BY THE HON. PHENTON O. NEYMOUR

MEMBER OF PARLIAMENT

I stand here and I labour in these halls but for the sole honor of the Kings and Queens of South Beach. Whenever the tide chooses to recede I can say without consternation that my service to the endearing people of South Beach is with pride, rather than mere obligation.

 Mr. Speaker, Honorable Members, the measures being introduced in the appropriation Bills that lay before this Honorable House is prescriptive in its intent and scope.

 The Budget for the 2010/2011 fiscal year provides substantive responses to the Bahamian economy and its forecast. Being pragmatic and reason minded with fiscal matters may be deemed “bad politics”. However, trying to score political points should never trump sound financial management.   These surreal times require political restraint and temperament. These are times where the restoration of our economy is the task at hand.

Mr. Speaker, recovery and the resurgence of the economy is evident, and this administration will continue to employ fortitude and prudence in its financial undertakings in order to stimulate and sustain the upward economic trajectory (pause) without compromise.

 Mr. Speaker, the Bahamian economic and financial architecture that has been established by successive FNM administrations has allowed our economy to accommodate expansions and contractions, with the impetus being firmly set by central government. More importantly,   economic progress has been accompanied in partnership with the private sector. This administration has been able to encourage and forge viable public-private partnerships. This is reflective of the level of confidence that exists on varying scales.

 Moreover, Mr. Speaker this administration has addressed a core function of fiscal policy that has eluded those opposite.

 That is, this administration has provided focus on economic fundamentals that would allow investments to target redistribution of wealth, and provide greater participation of Bahamians in its internal economy, thereby reducing the factors that contribute towards the escalation of the cost of living. In the face of a recession such an accomplishment is no easy task, nor is it probable without fiscal discipline and the creation of the enabling regulatory and legislative environment.

 Mr. Speaker, I’ve heard intervention by those opposite exalting the negativities of the increase to the national debt.

 You see Mr. Speaker, any increase in national debt by this administration has prescribed to the objectives of defraying critical social expenditures which includes social services, national security, public infrastructure improvements and investment in the overall protection of the Bahamian socioeconomic environment. This increase took place during the worst global economic malady in generations. This is a stark difference than the expansion of debt on frivolous and ill conceived pet projects which were geared towards the fleecing of the public purse.

 Mr. Speaker, once contextually evaluated the government expenditures for the last 3 years of this administration have been both quantifiable and qualitative. I invite the pundits to compare the public sector investments pursued by this administration to that of those opposite.

 Mr. Speaker this budget has taken measured steps towards restoring the debt to GDP ratio to the benchmarks that were initiated by FNM administrations. As members should recall it was the sunshine government that set these targets and further placed the IMF Article Four (IV) consultations, the Moody’s and Standard and Poors Reports into the public domain.

 Mr. Speaker, selective perception is certainly not an admirable feature for a responsible government nor a wanting opposition. We all know talkin’ fool is a very, very serious ting.

 This is not the place nor is this the time in the life of our country’ that misinformation and the politics of fear be used to cloak this nation.

 Mr. Speaker, this budget represents a clear statement of responsible governance and firm stewardship, which is an imperative given the circumstances and given the journey ahead. This administration recognizes that the urgency of now is for the government to protect the Bahamian economy from internal and external shocks and to concurrently make every practical provision for the Bahamian people, (pause) without escalating risk.

 The lessons learned from the recent recession dictates that governments take an abundance of care and caution in crafting economic initiatives.

 While there is optimism in our economic outlook it cannot be business as usual, we must reengineer and redirect our business operations.  Admittedly the objectives of the Manifesto have encountered some delay. However, let it be known, we shall persist.

