Selling to the Government
In March 2023, the government repealed and replaced the Public Procurement Act, 2021, arguing that the previous legislation produced unintended public policy consequences, most notably biasing the granting of contracts to large vendors. The government contends that the new Public Procurement Act, 2023 allows preferential treatment for targeted groups such as SMEs, women-owned businesses, youth-owned businesses, and businesses operating on less developed islands. Preferences are also available for high-priority areas that diversify the Bahamian economy, such as niche-tourism, renewable energy, light manufacturing, digital assets and fintech, technology, agriculture, fisheries, and extractive industries. The new legislation requires international bidders to register with the Public Procurement Department. International bidders must receive approval to bid on lower value contracts.
The new procurement legislation is supported by an eProcurement and Supplies Registry System and an eProcurement platform launched in October 2022 that will serve as a clearing house for $785 million in government contracts budgeted for FY2022/2023. The administration contends the procurement platform will address complaints about transparency in the tendering process, allowing companies to track their bids and inquire about outcomes.
The government has also committed to procurement rules under the terms of its membership in the Economic Partnership Agreement with the European Union and the Economic Partnership Agreement with the United Kingdom but is not yet a party to the WTO and the WTO Government Procurement Agreement (GPA).
Businesses intending to market goods or services to the Bahamian government are advised to seek the advice of the U.S. Embassy at an early stage. Embassy Nassau is often aware of procurement opportunities and will distribute updates via the Department of Commerce. Companies should ensure they are in regular contact with the Department of Commerce and their contact information is up to date.
U.S. companies bidding on foreign government tenders may also qualify for U.S. Government advocacy. Within the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters in competition with foreign firms in foreign government projects or procurement opportunities. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agency officials expressing support for the U.S. exporters directly to the foreign government. Consult Advocacy for Foreign Government Contracts for additional information.
Financing of Projects
Overview
The Bahamian government requires potential investors to have financing in place when applying for approval of project development or investment in The Bahamas. Projects can be financed by private and debt equity; bank loans; retained earnings; development bank financing; international private capital; bonds and bilateral and multilateral loans, and grants. Local banks will provide financing to U.S business clients after stringent due diligence.
EXIM Bank
The U.S. Export-Import Bank supports U.S. exports through export credit insurance, guarantees, and loans. The government of The Bahamas can seek an EXIM line of credit to support investments.
Bahamian government or funding from regional Development Banks
The national social security program, the National Insurance Board, and international lending agencies such the Inter-American Development Bank (IDB) and the Caribbean Development Bank have financed projects in The Bahamas over the past 20 years.
Multilateral Development Banks and Financing Government Sales
Many government-financed public works projects are facilitated through borrowing from Multilateral Development Banks (MDB). A helpful guide for working with the MDBs is the Guide to Doing Business with the Multilateral Development Banks. The U.S. Department of Commerce’s (USDOC) International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank. Learn more by contacting the Advocacy Liaison for World Bank or the Advocacy Liaison Website for Inter-American Development Bank (IDB)