The Tribune

By EARYEL BOWLEG

Tribune Staff Reporter

ebowleg@tribunemedia.net

PRIME Minister Philip “Brave” Davis said yesterday that an arbitration panel has issued a “partial” decision in the government’s high-stakes dispute with the Grand Bahama Port Authority but declined to disclose its substance, citing confidentiality.

The case centres on whether the GBPA owes the government $357m. The authority has previously said it “does not accept it owes $1 to the government out of that $357m”.

Mr Davis spoke amid mounting speculation that the outcome of the proceedings is unfavourable to the Davis administration. He confirmed a ruling had been handed down but offered few details.

“The decision was a partial,” he said. “They have made a decision, and requiring the parties to do other things. But as I said, I cannot say anymore than that.”

Tensions between the government and the GBPA have intensified since 2023, when Mr Davis accused the authority of failing to maintain Freeport’s infrastructure and support the city’s development.

The government has argued that it is entitled to reimbursement for public services provided in Freeport when those costs exceed the tax revenues collected there. It has relied on section one, subclause five, of the Hawksbill Creek Agreement, which allows it to seek payment from the GBPA for providing “certain activities and services” if expenses surpass specified revenue streams generated in the city.

In 2024, the government sent a demand letter to the GBPA, giving it 30 days to reimburse $357m said to be owed over the previous five fiscal years. Mr Davis warned at the time that the government would commence arbitration if more than $300m was not paid within the deadline.

A three-member arbitration panel was convened for the proceedings, which were set to begin September 8 last year. Tribune Business previously reported that the panel was chaired by Sir Anthony Smellie KC, former chief justice of the Cayman Islands, alongside Lord Neuberger of Abbotsbury and Dame Elizabeth Gloster.

The prime minister did not indicate when the remainder of the decision might be delivered or what practical steps the parties have been directed to take.