Neymour demands government explain concessions claim

Thu, Nov 12th 2015, 11:25 PM

Former Minister of State within the Ministry of Energy and the Environment Phenton Neymour yesterday demanded that the government reveal whether it granted any alleged concessions to international investors seeking approval for a proposed waste-to-energy project in The Bahamas.

Speaking with Guardian Business, Neymour said that he was "very concerned" by the possible connection between Stellar Energy and FAB Portfolio Management (Bahamas) Ltd. (FPM) - two entities seeking investors for waste-to-energy facilities in The Bahamas, both of which are headed by Fabrizio Zanaboni.

Zanaboni serves as principal and majority shareholder for Stellar Energy, while his LinkedIn profile indicates that he has served as CEO of FPM since 2008. Although Stellar Energy has been vocal in pushing for a $650 million waste-to-energy facility at the New Providence Landfill, Neymour questioned why FPM was seeking $1.4 billion in financing on its website for what Neymour suggested was ostensibly the same project.

"I would say that the Bahamian people need to hear about the $650 million project that is affecting them and that this is no small change - and also that they are advertising this project internationally as costing $1.4 billion and are seeking funding for such," stated Neymour.

Neymour further questioned how much money Stellar had in place for the project in light of comments made by Zanaboni earlier this week, in which Zanaboni indicated that he was preparing to meet with investors in London next week, while Stellar Energy Chief Operating Officer J.P. Michelsen stated that Stellar Energy had all necessary funding for the $650 million project in place.

"[FPM] is advertising that all of the government concession have already been obtained. Now, when was this done? The government needs to tell the Bahamian people if this is true. Have they given these individuals the concessions already?" Neymour asked.

FPM's website lists a 'Waste To Energy - Bahamas' project in its current projects pipeline. The website listing calls for: "Construction and management of 70Mw Municipal Solid Waste + human sluice to electricity/methanol/drinking water to energy plant, all concessions in place, superior technology in place based on variation of Plasma Arc ensuring zero waste to land fill and zero emissions, financing requirement $1.4 billion in debt and equity, appraised [internal rate of return] available for investors in the region of 50 percent + [per annum], we seek to identify interested investors."

However, Michelsen yesterday stated that he had no knowledge of any possible concessions granted to the waste-to-energy project or connections between the two proposed projects, insisting that Stellar Energy had "nothing to do" with FPM.

"One has nothing to do with the other... FAB Portfolio Management has never looked for investments or has ever been involved with Stellar Energy so I don't know what the connection there is," said Michelsen, adding that he had no insight into FPM's operations.

Guardian Business' attempts to reach Zanaboni and Minister of State for Investment Khaalis Rolle were unsuccessful up to press time yesterday. Earlier this week, Zanaboni voiced his frustrations with the project's delays following a controversial letter of intent (LOI) signing in November 2014, stating that "political gambling" was halting energy reform in The Bahamas.

Stellar executives have stated that the waste-to-energy facility could be operational within 24 months of government approval, claiming that the $650 facility could provide power at 19.5 center per kilowatt/hour.

Click here to read more at The Nassau Guardian

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