GBPA says it has been "systematically handcuffed" by central government policies and legislation over decades

NASSAU, BAHAMAS — The Grand Bahama Port Authority has warned against the government's efforts to "force" a sale of the Port Group, expressing concerns over the significant damage it could inflict on the Freeport economy, while strongly refuting the claim that it owes $357 million as asserted by the government.

"The Grand Bahama Port Authority does not agree that it owes the sum of $357 million as claimed by the Government of The Bahamas. We reject and will robustly defend against this claim, which we firmly believe will be defeated. The City of Freeport, our licensees, and the people of Grand Bahama can rest assured that the Port Authority is determined to protect our mutual interests," the GBPA said in a statement.

The situation escalated last June when Prime Minister Philip Davis accused the Grand Bahama Port Authority (GBPA) of failing to repay costs the Government had incurred in providing public services in Freeport, initiating a debate over the reimbursement of these unspecified costs under section one, sub-clause five, of the Hawksbill Creek Agreement, Freeport's founding treaty.

"In the 70 years of the Hawksbill Creek Agreement - through six government administrations - no claim of this kind has ever been brought against the Port Authority, and for very good reason. As such, we believe it is important that the public understands why this is happening. This claim came on the heels of a recent proposal by the government to purchase the whole Port group (which owns the Port Authority) from its current shareholders at a considerable discount, a proposal that was carefully considered in good faith but ultimately declined. Having been disappointed in its attempt to purchase the Port group outright, it appears the government is attempting to force its desired outcome by other means," the GBPA emphasized.

The GBPA warned of the detrimental effects of these events on the Freeport economy and investor confidence, especially amid the island's resurgence with $2 billion in new investments, which they argue were predominantly brought in by the Port Authority.

"Meanwhile, the Port Authority has been systematically handcuffed by central government policies and legislation over decades that prevent the Port Authority from being the one-stop-shop that the Hawksbill Creek Agreement intended and which other international 'free port' areas around the world enjoy. As a result, ease of doing business in the Port Area has been severely eroded, which has reduced its competitive advantage, and the continuing loss of opportunity for The Bahamas has been enormous," the GBPA elaborated.

The GBPA noted that its shareholders have found it necessary to regularly subsidize the Port Authority's management of the city from their own pockets, despite which the economy and standard of living in the Port Area remain better than the central government-managed areas of West End and East Grand Bahama.

"Central government's co-operation is required. Continued hostility towards the shareholders of the Port Authority is counter-productive and unnecessary. Again, we urge the central government to withdraw its unjustified claim and let us jointly resolve the issues in good faith. This is what the residents, licensees, and investors in the Port Area deserve," concluded the GBPA.

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