Once again calling for change at the Grand Bahama Port Authority (GBPA), Prime Minister Philip Davis said yesterday the government has over the years done the work of the Port, and added that the government is going after it for monies owed to the Public Treasury.

"Grand Bahama lost nine percent of its GDP last year and is continuing to lose more," Davis said as he wrapped up debate on the 2023/2024 budget.

"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.

"My 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."

Davis did not say how much money the GBPA owes the government.

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.

Under the agreement, the Port Authority, which is jointly owned by the St. George and Hayward families, is obligated to provide infrastructure in Freeport. It is responsible for constructing and administering the Port area and to license businesses in exchange for various tax exemptions.

Davis said there has to be 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 realize real growth and opportunities in Grand Bahama," he said.

"Over the years, it was the government that has been doing the work of the Port Authority. We have been attracting the investors. We have been investing in Grand Bahama.

"So, we have to have a conversation about the relevance of the Port. It may still be relevant.

"So, we are open to a range of different possibilities. And we are committed to consulting with the people of Grand Bahama and the licensees of Freeport to determine their outlook and views."

The prime minister first raised issue about the Port when he made his budget communication in May.

He said that it is time for decisive action on the future of the Port.

In response, the Port Authority stood behind its contribution to Grand Bahama's development over the past seven decades, saying any decisive action requires collaboration and partnership between the government and the Port in the best interests of Grand Bahamians.

"GBPA agrees that decisive action is required to continue to achieve the promise of the Hawksbill Creek Agreement. That decisive action should include extending the real property tax exemption to all licensees, eliminating the growing uncertainty surrounding Freeport's investment and business climate," it said.

The Port noted that Grand Bahama has struggled to find its footing in the aftermath of multiple hurricanes and the COVID-19 pandemic.

"The green shoots of recovery are emerging and our plans for the city - including more than $1.5 billion of new investment for the island - are well underway," the Port said.

But Progressive Liberal Party Chairman Fred Mitchell said the GBPA cannot take credit for those investments.

"The government brought those investments to Grand Bahama," he said.

"They abandoned the hotel, they abandoned the airport. That is the Grand Bahama Port Authority."

MYLES Laroda, state minister in the Office of the Prime Minister, said government agencies owe $8m to the National Insurance Board.

He agreed with Free National Movement Leader Michael Pintard that the Davis administration must crack down on this. #His comments come after the government announced that NIB contribution rates would increase next year. #“The government has an obligation to follow the law,” Mr Pintard told reporters yesterday. “We know that this administration, they are serial law breakers, so we have very little expectation of them following the law.” #He continued: “The government has loaned millions of dollars to NIB to other government agencies. What is the payment schedule with respect to that, because we definitely need to know which departments, which agencies have not repaid the government. All of that has to go in tandem with the rate that has been announced.” #Responding yesterday, Mr Laroda said: “The prime minister, the leader of the opposition and myself, we are all on one accord on that. The government should lead on being compliant.” # “The ones who have promissory notes, there have been agreements. I can’t give an exact date. But they, the prime minister, has made it very much an urgency. And I think, if I’m not mistaken, maybe two of those funds would be coming from finance or it wouldn’t be as if they would be sent in to us. Those funds would be sent directly from the Ministry of Finance. And so those payments would be insured.” # Mr Laroda reiterated that multiple contribution rate increases would be needed to stabilise NIB. # “It wouldn’t be ad infinitum until we are at 100 per cent,” he said. “There will be multiple increases. Let’s just use a figure, it’s going to be eight per cent in total. So, rather than put the whole thing out, we do it incrementally and so it doesn’t create such a shock. # “So 1.5 per cent for the minimum wage person at $260 is $1.95 per week. The person on $740, which is the highest insurable wage, their portion along with the employee will be $5.55. And so if you do it incrementally, it’s not as shocking as if you just try and go to that figure that will put you in a position where, within one year or two years, you will be in a position financially to stop bleeding.”

He agreed with Free National Movement Leader Michael Pintard that the Davis administration must crack down on this.

His comments come after the government announced that NIB contribution rates would increase next year.

“The government has an obligation to follow the law,” Mr Pintard told reporters yesterday. “We know that this administration, they are serial law breakers, so we have very little expectation of them following the law.”

He continued: “The government has loaned millions of dollars to NIB to other government agencies. What is the payment schedule with respect to that, because we definitely need to know which departments, which agencies have not repaid the government. All of that has to go in tandem with the rate that has been announced.”

Responding yesterday, Mr Laroda said: “The prime minister, the leader of the opposition and myself, we are all on one accord on that. The government should lead on being compliant.”

