NASSAU, Bahamas, CMC – The Grand Bahama Power Company (GBPC) says “no final agreement” has been reached with the government over the sale of the company despite the government seeking parliamentary approval to guarantee a US$280 million loan to the company.
The government says US$200 million will be used to acquire all the ordinary voting shares of the Grand Bahama Power Company, and a US$80 million loan to assist with capital expenditure and working capital.
“I want to confirm with you that while discussions between Emera and the government continue to be productive, no final agreement on the sale has been reached,” said GBPC chief executive officer, Dave McGregor, in an email to employees.
“I know that uncertainty created by a potential change in ownership isn’t easy, but I remind you to please keep your minds on task, work safely, and watch out for each other.”
In January, Prime Minister Philip Davis announced that the government signed a memorandum of understanding (MoU) with the Canadian multinational energy holding company, Emera, with respect to the GBPC and that it “reflects a shared commitment to explore a new path forward for energy in Grand Bahama”.
He said the government intended to assume control of the power company.
But in an almost immediate statement, the Halifax-based Emera said that while it had signed an MOU with the government, there was “no final agreement at this time”.
Opposition Leader Michael Pintard has said that his Free National Movement party cannot “endorse piling new debt onto an already broken system”, describing the venture as “risky”.
“For a government that has failed to reduce electricity rates in New Providence, and has also overseen the mishandling of BPL, we find it unlikely that this rushed action will ease the financial burden on any Grand Bahamian,” he said.
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