Landmark victory for GBPA and Grand Bahama; government found in breach of Hawksbill Creek Agreement; Tribunal to consider damages award for GBPA counterclaim success
A landmark arbitration victory for the Grand Bahama Port Authority (GBPA), its licensees, and the people of Grand Bahama has seen the government’s $357 million so called “reimbursement” claim under Clause 1(5)d of the Hawksbill Creek Agreement (HCA) dismissed in full and the GBPA’s position under the HCA clearly reaffirmed.
The Arbitration Tribunal fully rejected the government’s argument that it was owed hundreds of millions of dollars by GBPA under Clause 1(5)d, in a decision that provides much-needed clarity and confidence in the future of Freeport, following the prolonged shadow of uncertainty cast by this sweeping claim.
In addition, the Tribunal upheld the GBPA’s counterclaim in respect of the government’s sustained failure to approve environmental bye-laws proposed by GBPA which were intended to strengthen health, safety, sanitation, and environmental governance within the Port Area. The Government was declared in breach of the HCA for this failure, and the Tribunal directed the parties to make submissions on a damages award to the GBPA arising from those breaches.
This is more than a legal victory. It is a stabilizing moment for Freeport. We trust the ruling will give licensees, investors, stakeholders and Grand Bahama residents renewed assurance and optimism for the future.
We have advised the government repeatedly since June 2016 that this claim was wrong and would fail. It was not a good use of time or public resources. We have always maintained that benefit for Grand Bahama would best be obtained by GBPA and government working together.
Genuine collaboration between the Port Authority and the government aimed at ensuring that both parties meet their moral and legal obligations for the benefit of all stakeholders and the people of Grand Bahama is essential.
With this claim substantially behind us, we see this as an opportunity to reset Grand Bahama’s future through a renewed partnership, a modernized regulatory framework, and greater empowerment of local stakeholders.
GBPA didn’t ask for this fight; we were forced to defend ourselves and stand up for the rights of our licensees and stakeholders. We would like to take this opportunity to thank the Tribunal for their extensive work and for producing a fair and just decision.
Below is the conclusion of the Tribunal’s decision.