 Mr. Speaker, my father while building the East-West Highway in 1969, now known as the Independence Highway here in New Providence, a road that still has it original asphalt paving forty years later, borrowed the sentiments of an anonymous author, that I wish to enlist here,

      “A bend in the road is not the end of the road….unless you fail to make the turn”

 Mr. Speaker, charting the economic course of this great nation requires that we make necessary yet appropriate adjustments in order to mitigate risks, control costs, improve public sector efficiencies and restore our economic future. The difficulty curve may be steep but the abilities of this administration are immense and (pause) unmatched.

 Mr. Speaker, those who lacked the will to advance this country during times of abundance continue to lack the will and ability to make the turn towards good governance.

WATER AND SEWERAGE

 Mr. Speaker and Honourable Members, all Members are aware of the severe challenges facing the Water and Sewerage Corporation’s (WSC) and the sector in general. The WSC’s financial position is critical and the organization continues to be plagued by operational and staffing efficiency concerns, water supply and quality challenges in some areas of New Providence as well as in a number of our Family islands. The sector is in need of substantial reform to meet the needs of its existing and potential customers, and to ensure that service is delivered in an efficient and effective manner.

 Members will recall that I previously reported on the findings and recommendations made by Consultants, Castalia Strategic Advisors, who were engaged through a technical assistance grant from the Inter-American Development Bank.

 Castalia highlighted the following priority recommendations for the WSC:

·        Decreasing Non-Revenue Water (NRW) in New Providence (NP) through a performance based contract;

·        Replacing barging with desalination operations;

·        Improving staffing efficiency via the rightsizing of the number of personnel per one thousand connections;

·        Implementing customer win-back strategies;

·        Upgrading the legal and regulatory framework of the sector, and developing multi-year performance agreements between the Government and the WSC; and,

·        Incorporating private sector involvement where feasible.

 Mr. Speaker, in addition to these major initiatives there is a need for rehabilitative work in the sewerage sector, and the development of a Sewerage Master Plan, especially for New Providence. The IDB continues to provide technical assistance in the sector, and it is expected that this assistance will eventually lead to major infrastructural, institutional, and legal/regulatory reform work, to improve, not only WSC’s performance, but to bring more purpose and order to the sector.

 While these extensive plans are being prepared for the long term operational and financial sustainability of WSC in particular, and the sector in general, the Government continues to make substantial investments in improving and expanding the provision of services to the Nation.

 Mr. Speaker, I would now like to provide details of work substantially completed by the WSC since the Mid-Term Budget report, along with projects that are proposed for the 2010/2011 budget period.

 NEW PROVIDENCE

Watermain

 Works completed in New Providence include the following:

·                  East End:

                                        i.    Adam Street between East Bay St and Prince Charles Dr

                                      ii.    Prince Charles Drive between Adam St and Yamacraw Hill Rd

                                    iii.    Yamacraw Hill Road from Prince Charles Dr to the Lighthouse

·                  Nassau East South Subdivision (85%);

·                  Various streets in Eastern Estates

These works are valued at over $1.3Mn.

 Works valued at another $2.5M are planned for the remainder of 2010 in the following areas:

·  Foxdale Subdivision (10%);

·  Coral Harbour East & West;

·   Dannottage; and

·   Various small projects

These projects completed were primarily to address the chronic challenges with water quality emanating from red water that exists due to old, unlined, cast iron and galvanized pipe. The WSC has also solicited technical assistance to tackle this setback as it addresses the infrastructural causes.

 Additionally, substantive water, and in some cases sewer, works have either been completed, or are planned under the New Providence Road Improvement project, and the Government’s road paving program.  These include areas such as:

·  Shirley Street

·  Bay Street and Downtown Nassau

· Mackey Street

· Soldier Road

· Blue Hill Road North

· Robinson Road

· Market Street

· Abundant Life Road

· Bamboo Boulevard

· Wulff Road

· East Street South

· Bethel Avenue

 The total value of these works is estimated at $8.5M; approximately $5.5M under the Governments road paving program and another $3.0Mn under the New Providence Road Improvement program.

