2 weeks Ago By Youri Kemp Senior Business Reporter [email protected]
Kwasi Thompson, shadow minister for finance, claimed yesterday that the recent Inter-American Development Bank (IDB) report on public-private partnerships (PPPs) in The Bahamas does not take into account the government’s most recent PPPs. Thompson said in a release to the media: “The so-called PPPs that are underway by this administration were not acknowledged in the recently released Economist Impact Infrascope IDB report, that assessed the countries in the region on their progress in implementing PPP programs. “None of the so-called PPP roadworks throughout the islands were acknowledged by the IDB, because as we in the Opposition have pointed out, these initiatives are simply off-the-book loans taken out with unknown terms through the contractors for these projects, with interest rates and terms that this PLP government refuses to share with the Bahamian people,” Thompson claimed.
The Infrascope 2023/2024 report, published in conjunction with the Economist Magazine, said that “The Bahamas has an overall index score of 38.5 out of 100 (17th of 26 in the region), demonstrating emerging potential in its PPP capabilities. The Bahamas has a relatively favorable risk environment and passed a new PPP policy in 2018; however, most institutional aspects of the policy have yet to be implemented.
” The report also said: “There is robust support for PPPs across all major political parties in The Bahamas, reaffirmed by the current prime minister since assuming office in September 2021. The ruling Progressive Liberal Party’s (PLP) economic plans emphasize public-private collaboration to overcome COVID-19 setbacks, improve housing, advance information technology, and boost job creation.” Thompson, said, however: “The IDB report in many different ways demonstrates clearly how the Davis administration’s handling of the public-private partnership program is a betrayal of the public trust, operated totally contrary to the government policy for PPPs established in 2018.
Despite all of their talk and bluster, the PLP has received a failing grade from the IDB study, leaving The Bahamas lagging behind its regional peers. “The Economist Impact Infrascope IDB report paints a damning picture of the government’s inaction. The Bahamas ranks a dismal 17th out of 26 countries in the region, with an overall score of 38.
5 out of 100. This dismal performance is not merely a reflection of technical shortcomings; it is a direct consequence of the Davis administration’s failure to honor not only its promises, but also the established and published good governance policy for the sector. “This report confirms what we in the Opposition have been saying: The PLP has ignored established government PPP policy, and has not implemented most of what is in the policy.
The PPP Steering Committee and the PPP Operational Unit, mandated to provide leadership and oversight, have not been established. The report also mentions the Public Procurement Act that has been completely ignored in the Davis administration’s PPP initiatives. This is a clear betrayal of the government’s commitment to establishing a functional and efficient PPP framework,” Thompson claims.
“The government’s lack of commitment is further evidenced by the chronic understaffing and lack of training within the PPP unit. Despite acknowledging the need for skilled personnel to manage complex PPP projects, the report points out that the government has failed to invest in building the necessary capacity. This neglect has undermined the effectiveness of the PPP program and signifies a disregard for the potential benefits that PPPs could bring to The Bahamas,” Thompson said.
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