The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Grand Bahama Chamber of Commerce’s president yesterday said the ruling over the Grand Bahama Port Authority’s (GBPA) $357m arbitration dispute changes little in Freeport and highlights the urgent need to “revisit and modernise” the city’s governance and regulatory framework.

Dillon Knowles, in a statement, said the outcome meant “both parties were unsuccessful in their respective claims” with the Government unable to enforce its $357m reimbursement demand against Freeport’s quasi-governmental authority which itself saw seven of its eight counter-claims against the Davis administration rejected.

“Under the revised provision, GBPA is required to pay the Government an annual stipend of $500,000 for the provision of public services. The parties were directed to review and continue to give effect to that clause,” he said. “The tribunal further noted that GBPA had acquiesced to the Government’s earlier breaches and emphasised that, as a sovereign authority, the Government retains the power to amend legislation.

“The overall impact on Freeport is that the parties effectively return to the status quo ante. GBPA remains obligated to pay only the annual stipend, and the Government continues to exercise final regulatory authority over matters concerning the Port area. This outcome brings to the forefront the Chamber’s long-standing call to revisit and modernize the regulatory framework governing the Port area.”

Michael Pintard, the Opposition’s leader, meanwhile challenged the Government’s use of taxpayer dollars to hire a legal team dominated by UK-based KCs and law firms to fight the arbitration on its behalf. “The tribunal has ruled, and the Government did not succeed in its $357m claim against the Grand Bahama Port Authority.

But, in the PLP’s spin room today, up is down, water isn’t wet, and a loss is a win,” he argued.

“The Davis administration chose an aggressive legal path, spent public funds and failed to secure the result it promised. That's the bottom line.” Mr Pintard added that the arbitration had created uncertainty impacting both Bahamian and international investors just when “Grand Bahama needs stability and confidence”.

He said: “The Free National Movement supports sensible and productive efforts to make the GBPA live up to the terms of the Hawksbill Creek Agreement and meet its obligations.

“The focus now must be on restoring stability, rebuilding partnerships and ensuring that any further proceedings are handled transparently and responsibly. This requires a change in leadership and a return to steady, competent governance. We will continue to advocate for disciplined leadership, constructive engagement and long-term prosperity for Grand Bahama and The Bahamas as a whole.”

The Freeport Licensees Association, meanwhile, urged both the Government and GBPA to resolve all outstanding issues from the arbitration in a way “that avoids unncessary escalation”. It called on both sides to stop fighting, “turn clarity into action”, and work together with Freeport and Grand Bahama “poised for growth” and now requiring “stability, co-operation” to make this a reality.

“Now that the tribunal has clarified key issues, we respectfully encourage both parties to pursue resolution of the outstanding matters in a manner that avoids unnecessary escalation. Genuine, determined collaboration and structured negotiation would best serve the interests of the business community, investor confidence and the Bahamian public,” the Association argued.

“This ruling presents an opportunity to turn clarity into action. We once again call for genuine collaboration between the Government and the GBPA to help Freeport and Grand Bahama reach our full economic potential. Our island has demonstrated extraordinary resilience and remains poised for growth. What is needed now is stability, co-operation and a shared commitment to progress.”

It added: “As licensees who have invested, built businesses, created employment and committed our futures under the Hawksbill Creek Agreement framework, we welcome the opportunity this ruling brings. Predictability, transparency and stability are essential to maintaining investor confidence and supporting sustainable economic growth in Freeport, and it is critical both the GBPA and the Government remain committed to these principles in earnest to move forward.

 “We also acknowledge the tribunal’s findings regarding the environmental by-law process and recognise the importance of timely regulatory development in supporting commerce, environmental stewardship and long-term planning. Effective and responsive governance is critical to ensuring Freeport is competitive and resilient.

 “As citizens of The Bahamas, we are mindful that disputes of this magnitude inevitably involve the use of public and private resources. While arbitration is an appropriate and legitimate mechanism for resolving complex legal matters, this experience underscores the value of early and consistent dialogue, structured consultation and inclusive stakeholder engagement wherever possible and, most importantly, a shared commitment to resolution so that our island no longer experiences the uncertainty that we have faced for too long,” the Association continued.

“Freeport operates under a unique legal and economic framework. Broader engagement with licensees - those who live, work, invest and operate daily under the Hawksbill Creek Agreement - can contribute meaningfully to policy development and implementation. Expanding consultation strengthens governance, promotes transparency and helps ensure that legal principles and practical realities remain aligned.”