“The ones who have promissory notes, there have been agreements. I can’t give an exact date. But they, the prime minister, has made it very much an urgency. And I think, if I’m not mistaken, maybe two of those funds would be coming from finance or it wouldn’t be as if they would be sent in to us. Those funds would be sent directly from the Ministry of Finance. And so those payments would be insured.”

Mr Laroda reiterated that multiple contribution rate increases would be needed to stabilise NIB.

“It wouldn’t be ad infinitum until we are at 100 per cent,” he said. “There will be multiple increases. Let’s just use a figure, it’s going to be eight per cent in total. So, rather than put the whole thing out, we do it incrementally and so it doesn’t create such a shock.

“So 1.5 per cent for the minimum wage person at $260 is $1.95 per week. The person on $740, which is the highest insurable wage, their portion along with the employee will be $5.55. And so if you do it incrementally, it’s not as shocking as if you just try and go to that figure that will put you in a position where, within one year or two years, you will be in a position financially to stop bleeding.”

 

The Bahamas is working on acquiring a $9 million grant from the International Renewable Energy Agency (IRENA) to establish ocean thermal energy conversion (OTEC) to produce power for some islands, Minister of Works and Utilities Alfred Sears said yesterday.

Sears explained that he has seen ocean thermal technology at work on some Japanese islands, and knows there is the potential here for it as well.

Sears said The Bahamas has to make a "quantum leap" in green energy production, given the country's trials with fossil fuel-burning internal combustion engines on New Providence and other islands. He also said some of BPL's engines are being retrofitted to accept liquefied natural gas (LNG), a cleaner burning fuel.

"The Bahamas is negotiating a $9 million grant from IRENA to establish some OTEC systems. OTEC is an ocean energy conversion program where we are utilizing the deep sea water and the differential between the deep ocean and the ocean surface water. Where you have a differential of 20 degrees Celsius, you can have the conversion into electricity," said Sears.

He added: "LNG is being considered by the government. It's not a renewable form of energy, but it's a cleaner form of energy. BPL is retrofitting its engines so that they will be able to accommodate and receive LNG. There will be announcements soon with respect to the incorporation of LNG, the incorporation of solar and also to incentivize all of us to solarize our homes, our businesses, and other establishments within The Bahamas.

"As you know, the government has a commitment from the IDB and we will be establishing microgrids in Acklins, Crooked Island, Mayaguana, Long Cay in Abaco, in East Grand Bahama, as well as on public buildings in New Providence, such as schools and clinics, and so on. So, it's going to be a multi-faceted approach."

According to Sears, IRENA will help The Bahamas to establish several demonstration facilities in The Bahamas as proving grounds for OTEC.

"We are taking a strategic approach, but in the process, just like any part of the infrastructure, when we are building a road there is inconvenience. But at the end of the day, when you have a new infrastructure, we all take pride because it improves our quality of life," said Sears.

"It ensures that we become more competitive as a jurisdiction and with respect to BPL and the power generation, we take the same approach."

GRAND Bahama Minister Ginger Moxey said a $500m investment in the Grand Bahama Shipyard would make it the world's largest shipyard facility.

She said the project will begin this year, with the docks delivered in the back half of 2025 and 2026. “When completed, the expanded shipyard facility will be the largest cruise ship repair facility in the world, and with the new docks, it will be capable of servicing all cruise lines around the world, including cargo ships, bulk carriers, tanker ships as well as the growing new LNG vessels,” she said. “This means that the larger cruise ships currently operating year-round in the Caribbean will be able to be repaired here in The Bahamas.” Ms Moxey said the expansion project would create opportunities for local entrepreneurs, contractors and Bahamian businesses.  Ms Moxey said with the expansion, the shipyard will regain the number one ranking as the top cruise ship repair facility in the world, able to accommodate all classes of ships. She said the expansion would “grow total employment at the yard and dedicated subcontractors who service the yard to over 100,000, including a continued commitment to train local labour to satisfy the needs of the requirement for the new facility”.

She said the project will begin this year, with the docks delivered in the back half of 2025 and 2026.

“When completed, the expanded shipyard facility will be the largest cruise ship repair facility in the world, and with the new docks, it will be capable of servicing all cruise lines around the world, including cargo ships, bulk carriers, tanker ships as well as the growing new LNG vessels,” she said. “This means that the larger cruise ships currently operating year-round in the Caribbean will be able to be repaired here in The Bahamas.”

Ms Moxey said the expansion project would create opportunities for local entrepreneurs, contractors and Bahamian businesses. 

Ms Moxey said with the expansion, the shipyard will regain the number one ranking as the top cruise ship repair facility in the world, able to accommodate all classes of ships.

She said the expansion would “grow total employment at the yard and dedicated subcontractors who service the yard to over 100,000, including a continued commitment to train local labour to satisfy the needs of the requirement for the new facility”.