The Mother of All Town Meetings— Abaconians Show Their Ire Over Bypassing of Local Government

by Larry Smith

MARSH HARBOUR, Abaco - Faced with overwhelming disapproval from a standing room-only crowd of Abaconians upset over the bypassing of local interests, Bahamas Electrcity Corporation chiefs orchestrating a town meeting here last week admitted to a failure of process and promised to learn from their mistakes.

"Things could have been handled better," BEC general manager Kevin Basden told his critics, referring to construction of a 48-megawatt oil-fired power plant on Abaco that proceeded without any local consultation, "and lessons will be learnt from this."

The town meeting was hastily called to address a groundswell of concern about the environmental and other implications of the plant, whose foundations have already been laid on a 25-acre site near Wilson City, about 14 miles south of Marsh Harbour. But in many respects the effort came years too late.

As BEC chairman Fred Gottlieb confirmed at the meeting, the Christie administration decided to build the $105 million power plant back in 2005, after years of dithering. And the construction contracts were signed by the Ingraham government in December, 2007. But neither government has involved the people of Abaco at any stage of the planning process.

"The existing plant is 30 years old," Gottlieb explained. "It has an installed capacity of 27 mw and peak demand is 24 mw, so the loss of a single engine causes serious load shedding. The present site is too close to residential areas and there is no room for expansion, but Abaco's energy demand is growing by 5 per cent per annum. I met the letter of intent for the new plant signed by my predecessor and we went ahead with it."

From all accounts, the audience that filled the New Visions church hall to overflowing on September 10 was a reasonable cross section of Abaco communities - including black and white Bahamians as well as second homers from a number of settlements.

Many said it was the largest public meeting ever seen on Abaco outside of an election campaign. And whether or not the participants shared strong feelings about the environmental implications of the new plant, there was little doubt as to their anger over the lack of meaningful public consultation on this massive infrastructure project.

In fact, Freeport lawyer Fred Smith - who has taken judicial review of the Baker's Bay development on Guana Cay all the way to the Privy Council - told the meeting he had been hired by a group of local and foreign property owners and would seek to halt the power plant project until due process had been achieved. He defined "due process" as an opportunity for all interested parties to provide input.

"This is the biggest capital expediture in Abaco's history and there has been no meaningful public consultation," Smith told me after the meeting. "I will be writing to the relevant central and local government agencies for evidence that all approvals and permits have been properly obtained. I don't expect any answers and they will probably continue to do what they are doing, but the project will then be subject to judicial review."

During the meeting he suggested that the project could be proceeding illegally: "We continue to disrespect the local government institutions that the FNM itself put in place. We don't know if all statutory permits for this power plant have been granted. But it is incumbent on government to ensure that due process is respected - that is the essence of democracy."

Those "relevant agencies" include the BEST Commission, the Department of Environmental Health Services, the Town Planning Department, local government councils, the Ministry of Works, and the Cabinet Office. But Smith's threat led BEC to pre-empt him by halting its own project temporarily. The Ministry of Works confirmed on Monday that the project was on hold while BEC applied for construction permits.

In response to this, one well-placed political source remarked: "Yes, BEC should follow the rules. But how many other government construction projects - from schools to roads - do you know that get permits?" Well, Tough Call can't speak for all such projects, but I know of at least one that does have the necessary approvals - the Nassau airport redevelopment. The point is - how can BEC spend $100 million of borrowed money without going through the required legal processes?

After years of virtual silence on its plans for Abaco, BEC and government officials pulled out all the stops for the meeting last week. Representatives from MAN Diesel Canada (which has the overall contract for the plant), KES Environmental Services (which did the environmental impact assessment) and the BEST Commission all gave presentations.

Nassau lawyer and Bahamas National Trust council member Pericles Maillis also spoke in support of the project, making it clear he was there in a personal capacity. He had been wrongly identified as a BNT spokesman on the official programme for the meeting.

