Prime Minister Philip Davis’s Keynote Address at the 27th Annual Grand Bahama Business Outlook

Friends,

Thank you for being here.

I know the pressures you live with. 

Staff to pay, loans to service, families to look after. 

The fact that you still choose to sit in this room and think about Grand Bahama’s future tells me something important. 

You have not given up on this island. 

Neither have I.

Let me begin where my own story connects to yours.

In 1974, I was twenty-two years old, a young man from Cat Island with more energy than experience. 

I came to Grand Bahama because this was where the action was. 

The port was busy. Hotels were full. The industrial area was growing. 

Freeport felt like the cutting edge of The Bahamas.

To a young man, it seemed simple. If you worked hard, this island would carry you forward.

As I prepared for this speech, I kept thinking about another twenty-two-year-old today.

A young Grand Bahamian who has grown up hearing the legends about those “magic days” and who now hears promises about what is “coming soon”. 

They may be working at the port, in a small business, in a call centre, or trying to launch something of their own online. And they feel caught between two stories: the Grand Bahama that was, and the Grand Bahama that is always just about to arrive.

That young person is who I carry with me. 

If the choices we make do not make life more hopeful for them, then we are not being serious.

So I am not speaking at you this morning from a distance. 

I am speaking as someone whose own life was shaped here, who knows how much has been lost, and who still believes that this island can move from nostalgia to possibility.

The world that formed the old Grand Bahama is gone.

For thirty years, the global script was familiar. Money was cheap. Interest rates were low. Trade expanded. You could almost convince yourself that progress was automatic.

That script has ended.

Now capital is selective. Interest rates have real bite. Climate events erase assets overnight. 

Financial networks and supply chains are used as tools of power. Technology keeps changing where value is created and who captures it.

For a small island like this one, the margin for error is thin. We feel every hurricane. We feel every dip in tourism. We feel every jump in fuel prices.

In that world, “do nothing” is the riskiest strategy of all.

And that brings us to the choice facing Grand Bahama.

There are two models on the table.

The first is the old model.

It was forged in the 1950s between a colonial governor and foreign investors. 

It gave extraordinary concessions and wide powers to a small group in the hope they would build what government could not. 

And they did build. The harbour, the early hotels, the industrial area – all of that came from that bargain.

But the weaknesses were present from the start. 

Authority ceded without enough accountability. 

Decision-making concentrated in a few hands. Bahamians absent from the table.

Over time, that structure hardened into something else.

We have allowed a corporatocracy to happen here, a system in which corporate interests and private agreements became more powerful than public institutions and the people they are meant to serve.

In a corporatocracy, the question is not “What is best for Grand Bahama?” but “What is acceptable to a small group of companies?” Too often, national governments, local leaders and even business chambers went along, sometimes out of fear of disruption, sometimes out of habit.

That model now asks you to believe that if you touch anything, everything will fall apart. That the safest thing is to tolerate services that are not good enough, prices that are not fair enough, and explanations that are not clear enough.

The second model accepts that the world has changed and Grand Bahama must change with it.

It says this island is not a private enclave, it is part of one country. The national government cannot stand outside the fence while key systems underperform. Energy, airports, ports and land use are essential infrastructure. They affect public safety, the cost of living and competitiveness.

In the second model, the people who live here have a much bigger say in how their island is run. The business community is a partner, not a spectator. Public institutions are expected to be competent, transparent and accountable.

My administration has chosen that second model.

To choose it, we have to be candid about some myths that have stood in the way.

The first myth says: “If Nassau asserts itself, Grand Bahama will suffer.”

When we presented the Port Authority with an audited claim of 357 million dollars in unpaid reimbursements under the Hawksbill Creek Agreement, based on work done by PriceWaterhouseCoopers, some predicted investors would scatter. 

They did not. 

Not one serious investor pulled out because the government insisted that contractual obligations be honoured. 

Serious partners do not fear a state that takes its responsibilities seriously.  

The second myth says: “If this government makes progress in Grand Bahama, someone else loses politically.” That every project must be read as a win for one party and a loss for another.

To the business leaders in this room, I want to hear me when I say this.

You should not be forced to choose between your island and your party. 

