Welcome to the Bay Street Brief!

Another week that had us saying “bey never bey” almost every day.

Let's get to it.

Here's a quick recap of how we got here.

Back in June 2024, the Davis administration signed a deal to fix New Providence's notoriously unreliable power grid. A company called Bahamas Grid Company (BGC), 40% owned by BPL, would take over the island's transmission and distribution (T&D) network and invest $130m in overhauling it. The deal came with an eyebrow-raising payment structure: BGC collects 5.5 cents per kilowatt-hour from every BPL customer billing, and gets paid first, before BPL sees a cent. This has been estimated to be as much as 45% of BPL's monthly revenues. The management firm running the show was a US company called Island Grid, led by Eric Pike, whose family company Pike Electrical was doing the actual on-the-ground work. The agreement was supposed to last 25 years.

Island Grid lasted less than two.

What gone down?

On April 20, Island Grid exited the deal. Eric Pike and colleague Mei Shibata stepped down from BGC's board the same day. BGC's press release buried this under enthusiastic language about a "fully Bahamian-led operating model," a corporate way to announce a collapse without calling it one.

The shooting death of Pike worker Cody Castillo in March outside Da Plantation Bar & Grill, allegedly by an off-duty RBPF Superintendent, sent the roughly 40 Pike employees running back to the US. That delayed completion of the grid upgrades by two months, pushing the finish line to June 2026. BGC chairman Anthony Ferguson says 85% of the foundational work is done and Pike workers are returning. Of course there's a political side: the FNM alleges the deal collapsed as far back as March 23, weeks before any public announcement, while the Government said nothing.

Why does this matter?

This isn't just a management shuffle. BGC was backed by a $111m bond issue and $30m in equity, and those investors are already asking questions. But it doesn't stop there. Island Power Producers, the company building a natural gas plant at Arawak Cay to supply shore power to cruise ships at Nassau Cruise Port, is also planning to sell its excess electricity directly into BPL's grid. That plan only works if the grid can actually receive it. IPP's public share offering last year was oversubscribed by $12m, with Bahamians buying in from as little as $1,000. They deserve to know how the grid chaos affects the investment they were sold.

Energy Minister JoBeth Coleby-Davis, when pressed for answers this week, said: "We spoke to it and a statement went out." She then refused to elaborate.

The bottom line: The Government is calling this a "transition." The opposition is calling it a "fiasco." If you’re an investor in any of these companies, you may want to call your investment advisor and get some answers.

If it feels like Nassau is busy again, it’s not your imagination.

At this week's Bahamas Hotel and Tourism Association meeting, both Baha Mar and Atlantis reported strong first-quarter results, with high occupancy, rising room rates, and solid momentum heading into the summer.

Baha Mar called Q1 "fantastic," and the numbers back that up. Revenue per available room jumped 14% year over year, and March occupancy hit 94%, one of the highest levels since the property opened. Management credited increased Canadian airlift as a key driver. Baha Mar president Graeme Davis put it plainly: "What's going on in Mexico, what's going on in Jamaica, what's happening in the Middle East — we've got some perfect storms around the world that are certainly supporting The Bahamas as the best place to come to." Hard to argue. Q2 bookings are trending strong, with group travel and conferences adding to the momentum.

Atlantis told the same story. Every hotel tower met its targets, surpassing last year's Q1 results. Strong contributions from the casino, food and beverage, and retail rounded out the picture. Like Baha Mar, Atlantis credited Canadian visitors and group business for driving performance, and Q2 is, in their words, "similarly poised."

It's not just stopover tourism either. Nassau Cruise Port reported a 15% jump in passenger volumes in Q1, from 1.6 million to 1.8 million, with ship calls up 5.5%. The port is doubling down on that momentum with a new pool and day club opening within weeks, an expanded marina now capable of hosting six mega-yachts simultaneously, and upgraded retail and dining aimed at keeping visitors spending longer once they arrive.

TL;DR… Hotels full. Cruise traffic up. Visitors spending more. For an economy that lives and dies by tourism, this is about as good a start to the year as you could ask for. The world's instability is, for once, working in our favour.

Blockbuster had 9,000 stores worldwide. Movies, games, late fees that paid for someone's entire second home. Everyone knew the name.

