BREAKING NEWS: Government Secures Historic Victory Against GBPA — Tribunal Confirms Port Authority Must Pay Bahamian Taxpayers Until 2054

Nassau, Bahamas — March 3, 2026

The Government of The Bahamas has secured a landmark victory in its arbitration against the Grand Bahama Port Authority, with an international tribunal confirming that the GBPA has an enforceable obligation to make annual payments to the Government — and by extension, to the Bahamian people — for the remainder of the Hawksbill Creek Agreement, which runs until 2054.

Attorney General Ryan Pinder, KC, hailed the Partial Award as a “monumental win” and “historic” outcome that will benefit Bahamians for decades to come.

GBPA’s Billion-Dollar Counterclaim Crushed

Perhaps the most decisive element of the ruling was the tribunal’s wholesale rejection of the GBPA’s sweeping counterclaims. The Port Authority had originally sought more than $1 billion in damages, accusing the Government of wrongfully interfering in the administration of Freeport. The tribunal dismissed seven of the GBPA’s eight counterclaims, dismantling the Port Authority’s long-standing argument that it held exclusive authority over Freeport.

The tribunal confirmed that the Government has maintained continuing legislative and regulatory power over Freeport for more than half a century — including authority over licensing, immigration, customs, utilities, land acquisition, environmental regulation, and development approvals. In doing so, the ruling put to rest a governance dispute that has simmered for years, firmly establishing that the GBPA’s administrative role operates alongside, and subject to, the Government’s sovereign authority.

The GBPA’s claim that the Government wrongfully diverted investment from Freeport was also rejected. The tribunal found that the Government’s caution regarding the controversial Weller/Pegasus project “cannot be criticised” and affirmed the Government’s right to support investment in other areas of Grand Bahama outside the Port Area.

The only counterclaim on which the GBPA partially succeeded related to delays in approving environmental bye-laws — a narrow, procedural matter on which the tribunal said it could not immediately identify a basis for awarding damages.

Annual Payments Confirmed Through 2054

The tribunal held that a contractual review mechanism contained in a 1994 agreement between the parties remains fully operative and enforceable, rejecting any suggestion that the provision had become inoperable. This means the GBPA is contractually bound to make annual payments to the Government to defray administrative costs incurred in Freeport — with the amounts to be determined through a review process that the Government can now invoke immediately.

While the specific dollar figure was not determined in this phase, Attorney General Pinder made clear that the Government’s view of its entitlement remains unchanged. The quantum of payments will be settled in the next phase of proceedings, and the tribunal has indicated it is ready to move forward promptly.

A Fight for the Bahamian People

The significance of the ruling extends well beyond the financial. Had the GBPA succeeded in its counterclaims, the consequences would have been severe — effectively excluding the elected Government from meaningful involvement in the governance of an entire Bahamian city and potentially diverting massive sums of taxpayer money to a private entity.

Attorney General Pinder praised Prime Minister Philip “Brave” Davis as the first leader in history to seek justice for the Bahamian taxpayer on this issue, and for having the resolve to challenge the GBPA on long-standing principles of the Hawksbill Creek Agreement.

The Tribunal

The three-member panel — Sir Anthony Smellie, KCMG, KC (Presiding Arbitrator), Lord Neuberger of Abbotsbury, and Dame Elizabeth Gloster, DBE — heard the case over ten days in September 2025. The award was signed on February 27, 2026.

Next Steps

The Government will now move to have the remaining issues resolved as quickly as possible. The annual review process can commence immediately for future years from 2023 onward, while recovery for earlier years remains subject to further determination. The parties are due to report back to the tribunal by March 6, 2026.

For the people of Grand Bahama and all Bahamian taxpayers, the message from the tribunal is clear: the GBPA owes the public, and the Government has every right to collect.