By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A multi-billion dollar conglomerate yesterday criticised the Christie administration’s “non-transparent” search for energy solutions, warning that the biggest potential losers were Bahamian consumers.

George Nemeth, director of LNG business development at AES Corporation, confirmed that the former government had been engaged in a “mad rush” to resolve Bahamas Power & Light’s (BPL) woes just prior to the general election.

He disclosed that AES, an energy group with $39 billion in assets spread across 18 countries, had been contacted to act as a liquefied natural gas (LNG) fuel supplier by one of the groups invited to participate by the Christie administration.

Mr Nemeth said AES’s potential partner “definitely did not have sufficient time” to craft a proper bid, and said the process was “not what we are used to” in other markets where AES competes for business.

He compared the rushed, last-minute and non-transparent nature of the Christie administration’s process to those AES had participated in elsewhere, especially Panama and Curacao, where details were disclosed publicly and all parties competed on a ‘level playing field’.

“It’s a bit frustrating to see, just as you wrote in your article, that the beneficiaries of this market and technology, which should be the residents, are not benefiting because of the non-transparent process,” Mr Nemeth told Tribune Business.

“We weren’t contacted at all by the utility [BPL] or the Government. We were contacted via a third party, one of the groups you guys mentioned, at the last minute. It seemed to be a very mad rush at the end.”

Mr Nemeth’s comments confirm that Tribune Business’s account of the last-minute process embarked on by the Christie administration to boost BPL’s generation capacity and electricity supply, and the concerns of participants, was spot on.

Confirming that AES representatives participated in site visits and meetings related to the initiative, Mr Nemeth added: “It’s been a frustrating process so far.

“We’re eager to win business and develop our business, but at the end of the day, it’s to the detriment of consumers when you don’t have good competition for the best solution and suppliers.”

Turning to the tight bid deadline set by the former Christie administration, Mr Nemeth said: “It definitely was not sufficient to properly embrace the opportunity.

“The party did the best they could, but it was not what we are used to seeing in other markets.”

Recalling a $1.15 billion bid to construct an LNG-fired power plant and regasification/storage terminal in Panama, which AES won with a joint venture partner, Mr Nemeth described “a very transparent process” that attracted around 35 groups.

“All the expectations and price curves were distributed, and all bids were open and presented to the public,” he recalled. “That’s the best way to get the best deal for the customer.”

Then there was Curacao, where a similar Request for Proposal (RFP) exercise “got a lot of interest” because it was widely publicised to energy industry players.

“They invited everyone down, and had a question and answer (Q&A) session,” Mr Nemeth said. “It was a very well thought-out process that was transparent and gave everyone an equal footing in trying to offer a good solution.

“That’s what we value in this market; to have a good, transparent process things are understood, and you know you’re not scrambling in any way.”

Mr Nemeth’s comments highlight a frequent concern and complaint from bidders, both local and foreign, when it comes to bidding on Bahamian government contracts - the lack of a clearly understood, transparent bidding process.

Many investors elect to keep their worries to themselves rather than going public, but the former Christie administration had to contend with both Sarkis Izmirlian, Baha Mar’s original developer, and Stellar Energy, of Letter of Intent (LOI) fame, disclosing how it conducted business.

The private sector has long called for government procurement and tender processes to be reformed, amid fears that situations such as those referred to by Mr Nemeth and AES undermine the Bahamas’ reputation and drive foreign direct investment (FDI) away.

Tribune Business revealed earlier this week how energy industry players had been invited to participate in “a very weird Request for Proposal (RFP)” initiated by the now-former Christie administration.

Tribune Business was told that the process, run directly out of Prime Minister Perry Christie’s office, set different terms and bid criteria for the various energy groups, with timelines similar to the tight deadlines involved in the New Providence landfill tender.

The process was initiated without the knowledge or involvement of BPL or its management company, PowerSecure, while the ‘free electricity’ pledge in the PLP’s election manifesto was an idea that originated directly with New Fortress Energy, said to be the preferred bidder.

None of this was refuted by Mr Christie, who was forced by Tribune Business’s exclusive revelations to confirm one day later that his government had been seeking proposals to enhance BPL’s generation capacity.

He was quoted as saying: “The Government has been giving consideration to the short and long-term electricity demands throughout the Commonwealth of the Bahamas, with a view to improving both efficiency in the supply of electricity and lowering the cost of electricity to the public.

“In that regard, a committee comprised of members from both the public and private sectors has carried out a meticulous review of various proposals received by the Government and has made its recommendations.

“Discussions with preferred proponents and relevant stakeholders are ongoing. This matter is of great economic importance and benefit to the public, and my Government expects to complete consideration of this matter as soon as possible.”

Former prime minister Hubert Ingraham used his last pre-election address to urge the Christie administration not to sign-off on any deal that would bind its successor, arguing that any decision should be left to Dr Hubert Minnis’s administration.