The Bahamian government has secured a decisive legal victory in its high-stakes arbitration with the Grand Bahama Port Authority (GBPA), with Attorney General Ryan Pinder announcing the rejection of the port authority’s billion-dollar damages claim while affirming state regulatory powers over Freeport. The arbitration tribunal delivered what officials termed a “historic” partial award that dismissed seven of GBPA’s eight counterclaims, including its central allegation of governmental interference in Freeport’s administration. The ruling establishes that governance of the Port Area is not exclusively vested in the GBPA but operates alongside and subject to the continuing authority of the Bahamian government. Critical regulatory domains including licensing, immigration, and customs remain under government control according to the determination. The award further establishes the GBPA’s liability to reimburse Bahamian taxpayers for administrative expenses incurred in Freeport, though the specific quantum of payments awaits determination through an agreed review mechanism or subsequent tribunal decision. While the tribunal acknowledged governmental delays in processing environmental bye-law amendments since 2006, it questioned the basis for damages on this singular successful counterclaim. The government has published the complete 139-page ruling online to ensure public transparency as proceedings continue to address recovery for earlier periods.