Editor,
Today, there exists an unprecedented alignment of political, social, and economic need for positive change to unlock Grand Bahama’s potential.
Doing so, however, requires a new era of cooperation from all the island’s stakeholders and the current conflict only delays GBI’s desperately needed economic rejuvenation.
As one of Freeport’s early entrepreneurs, I understand why the Hawksbill Creek Agreement allowed the island to flourish and, later, what caused the island’s economic downturn. I believe we should now learn from the past, reintroduce positive precedents, and avoid past mistakes so that GBI can flourish once more.
For a new era of cooperation to begin, GBI’s stakeholders must agree on what the island’s future should look like. Predictably:
- GBI’s Community wants to benefit from abundant, quality employment for themselves and future generations. They also want better social services, more business opportunities, and climate change mitigation. GBI needs thousands, not hundreds, of new jobs.
- The Government needs to benefit from a prospering community that, through administrative improvements, significantly increases Grand Bahama’s financial contribution to the country while reducing its costs to administer it.
- GBI’s existing Entrepreneurs want to benefit from re-established confidence in GBI’s management so that their current businesses can prosper, plus new business opportunities.
- The Shareholders of the entities that own the island’s large parcels of undeveloped real estate want to benefit from the island prospering once more but need to reimagine their roles and responsibilities to the community and the Bahamas.
While some advocate a change in GBPA’s ownership, the current economic situation and the Government’s $357 million invoice make a meaningful ownership change, short of nationalization, next to impossible.
A forced sale or nationalization of GBI assets would be extremely detrimental to the Bahamas’ international financial reputation. However, a change in GBI’s developer’s management is a much more desirable way to revitalize GBI’s economy.
Similarly, continuing the status quo is untenable. Nassau has left Grand Bahama behind, and businesses in Freeport and on Grand Bahama have been left with a limited market to serve and few prospects for growth.
We need to explore new ways forward, and I would like to offer a recommendation.
One of the most productive and equitable ways of working together would be to create a new business entity in which Bahamians and international investors can buy shares. The new entity, possibly a trust or cooperative, should have a suitable management team to work closely with the government to modernize the Hawksbill Creek Agreement to facilitate Grand Bahama’s economic rejuvenation.
A suitably structured entity that allows Bahamians to invest in the island’s future and have a say in how the island is developed presents many opportunities.
- The entity should engage an expert management team with investors prepared to initially invest an estimated $100 million to kick start positive change and be able to put together a dream team of local and international experts to manage sustainable and equitable development successfully.
- A professional independent valuation of large parcels of GBI’s undeveloped land needs to be made and agreed by the current owners and Government.
- The new entity should develop 5-, 10-, and 50-year development plans agreed upon with the Government, management, and the local community.
- The government should empower management and investors to adequately fund it by giving it both the responsibility and the authority to successfully execute the entity’s long-term objectives.
- New international and local investment should be raised to fund structural improvements and the rebranding of GBI’s extraordinary investment opportunities.
- The new entity’s board of directors should be made of representatives of all stakeholders.
Of course, many details would need to be agreed upon to establish how the new investment should be structured, but with a strong will to cooperate, this could be successfully accomplished.
To expand the shareholder base, the Government should defer charging the GBPA for services it provided in the past and fully support increasing GBI’s financial future contribution to the country while reducing its cost to administer the island.
The existing landowners should be thanked for their years of service but also encouraged to recognize that the island and the country now need new management to meet everyone’s interests. The landowners would benefit from increased investment and positive government relations.
It has been almost 70 years since the Hawksbill Creek Agreement was signed, and the Government should agree to update it and extend its provisions to the entire island, allowing all GBI to be totally revitalized and prosper under new management.
It’s time for all the island’s stakeholders to embrace brave new changes.
Written by: Stephen Crane
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