BEC chairman Fred Gottlieb acknowledged rather testily that the meeting was held in response to a "surprising, sudden opposition" to the power plant generated by misleading propaganda, principally a video published on You Tube. But as Abaconian newspaper publisher Dave Ralph pointed out, this was "the first public disclosure of any consequence by BEC or the government" on this massive project for the island. So what do you expect to happen?

And the lack of disclosure is despite the fact that the decision was made four years ago, that contracts were signed almost two years ago, that financing was approved by parliament in the summer, that construction is already well underway, that the chairman of BEC is a leading Marsh Harbour citizen, and that the prime minister himself represents an Abaco constituency.

In fact, Hubert Ingraham slipped into the meeting unannounced wearing a baseball hat, and two senior opposition MPs - Fred Mitchell and Obie Wilchcombe - also attended as observers. One wag noted the presence of "the next leader of the PLP" to much laughter, but it was unclear which one of those gentlemen he was referring to.

Until Tough Call reported on the power plant EIA in this space a couple of weeks ago, there was no substantive information on this project anywhere in the public domain. And for some strange reason, BEC officials were unwilling to answer basic questions for my report, which pointed out their atrocious track record on environmental matters. Many of those questions were answered at the town meeting, however.

For example, the plant's state-of-the-art generators will burn heavy fuel oil so efficiently that cancer-causing particulates will be minimised and more power will be produced per unit of fuel. Also, the fuel used will contain less than 2 per cent sulphur, producing emissions that are well within World Bank guidelines. And heavy fuel power plants already operate throughout the Bahamas and Caribbean, as well as in the US and Europe.

Rising cost estimates for the plant over the years were attributed to depreciation of the US dollar and additional costs for the fuel terminal, pipeline and transmission lines. The plant should be operational by next spring, but it is unclear when the new transmission lines will be ready, or what other work needs to be done to decommission the existing power plant and upgrade the local grid, which residents say is in poor repair.

The town meeting featured the usual slew of cranks who took up most of the question and answer time with lengthy non-sequitors and personal advertisements. These inconsiderate bores can be found at every public meeting in the Bahamas, wasting time and spouting nonsense. They especially love to talk about themselves, and they are a boon to officials because they divert so much time and attention from the real issues.

Cay Mills, a local taxi driver, said he was glad to see that Abaconians were finally getting some payback from central government for their taxes. but noted that "we should have a say in whatever is brought into our district. The cart is before the horse with this town meeting. Abaco people read, are intelligent and want to be part of their own future. We want democracy, not an elected dictatorship."

It was a sentiment that seemed to be shared by many in the audience, and was aptly illustrated by Dave Ralph in a recent editorial. He quoted the prime minister's comments about someone using the wrong colour to paint the House of Assembly: "You shouldn't allow strangers to come in your place and determine the decor. I don't condemn initiative, but uninformed initiative is not to be tolerated."

Well, many folks in Abaco feel the same way about the power plant issue. According to Ralph, "Government and BEC have been negligent about informing Abaco on this project and in requesting local input."

Equally negligent is the fact that there was no public consultation in the EIA process. The power plant assessment - contracted to an unknown Florida firm with no website - was completed last October but is still under review by the BEST Commission. The EIA for the fuel terminal and pipeline has only just been completed. And no environmental management plan for the plant has been produced, yet construction is well underway.

Pericles Maillis likened these concerns to a storm in a teacup: "I was president of the BNT when the Clifton power plant was being expanded and we don't have acid rain in Nassau. These controversies can only hurt the environmental movement. This plant is not a surprise, it's been years in the making and was no secret."

But who knows what conditions are at Clifton, or at other BEC plants around the country, when there is no public disclosure and we have only the corporation's self-serving statements to rely on?

According to Philip Weech of the BEST Commission, the Wilson City EIA is now under active review with other government agencies, which will determine what needs to be done with the environmental management plan: "Oil tankers in the Bahamas have an enviable safety record," he said. "and there will be no impacts on freshwater resources. Wetlands will be impacted along the pipeline corridor, but we feel that can be safely managed."