 The Corporation has also embarked on a concerted effort to rehabilitate all the existing standpipes in New Providence. These efforts are aimed at replacing old, damaged standpipes, with a more robust and sanitary structure complete with improved drainage, and generally of a higher standard for those whose only source of potable water, is a standpipe. There are in excess of 250 standpipes in New Providence, and approximately sixty-five (65) have been rebuilt, with another 35-50 expected to be addressed before the end of 2010.

 Mr. Speaker, I turn to

FAMILY ISLAND PROJECTS.

 Work is currently in progress, or will be initiated on the following Family islands:

·  Eleuthera

o  Current island, is now in full operation with R.O. plant

o  Windermere Island, is now under WSC control

o  Harbor Island, where work is scheduled to commence under the road paving contract

ROCK SOUND/tARPUM BAY

 Improvements in the Rock Sound/Tarpum Bay area will also be addressed during this budget period through delivery of desalinated water from the Naval Base in Central Eleuthera. This project will entail the interconnection of the systems via the installation of 8 miles of pipeline between Windermere and Tarpum Bay coupled with the installation of a new storage tank and pumping station at Winding Bay, to supply Rock Sound and Tarpum Bay settlements.

 The new storage tank in Winding Bay will have a volume of 250,000 gallon or nearly a 2-day storage capacity based on present demands. This will ensure that any occasional outages, which can occur, do not affect residents in the area. The pumping station will be equipped with high efficiency variable speed pumps to minimize electricity consumption and provide a consistent supply of high quality water at good pressure, and a stand-by Generator for continuity of supply during power outages.

 The capacity of the RO plant at the Naval Base will be doubled to accommodate this increased demand along with ensuring that areas presently served, do not continue to experience from shortfalls in water supply. Having been faced with operational challenges in recent times, a 2 Million gallon storage tank is planned for the Naval Base to ensure continuity of supply in the event of any failures at the RO facility.

 These improvement works are expected to cost an estimated $4M, and the WSC is presently finalizing discussions with GE for the plant expansion and other provisions. It is hoped that these arrangements can be finalized in short order, with a projected completion by the end of 2010, or early in 2011.

 ·  Abaco

o  Green Turtle Cay underwater line, which to date is approximately 85% complete

o  Green Turtle Cay distribution system (phase II), which is currently underway and approximately 10% completed.

·      Cat Island: Where a new wellfield is being constructed in the North, to improve the efficiency of tankering water to residents in North Cat Island.

·  Ragged Island: Where work is to proceed with the MOW road paving exercise.

 These projects are projected to cost a combined total in excess of $9M.

 LONG ISLAND

The Corporation is also in discussions to secure funding from the European Commission for works on the island of Long Island. It is proposed to address the settlements of Clarence Town and Salt Pond subject to available financing.

 Discussions are also underway for the expansion of the RO plant in Deadman’s Cay, to ensure that as infrastructure is extended and improved, sufficient production capacity is installed to provide adequately service to our customers.

 CORPORATE BUSINESS PLAN

As mentioned earlier, the review of the Water & sewerage Corporation under technical assistance grants from IDB determined that several areas need to be addressed in order to achieve financial and operational sustainability of the WSC, and reduce the burden this Corporation places on the Government.  Two major recommendations and areas for improvement are:

1. Reforming the legal and regulatory framework under which the WSC and other service providers operate.

2. Reducing the level of Non-revenue Water (NRW) in New Providence.

LEGAL/REGULATORY FRAMEWORK

Again with a grant from the IDB, the sector framework has been reviewed and recommendations made for reform that will facilitate the advancement of the WSC to be more autonomous and commercially minded, while having as its key objective, customer service/satisfaction and environmental protection. These recommendations will be reviewed by the Government, and decisions made regarding its implementation.

