Bahamas

The Bahamas' PPP framework remains anchored in the 2018 Public-Private Partnership Policy, which provides the principal guidance for developing and procuring PPP projects. While the policy envisages dedicated governance arrangements—including a PPP Steering Committee and PPP Operational Unit—implementation remains limited, with PPPs led primarily by line ministries rather than a fully operational central PPP institution.^1,2 In September 2026, the government presented a revised PPP Policy and new PPP Assessment Framework to Parliament for public consultation, proposing stronger procedures for project appraisal, risk allocation, value-for-money analysis and fiscal affordability. These reforms could address longstanding preparation gaps, but have not yet been formally adopted.³

PPP transaction activity in the Bahamas remains limited, although the airport sector has attracted recent investment. A concession covering three Family Island airports reached financial close in August 2025,⁴ while the 2023 Grand Bahama International Airport Redevelopment PPP failed to secure financing and is now being pursued under alternative development arrangements.^5,6 The government is also pursuing potential PPPs across road, water and port infrastructure.^7,8 Several initiatives remain at the planning or development stage, and some may fall outside conventional PPP definitions. Nonetheless, the efforts indicate continued government interest in private participation, despite a relatively small market.

The government has maintained an explicit PPP agenda, linking private participation to infrastructure development and fiscal sustainability. Its 2025 Fiscal Strategy Report identifies strategic PPP use for Family Island airport redevelopment, renewable energy infrastructure, and road and water network improvements, while the 2026/27 Budget reaffirms PPP delivery alongside stronger project appraisal and fiscal oversight.^9,10 However, political scrutiny has increased: opposition figures have questioned the transparency of some recent PPP arrangements and their treatment of contingent liabilities.¹¹ Greater disclosure and fiscal-risk management will therefore be important as the PPP pipeline develops.

The Bahamas’ relative strengths are concentrated in specific parts of its PPP framework rather than across the system as a whole. For example, its framework establishes relatively clear processes and transparency around contract variations. The country also ranks 5th for institutional and political risk, reflecting a strong enabling environment around contract enforceability, bureaucratic effectiveness and political stability. Provisions for managing contingent liabilities and strong financial auditing and reporting standards provide further safeguards for PPP projects.

The Bahamas continues to face significant institutional and implementation gaps. The absence of a fully operational PPP unit and weak inter-agency coordination leave it well behind the regional average on institutional capacity. Project preparation is also constrained by limited dedicated support and underdeveloped methodologies for assessing potential PPPs, including their economic and fiscal merits. Monitoring remains another important gap, with limited public reporting on PPP performance and no established process for ex-post evaluation.

The Bahamas’ overall score declined modestly from 33.1 in 2023/24 to 32.1 in 2025/26, reflecting increased parliamentary criticism of PPPs and the unsuccessful Grand Bahama airport PPP, which was canceled post-procurement after failing to reach financial close. Most other indicators remained broadly stable, consistent with limited changes to the underlying framework. In September 2026, the government presented a revised PPP Policy and PPP Assessment Framework for public consultation, potentially addressing longstanding preparation weaknesses, although neither had been formally adopted.