and 100MW for the Family Islands.
The partnership with Island Grid will extend the infrastructure capabilities beyond BPL alone can do by bringing in a generation and T&D expert to pursue much-needed upgrades.
It is important to share that Island Grid has over 60 years’ experience in delivering best in class energy infrastructure. The company’s projects included work on Walkers Cay, Grand Cayman, Grand Bahama, and Puerto Rico.
The partnership with Island Grid, will lower the fuel cost, and improve operating efficiency.
The benefit of this arrangement will be felt through affordable energy prices and fewer power interruptions.
Energy costs will be lowered through several mechanisms. First is the shift towards generation options with lower-cost fuels or no-cost fuels in the case of renewable generation. Second is the upgrade of the grid, which will bring about a more efficient delivery of power, so less energy is wasted getting the power from the generation plant to your home. Third, a well-built and well-sized system will allow for lower ongoing maintenance costs than what we currently have today. All these savings will be passed along to customers.
The T&D agreement will improve reliability on New Providence.
The T&D work is designed to improve reliability along several dimensions: the addition of a new switching station and a new transmission line and proper looping of the system, reconductoring work, substation protection upgrades and targeted distribution protection schemes and voltage regulation. These are foundational to the reliable operation of any T&D system and are currently in urgent need of attention.
To maintain international standards and engineering oversight, ECF Consulting has been engaged as the Owner’s Engineer. ECF, on behalf of the Bahamian people, will independently oversee all projects to completion, coordinating between various stakeholders, including contractors, suppliers, and regulatory authorities.
To the workers of BPL, I wish to categorically state that there will be no layoffs because of the 17 partnership. There is no intention to offer a voluntary separation programme and current industrial agreements will not be impacted.
It is our expectation that exciting new roles and training opportunities will emerge that BPL employees will have early access to.
Meetings will be held with all employees of BPL to ensure that all questions and concerns will be answered.
Reform 4: Transforming Energy Generation through LNG Implementation in New Providence
Liquefied Natural Gas (LNG) is set to revolutionise energy generation in New Providence, significantly benefiting consumers and the environment.
By integrating LNG, we aim to reduce overall energy costs, enhance the efficiency of our generation assets, and minimise environmental impacts. This initiative introduces LNG as a cleaner alternative to Heavy Fuel Oil and Automotive Diesel Oil.
LNG is being implemented for efficient generation in New Providence. To reduce the overall energy cost to the consumer, improve the efficiency of the generation assets, and reduce environmental impacts, LNG is being brought to The Bahamas as HFO and ADO.
The bulk purchase of LNG will be sourced from Shell. Other partners in the LNG implementation will include Bahamas Utility Company (BUC), as the independent power producer under a purchase power agreement.
By 2026, we will construct a state-of-the-art 177 MW Combined Cycle LNG plant at the Blue Hills Power Station. This innovative facility will feature four natural gas units paired with two steam turbines, maximising efficiency by utilising excess steam from the gas units.
This combined cycle configuration will be the most cost-effective generation solution in the BPL fleet. It will replace the 107 MW of rented generation capacity and address the 63 MW generation shortfall under contingency conditions, enhancing redundancy and resilience.
In addition to the new units, BPL will convert two of its original generators at the Blue Hills Power Station, completing the transition to a more efficient and resilient system. BPL and its consumers are projected to save approximately $125.6 million annually through fuel switching and improved engine efficiency.
Reform 5: Equity Rate Adjustment
Beginning in July 2024, a new Equity Rate Adjustment will make bills more affordable for many Bahamian families now as we transition to a new era in energy.
With the existing tariff structure, residential customers and SMEs are presently subsidizing general service customers (high energy users).
The Equity Rate Adjustment is a reduction in the base tariff rate for residential consumers. The adjustment creates a more equitable balance to the current tariff structure and encourages energy conservation.
All residential consumers with low and moderate electricity usage will benefit, as the base rate tariff for the first 0 to 200 kWh will be reduced to zero. The upper bands will stay the same, but even if you are a resident with a bill of around 600kWh you will still benefit from the rate of your first 200kWh being reduced to zero. Note that everyone will still have to pay for the fuel charge for every unit they consume.
The Commercial base tariff will drop slightly from 15 cents to 14.5 cents and the Temporary Supply base tariff, which particularly affects the Family Islands, will drop from 16.38 cents to 15 cents. Again, they will both continue to also pay for their fuel charge.
We are also amending the fuel charge by reducing the charge for the first 800kWh by 2.5 cents and increasing the charge above 800kWh by 1.5 cents. Consumers who use less energy will enjoy a lower fuel charge. This is important as the more electricity used on the grid, the more BPL must utilize generators which are more expensive to run.
The new rates will be in effect until a comprehensive tariff review is completed, and new rates are approved by the government and URCA.
The General Service base tariff will rise from 8.7 to 10 cents for the first 900,000 units and from 6.2 to 9 cents for units above 900,000 units. Currently General Service customers receive a subsidy of about $20 million from other BPL customers every year, but they will still be paying less than all other energy classes and will still benefit from a more modest subsidy.
The cost of energy should fall over time because of the efficiency upgrades at BPL includes:
- The installation of a new HFO Boiler at Clifton Pier to save $36 million dollars per year in fuel costs
- Installation of two new 30MW LNG burning units, which will save $30 million dollars per year in fuel costs, and
- Conversion of BPL’s USD debt to BSD.
I am so excited that we are all here to take part in the transformative energy journey – to be able to say that we did it. I am very proud that with our solar solutions for New Providence and the Family Islands that all the successful bidders had at least 50 percent Bahamian ownership and many were in fact 100 percent Bahamian owned.
We are also delighted that opportunities for young Bahamians will be created through a partnership with The Bahamas Technical and Vocational Institute (BTVI).
The positive effect of what we are kicking off now will not only be felt by our children and our children’s children generation, but it will be noticed around the world.
Thank you.