NASSAU, BAHAMAS – The Freeport Licensee Association (FLA) is raising red flags over the Government’s planned acquisition of the Grand Bahama Power Company, warning that the proposed $280 million deal lacks critical details and could place additional financial strain on taxpayers and businesses already grappling with high energy costs.
In a statement on Thursday, the FLA said that while it recognizes the significance of the move, any acquisition of this scale must be grounded in “transparency, sound financial reasoning, and full public consultation,” arguing that the current information shared with the public falls short of that standard.
The group voiced particular concern over how the Government intends to service the $280 million loan tied to the purchase, especially given that Grand Bahama residents are still dealing with the financial fallout from past storms, including Hurricane Dorian.
“At present, the information provided to the public contains very few details as to how such an acquisition would benefit the people of Grand Bahama,” the FLA said. “The only meaningful benefit mentioned is the possibility of reduced power bills, yet no clear explanation has been given of how this would occur, particularly if the purchase requires additional borrowing that will ultimately be carried by Bahamian taxpayers.”
The association also cautioned that government ownership does not guarantee improved efficiency or lower costs, pointing to challenges faced by state-owned utilities across the country. It maintained that private ownership—properly regulated under the Hawksbill Creek Agreement—can provide accountability without exposing the public to unnecessary financial risk.
“Many of our members have expressed concern that government ownership does not automatically translate into improved performance or lower costs,” the statement noted, adding that it is “reasonable for the public to question whether this proposed acquisition would produce a different result.”
The FLA further questioned whether the reported valuation of the power company is justified, and whether the utility would be able to take on new debt while simultaneously lowering electricity costs. It also flagged uncertainty surrounding “tens of millions of dollars in additional capital works and working capital,” warning that these elements could significantly impact the overall cost of the transaction.
The group said the lack of clarity extends to the potential implications for medium and large businesses in Freeport, many of which already face elevated energy costs that influence investment decisions.
The FLA stressed that public confidence in the proposed takeover will hinge on the Government’s willingness to provide full disclosure and a clear, measurable plan of benefits.
“We therefore call upon the Prime Minister and Minister for Grand Bahama to meet with Grand Bahamians to provide this information,” the association said, also urging Members of Parliament representing the island to seek answers on behalf of their constituents.
Reaffirming its non-political stance, the FLA said it remains focused on advocating for policies that support investment, job creation, and long-term economic stability, adding that decisions of this magnitude must be made with openness, consultation, and a clear demonstration of benefit to the people of Grand Bahama.
