PM Christie: Region needs true partners

International commercial banks with a presence in the Caribbean have been urged to be true partners to the government and people of the islands in which they operate.

Prime Minister of The Bahamas, Perry Christie, made this appeal as he addressed the first CIBC FirstCaribbean Infrastructure Conference last week Thursday at The Atlantis Resort in The Bahamas. The event brought together representatives from government and government agencies, multilateral institutions, financial advisors, developers and investors to discuss strategies in pursuing private-public partnerships.

Prime Minister, the Rt. Hon. Perry G. Christie, and CIBC
FirstCaribbean’s Managing Director for The Bahamas and
Turks and Caicos, Marie Rodland-Allen, were escorted in.

“I need to have [banks] demonstrate they do have confidence in The Bahamas; [that] they are not just here to make money out of The Bahamas and then repatriate it to someplace outside,” he emphasised. “That there is the understanding that we are partners in development and that the people of The Bahamas and the banks and their bases here can find the way to institutionalise the relationship and partnership where the country can be advanced.

“This is why this makes so much sense to me to be able to know where the record of a country is, to know what the capacity of the country to pay back is, and for us to be able to say ‘Let’s get it on.’”

He later insisted, “While the Government must necessarily play a pivotal role going forward, I do believe that there is a critical need for involvement of the private sector in the further development of our economy and society which, in many respects, can be characterised as a social responsibility.

CIBC describes infrastructure as a “core business” globally and the bank has received several awards for its work in infrastructure and project finance. This month, CIBC was once again named as the strongest bank in Canada and North America and the third strongest bank in the world by Bloomberg Markets Magazine. Since 2006, CIBC has been the majority shareholder, with a 91.5 per cent stake in CIBC FirstCaribbean, the largest, regionally-listed bank in the English and Dutch-speaking Caribbean.

It is a track record that is expected to lend significant support to the subsidiary’s infrastructure undertakings in the region. During her welcome remarks to open the conference, CIBC FirstCaribbean’s Managing Director for The Bahamas and Turks and Caicos, Marie Rodland-Allen, outlined the regional bank’s role as a lender in a $55 million senior secured credit facility for new Curacao wind park, a project that represents a total investment of $74 million in a renewable source that generates almost 20 per cent of Curacao’s annual energy demand, she said.


“Additionally, CIBC played a major role as joint lead arranging bank and local placement agent in the $265 million financing for the redevelopment of the Sir Lynden Pindling International Airport right here in the Bahamas,” she continued.

“Through our capital market and corporate investment teams, we have been at the forefront of providing many of the solutions to large corporates and sovereigns that have been recognised as among the most creative and impactful to our region. The expertise that exists in the Caribbean is backed by the strength and experience of our parent CIBC.”

Respect important

Meanwhile, the Bahamian PM further appealed to the private sector to be sympathetic to the political dimension in which governments must operate. According to him, each side must understand the limitations and the challenges of the other and respect the issues on which there could be no compromise.

But he noted that government had a role to play in getting the buy-in of the public: “I firmly believe that potential social resistance highlights the need for political and social will; particularly in areas that may be politically sensitive, such as water distribution and electricity generation. As such, we must find the means to increase co-ordination and consultation with stakeholders, especially in relation to the potential social and environmental impacts of projects and related infrastructure. In that vein, consultation must be buttressed and informed by effective environmental and social impact studies.”

Urging private sector players to be frank in their negotiations with government, he said, “The public-private partnership isn’t just infrastructure; it’s about respect, it’s about integrity in how you operate; it’s about resolve to make the country work.” (YA)