The Tribune

By RASHAD ROLLE

Tribune News Editor

rrolle@tribunemedia.net

THE Freeport Licensee Association is urging the government to fully explain its plan to acquire the Grand Bahama Power Company, warning that taxpayers could be left carrying the burden of a costly and unclear deal.

In a statement yesterday, the association said the proposed takeover must be backed by transparency, sound financial reasoning and public consultation, noting that “very few details” have been provided about how the purchase would benefit Grand Bahama residents.

The group raised particular concern about how the government intends to repay the $280m borrowing tied to the deal, especially as residents are still grappling with the financial fallout from Hurricane Dorian and other past storms. While officials have pointed to the prospect of lower electricity bills, the association said there has been no clear explanation of how this would be achieved if the acquisition requires additional borrowing that will ultimately fall to taxpayers. The FLA also questioned whether government ownership would deliver better results, noting that state-owned utilities have struggled with efficiency and profitability in some cases. It argued that private ownership, properly regulated under the Hawksbill Creek Agreement, can provide accountability without exposing the public to unnecessary financial risk.

The statement comes as the proposed acquisition continues to face scrutiny, with the government seeking parliamentary approval for borrowing resolutions totalling $280m to fund the purchase and provide operational support.

Prime Minister Philip “Brave” Davis has defended the move as part of a broader effort to tackle high energy costs on Grand Bahama, where electricity rates significantly exceed those on New Providence. He said the government cannot stand by while residents continue to pay more for power.

Opposition Leader Michael Pintard, however, has criticised the plan, accusing the administration of seeking approval without providing key details about the transaction, including the company’s valuation, liabilities and how it would be managed.

The Freeport Licensee Association echoed those concerns, pointing to unanswered questions about the company’s value, its ability to service new debt while lowering electricity costs, and the scope of additional capital requirements linked to the deal.

It also warned that the proposal could have implications for businesses already struggling with high energy costs, which affect investment decisions on the island.

The association called on the prime minister and minister for Grand Bahama to meet with residents to provide detailed answers, and urged Members of Parliament representing the island to press for greater clarity on behalf of their constituents.

It said public confidence in the proposed takeover will depend on “full disclosure, proper financial justification, and a realistic plan” that delivers measurable benefits to Grand Bahamians.