Meanwhile, BNT officials told me after the meeting that they would be seeking full involvement in the development of the environmental management plan for the Wilson City plant and any monitoring initiatives that will be put in place. And Abaco's home-grown green group - Friends of the Environment - said they also want to be involved going forward.

"The number of people that attended the public meeting shows not only that the people of Abaco are concerned about what happens in their community but that they want to be involved in the decisions that affect them," Friends executive director Kristin Williams told me. "We hope that the government and BEC move forward in good faith and provide the information necessary to assure the public that the promises they made are being kept."

This is not the place for a technical discussion of the merits of using heavy oil as opposed to diesel in a power plant. Suffice it to say that - although different spokesmen cited varying figures at the meeting - using diesel fuel would add millions to the annual operating costs, and it is not clear if the environmental benefits would justify that. However, it is clear that heavy fuel oil plants require more maintenance than other types of plants - and again, BEC's track record is not very inspiring.

However, the issue of conventional versus renewable energy, on Abaco in particular, has not been sufficiently explored in my view. Although BEC is being dragged kicking and screaming (by Earl Deveaux, Fred Gottlieb and others) towards a renewable energy future, a national energy policy that would promote these initiatives is nowhere near being implemented.

A consultative committee chaired by Philip Weech was formed after the election to build on earlier efforts by the Christie administration. A draft report was completed last November, but has only just been posted to the BEST Commission's website (almost a year later) for public comment. And a Chamber of Commerce meeting has been scheduled for tomorrow (Thursday) to discuss this with Utilities Minister Phenton Neymour.

Consultants funded by the Inter-American Development Bank have just been hired to evaluate the economic disaster that BEC is now known to be, and to revamp our existing energy regulatory regime. But at this rate, we will all be dead before any effective energy policy or fossil fuel reductions can be implemented.

There is no doubt that conventional energy must continue to play a big role in power generation in the Bahamas. But as one woman put it at the town meeting: "We should take a stand for renewable energy, which could brand our island and would attract so much attention worldwide and set a legacy of green change. This government could set a huge precedent in that regard."

Comments

[troy]

Great article and very factual. It should be noted as well that a number of people at the meeting spoke of solar and wind as alternatives and although the technology is not there now we need to look at it a lot more closely. If BEC could buy back power from consumers - or at least allow the meter to run backwards - many would move forward with solar and wind on their own

[C.Lowe]

One issue facing BEC and Government is that the consumers who would self-fund getting off the grid are the consumers that pay their bills on time, consume in the higher tiers of $ per KW, and are not subsidized.
Economies of scale would diminish, leaving BEC in a sorrier state than ever, and requiring even more Government subsidy.
Energy self sufficiency is feasable for those who can afford the high initial costs, but zoning and elctrical inspection regimes have to be set up.
And we all know what that will entail.
I have 5 windmill generators right now, ready to go up but, I wonder what my neighbours will have to say about 40 ft towers being erected in my yard?
Solar panels are less obtrusive, but are also the most costly.

[Stagalee]

A classic example of how neither the PLP nor the FNM appear to be able to act as qualified leaders of our country and that they don't care about the opinions of any of the "other" people of the bahamas.

[F Knowles]

I wonder if more cannot be done now to pursue renewable energy sources. It seems that technologies would have grown significantly since the initial proposals for a new plant in Abaco were hatched. I got the feeling after the meeting that they were just too far into it now to be willing to turn back, and that it had more to do with that and less to do with the feasibility of an alternative such as wind turbines. I personally don't think it's ever too late to make a change in plans for the better (if possible). .

[spootyspoot]

"But at this rate, we will all be dead before any effective energy policy or fossil fuel reductions can be implemented."

I don't car about that. Just let me bring in whatever alternative energy equipment I want to put on my house. Let me let my neighbours plug into me whenever there's a black-out. Let me charge them for it. And maybe before I die also let me sell my excess energy back into their grid! Simple. Those who can, will do it. Those who can't will want to do the same once they get tired of me bragging about my $0 - $10.00 monthly light bill.