 NRW Reduction in New Providence

Mr. Speaker, I would like to devote some time to the subject of Non-Revenue Water (NRW) in New Providence because of its significant financial and operational impact on the Corporation, and therefore, the Government. At the moment, WSC does not receive revenue from about 50% of water production. This means that 5 Million gallons per day is produced, but lost due to theft, leaks, or apparent losses resulting from billing omissions and/or errors.

 Mr. Speaker, it is important to note that no revenue is booked by WSC for NRW losses. With water purchase costs at over $25M annually, this represents losses of nearly $13M annually from water purchases associated with NRW. If the WSC were successful in reducing the challenges associated with non-revenue water by half or 2.5Migd, it would almost be the equivalent of eliminating shipping altogether (without replacement), and a saving in excess of $8M annually in water purchases. And so Mr. Speaker, you can see the critical role that this plays in any plan to turnaround the Corporation and develop it into a financially sustainable entity.

 Reducing NRW is not inexpensive and costs can range from $8-10 per 1000 gallons saved. However, with water purchases at an average cost of nearly $8 per 1000gallons, projects such as these have a reasonably short payback period.  It is also a fact that if these savings are maintained, The net cash flow for the Corporation can be positive.

 Mr. Speaker, NRW reduction is a very specialized area of water management. Contrary to popular belief, NRW reduction not only involves infrastructure work, it focuses on; (i) managing assets efficiently; (ii) effecting repairs efficiently, particularly when leaks are found through timely response and quality of repairs; (iii) actively investigating for leaks that are not visible above ground, and; (iv) managing pressure in the system to ensure customers receive adequate pressures and service, while minimizing losses.  This coupled with activities to ensure that meters are accurately read, theft/illegal connections are quickly addressed, and ensuring that the billing system is accurate. 

  The Government therefore directed the WSC to solicit proposals for a performance-based reduction of NRW that will span a 10 year period, aimed at reducing NRW in New Providence from 5 Million gallons per day to about 2.5Migd within 5 years.  The Consultant/Contractor would also be responsible for maintaining these savings over an additional 5 year period to allow full payback of the investment.

 Through international competitive bidding and utilizing IDB procedures, the WSC received expressions of interest from 13 firms and short-listed six firms. The firms that were short-listed are considered the best in this field. Requests for proposals were issued to these firms and following evaluation of the Technical proposals, the WSC is now in negotiations with the top-ranked firm with a view to awarding a contract by the end of the third quarter.

 This project will not only address non-revenue water but also integrate the Corporation’s existing information systems to allow better asset management, planning, billing, and to help identify those areas requiring priority attention for NRW. Additionally, a SCADA (Supervisory Control and Data Acquisition) system is proposed that will allow the WSC to remotely monitor and control critical equipment and supply locations, ensuring improved efficiency through real-time data collection and reducing the need for costly and repeated overtime to manually monitor facilities as is presently the practice.

 The payment arrangements for the contract will consist of both a; (i) Fixed Fee which recognizes that there is extensive infrastructure work and expertise invested to achieve success, and; (ii) a Performance Based fee which places a strong burden on the Consultant/Contractor to achieve success by having an element of the fee tied to the actual reduction achieved.

 This model has been used internationally and is gaining increased popularity as its successes continue. The savings of $8M annually are conservative at best, as it only represents the water purchase costs. There are other value added benefits to be derived, and these include; (i) reduced energy consumption through less pumping; (ii) deferred infrastructure expansion, and upgrades as less volumes are needed to be transmitted to serve the customer; (iii) improved service levels; (iv) reduced leak repairs, and; (v) more efficient asset and human resource management , just to name a few

 OTHER

Recommendations related to staffing efficiency, customer win-back, and private sector participation is also under review. In the interim, the Government has also authorized the WSC to solicit bids for the eventual replacement of shipping with desalinated water to reduce costs, improve supply reliability, and to improve water quality. This procurement process is expected to start within the next few months.

 These strategic initiatives are expected to improve WSC’s performance financially and operationally, and will serve as the basis for the transformation of the Water and Sewerage Corporation into an efficient utility over the next 3-5 years.

