Completing the Boatswain’s Beach project on schedule for November will require another $8.8 million.
Completing Boatswains Beach on schedule for its November opening will require another $8.8 million. Photo: File |
Inadequate preliminary budget estimates, the effects of Ivan, and a March, 2006 budget reassessment are cited as the main factors for the shortfall.
The Legislative Assembly passed a motion Friday releasing the funds needed to address further capital and operational requirements for the project, deemed essential for the Island’s tourism sector.
In defending the move, Tourism Minister Charles Clifford said the government was certain this would be the final time Boatswain’s Beach would be receiving any funds needed for the project to be completed on schedule for November 2006 opening.
After an initial budgeted $36.6 million, the Cayman Turtle Farm (1983) Limited received another $2.2 million for its short-term needs related to securing the financing and getting the project off the ground. It also received a further $5 million in May of this year to remedy construction and financial delays.
Financial Secretary Kenneth Jefferson said the latest amount will be allocated as a 10-year loan.
The breakdown of funds includes $605,000 for design and development, $617,000 for general expenditures, $4.4 million for siteworks, $1.1 million for buildings and tanks, and $1.8 million for purchases, primarily of exhibit animals.
Opposition demands for further elaboration on where the funds would be going gave Minister Clifford the opportunity to highlight some of the reasons behind the cost overruns and construction delays, which now see the project running 11 months behind schedule.
Minster Clifford said that more money had been required over the project’s construction period due to overly conservative pre-construction budget estimates which had vastly insufficient contingency allocations, and later design changes.
He also cited the spin-off effects of Ivan which included insurance deficits, major shipping delays and considerable price hikes on imported building materials, local labour shortages, as well as the unexpected need to purchase the majority of the exhibit specimens from overseas.
An independent project cost assessment, agreed to by the Board of Directors, led to the decision on the latest figure.
Minister Clifford also blamed decisions affecting the project’s finances made by then-tourism Minister and Turtle Farm chief, Opposition Leader McKeeva Bush.
Minister Clifford cited the awarding of untendered contracts to a consortium of underqualified contractors which resulted in poor value for money.
‘There were no performance bonds issued, and furthermore, project management fell to the Turtle Farm’s Managing Director Ken Hydes,’ he said.
Mr. Clifford also accused Mr. Bush of awarding a pre-election across-the-board 13 per cent salary hike to all Turtle Farm employees, which bit into the project budget.
Another $600,000 was lost when an independent financing team put forward by Mr. Bush was contracted, then released, when the credibility of the team’s moneyman was cast in doubt.
Mr. Bush was off the island tending to business with his daughter, and took umbrage at Mr. Clifford’s attack on him in his absence
‘With regard to the decision to use local contractors, the public knew, because I made a statement on this, that I was going to encourage the Board to give the business to local people. Charles was a member of the Board and he agreed with that, and he cannot say otherwise.’
Mr. Bush also challenged Mr. Clifford’s allegations of financial misdealings.
‘I had nothing to do with the financing, except for when it got to the Board level, I as Chairman supported it,’ he said.
‘The Chairman of the Turtle Farm’s Finance Committee Carlyle McLaughlin said the financing package was a good deal. I don’t have any reason ever to question him and I don’t think the Cayman Islands has any reason to question him.’
When completed, aside from the Turtle Farm exhibits, Boatswain’s Beach will feature a snorkel lagoon, a free-flight aviary, an historic Cayman street, a nature trail and numerous other nature-based attractions and is anticipated to bring in 488,000 visitors a year.
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