Solar panels and other technology is on the verge of taking off in grossly unregulated areas like shanty towns in Brazil and India. Especially india where they have banks offering sensible micro-loans.

[spootyspoot]

"Economies of scale would diminish, leaving BEC in a sorrier state than ever, and requiring even more Government subsidy."

Let BEC transition into a new role and business model! BEC can buy the solar panels (in bulk) and sell/lease them to the public. Then they can charge for installation. If I install them myself then they can charge me to have them inspect my work. And charge me again to get a proper certificate/permit proving it was installed properly (preventing the need for unnecessary futuer inspections). And they can charge me again to take a short course or test to prove I really can do it properly for myself and other and if I feel like it they can charge me again to get a proper license to start a business installing solar panels for other people. Then a couple dozen solar panel installation companies spring up, slightly reducing BEC's need to do hire and train ton of people to get all the equipment installed. Great assist to the employment problem.

THEN other countries wanting to follow our lead will need dozens of our semi-trained semi-professionals to travel to their country to train their people and start the installation process while their people are still in training.

...how much further down this path of thinking do I need to go....

[larry smith]

Sure - except that BECs interest lies in preserving inertia, so that their cozy little world of excessive salaries, benefits and perks continues ad infinitum.

[Dwayne W.]

How much does BEC spend on salaries and/or overtime anyway? Is that not the main reason the costs are so high?

[Dr Robert Fritz]

http://www.nytimes.com/2009/09/15/science/earth/15hawaii.html

[Erasmus Folly]

Let me get this straight:
1. BEC is a government monopoly charged with providing power at a reasonable price to the Bahamian people.
2. BEC currently makes money in New Providence, but loses money in the family islands due to a lack of an economy of scale when producing power from fossil fuels.
3. BEC is losing money overall.
4. More than 25% of our foreign reserves bleed right back out of the country for fuel and energy.
5. Government is scared to open up alternative power because it would make BEC unfeasible.
6. Government really wants to protect its 'revenue', a loss making corporation.
7. The Bahamas government thinks the above 6 points are logical?

First, open the family islands to alternative power development right now.
Second, slowly integrate a solar power business and wind business into BEC by allowing BEC to subcontract solar tech and wind tech companies.
Third, bring the top solar and wind tech companies, internationally, and offer them massive investment incentives to set up shop in the Bahamas.
Fourth, become a leading country in the green revolution.

Why is this so difficult for our government to understand?

[Rick Lowe]

Isn't it just marvelous Erasmus Folly?
If it wasn't so serious it would be funny.
One question on the wind issue.
When I was in Ontario this August there was a debate raging on CBC and in the newspapers about illness caused by the wind mills etc.
Larry provided some info on his Facebook page today, but that might be worth elaborating on?
Just open BEC up to competition and let them (the competition) figure it out!

[Erasmus Folly]

@Rick
On this, I think we are all agreed. Except for the government, it seems. For me government should provide leadership, but when demonstrably incapable, it should get the hell out of the way. BEC needs to get out of the way!

Gov must also lower duties to unlock growth in the domestic market. The labour market simply will not expand until gov makes shopping in Nassau competitive vis a vis Miami. Their tired BS about this is a low tax environment is total BS. It is for individuals, but not for companies doing import/export. Until they accept that hard, cold economic fact, the job market will remain flat.

Stupid government! FNM slightly better than PLP, but both are jokers at the end of the day.

I wish we had some smart leadership. This country is so small and manageable, if we weren't befuddled with ostentatious egomaniacal morons for politicians. We need a CEO and a CFO, not these political idiots with no understanding of basic economics.

2 cents of the day.

[Andrew Curry]

As we speak, FPL in Florida is building a 75 MW solar thermal energy plant. There is no question it can be done. Yes our leadership is a joke but we citizens must be involved. This meeting showed that the people can get Government to open there eyes , if only for a micro second. Now we need to keep it up and not just for a power plant but for all the ways Abaco gets shafted by our Abaco Prime Minister.