By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Some 95 percent of the near-$193m in government contracts issued in December 2024 was tied up in just one deal awarded to a Bahamas Striping affiliate for repaving west Grand Bahama’s roads.

Details on around 100 contracts, released yesterday, reveal that Abaco Caribbean Holdings secured a $183.459m contract from the Ministry of Finance to overhaul some 98 miles of road between West End and Eight Mile Rock via the “direct award” procurement method.

Several contacts, speaking on condition of anonymity, yesterday questioned the “direct award” method’s use in granting such a large contract to Abaco Caribbean Holdings as this signals it was never put out to tender and there was no competitive bidding as a consequence. Bahamas Striping’s website confirms that the winning bidder is its affiliate, and both share the same address at Lot 2C Abundant Life Road.

Currently overhauling some 163 miles of Eleuthera’s roads under a $100m contract, and having previously been hired by the Government to transform much of Exuma’s road network at a cost of $60m, Bahamas Striping and another of its subsidiaries, Caribbean Pavement Solutions, would appear well-qualified for the Grand Bahama work.

Several contacts pointed out that - combined - the value of the three contracts including Grand Bahama is some $343.459m, a sum that almost exactly matches the total $344.5m capital spending that the Government has budgeted for the current 2024-2025 fiscal year. And they also challenged whether the ‘direct award’ of such a large $183m contract can be justified based on the law set by the Public Procurement Act.

The last version of this Act, passed by Parliament under the Davis administration, sets out the grounds under which this procurement method can be used. These include that the contract value is less than $100,000; that no suitable bids were received in a competitive tendering process; “reasons of extreme urgency”, such as a natural disaster; and other factors that do not necessarily appear to apply to such a project.

Dominic Sturrup, Bahamas Striping’s principal, declined to comment on the West Grand Bahama contract award when contacted by Tribune Business citing the “confidentiality of the contract” and directing all questions to the Government. “I can’t answer any questions,” he said. “All of our contracts are confidential. You’d have to reach out to the Government to get an answer on it.”

The “confidentiality” assertion came despite the projects being funded by the Bahamian people’s money as taxpayers. The Opposition has been critical of both Bahamas Striping’s Eleuthera and Exuma projects, which have been billed as public-private partnerships (PPPs), challenging the Government to disclose what the interest rate, terms and conditions are attached to the financing.

A portion of the Exuma roadworks’ funding was obtained from a Jamaican financial institution, and the Opposition has argued that - instead of being true PPPs - the arrangements with Bahamas Striping and its affiliates are structured in such a way as to keep increased debt off the Government’s balance sheet even though Bahamian taxpayers have the liability of repaying these loans.

As for the Grand Bahama project, Mr Sturrup did confirm that documents uncovered by Tribune Business are genuine. These show that IDB Invest, the arm of the Inter-American Development Bank (IDB) that finances the private sector, is exploring providing $22m in funding to Abaco Caribbean Holdings.

“IDB Invest is looking to finance approximately $22m through a working capital facility to support Abaco Caribbean Holdings, a Bahamian company, and its shareholders, the Bahamas Striping Group of Companies,” IDB Invest said.

“This financing will be directed towards the West Grand Bahama Road Improvement project, which seeks to enhance connectivity, safety and the overall travel experience across Grand Bahama. The project involves the rehabilitation of asphalt paving of 51 miles of highway and 47 miles of settlement roads, with an estimated cost of $185m.”

Other IDB documents, seen by this newspaper and giving more detail on the project, state: “These improved roadways will unlock economic opportunities, facilitate smoother transportation of goods and services, and bolster the tourism sector, which is vital for the island’s economy....

“Abaco Caribbean Holdings, founded in 2016 as a turnkey service provider, has gained experience through the planning, designing and construction of parks and community centres, and implementing smart technology systems. Most recently, with the support of other companies of Bahamas Striping, it has expanded its services into road paving and construction, land clearing and site development.

“The project consists of the reconstruction and rehabilitation of a stretch of approximately 51 miles of the Queen’s Highway, a main asphalt paved arterial road on the West End of Grand Bahama, about 47 miles of minor roads - collectors and settlement roads - various other capital and infrastructure works, and other road and infrastructure safety enhancements.”

The latter is set to include “the installation of guard rails where required; the placing of traffic signs and road striping; the adoption of traffic calming measures; the placement of reflective road studs; and the construction of sidewalks in selected areas.

“To achieve the required production of asphalt for the road pavement, the company will install a new asphalt plant, which will be located approximately at the midpoint between Eight Mile Rock and the West End, within a rural environment, without any neighbours living nearby, and its main access is by the Queen’s Highway,” the IDB Invest report added.

Meanwhile, other contracts provoking significant social media discussion yesterday included the Ministry of Finance’s January 2025 decision to award a $120,000 deal to Sheltering Tree Consultants, a trauma, grief and mental health counselling provider headed by Dr Cherry Ferguson.

Tribune Business research found Dr Ferguson’s LinkedIn page also describes her as the executive assistant of more than 11 years’ standing to Neil C Ellis Ministries and Global United Fellowship. The former entity is headed by Bishop Neil Ellis.