 Mr. Speaker I turn to

ENERGY

 In 2008, the Government appointed the National Energy Policy Committee with the goal of developing a National Energy Policy that would; (i) protect our Gross Domestic Product (GDP) and foreign exchange reserves; (ii) minimize energy consumption; (iii) reduce greenhouse gas emissions in response to climate change, and; (iv) increase energy efficiency and security.   While preparing this report the NEPC recognized that there is a lack of data to allow informed decisions and targets to be set regarding, in particular, renewable energy and energy efficiency initiatives. Therefore, the Government, with the assistance of the Inter-American Development bank (IDB), embarked on several projects to fill this gap. These projects include grants for the following:

1. Strengthening the Energy Sector – through a financial and operational review of BEC, to achieve sustainability, expansion planning to integrate renewable energy and diversify the energy matrix, and a regulatory review to establish a framework that encourages investment in renewable energy and ensures transparent regulation of the electricity sector

2. Promoting Sustainable Energy – through development of a National Energy efficiency Program, an assessment of the potential for various forms of renewable energy throughout The Bahamas, and development of a Waste to Energy program with particular emphasis on New Providence and Grand Bahama.

3. Promotion of Energy Efficient Residential Lighting – through the purchase and distribution of over 150,000 compact fluorescent lightbulbs (CFLs) to low income households and development of an environmentally safe disposal plan for CFLs, and;

4. Implementation of Sustainable Energy Projects – through pilot projects for solar water heater and solar photovoltaic that will provide data and experience necessary to replicate these activities on a national basis. This project is funded by a grant from the Global Environment Facility (GEF)

Mr. Speaker, The Bahamas Electricity Corporation continues to be challenged financially – the present tariff is lower than it was some 17 years ago. A major contributor to this was a reckless rate reduction that was carried out in late 2003, the commencement of the Corporation’s 2004 financial year. The government intends to have this situation addressed so that BEC can once again stand on its own without Governmental assistance. As a result, the Government recently announced BEC’s application for a tariff adjustment

 In carrying out its mandate for public consultations with relevant stakeholders prior to a final determination being made, BEC has held two town meetings in New Providence and town meetings in four Family Islands. BEC has also met with a number of large stakeholders and will be meeting one or two others over the course of the next two weeks.

This is, of course, a very controversial matter, particularly in face of the current economic conditions locally and internationally, and the adverse effect that fuel price fluctuations had on rates particularly in 2008. The Government also acknowledges the calls from individuals and the commercial sector for the ability to generate their own energy and to have the benefit of selling their excess power to BEC so that the growing demand currently placed on BEC can be reduced, in doing so the Bahamas can minimize its dependence on imported fuel, and facilitate a reasonable payback period for the investment in renewable energy.

 The Government, therefore, considers that in adjusting the existing BEC tariffs, it is critical that both the Government and BEC demonstrate to the consumer what is being done to; (i) improve the operational efficiency at BEC; (ii) incentivize energy efficiency at the consumer level, and; (iii) allow for small power producers, who can self-generate and sell electricity to BEC, and introduce renewable energy at a utility scale, to minimize the impact of fluctuations in the fuel surcharge.

  IMPROVING BEC OPERATIONAL EFFICIENCY

 Under the IDB grant, to strengthen the energy sector, it was highlighted earlier that one of the primary objectives is the financial and operational sustainability of BEC. The German firm (FICHTNER) was awarded a contract, and commenced work in Sep-09 to perform a financial and operational review of BEC.

