FREEPORT, BAHAMAS – The Grand Bahama Port Authority is celebrating what it calls a landmark arbitration victory after a tribunal dismissed the government’s $357 million “reimbursement” claim under Clause 1(5)(d) of the Hawksbill Creek Agreement (HCA) in full.
According to the Tribunal’s conclusion, the Government’s claim against the GBPA has been dismissed.
The Tribunal also ruled that the GBPA’s counterclaim succeeds, but only in relation to delays in approving environmental bye-laws. It ordered that the parties make submissions regarding damages.
Additionally, the Tribunal declared that the Government is in breach of Clause 13 of the 1966 Agreement for continuing to fail to take the necessary steps to effect the promulgation of environmental bye-laws for the Port Area, first proposed by the GBPA in December 2006.
The parties have been directed to try and agree on the outstanding issues, including damages and costs, as well as a procedure and timetable for resolving those matters. They are required to report back to the Tribunal by March 6, 2026, outlining what has been agreed and what remains unresolved.
The ruling represents a significant development in the long-running dispute between the Government and the GBPA, with potential financial implications still to be determined as the damages phase proceeds.
