NASSAU, Bahamas, CMC – The Bahamas government says it has signed a memorandum of understanding (MoU) with the Canadian-based multinational energy holding company, Emera Incorporated, relative to the Grand Bahama Power Company (GBPC).
Prime Minister Phillip Davis told a news conference that the MoU reflects a shared commitment to explore a new path forward for energy in Grand Bahama and that when completed, this would mark the first time the Bahamas government “could control the power company since the Hawksbill Creek Agreement was signed.
The Hawksbill Creek Agreement, signed on August 4, 1955, is a 99-year contract between the government and the Grand Bahama Port Authority (GBPA) to develop 50,000 acres in Grand Bahama into a free trade zone, known as Freeport.
The agreement, which spurred the island’s industrial growth, grants significant tax exemptions on income, capital gains, and property to licensees in exchange for building infrastructure, which has since been extended to 2054.
Prime Minister Davis told reporters that the MoU 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 to lower 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.”
Davis said that energy reform is one of the most essential pillars of his administration’s work, and that lower energy costs mean lower living costs.
“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,” he said, adding that the 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.
And we are doing so because accepting the status quo was never an option.
“Additionally, the government has mobilised Polycon, the construction company carrying out works for the Grand Bahama International Airport, and Polycon has engaged Bahamas Hot Mix to commence on-site preparation works.”
Prime Minister Davis said this marks an important transition from planning to on-the-ground physical activity and reflects our commitment to moving this project forward in a responsible and orderly way.
He said this progress comes at a moment when Grand Bahama’s tourism performance is demonstrating real momentum.
Prime Minister Davis told reporters that in 2025, air arrivals to Grand Bahama increased by more than 30 percent compared to 2024, and exceeded pre-pandemic levels in 2019 by a similar margin.
“Even more striking, sea arrivals have expanded dramatically, with more than a 90 percent increase in 2025 compared to 2024, and more than a 100 percent increase over pre-pandemic arrivals in 2019. These figures make Grand Bahama the fastest growing tourism destination in the country, and the economic impact is already being felt across transportation, hospitality, services, and small businesses.”
He said the first phase of the Grand Bahama International Airport redevelopment represents a critical part of this growth strategy.
“With a capital expenditure of over US$100 million, Phase One will deliver a new modern terminal designed to accommodate demand of up to five hundred thousand passengers annually, with the ability to expand to one million.
“The facility will include an international and United States pre-clearance, with a terminal footprint of approximately 100,000 square feet, alongside new taxiways, expanded apron space, and upgraded roadways and parking,” Davis said.
He said that over the years, the Grand Bahama International Airport has experienced flooding multiple times and that addressing this reality is not optional.
“It is essential. As a result, the environmental and flood mitigation work associated with this project is extensive. Environmental impact assessments, geotechnical studies, and flood mitigation surveys are currently being finalised to ensure the airport is built with long-term resilience in mind.
“This airport will anchor the Grand Bahama economy–consolidating the relaunch of Grand Bahama. It supports tourism, expands cargo capacity, increases investment, and strengthens environmental resilience.
“The redevelopment of the Grand Bahama International Airport is central to the island’s growth, and this administration will continue to move it forward with discipline, clarity, and a clear focus on delivering lasting value for the people of Grand Bahama,” Prime Minister Davis added.
He said that since September 2021, Grand Bahama has seen over US$3.5 billion in investments and commitments across tourism, maritime, health, logistics, energy, education, entertainment, and community development.
He said earlier this week that the government had signed and taken another significant step in the relaunch of Grand Bahama’s economy through MSC’s significant cruise terminal investment in Freeport Harbour.
“This is a serious expansion with real scale. MSC Cruises, through its affiliate and development company, will develop a new cruise ship pier complex and berthing area at the Billy Cay property in the City of Freeport, alongside new visitor and commercial infrastructure. The plan also includes upgrades to the existing Port and Retail Village area of the Freeport Harbour.”
Prime Minister Davis said that the estimated capital investment is US$450 million, with US$400 million allocated to the Billy Cay port and related infrastructure, and US$50 million allocated to a Beach Club and the refurbishment of the existing Retail Village.
“This includes new cruise berths, a welcome plaza, retail and food and beverage, entertainment areas, transportation staging, and supporting amenities designed to increase visitor flow, expand local business opportunities, and strengthen Grand Bahama as a competitive cruise destination.
“The project is designed as a multi-user facility, supporting operational flexibility and positioning Grand Bahama to capture greater cruise activity, higher passenger volumes, and wider economic spillover into transportation, hospitality, culture, and small business,” Prime Minister Davis told reporters.
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