 The review confirmed that the financial situation at BEC is critical and it also highlighted several key areas of concern particularly in the areas of corporate governance, general management, procurement and inventory, human resources, and complaints management. This is not a condemnation of individuals but of the sector framework and the failure of policy makers to recognize the long term impact of short term decisions. We recall so vividly the announcement of the reduction of tariffs a few years ago. Today, that reduction, coupled with other global economic factors, has near crippled a once thriving organization. It also indicated that there is no ‘silver bullet’ to address the issues. Mr. Speaker, a package of corrective and critical measures are required to achieve sustainability and all stakeholders (Government, BEC, customers) have to participate whether through efficiency improvements (BEC), tariff adjustments (Customers), or overall sector reform (Government).

 In addition to the Operational Review being carried out by Fichtner, an agreement was reached with the Canadian electric utility, Emera, to recommend organizational and operational changes likely to yield significant improvements in a relatively short time.  Emera is presently carrying out an exhaustive review of BEC building upon the work completed by Fichtner and covering all aspects of the operations. The review being carried out by Emera is at an advanced stage and once completed recommendations will be made to the government relative to the way forward.

Fichtner’s review of the BEC has highlighted a very critical requirement in addressing the inefficiencies, corporate governance, and ensuring that consumers are protected, is that independent regulation of the sector is essential. BEC is presently both monopoly service provider and regulator, and the present Act does not allow BEC to operate as an efficient, commercial entity with a clear, autonomous, and entrepreneurial mandate.

 Further, the Electricity Act does not encourage work by private contractors, it minimizes the penalties for theft and other breaches, and it is not an advocate for customer’s rights amongst other things.

 RENEWABLE ENERGY POWER PRODUCERS

Previous mention was made of the solar water heaters and solar panels project. The proposed solar panels to be installed under the IDB/GEF demonstration project will be tied in to the BEC grid to determine the technical, operational, and financial barriers that exist to a national deployment program.

 The IDB grants being executed also have a component to assess the potential for utility scale renewable energy. Solar, wind, ocean, and bioenergy capacity for The Bahamas is being analyzed and a determination will be made as to how these can be integrated into the power generation matrix. It must be noted that these technologies are often more expensive than conventional generation depending on fuel prices. However, they do reduce our reliance on imported fuel, increase our energy security, stabilize our energy prices, and reduce our carbon emissions.

 The demonstration projects mentioned previously with solar panels will also include net metering or billing, to stimulate the public’s interest in investing in renewable energy by making it more attractive financially.  We are also exploring financing methods that could be used to increase access to renewable energy on a customer scale for self-generation and sale back to BEC’s grid.

 Mr. Speaker, It is of paramount importance in advancing these initiatives that we urgently seek to update the Act, and add new and updated regulations.  Aside from the shortcomings of The Electricity Act as it relates to these factors our legislation needs to be modernized to facilitate the process of providing power to the archipelago, and to allow for Renewable Energy at an individual and utility scale while encouraging private sector participation. Regulatory reform is also required. Various stakeholders will therefore be invited to submit recommendations relative to suggested changes to the Electricity Act.

 INCENTIVISE ENERGY EFFICIENCY

 The IDB grant to promote sustainable energy includes the development of a National Energy Efficiency Program. Sample energy audits have already been performed on 10 public buildings, 18 hotels, and 20 residences, and the analysis will help to; (i) create a simple energy audit tool to allow customers to self-assess their energy efficiency, and; (ii) identify energy efficiency improvements. In conjunction with this exercise, BEC is coordinating free energy audits under the Government’s temporary employment program to help consumers identify ways to conserve electricity and reduce their power consumption.

 The study will also review the feasibility of utilizing solar water heaters and solar panels to reduce power consumption and very importantly, it will look at existing regulations and building codes, and make recommendations for providing incentives to import energy efficient appliances and equipment and for the construction of more energy efficient buildings. The Government has previously taken action in this regard through tariff reductions or elimination on items such as compact fluorescent lightbulbs, solar water heaters and solar panels.

 These energy efficiency and incentive measures will not only help to reduce consumers’ consumption of energy and therefore their energy costs, but will also reduce BEC’s need for massive investment in power generation expansion.

