Written by 11:13 am Food

New National Investments Fund to switch Sovereign Wealth Fund

NASSAU, BAHAMAS — The federal government is establishing a National Investments Fund that may maximize this nation’s assets and supply a transparent regulatory framework for private-sector partnerships, Prime Minister Philip Davis said yesterday.

While delivering communication in Parliament on the laws, Davis noted that modernizing the country’s infrastructure, investments in food security, in addition to the energy sector, require enormous levels of investment.

“Meaning we want to do things smarter, higher, than they’ve been done up to now,” said Davis.

He explained that the laws will allow The Bahamas to maximise the nation’s assets, investing and deploying our own capital to expand access to additional capital and opportunities.

He continued: “If we only finance projects with government revenues or borrowing, fiscal constraints will significantly limit how much and the way ambitiously we will construct.  Partnering with the private sector greatly expands the number and scope of infrastructure projects we will tackle, allowing us to maneuver forward on more projects on more islands concurrently.

“Mobilizing private capital in partnership with Government is essentially the most effective technique to see a big advancement in expensive projects. As an alternative of the general public having to contribute or borrow every penny for roads, schools, hospitals, airports,  and houses, we’ll invite the private sector to partner with us. As an alternative of the general public having to contribute or borrow every penny to expand renewable energy, or improve our defences against hurricanes, we’ll invite others to partner with us to strengthen our resilience. These partnerships can provide enormous benefits, but it surely’s crucial that they’re managed and  overseen within the country’s best interests.”

Davis noted that the National Investment Funds bill sets up for the primary time in our country a transparent regulatory framework for such arrangements.

“We’re doing so in step with the recommendations made by the IDB, which advised establishing investment funds and vehicles to take care of national investment revenue and expenditure in a way that’s transparent and in line — each from a structuring and governance viewpoint — with international best practices,” he said.

“That is a vital first step in taking a comprehensive approach to national investment. The new framework brings together quite a lot of different strands of presidency fiscal operations  referring to investments, and puts them into properly structured entities that enable partnerships with the  private sector.”

Davis noted that the primary objective is to authorize the establishment of National Investment Funds, for the aim of advancing the blue, green, and orange economies of The Bahamas.

The second objective is to supply for the effective and transparent management of the natural resources of The Bahamas, together with private investments held by the Government of The Bahamas.

“So as to achieve these objectives, funds created pursuant to this Bill are designed to be sure that investments and personal shareholdings of the Government are managed professionally for the short,  medium, and long-term advantage of residents of The Bahamas. The prescribed fund structure can also be designed to be sure that revenues from the assets of The Bahamas will contribute to the economic certainty of the country.  Upon passage of this Bill, we’ll immediately proceed with the formation of The Bahamas Resilient  Infrastructure Fund, fulfilling our commitment to create a fund to advertise partnerships for the event — and in lots of instances re-development — of our Family Island infrastructure,” said Davis.

As a part of the Bahamas Resilient Infrastructure Fund, the federal government will create, at a minimum, a Growth Fund for the Family Islands, a Food Security Fund, and a Renewable Energy Fund.

Centerville MP Jomo Campbell tabled in Parliament a Bill for an Act to repeal and replace the Sovereign Wealth Fund Act of 2016 and to supply for the establishment of a national investment fund for a purpose laid out in the Act.

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