The Bahamas has introduced a revised public-private partnership policy, a new PPP Assessment Framework and a proposed “Private Sector First” approach. Economic Affairs Minister Michael Halkitis tabled the measures in Parliament as the government seeks stronger fiscal oversight and greater private-sector participation in infrastructure. Developed with support from Misca Advisors, the reforms strengthen project identification, appraisal, approval, procurement and contract management. They also reinforce the Ministry of Finance’s role in assessing affordability and wider fiscal consequences before projects receive approval. The revised policy builds on the country’s existing PPP framework rather than replacing its basic structure. The three documents have now been released for public consultation before finalisation.
The proposed Private Sector First policy could significantly change how The Bahamas screens infrastructure projects. Government agencies would consider private investment from the earliest planning stage rather than automatically relying on public financing. Commercially viable projects could move toward private delivery, while government investment would remain available where private participation is unsuitable. The broader PPP Assessment Framework would then guide how authorities identify, appraise, approve and manage those projects. It will introduce standard assessment methods, templates and required documents for each stage of the PPP lifecycle. Authorities would examine value for money, fiscal affordability, project risks and the allocation of those risks between government and private partners before a project moves forward.
The framework also creates clearer decision points between project identification, business-case preparation, procurement and contract management. It strengthens the Ministry of Finance’s role in reviewing affordability and wider fiscal consequences before approval. It also places greater emphasis on monitoring performance, contractual changes and government exposure throughout the life of a project. This is particularly important because PPP commitments can create long-term payment obligations and contingent liabilities that may not appear as immediate public spending.
Commercial viability alone will therefore not determine whether a project becomes a PPP. A project would still need to demonstrate that private participation offers better whole-life value than conventional public procurement and that the government can afford its retained obligations. In practice, the revised framework seeks to turn the Private Sector First principle into a structured decision-making process rather than simply a preference for private financing.
The reforms could create a clearer PPP environment for investors, lenders and government agencies by introducing more consistent project appraisal and approval processes. The new Bahamas PPP policy framework is intended to strengthen transparency, project identification and appraisal while incorporating value-for-money and fiscal affordability tests. It also seeks to improve risk allocation between the public and private sectors. These measures respond to concerns raised by the IMF about PPP fiscal risks, including the need to quantify potential liabilities, strengthen monitoring and improve fiscal reporting. If applied consistently, the Bahamas PPP policy framework could support private investment while giving the government stronger tools to assess and manage long-term fiscal exposure.