If an LNG plant is good for Grand Bahama, if a new terminal is good for Grand Bahama, if reform of the power system is good for Grand Bahama, then supporting those things does not make you anybody’s political tool. 

It makes you responsible stewards of this community.

If every decision is filtered through partisan suspicion, the only people who lose are the people of Grand Bahama.

Let politicians argue themselves in the political arena. 

Let business leaders build and partner. 

Let this island win without the private sector feeling that they have to walk on egg shells. 

Now let us look at the national backdrop, because it matters for what we can do here.

Five years ago, as a country, we faced a hard combination of shocks. 

The IDB and ECLAC estimate that Hurricane Dorian caused about US$3.4 billion in damage and losses – roughly a quarter of our entire economy at the time. 

Then COVID-19 hit, and the IDB puts the total cost of the pandemic’s effects on The Bahamas at US$9.5 billion. 

Together, those two blows wiped out around US$13.1 billion – almost an entire year of national output erased in a few short years.

Public finances were under strain. Debt-to-GDP was over 100%. Our Deficit-to-GDP was 13.5%. Ratings had slipped. Unemployment climbed. Many Bahamians quietly wondered whether we could truly turn the corner.

Today, conditions are not perfect, but they are different.

Our Debt-to-GDP is now around 70% and trending downwards. Our Deficit-to-GDP is now .5% and trending downwards.

The economy is growing again.

More Bahamians are at work.

International institutions that once moved our outlook down have upgraded it. Moody’s shifted The Bahamas from “stable” to “positive”, citing progress on energy reform and fiscal management.  

That shift did not come by luck.

It came from choices, by government, by businesses, by workers.

We now have proof that this country can change direction when it needs to.

The question is whether we are ready to apply that same resolve to the deepest structural issues on this island, especially in energy.

Here is where I want to connect very directly with your lived experience.

Every month, Grand Bahama residents and businesses open their power bills and feel the cost.

The numbers are stark.

For a residential customer using between 351 and 800 kilowatt hours, the base rate charged by Bahamas Power and Light is 11.95 cents per kilowatt hour. 

The comparable base rate for Grand Bahama Power is 22.87 cents, almost double. 

For usage above 800 kilowatt hours, BPL’s base rate is 14.95 cents; Grand Bahama Power’s is 27.31 cents.

On top of that, where BPL has a fuel recovery surcharge, Grand Bahama has a fuel and storm recovery surcharge.  

In practical terms, a family using 800 kilowatt hours a month can easily pay fifty to sixty dollars more on this island than a similar family in New Providence, before fuel and storm recovery are even added.

The gap shows up in fees as well. 

That same family pays 20 dollars to be reconnected by BPL, but 30 dollars here. 

A requested meter test costs 15 dollars in Nassau, 50 dollars here. 

A temporary disconnection costs 15 dollars for BPL, 50 dollars for Grand Bahama Power.  

If we go behind those statistics, they are one of the reasons many of you feel that you are working hard, yet getting nowhere.

So when a chamber or a commentator says, “Leave the existing arrangement alone, government will only make it worse,” I ask a simple question: 

Worse for whom?

That is why we have decided to change the structure.

We have signed a Memorandum of Understanding with Grand Bahama Power Company to explore a transaction through which the Government would acquire Emera’s shares in the company. 

When completed, it would be the first time since the Hawksbill Creek Agreement was signed that the Government of The Bahamas takes ownership of a major power utility serving this island.  

We are doing this for three reasons.

First, to open the door to universal electricity rates across The Bahamas, ending a long-standing disparity between Grand Bahama and the rest of the country.

Second, to allow integrated national planning of energy investments, instead of fragmented decisions that leave one island an outlier.

Third, to align energy policy with the needs of Bahamian households and a modern economy, instead of forcing policy to fit an old private structure.  

This is not about control for its own sake. It is about fairness and competitiveness.

Some have questioned whether government can manage such responsibility, and whether there is enough capital available to reform the system.

Let us answer those doubts with facts.

On New Providence, we launched the 130 million dollar Foundational Grid Upgrade Project. 

Independently verified 2025 results show a 45 percent reduction in outage frequency and a 35 percent reduction in outage duration, even when major weather events are included. 

