The government of The Bahamas has sent correspondence to the Grand Bahama Port Authority (GBPA) demanding payment of $300 million within thirty days. The government claims that the money is owed based on a clause in the Hawksbill Creek Agreement and payment is currently five years in arrears.
There has been public back and forth between government officials and the GBPA since last year. In the 2023-2024 budget debate Prime Minister, the Hon. Philip Davis said the Grand Bahama Port Authority must change citing the decline in the island’s economy and the lack of foreign direct investment.
Responding to the Prime Minister’s comments the GBPA said in a statement, “Government’s claims under clause 1(5) of the HCA are contested. GBPA is yet to be satisfied that the Government’s purported claims, which have lain dormant for more than 50 years, are justified and supported by credible evidence. They are, however, being reviewed and will be fully addressed. We would add however, that the claims under this clause, which has not been amended since 1965, when Freeport was in its infancy, have little relevance today. At the time, Government merely collected Excise Tax; today, they extract a multitude of additional taxes which include, but are not limited to, cruise and airport passenger taxes, environmental taxes, road taxes, room taxes, as well as import/export duty and VAT, to name but a few. It is also an anomaly to ask the GBPA to fund the Ministry of Grand Bahama. The fact of the matter is, Freeport has always been, and continues to be, a net contributor to the Bahamas Treasury, despite the increased Government imposed bureaucracy and red tape, in breach of the HCA, which has held Freeport back.”
Minister of Foreign Affairs, the Hon. Fred Mitchell has also lamented the work of the GBPA. In August 2023 via a released video Mitchell question whether the GBPA was financially able to maintain the city of Freeport. He said, “And the government has said enough of us subsidizing the GBPA, we need to find someone who has the wherewithal who is willing and able to finance the needs and promotions of this city.”
In November there was talk of the sale of GBPA being in the works which was disputed by President, Ian Rolle in January 2024. The GBPA has since opened a satellite office in New Providence which according to Rolle will, “encourage persons, make them aware of the opportunities that exist. Presently we have over $2 billion of projects in the pipelines at the moment. And so the idea is how do we now plus Bahamians into the $2 billion worth of activity happening.”
Representatives of neither party were available for comment on this latest action by the government
