NASSAU, BAHAMAS- Stakeholders in Freeport say the reported decision in the high-stakes arbitration dispute between the Government of The Bahamas and the Grand Bahama Port Authority (GBPA) could significantly shape the island’s economic future, though uncertainty remains as details stay confidential.
“Reaching a conclusion would be a good step. Knowing what the conclusion is and how it impacts Freeport going forward would be even better,” said Dillon Knowles, President of the Grand Bahama Chamber of Commerce.
Another Grand Bahama stakeholders, eager for more details acknowledged: “It would definitely have a major impact on the future of Freeport.”
Prime Minister Philip Davis confirmed Monday that a “partial” decision has been issued in the government’s arbitration battle with the GBPA but declined to disclose specifics, citing the strict confidentiality rules governing arbitration proceedings. Under those rules, details will remain sealed unless both parties agree to release them.
The dispute centers on government claims that the GBPA owes the public treasury hundreds of millions of dollars — estimated between $357 million and $375 million — alleging the authority failed to fulfill key obligations related to infrastructure, economic development, and regulatory oversight within the Port area of Grand Bahama.
The Grand Bahama Port Authority has rejected the government’s $357 million claim, insisting it has met its obligations under the Hawksbill Creek Agreement. The GBPA has previously pointed put that that no such demand has been made in the agreement’s 70-year history and suggests the claim followed its refusal to sell the Port group to the government at a discounted price, and has warned that the dispute could damage investor confidence and economic recovery in Freeport and Grand Bahama.
