NASSAU, BAHAMAS — The Grand Bahama Port Authority (GBPA) needs a management and governance change in order to realise real growth and opportunities in Grand Bahama according to Prime Minister Philip Davis, who revealed that the government has begun providing invoices to the GBPA for reimbursable expenses, although no reimbursements have been provided to-date.
Prime Minister Davis during his budget debate wrap-up yesterday noted that for many years there have been calls for changes to the way the city of Freeport, as the economic engine of Grand Bahama, is managed.
“As the government, we have done what we can to make important investments in Grand Bahama. We are investing in a new airport, a new hospital, and a multi-million-dollar jobs programme. While these initiatives are much needed, they do not address the more fundamental need for change,” he noted.
He continued, “Our position is clear, the Port Authority under its present structure is not realizing Freeport’s enormous potential; the status quo is not working, and the people of Grand Bahama deserve better.It is important to note, that Section 1(5) of the Hawksbill Creek Agreement specifies that costs borne by the government for certain activities and services provided are to be reimbursed by the Grand Bahama Port Authority, for amounts in excess of customs duties and emergency taxes collected.”
According to Davis, government has begun to invoice the Port Authority for these reimbursable expenses, as calculated by an independent accountancy firm.
“To date, the Port Authority has not provided reimbursement in connection with any of these invoices. We need to have a serious conversation in this country about the best way forward.I am of the belief that the GBPA needs a management and governance change in order to realise real growth and opportunities in Grand Bahama,” the Prime Minister said.
During his budget communication at the end of last month Prime Minister Davis indicated that it is time for the government to take “decisive action” regarding concerns about the compliance of the Grand Bahama Port Authority (GBPA) and its related companies with the terms and conditions of the Hawksbill Creek Agreement. The responded saying that it agreed with Prime Minister Philip Davis that “decisive action” is required to continue to achieve the promise of the Hawksbill Creek Agreement and outlined a number of issues that need to be addressed.
Signed in 1955 between the government and Wallace Groves, who formed the GBPA, the Hawksbill Creek Agreement gave GBPA authority to establish a city and free trade zone over 50,000 acres that would spur economic development on Grand Bahama. In exchange, GBPA “agreed to provide infrastructure, which included the dredging of a deepwater harbor, the construction of an airport, hospital, schools and other amenities”.
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