A document Parliamentary Secretary in the Ministry of Works Renward Wells signed with a waste-to-energy company earlier this month is more of an 'expression of interest' as opposed to a 'letter of intent' and does not bind the government of The Bahamas to the company's proposal, the ministry's Permanent Secretary Colin Higgs states in an opinion on the controversial matter, which he prepared for Deputy Prime Minister Philip Brave Davis.
"The document summarizes Stellar Waste to Energy (Bahamas) Ltd.'s (SWTEB) proposed waste-to-energy plant investment proposal and does not, in my view, commit the government of The Bahamas to any approvals in respect of the proposed plant or [power purchase agreement]," wrote Higgs one week ago today as Davis, the minister of works, continued his examination of the matter that has fueled a firestorm.
Controversy continues over whether Wells exceeded his authority in signing the document -- titled 'letter of intent' -- with the company that wants to construct a $600 million-plus waste-to-energy plant at the New Providence landfill.
It would involve the project developer putting up 100 percent of the cost of the development of the facility, which would take two years to construct.
Prime Minister Perry Christie asked Wells to resign over the matter more than a week ago, The Nassau Guardian confirmed.
But Wells has not resigned and Christie has not fired him.
There also has been no clear statement from the government over the matter.
Christie said last Thursday, "Whenever we are ready to speak to it, we will speak to it."
In his opinion to the deputy prime minister, the permanent secretary wrote, "The document refers to SWTEB having prepared a full proposal for the design, construction and operation of a waste to energy plant to be located in New Providence and that the expected delivery date for the plant as July 1, 2016.
"However, there is no indication in the document that this proposal has been approved by the government of The Bahamas or of any intent for the government of The Bahamas to approve the proposal. I am not aware of the proposal being submitted to the government for formal consideration."
Higgs adds, "SWTEB intends to sell electricity produced from the waste to energy plant to the government of The Bahamas under a 25-year exclusive power purchase agreement (PPA) to be negotiated and agreed prior to the start of the construction of the project.
"Paragraph six of the document makes clear the intention for SWTEB being entitled to compensation (to be agreed) from the government of The Bahamas should the government of The Bahamas fail to proceed with the PPA.
"However, in paragraph seven the PPA is subject to SWTEB obtaining National Economic Council (NEC) approval to invest in The Bahamas. They were to apply for NEC approval after the signing of the attached document."
Higgs also points out, "The document is only valid for 12 months from the date of signing and will terminate automatically if the project does not proceed, which I expect will be the result of either the SWTEB not being in a position to proceed due to funding constraints or otherwise or the government of The Bahamas not granting the necessary approvals for the project."
Davis, Minister of the Environment Kenred Dorsett and another minister speaking on condition of anonymity all stated recently that they were not aware of the document being signed, adding that Wells would not have the legal authority to execute such a letter at any rate.
"I know nothing about this," Davis said at the time.
"I know of Stellar Energy. I know this company had put in a proposal some time ago, and that's what I know about it. I know they would've met me once or twice to explain their proposal to me, but a matter of signing an LOI is something that would require Cabinet's intervention. I don't know that a parliamentary secretary would have authority to sign such a document without the direction of Cabinet; I don't know how this came about."
But last Monday, Davis did not repeat his suggestion that Wells acted outside his authority.
He said he still needed to determine whether Wells did anything wrong.
"I am reviewing this matter and at the appropriate time I will make a statement," he said.
"...From all accounts there ought to be concern, but the question is whether he did anything wrong, or whether he did anything that in any way is contrary to established protocols.
"I will look into those things and have a discussion with him. He obviously would have an explanation for what he did. I will test that explanation and then we will see what happens from there."
It remains unclear when the government intends to speak to the matter.

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