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Divestments |
The Free National Movement recognises that the rapid technological advances being realised in the production and supply of utilities make it increasingly more expensive for public corporations to remain at the cutting-edge of technology in their respective areas.
Given this reality, the Free National Movement Government has, with the advice of major international financial institutions such as the World Bank and the InterAmerican Development Bank, undertaken studies on the feasibility of the divestment of its public utility corporations.
The Free National Movement is satisfied that the production of water is a business which might be successfully divested from Government ownership, realising reductions in the cost of water charges to consumers, while retaining for Government ownership and operation, the water distribution.
The Free National Movment is also satisfied that privatisation of The Bahamas Telecommunications Corporation and of The Bahamas Electricity Corporation will readily provide the Bahamian public, and the large international business community of The Bahamas, with advanced, efficient and cost-effective telecommunications and enhanced electrical services.
The Free National Movement believes that an important contributing factor to the social and economic stability of a society is national participation and ownership in the economy hence the importance of the development of small entrepreneurs and self-employed persons and of creating opportunities for Bahamians to become owners in larger and profitable enterprises in our society.
The Free National Movement believes that it is also critically important to the economic empowerment of the people for increased opportunities to be created, whereby all Bahamians are permitted and encouraged to become owners of large, financially successful enterprises in The Bahamas.
Having begun the process of widening the ownership of the Bahamian economy by all Bahamians through the divestment of 50% of the shares in the Bank of The Bahamas to some 3,000 Bahamian citizens; and having facilitated the majority ownership of Cable Bahamas by some 4,000 Bahamian shareholders; the Free National Movement created an environment conducive to other business and banking concerns making their shares available to all Bahamians.
The FNM Government is resolved, in its next term in office, to commmence the privatisation of The Bahamas Telecommunications Corporation and of The Bahamas Electricity Corporation and of the water production sector, but not the distribution section, of the Water and Sewerage Corporation. The terms of divestment will provide for the Government’s continued participation in the ownership of the Corporations and for the continued majority ownership of the Corporations by Bahamian citizens.
To these ends, an FNM Government in its second term will:
Mandate The Bahamas Electricity Corporation and The Bahamas Telecommunication Corporation to make available to staff and to all Bahamian citizens, the 20% shares held by those Corporations in Cable Bahamas. Prepare for divestment to majority Bahamian owned entities, the water producing aspects of the Water and Sewerage Corporation. Prepare The Bahamas Telecommunications Corporation and The Bahamas Electricity Corporation for divestment, with major Bahamian participation together with a major international communications entity as a minority shareholder. Continue to explore the best options for the divestment to majority Bahamian owned groups, other government owned enterprises, including Nassau Flight Services, which could be more efficiently and effectively operated and managed by the private sector.