At a press conference held at the Ministry of Finance late Thursday, the Tenders Commission announced that it has opted not to go through with the sale to the BahamaTel consortium, a company which it had entered into a 30-day exclusive negotiation period with.
That period expired on Thursday.
Based on its evaluation of the negotiations conducted with the BahamaTel consortium during the past 30 days, (in particular the need for specific investments and management commitments linked to the objectives of the Government’s Sector Policy, and regarding price, costs and other transaction terms), the Government, based on the recommendation of the Tenders Commission, has concluded that it is in the interest of The Bahamas for the Tenders Commission to commence discussions with the next highest bidder,” said Chair of the Tenders Commission, Ruth Millar.
“Therefore, in accordance with Section 11.3 of the Final Phase Sales Rules, the Tenders Commission will initiate negotiations, for an exclusive period running for two weeks, with the second ranked bidder, the BlueTel Consortium,” she said.
Mrs. Millar explained that this in no way means that there has been a termination of the bidding process.
“This action of the Tenders Commission is not a termination of the bidding process itself. Nor is it in any way a termination of the privatisation process. Instead, this action, merely permits the Tenders Commission to enter discussions with a bidder other than BahamaTel,” she said.
Mrs. Millar went on to list the Government’s policy objectives, which includes assuring improve and expanded services; fostering new investment across The Bahamas; protecting the Government’s interest as a continuing owner of 51 per cent of the Company’s hares after any privatisation; ensuring the continuing improvement of skills within the telecommunications sector with a view to long-term management of the Company by and for Bahamians; and achieving fair value for the sale of the 49 per interest in the company.
However, she said the Commission did not find these in BahamaTel.
“We were not satisfied that we were arriving at a point which would have resulted in a successful outcome. They had not responded to some of the information which we required, in particular a business plan which would have set out where they expected to take the company during the short and medium terms, with specific targets and timetable and t hat would have enabled the government to be satisfied that the company would have been fulfilling its expectations with respect to the objectives which had been set out,” Mrs. Millar said.
She pointed out however that negotiations with BahamaTel were frank and open, but said both sides had their own objectives.
Too, Mrs. Millar noted that BahamaTel’s bid was too low but the Commission’s focus was meeting the objectives of partnership with the Government.
“At the outset, on the first day of negotiations we did say to BahamaTel that their price was too low and it was up to them whether they changed that or not. We did not get on to dealing with price at this stage with BahamaTel, because it was more important at this stage to deal with the business plan,” Mrs. Millar said.
The Blue Consortium consists of Blue Telecommunications (Bahamas) Limited, Detecon International GmbH and One Equity Partners LLC.
By Keva Lightbourne, The Nassau Guardian
