NASSAU, BAHAMAS Prime Minister Philip Davis KC has hailed a landmark arbitration ruling in the government’s dispute with Grand Bahama Port Authority (GBPA) as a “historic win” for the country.
“The Tribunal also confirmed that the Government has the authority to govern Freeport—because yes, of course the people’s elected representatives must have the power to prefer and promote Bahamian employment and ownership anywhere and everywhere in The Bahamas,” Mr. Davis said during a national address Tuesday night.
He noted that the Tribunal ruled that the Port Authority is legally obligated to make annual payments to the Government and people of The Bahamas for the remainder of the Hawksbill Creek Agreement, through 2054. “This is about fairness. It is about replacing drift and decline in Freeport with investment and opportunity,” the Prime Minister added, highlighting the long-term economic significance of the decision.
Davis explained that the arbitration was necessary because Freeport had long been governed in large part by private interests. “Whatever good the arrangement accomplished decades ago, it has been a long time since these massive concessions made any sense,” he said. “Basic services and infrastructure have fallen behind, contributing to economic decline. Under the Hawksbill Creek Agreement, many of those responsibilities belong to the Port Authority. Instead, the people of The Bahamas have been paying the bill.”
The Prime Minister noted that the Government will now move to determine the exact payment amount, which could exceed the $357 million initially claimed. “The Tribunal’s ruling means the Port Authority must bend toward its obligations, taking that burden away from Bahamian taxpayers,” Mr. Davis said.
Looking forward, the Prime Minister emphasized that this legal victory lays the foundation for economic growth and investment in Grand Bahama. “Grand Bahama will finally realize its potential as a world-class center for shipping, logistics, industry, tourism, and innovation,” he said. “Because our government is expanding new initiatives for the training and upskilling of our people, it will be Bahamians who gain new opportunities for security and success.”
“This decision confirms what the people of Grand Bahama have long said: Freeport is part of The Bahamas, and its future belongs to Bahamians,” he concluded.
Opposition leader Michael Pintard accused the government of attempting to characterise a loss as a win, noting that the Government did not succeed in securing its $357 million claim against the GBPA. “The Davis Administration chose an aggressive legal path, spent public funds, and failed to secure the result it promised. That’s the bottom line,” he said.
The Opposition leader argued that disputes of this nature were historically managed through negotiation and structured engagement. “Instead, this administration escalated the matter to arbitration, creating uncertainty that affects both local and international investors at a time when Grand Bahama urgently needs stability and confidence,” he said. He added that the focus should now be on “restoring stability, rebuilding partnerships, and ensuring that any further proceedings are handled transparently and responsibly,” calling for “disciplined leadership, constructive engagement, and long-term prosperity for Grand Bahama and The Bahamas as a whole.”
