The Free National Movement (FNM) is raising alarm over what it called the "flippant manner" in which the Davis administration has "haphazardly" announced multimillion-dollar projects and a billion-dollar facility.

East Grand Bahama Member of Parliament Kwasi Thompson said Prime Minister Philip Davis' announcement last week that the government intended to draw down $400 million from a $1 billion facility being made available to it by a UK-based financial institution was not only concerning, but equally astonishing.

"The prime minister admitted that he wrongly indicated that some $400 million is being accessed for the Grand Bahama airport, when just two months ago, the public was advised that this phase of the project was to cost $170 million. We make it clear that we support moving ahead with the Grand Bahama airport project, however, at present the public knows very little about the arrangement, obligations, and responsibilities of the government. DPM Cooper stated: 'These three companies represent a joint venture consortium that successfully bid to design, build, finance, operate, maintain, and redevelop the Grand Bahama International Airport.' If this is the case, why is the prime minister talking about the government drawing down on a $1 billion dollar facility? Further, what is the government's involvement in the financing for the Grand Bahama airport project? Is it borrowing the funds? Is it guaranteeing the borrowing in any way?"

Thompson continued: "We are also extremely concerned that for the first time, we are hearing about a $1 billion facility that the government seemingly has agreed to with the UK Export agency. It is astonishing that the public has not been advised of the financing terms for this Grand Bahama airport project, or what this 'new' $1 billion in funding is for. What commitments or guarantees has the Davis administration given for these monies? Why has there been no specific communication around this $1 billion facility, and why was there no mention of this facility in the Annual Debt Management Strategy or the Fiscal Strategy Report?

"We must remind this reckless administration that it is the Bahamian people that have to foot the bill and either repay or guarantee repayment for any obligation that this administration enters into. We, therefore, have a right to know the details of any funding or PPP agreement. The Fiscal Responsibility Act that this government gutted for no reason, as well as the Debt Management Act, set in place fiscal planning and reporting requirements to avoid any government entering into financial commitments that do not serve the long-term fiscal stability of the country."

Though he initially announced $400 million would be drawn down to develop a new green airport in Freeport, Grand Bahama, the prime minister later clarified that the cost of the redevelopment for the Grand Bahama International Airport was $200 million as previously announced; and that the $400 million will be used toward a development package for multiple airports throughout the Family Islands.

The prime minister also explained that although $1 billion has been made available to the government, it does not mean his administration intends to use all of the funding.

Thompson also demanded answers regarding the "massive price tag increase" for a new correctional facility that was recently announced by Minister of National Security Wayne Munroe.

Last week, Munroe told The Tribune that the cost of the new high-medium security facility increased from $40 million to $90 million to allow for a "correctional institution, administrative, housing and medical facility".

"Over the last few days, this PLP government has announced that the prison project price tag has ballooned from $40 million to $90 million. We do not recall the government ever putting out the initial $40 million project to public tender. We have not gotten any indication that this $100 million project will be subject to any kind of bidding process. It is against the law under the Public Procurement Act of 2021 or the Public Procurement Act of 2023 for work of this size and scope not to be put out to an open bidding process, with submissions viewed by the Tenders Board established in the law," Thompson said.

"What was the bidding process for the original contract? Who was awarded the contract? Will the government just hand an additional $50 million to the same vendor without a competitive bidding process?"

Thompson demanded government provide a full and frank accounting to the public on the financial commitments it has made, and explain how they align with its published debt management strategy and Fiscal Strategy Report.

The post Opposition raises alarm over announced $1 billion facility appeared first on The Nassau Guardian.

The post Opposition raises alarm over announced $1 billion facility appeared first on The Nassau Guardian.

Click here to read more at The Nassau Guardian