On normal days, reliability improved by almost half compared to historic performance.  

Across the islands, energy reform through public private partnerships and power purchase agreements has triggered around one billion dollars in committed investment in LNG, solar, microgrids and grid upgrades.  

Behind those improvements is real money, much of it raised here at home.

In July 2024, CFAL brought a one hundred million dollar bond for Bahamas Grid Company to the local market. 

The offer opened on 15 July and closed on 26 July. Twelve days. 

It was oversubscribed, so some large institutions were scaled back to make room for individual Bahamian investors. 

Those funds are financing roughly 130 million dollars in grid upgrades on New Providence.

In August 2025, CFAL launched the first round of its Private Equity Fund to finance EA Energy and Island Power Producers. The offer ran from 21 to 29 July. Nine days. 

About five thousand subscriptions came in. Thousands of Bahamians now own a direct stake in combined solar and LNG power projects in Eleuthera and Abaco and in a shore-side LNG plant in Nassau.

In November 2025, CFAL returned to the market for Island Power Producers with a one hundred million dollar bond. 

The book was open from 6 to 14 November. Nine days. Again oversubscribed. 

The issuer accepted an additional twelve million dollars above the original target. 

That raise is funding a modern LNG plant in the cruise port that will cut emissions at berth and free capacity for the rest of the grid.

Put those transactions together and the pattern is clear.

In a matter of weeks, Bahamian capital provided twelve million dollars in equity and two hundred million dollars in long-term debt for serious energy projects.

That is not a theory about what might be possible. It is proof of what is already happening.

Evidence shows that we mobilized the local capital markets who responded with confidence and raised over 1 billion dollars in private capital.
So when doubters say, “The Government has no capacity and the Bahamian market has no depth,” we can now answer with grid upgrades, LNG plants, microgrids, reduced outages, and offerings that sold out in days.

Grand Bahama deserves the same.

We are not promising that your bill will be cut in half next month. We are promising a path that moves this island from structurally higher rates to a fair national framework; from a fragmented system to an integrated one; from dependence on aging diesel units to a mix of LNG, solar and modern controls.

With 23 solar and hybrid microgrid projects rolling out across the Family Islands, rental generators being phased out for savings of up to over $40 million a year, and a plan that for the first time shows a clear pathway to paying off all of BPL’s legacy debt of over $500 million within six years, we are not guessing our way forward – we are executing a comprehensive energy reform that international rating agencies have already validated.  

So to those who still doubt our ability to manage big systems, I say this: after more than fifty years of independence, why should we talk down Bahamian potential, when the evidence now shows that when we fix the rules and mobilise our own capital, we can rebuild an entire sector and put it on solid, sustainable footing. 

You have every right to hold me to that path.

Energy is the foundation. Connectivity is the bridge.

Everyone in this room knows what it has meant to greet visitors and investors in a temporary airport. It has been a daily reminder of the gap between Grand Bahama’s potential and its reality.

We are now closing that gap.

Phase one of the new Grand Bahama International Airport, around 130 million dollars of investment, will deliver a modern terminal with US preclearance, expanded apron space, stronger flood protection and improved road access. 

The Government has now signed a contract with Manchester Airports Group, and MAG’s work began in January. Their CEO and transformation team are already engaged; a three-month mobilisation plan is in train, and a detailed safety improvement plan is being implemented. 

This is the same group that operates some of the largest airports in the United Kingdom. They understand compliance, security, commercial operations and airline relations. 

They manage the largest air cargo terminal in the UK, and the new business model for the Grand Bahama airport includes integrating a vibrant air cargo business.
They also manage US pre-clearance airports, so they understand what’s required to ensure Freeport is again certified for US pre-clearance.

They are not learning on our time.

For airlines, that matters. It tells them gate assignments, turnaround times and safety standards will be managed by a professional operator they recognise. 

For investors, it matters too. It signals that Grand Bahama is not just talking about being open for business – we are building the gates to prove it.

I also want to publicly thank the British High Commissioner, Smita Rossetti, and her team for their steady support. 

The UK High Commission has been a quiet but important partner in getting MAG to the table and in helping to unlock the technical expertise we need. 

