The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

The Prime Minister has pledged his administration is working to resolve work permit challenges and other woes threatening Grand Bahama Shipyard’s projected expansion.

In response to concerns raised by its chief executive, Chris Earl, over work permit delays and other bottlenecks, Philip Davis KC said officials are actively working to resolve the issues.

“They’re now discussing how to deal with all the wrinkles that’s causing any delay,” Mr Davis said on Friday, indicating that talks are under way to address administrative and logistical constraints.

Mr Davis also revealed that he met with the technical team at the Grand Bahama Power Company during his visit to the island last week, and said they are moving to complete the Government’s planned purchase of the utility “as soon as possible”.

“The technical team I talked with, they’re moving to trying to close the deal as soon as possible,” said Mr Davis. 

The Shipyard said its planned expansion — projected to boost annual economic impact to $225m within five years — is being strained by work permit delays, shortages of qualified labour, limited hotel accommodation and soaring air fares to and from Grand Bahama.

Mr Earl warned that thousands of hours of work have already been turned away due to manpower shortages, while existing skilled staff are working 60–70 hour weeks to meet demand. He said delays in processing permits are undermining the Shipyard’s ability to attract and retain internationally certified workers, with some choosing to resign or decline opportunities in The Bahamas.

Accommodation shortages are also affecting operations, with customers reportedly unable to secure enough hotel rooms for upcoming projects. Meanwhile, high travel costs - including $3,300 plane tickets - are complicating the rotation of expatriate technical staff.

With roughly $650m in debt tied to its dry dock investments, the Shipyard said it must remain cost-effective to succeed, warning that parts of the surrounding economic “ecosystem” are under-scaled or heavily stretched.

As for GB Power, Mr Davis previously touted the memorandum of understanding (MoU) that has been signed with its existing owner, Emera, as the “first time” that the Bahamian government has gained “control” of GB Power since the Hawksbill Creek Agreement, Freeport’s founding treaty, was signed in 1955 and pledged that it would end “the long-standing disparity” between electricity prices on Grand Bahama and the rest of the country.

“This MOU reflects a shared commitment to explore a new path forward for energy in Grand Bahama. When completed, this would mark the first time the Government of The Bahamas could control the power company since the Hawksbill Creek Agreement was signed,” Mr Davis asserted.

“This is important because it will result in universal electricity rates across The Bahamas, ending a long-standing disparity between Grand Bahama and the rest of the country. It matters because it strengthens national energy planning. And it matters because it directly supports our broader energy reform agenda aimed at bringing down the cost of electricity for Bahamian households and businesses. 

“This is not about control for its own sake. It is about fairness. It is about affordability. And it is about aligning energy policy with the needs of the people and the modern economy we are building,” Mr Davis said. “Lower energy costs mean lower costs of living. They mean more competitive businesses. They mean a stronger foundation for investment, job creation and long-term growth in Grand Bahama and across the country. 

“This MOU represents progress. It reflects careful work, serious engagement and a willingness to do what previous administrations avoided. We are moving deliberately, responsibly and in the public interest.”