Prime Minister Philip Davis condemned the previous Minnis administration for what he described as a series of costly failures during their tenure at the helm of Bahamas Power and Light (BPL).
Davis contended that under the former government, BPL suffered significant financial losses, mismanagement, and operational inefficiencies, which have had long-lasting effects on the country’s energy sector.
“A report produced during their tenure said that key parts of the grid were approaching ‘end of life’ status, yet they made no significant upgrades to the transmission and distribution system during their term,” Davis said.
The Prime Minister’s sharpest criticism focused on the controversial acquisition of Wartsila engines, which he argued was one of the most disastrous decisions in the country’s energy history.
“The centerpiece of their efforts was the acquisition of Wartsila engines — one of the costliest, worst-executed, and most misleading projects in our energy sector’s history,” Davis declared.
He went on to reveal the false promises surrounding the engines' capabilities: “The engines were touted as ‘tri-fuel’ capable, including LNG. That was false. Under their own instruction, the engines were stripped of their gas-ready features before delivery. Converting them to use LNG now would cost millions.”
The Prime Minister also pointed out serious operational and safety issues stemming from the way the engines were installed.
“They installed these engines in a building that was already structurally unsound. Today, BPL cannot safely run all seven engines at the same time due to the compromised condition of Station A,” Davis said.
Davis also outlined the financial toll of these decisions. “They committed over $100 million for a plant that has not delivered on its promised reliability or output,” he stated. “They locked BPL into an inflated operations and maintenance agreement with Wartsila, costing more than $24 million before it had to be terminated for poor performance.”
The Prime Minister further highlighted additional missteps, including an internal report revealing a breakdown in BPL’s board and questions surrounding transparency.
“An internal report documented a messy board breakdown and serious questions about transparency,” Davis noted.
He also condemned the failed Rate Reduction Bond process, which he said squandered over $20 million in professional fees, and the $70 million voluntary separation package (VSEP), which he claimed weakened BPL’s operations and led to increased costs.
“Even a $7 million deposit was paid to a landowner for BPL to acquire land, but the balance was unpaid, so the landowner kept the $7 million AND the land,” Davis remarked.
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