This is what modern partnership looks like: The Bahamas setting the agenda, and friends abroad helping us deliver it.

Then there is the Grand Lucayan.

I understand the frustration. For years, that property has been shorthand for drift.

In May 2025, a Heads of Agreement was signed with the Concord Wilshire Group. Since then, government and developer have been working to secure the right branding partners and to remediate serious mold issues that could have compromised the entire transaction.  

In parallel, the Bahamas Investment Authority, Ministry of Finance, Department of Labour and the Office of the Attorney General have been working to settle employees and vendors in a way that honours legal entitlements and protects public funds.

I will not pretend this has been easy. 

It has not. 

Our aim is a functioning, viable resort that creates jobs and confidence.

You deserve both honesty and delivery. You will get both.

All of this is about breaking the grip of an old system. But it is not enough to tear down. We also have to build.

So let me speak about my vision for Grand Bahama in an age of possibility.

Across the globe, three big shifts are shaping this century.

The first is the climate shift.

For us, that is not a theory. It is the level of seawater on our streets and the cost of insurance on our homes. 

But it is also an opportunity. 

Our seagrass meadows and marine spaces are already forming the basis for blue carbon credits and debt conversions that channel money into conservation and resilience.

The second is the digital shift.

Young Bahamians can now sell services to clients around the world from laptops in Eight Mile Rock or High Rock. 

Logistics, back office services, digital design, remote technical support – these are all within reach if we build the skills and the networks.

The third is the social shift.

People are living longer. Work is less predictable. Families are rightly asking whether the economic system works for them or against them.

In this age of possibility, I see Grand Bahama not as a victim of these shifts, but as a test bed for how a small island can turn them into advantages.

A Grand Bahama where:

• Energy costs are fair and predictable, anchored by modern LNG and solar assets financed by Bahamian and international capital.
• A rebuilt airport reconnects the island to key gateways and supports a new mix of tourism, business travel and cargo.
• The Grand Lucayan is reborn in a way that fits the market, creating jobs in hospitality, entertainment and services.
• The harbour and industrial area become a hub for green and blue industries: ship repair with lower emissions, logistics that support renewable projects around the region, data services that ride on new fibre links.
• Capital markets on Nassau and Grand Bahama list funds, bonds and equities that give ordinary Bahamians a stake in all of the above.

In that vision, the twenty-two-year-old I spoke of at the beginning is not standing between two stories. 

They are living inside a new one.

They see a government willing to challenge a corporatocracy that has outlived its usefulness. 

They see business leaders who no longer hide behind partisan excuses. 

They see that when they pay a power bill, they are not just feeding an old machine but helping to finance a new system they partly own.

That is the kind of story that can keep our brightest here and call others back.

So where does this leave us?

Grand Bahama started life as a bold experiment in how a small island could attract capital. 

That experiment produced both progress and pain. 

The mistake would be to freeze it in time.

We now live in a new era. Storms are stronger and more frequent. Capital is more demanding. People are less willing to accept arrangements they cannot see or influence.

In that era, Grand Bahama does not have to stay trapped in an old script or in a corporatocracy that puts private comfort over public interest.

You have seen that The Bahamas can move from crisis to recovery.

You have seen that our capital markets can raise hundreds of millions of dollars in days for real projects.

You have seen that energy reform can produce measurable gains.

Now we need to bring that same clarity, that same candour and that same resolve to this island.

We do not have to accept that a household in Freeport will always pay more and expect less than a household in Nassau.

We do not have to accept that a ruin of an airport is the permanent price of storms.

We do not have to accept that a landmark hotel must sit in limbo because the paperwork is hard.

We can choose our path.

My commitment to you is that this administration will keep choosing the path that breaks the back of the old corporatocracy and builds something stronger in its place,  with energy reform backed by real capital, with infrastructure that matches your ambition, and with Grand Bahamians, not outsiders, at the centre of the story.

The next time a twenty-two-year-old Bahamian arrives in Grand Bahama with a suitcase and a dream, I want them to see what I saw in 1974, a place where the future is being built. 

But this time, that future must belong to the people who live here, not only to those whose names are on old agreements.

We have the evidence. We have the capital. We have the responsibility.

Now we need the will.

Let us choose our path together.

Thank you.