SMB in Landmark Ruling for Government of Bahamas

We’ve secured a landmark ruling for the Government of the Bahamas concerning its power to regulate the country’s second city, Freeport. In an unusual step, the Tribunal’s private Partial Award has been made public given its national and international significance.

The city, believed to be the world’s first ever freeport, has its roots in a 99-year-long agreement entered into in 1955 between the then Colonial Government and the Grand Bahama Port Authority (the GBPA). Following a two-week hearing in September last year, the Tribunal, comprising The Hon Anthony Smellie KC (Chair), Lord Neuberger of Abbotsbury, and Dame Elizabeth Gloster DBE, has issued a Partial Award, holding that the Government regulates key matters including licensing, immigration and customs controls, development approvals and utilities in Freeport.

The Tribunal has also held that the Government is entitled to annual payments from the GBPA in respect of its administrative expenses incurred in the Freeport area for the remainder of the 99-year agreement. The Tribunal will decide if the Government is entitled to claim sums in respect of previous years in the next phase of the arbitration.

The Partial Award definitively puts to rest governance issues in Freeport that have been in dispute between the Government and the GBPA for years. We look forward to securing further wins for our client as the arbitration continues.

With thanks to our team of barristers at Brick Court Chambers, led by the ever-brilliant Harry Matovu KC. The Partial Award is available on the Bahamian Government’s website.