 ENERGY CONSERVATION

 Mr. Speaker the Corporation’s impact on the environment, as a result of burning fossil fuels, needs to be minimized as much as possible. Using electricity in a safe and responsible manner needs to be encouraged more than ever before. Further, the cost of oil on the international market has a direct impact on the cost of electricity and on our foreign reserves. In this regard, energy conservation will be promoted more vigorously and greater emphasis placed on identifying renewable sources of energy which will have greatest impact on the Corporation’s generation mix.

 Mr. Speaker, We recognize that, economically, times are tough and therefore in parallel with the proposed Tariff Increase, we emphasize conservation. Customers who practice conversation can mitigate against the proposed increases. Additionally, customers are encouraged to prioritize and to adjust their lifestyles.

 It will be remiss of me if I do not express my disappointment that more customers did not take advantage of the free Energy Audit Program being carried out by BEC in conjunction with the Ministry of the Environment. This program is designed to assist customers in assessing the energy usage and to provide them with steps to reduce costs. To date, some 567 customers have signed up for energy audits to be carried out at their residences. This is far short of the expectations. I therefore encourage all residential customers who have not yet taken advantage of the free Energy Audit Program to sign up before the end of June.

 Mr. Speaker, energy conservation must begin now!  It is recommended that we begin with small simple but consistent steps that can be taken to reduce energy consumption. Reductions in your electricity bill can result from insuring the following:

 · Turn off lights in any room you are not using,

·  Consider installing timers, photo cells or occupancy sensors to reduce the amount of time your lights are on

·  Use task lighting, instead of brightly lighting an entire room; focus the light where you need it,

·  Use fluorescent under-cabinet lighting in the kitchen when bright light are not needed,

· Use compact fluorescent lamps (CFLs) which are more expensive but are more efficient and last 6-10 times longer, and pay for themselves by saving energy over time,

· Turn off all electrical equipment and appliances when not in use; especially televisions, radios, irons and computers,

·  Make a conscious effort to use less water; time your showers,

·  Use low-flow aerating shower heads,

· Insulate hot-water storage tanks and pipes, and drain a quart of water from your water tank every 3 months to remove sediment,

· Lower the thermostat on your water heater to 120 degrees,

·  Use a timer on hot water heaters

· When washing, use full loads and use cooler water and cold-water detergents,

·  When drying, clean the lint filter after every load,

· Use the cool-down cycle to allow clothes to finish drying with residual heat,

· Ensure that your dryer’s vent is not blocked,

·  When purchasing new equipment and appliances, look for energy-saving options; laptops use much less energy than desktop computers.

·   If one is constructing a new home, consider energy saving design features such as increasing air flows by having less interior walls, wall & roofing insulation, door seals, energy efficient windows and solar water heaters.

· Dry towels and heavy cottons separately from other clothes

·  Ensure that air conditioners and hot water heaters are properly sized

· Purchase air conditioners with a SEER rating of 13 or higher

· Clean filters on air conditioners regularly

· Set thermostat on air conditioners to a comfortable level (75 to 80 F)

· Insulate the attic

 It is our hope that all consumers do their part to keep our world and our Bahamaland ‘clean, green and pristine’.

 Other Works/Issues

Mr. Speaker, Works for the construction of new power stations in Abaco, Bimini and Eleuthera are presently underway. The power stations in Bimini and Eleuthera are completed and are undergoing commissioning tests and the one in Abaco is scheduled for completion later this year.

 Other capital works that are underway and/or being planned with a view to execution over the next 12 months include transmission and distribution circuits in Abaco, Eleuthera and Andros, completion of fuel storage tanks in Eleuthera and Bimini, and relocation of generators from Abaco to other locations where needs exist once the existing Marsh Harbour power station has been phased out.

 Mr. Speaker, due to the financial state of the corporation, a number of proposed capital projects have had to be deferred.

