NASSAU, BAHAMAS — The Grand Bahama Port Authority (GBPA) is expressing its disappointment with the recent reported developments in the government’s claim for expenses, stating that legal proceedings were not appropriate.
The government and the GBPA have been engaged in a public back-and-forth for several months, with Prime Minister Philip Davis revealing that the government is pursuing monies owed to the Public Treasury by the GBPA. He has also revealed that the government has been negotiating to purchase the GBPA. A recent report, indicated, however, that the government had withdrawn its offer and had decided to take the matter to arbitration.
In response, the GBPA released a statement expressing regret over the turn of events.
“The Grand Bahama Port Authority (GBPA) is disappointed by the latest turn of events, as highlighted in a recent news report, regarding the Government’s claim for expenses for Government administration of the City of Freeport under the Hawksbill Creek Agreement. Our doors have always been and remain open for constructive dialogue with the Government to resolve these matters in the best interests of Freeport,” the GBPA said.
“We do not believe that legal proceedings would be appropriate nor in the spirit of the mutually beneficial partnership between the GBPA, the government, our licensees, and the residents of Freeport. It does not inspire confidence or encourage further investment in the Port Area, of which there is currently more than $1.5 billion in the pipeline. We, therefore, invite the Government to engage in the process to resolve questions concerning its claims, in accordance with the parties’ obligations under the Memorandum of Understanding executed between the parties in 2016.”
The GBPA argued it has always sought to fulfill its obligations as a responsible corporate citizen and remains committed to constructive dialogue with the Government, to resolve this and any other matter that pertain to the interests of Freeport and its residents.
During his budget contribution in June 2023, Prime Minister Davis stressed the need for decisive action regarding the compliance of the GBPA with the terms and conditions of the Hawksbill Creek Agreement. The GBPA responded in a statement, assuring its licensees and the public of its steadfast commitment to the ongoing development of Freeport. The government, in response, began invoicing the Port Authority for reimbursable expenses.
The Hawksbill Creek Agreement, signed in 1955, granted the GBPA the authority to establish a city and free-trade zone over 50,000 acres, aiming to spur economic development on Grand Bahama. The conflict between the government and the GBPA raises concerns about the future of their partnership and the economic development of Freeport.
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