But they failed to see the opportunity streaming provided and get in on the ground floor. Now there's only one store left, in Alaska.

Do you want to be the Blockbuster in Alaska? Didn't think so.

Get in early. Reply to this email to advertise with The Bay Street Brief. 🇧🇸

You were paying attention this week, right? Let's find out.

Under the Bahamas Grid Company deal, how much does BGC collect from every kilowatt-hour on your BPL bill — taken out first, before BPL sees a cent?

Answer at the bottom. No cheating.

🧂 Morton Salt Is In Trouble, And Inagua Is Watching Nervously Morton Bahamas has given workers two options: a 75% redundancy package or a 20-hour work week. The union rejected both. The union president has 45 days to find a resolution before Inagua's largest employer potentially suspends or closes operations entirely. Government intervention is being sought urgently.

🚌 No Bus Fare Increase. Whatever was circulating on the group chats, the Ministry of Energy and Transport wants you to know: the Government has not authorised any increase to bus fares in New Providence. Not happening on May 4th. Whether that stays true long-term is another conversation.

📱 PricePal Is Now Live PM Davis officially launched the PricePal grocery comparison app this week, moving it out of beta and into the App Store and Google Play. It covers stores across New Providence and several Family Islands, and lets you report expired goods too. Over 1,000 Bahamians tested it already. Go check it out.

🌐 Opportunity Hub Launches The Government launched its Opportunity Hub platform this week, a single digital access point for programmes across multiple ministries including Upskill Bahamas, grants, financing, and mentorship. The UK and China have both committed support. Entrepreneurs and job seekers, this one is for you.

✈️ Out Island Tourism Is Struggling While Nassau is thriving, the Family Islands are not. Room nights sold across Out Island hotels dropped 21% in Q1, with the collapse of Silver Airways last year gutting airlift to several destinations. In Abaco alone, available seats fell 37% year over year. The Out Island Promotion Board is offering air credits and fly-free incentives to try to close the gap.

🔫 Someone Tried To Shoot Up The White House Correspondents' Dinner A 31-year-old Californian charged a security checkpoint outside the annual press dinner on Saturday, firing at least one shot before being arrested. Trump, Melania, and the Cabinet were evacuated. One Secret Service officer was hit but saved by his vest. The suspect's writings described him as the "Friendly Federal Assassin."

🍎 Tim Cook Is Stepping Down As Apple CEO Cook will become Executive Chairman on September 1st, with hardware engineering chief John Ternus taking over as CEO. Under Cook, Apple's value grew roughly 24 times. Ternus inherits the world's most valuable company at a complicated moment. Big shoes, bigger balance sheet.

🇨🇦 Canada Is Done Playing Nice With Washington Canadian PM Mark Carney went on YouTube this week to tell Canadians that US economic ties are "weaknesses" that need correcting, calling American tariffs the highest since the Great Depression. The USMCA is up for renegotiation by July. Canada is one of our biggest tourism markets. When that relationship gets rocky, we notice.

⚓ Iran's Ceasefire Is Holding. Barely. Trump extended the Iran ceasefire after Pakistan requested further talks, but Iran's Revolutionary Guard still seized two cargo ships and fired on a third in the Strait of Hormuz the same week. Iran hasn't confirmed whether it will join the next round of negotiations. The situation remains fragile and the outcome uncertain.

🇺🇸 The US May Bail Out Spirit Airlines The Trump administration is reportedly in talks to loan Spirit $500m, potentially taking a 90% equity stake in return. Spirit is one of the few low-cost carriers flying into Nassau. If it disappears, that's less competition on routes and higher fares for Bahamians travelling to South Florida.

🕵️‍♂️ A U.S. soldier is accused of making a $400K bet using insider knowledge… literally. Prosecutors say he used classified intel to bet on the timing of Nicolás Maduro’s capture on Polymarket. The bet hit. Now he’s facing fraud charges and years in prison.

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5.5 cents per kilowatt-hour. Every single bill. Collected first. Before BPL sees anything. One source estimated that works out to as much as 45% of BPL's monthly revenues.

That's all for this week.

Thanks for making it through! I really appreciate you taking the time out of your day. Check us out on our socials for updates throughout the week.

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Until next time.

— The Bay Street Brief Team