The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

THE Davis administration is seeking to fold $331.82m in Grand Bahama Power Company-related borrowing into its wider 2026-2027 debt refinancing as it looks to reduce debt service costs and limit the risk of having to refinance existing commercial bank facilities.

Michael Halkitis, minister of finance, tabled a resolution in the House of Assembly this week seeking parliamentary authorisation to refinance the combined obligations, including accrued interest and related transaction costs.

The proposed refinancing covers the $200m syndicated bank loan arranged to finance the Government's acquisition of GB Power, alongside the utility's existing loan facilities valued at around $109.82m and $22m.

In the resolution, the Government said refinancing the commercial bank facilities will “reduce annual debt service, provide certainty of interest coverage, and lessen refinancing risk”.

The exercise, it added, will strengthen GB Power's financial position, facilitate the operation and orderly development of Grand Bahama's electricity infrastructure, and allow for more efficient management of the obligations within the Government's debt portfolio.

The resolution seeks Parliament’s authority for the minister of finance to borrow the required sum through government loan agreements or lines of credit, the issuance of securities or other debt instruments.

The proposed refinancing follows the Government's acquisition of GB Power from Canadian utility giant Emera, a transaction completed on May 12, 2026, through the government-owned special purpose vehicle (SPV), Grand Bahama Energy Company.

The acquisition was part of the Davis administration's strategy to address long-standing complaints about high electricity costs on Grand Bahama and bring the island's electricity tariffs in line with those elsewhere in The Bahamas. 

Prime Minister Philip Davis KC said at the time that the move was expected to reduce electricity bills by an average of 37 percent through the adoption of BPL’s tariff schedule

Parliament had previously approved a government guarantee for the $200m syndicated borrowing used to finance GB Power’s acquisition, alongside a separate $80m loan intended to support the utility’s capital expenditure and working capital requirements.

The utility also carried legacy commercial debt, which the Ministry of Finance is now proposing to incorporate into the broader refinancing exercise.

The Government's June 2026 public debt figures identified approximately $131.8m in legacy GB Power debt, in addition to the financing obtained for the acquisition and the utility's operational needs.

The resolution invokes the Public Debt Management Act 2021, which permits the minister of finance to borrow to refinance or reschedule existing public debt, including through the repayment, buy back or exchange of government loans and securities.

However, the Act also requires parliamentary approval for changes to the form of public debt that would increase its present value.

The Government is seeking approval for the proposed refinancing as part of its 2026-2027 debt management programme.