The Tribune

• Port chief unaware if regulator for sale

• Davis ‘will do what I have to do’ for GB

• Both seek to downplay their differences

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

THE Prime Minister and Grand Bahama Port Authority’s (GBPA) president yesterday sought to downplay the two sides’ differences with the latter saying he is unaware if Freeport’s regulator is up for sale.

Ian Rolle, speaking at the Bahamas Business Outlook conference, acknowledged the Government’s criticisms of the GBPA and concerns over whether it is fulfilling its mandate to further develop Freeport, but said management and shareholders remain open to solving the situation through dialogue.

He added: “I think the Prime Minister has made certain comments, and other ministers made certain comments about what they want to see and, of course, the Prime Minister is very passionate about the entire Bahamas.

“He wants to see progress on every single island, including Grand Bahama. We are open to have discussions with the Government of the Bahamas. We’ve said it openly, and I think that will probably happen at the end of the day. As far as I know, we’re not up for sale.”

Philip Davis KC was also coy on the Government’s approach and attitude towards the GBPA after it emerged last week that his administration plans to launch arbitration proceedings against Freeport’s quasi-governmental regulator over monies owed to cover the provision of public services in the city where the costs involved have exceeded tax revenues generated.

“I have no disputes with them.... I will do what I have to do to get Grand Bahama on the right track,” Mr Davis told reporters. Tribune Business reported last year that the Government has been speaking to both GBPA owners, the St George and Hayward families, and their representatives, about its willingness to acquire the GBPA for months.

This newspaper was told the St George estate was united in its desire to exit, and sell, their 50 percent interest in the GBPA and its Port Group Ltd affiliate if the terms and price are right. However, the intentions of the Hayward side are less clear.

The Sir Jack Hayward 1993 Discretionary Settlement, which is the trust that holds the family’s 50 percent GBPA interest, is currently under the control of Supreme Court- appointed judicial trustees. These are Paul Winder, an expatriate banker with Lyford Cay-based Deltec Bank & Trust, and Mark Richford of Rhone Trustees.

Fred Mitchell, minister of foreign affairs, recently said the Government has withdrawn its offer to acquire the GBPA and its affiliates in favour of launching arbitration action in a bid to claim what has been suggested as $150m allegedly owed to the Public Treasury in Freeport.

However, it remains unclear as to what is the Government’s ultimate goal and end game. While arbitration could be designed to squeeze the two families, and force them to sell to the Government on more favourable terms given the latter’s belief they would be unable to pay the $150m if a decision goes against them, such proceedings will take years to resolve especially if there is an appeals process.

Some sources are already questioning if arbitration is a face-saving move by the Government, and a signal that it no longer has a private sector buyer waiting in the background to acquire Port Group Ltd’s assets such as the 50 percent equity stakes in Freeport Harbour Company and Grand Bahama Development Company (DevCO).

Mr Davis, meanwhile, yesterday voiced optimism that the Grand Lucayan may finally be sold this year. He added that a “number of suitors for engagement” are being scrutinised by Chester Cooper, deputy prime minister, before a recommendation will be made.

When questioned if the sale will be completed in 2024, he answered: “I think so. Well, it’s still on the market for sale and we have a number of suitors for engagement that the DPM is sifting through now to make some recommendation to us on whether we go with any of them.”

Mr Rolle added that the GBPA is currently working with the Ministry of Grand Bahama to improve the ease of doing business on the island that includes some potential changes to the Hawksbill Creek Agreement bylaws.

He said: “The Ministry for Grand Bahama is working very closely with the Grand Bahama Port Authority executives to ensure that we focus on ease of doing business initiatives, and also to get other things done. The Grand Bahama Board Authority has requested certain amendments to the bylaws, and the Ministry of Grand Bahama was working very closely with us to cause the amendments to happen.”

Mr Rolle reiterated that there are $1.5b worth of projects “in the pipe- line” that will assist with the rebound of Grand Bahama’s economy from Hurricane Dorian and the COVID-19 pandemic.

He said: “The pandemic and the various hurricanes have caused significant issues with the economy in Grand Bahama. There’s no other island in The Bahamas who suffered like Grand Bahama a result of these natural disasters.

“And so I think per- sons on the island have become frustrated, and had communications with government, etc. Of course, the Government, which is very passionate about every single island wanting development to happen, was very concerned. But we are pleased to actually say to everybody that we have well over $1.5bn, almost $2bn worth, of projects now for Grand Bahama.”

Critics have questioned whether the GBPA has done enough to improve the economy of Grand Bahama, but Mr Rolle maintained it is a “difficult task” to restore economic activity after multiple natural disasters and the pandemic.

He said: “After a storm, it typically would take maybe three years before you see positive turnaround, and so once we started seeing positive turnaround after a few of the storms you have Matthew and then you have Dorian and then the pandemic.

“It’s a very difficult task, but we have weathered the storm and the people in Grand Bahama, are going to be rewarded for their patience and resilience.” Mr Rolle added that Grand

Bahama is on an upward trajectory due to new investments, and voiced optimism that the GBPA and government can work out their issues.

He said: “After all these bad years of economic activity due to these various natural disasters, we will see a significant turnaround in Grand Bahama and I would like not only people in Grand Bahama to benefit, but persons in Nassau will also see Grand Bahama as a huge potential to invest and be a part of the grow- ing economy that’s about to happen.”

“We believe that if we sit down together, any- thing can be worked out for the betterment of Grand Bahama and the betterment of The Bahamas because if Grand Bahama does well, the entire Bahamas does well.”