 At present, the majority of infrastructural works, inclusive of planning, are carried out directly by BEC. A Standards Book will be created to facilitate the outsourcing of works to qualified engineering firms and qualified contractors, with a view to creating opportunities for small businesses as well as reducing the monopoly held by BEC.

Mr. Speaker, Good street-lighting in neighbourhoods bring a degree of safety and comfort to residents and to road users. The financial responsibility for the same should be for the government and not for BEC. As you would have heard in the national budget as presented by the Honourable Prime Minister, government will now pay BEC some $12 million per annum for the provision of streetlights.

 In this vein, Government will direct BEC to expedite the installation of streetlights along public roads in residential communities that are presently without streetlights and to expedite the repair of streetlights that are presently out of service. Additionally, BEC will be directed to introduce a scheme whereby customers can individually pay for the installation and ongoing operation and maintenance costs of night guard lights to enhance their personal safety.

 It should also be noted that BEC will once again be required to pay duty on fuel. This however, will be a pass through via a fuel charge, as is the norm with other utilities in the Bahamas and elsewhere. I also wish to emphasize that the cost of fuel on the international market is beyond the control of the government and of BEC. Customers are therefore encouraged to use electricity wisely and in a responsible manner.

 Mr. Speaker, Recognizing the challenges faced by some customers in paying for the cost of new infrastructure for electrical services, BEC has reintroduced a payment arrangement plan for those customers who are not able to make the full payment in advance – customers can pay 50% in advance and the balance over a six months period provided that they meet an established criteria.

 CLOSING

Mr. Speaker, It should also be noteworthy to repeat that the full financial burden to revive BEC is not being placed entirely on the customer. As previously indicated, all stakeholders have a role to play.

Government will begin to pay BEC for street-lighting and continue with sector reform, and BEC will improve its operations thereby contributing to financial improvement. 

 Mr. Speaker, the improvements at BEC began to take place in 2007 under the Chairmanship of Mr. Frederick Gottlieb, the former Chairman who brought greater discipline and accountability to the organization.  He was an advocate for improvement, good governance and environmental stewardship.

BEC is now under the guidance and direction of a new Executive Chairman, Mr Michael Moss who brings to the table not only a good business sense but a strong technical background and a wealth of knowledge.  He is a veteran in the electricity utility business having served as Chief Generation Engineer at BEC, General Manager at West End Power and Light, General Manager at Grand Bahama Power Company and Chief Technical Officer at the Jamaica Public Service Company Limited, an integrated electricity service provider, servicing some 600,000 customers across the length and breadth of Jamaica.

 Additional efficiency improvements have already taken place at BEC and further improvements are on the way. There is greater focus on all aspects of the operation – technical, financial, customer service, etc. BEC will do its part to further reduce costs and tighten its belt while at the same time improving its operations.

 CONCLUSION

Mr. Speaker, in concluding, much has been achieved in the utilities sector over the last three years, we have enhanced institutional capacity, and we have given particular emphasis to reforming management and technical competencies, additionally we have instituted industry best practices.

 Yes more is required and going forward attention will be afforded to infrastructural improvements and providing greater utility to maximize the capital invested on critical costs

 Mr. Speaker, I can attest that meaningful action will continue.

 Having weathered the brunt of the storm we will remain vigilant in our duties and in our trek. Warding off adversity has revealed our collective character as a people with redeeming hope, filled with enduring light.

Mr. Speaker, this loyal servant of the people of South Beach will not falter nor fail in these endeavors.

 In an adaptation of the words of Washington Irving from his book entitled the Sketch Book, I surmise “There is in every true [and I insert]  ... Bahamian’ heart, a spark of heavenly fire which lies dormant in the broad daylight of prosperity; but which kindles up and beams and blazes in the dark hour of adversity.”

 Mr. Speaker, this budget provides the light to illuminate the path towards restoration and recovery.

 Mr. Speaker, the Honorable Member for South Beach rests.

 Thank You