Agencies Achievements & Ongoing Initiatives
In February of this year, we signed the Management Services Agreement (MSA) with PowerSecure, delegating to
PowerSecure management services for Bahamas Power and Light (BPL) for the next five years. The MSA
includes a business plan which outlines cost-reduction and reliability targets along with renewable energy and
customer service initiatives for New Providence and the Family Islands.
Annex H
Ahead of the signing, Government tabled in Parliament and passed key legislation that
amended the Electricity Act to provide for the incorporation of BPL, as a wholly-owned subsidiary of
Bahamas Electricity Corporation (BEC), to provide safe and secure electrical services for The Bahamas in a
modernised and cost-effective manner.
established the issuance of a rate reduction bond, which BPL will utilise to refinance BEC's existing legacy
debt and to fund infrastructure and efficiency investments for BPL which would result in a net reduction to
customer electricity bills; and
mandated URCA to take on the regulatory aspects of the electricity sector and safeguard the interests of
the consumer
As promised, our deliberate steps in respect of energy reform have already and will continue to create
efficiencies that will allow for significant reduction in the cost of energy, reliability of service, increased energy
security and environmental responsibility. This accomplishment has brought welcome relief to householders
and the business community. This is a critical intervention to stimulate both domestic and foreign investment.
Development of Public Infrastructure
Public infrastructure – roads, airports, harbours and ports, and basic public utilities such as water and electricity
– are critical to the growth of the economy. Given the imbalance between our great infrastructural needs and
our fiscal constraints, Government is a committed proponent of the Public-Private Partnerships (PPPs) financing
model for future development. This model requires the agreement for users to contribute to the costs of
certain infrastructural investments.
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2016/2017
DRAFT
ESTIMATES
OF REVENUE &
EXPENDITURE
Significantly, the geography of our nation represents another important motivation for PPPs. As we strive to
enhance development prospects across the breadth of our nation, there will be a clear need for enhanced public
infrastructure. An avenue will therefore exist for exploring the feasibility and desirability of PPP arrangements
with developers and other private sector interests to ensure that the appropriate supporting infrastructure is
constructed and managed for the benefit of all stakeholders, including local residents.
The Ministry of Works & Urban Development is cooperating with other agencies of Government to ensure
improvements to a number of Family Island roads and bridges;
upgrades of a number of Family Island Airports;
improvements to the water distribution and wastewater/sewerage systems on all islands;
construction of new and repairs to existing Government buildings, and
construction of new and repairs to the health care infrastructure and schools.
The Buildings Control Division statistical reports indicate that for the first 3/4 of 2015-2016 year, building
applications approvals were down by approximately 10% of the same period of the preceding year. This deficit
was also reflected in the permit value which showed a reduction of $101.3 million resulting in a 24% decrease.
Construction starts in New Providence over the same period showed a decrease of 20% with a decreased value
of $4.1 million over the previous year. During this period the number of units had also dropped from 262 units
to 220 resulting in a 16% deficit.
While these statistics indicate a downturn in the construction industry, building permit fees for that same period
totaled $864,207.03 resulting in an 8.4% increase.
Water and Sewerage Corporation
The Water and Sewerage Corporation (WSC) is making good strides to move toward profitability with its NonRevenue Water Reduction (NRW) Programme in New Providence, where leaks have been reduced from nearly
7Million gallons per day (Migd) to less than 3Migd., representing a savings of over 2.5 Billion gallons or $15Mn.
The Wastewater Master Plan for New Providence completed and design and bidding documents for $15Mn
sewerage works have been prepared for tender.