The port development project and the airport expansion project are to proceed as planned despite the global economic downturn.
Minister for Tourism Charles Clifford told the Caymanian Compass that the Environmental Impact Assessment on the port is expected to start this month, triggering the start of the public consultation exercise.
He also said the financing negotiations for the airport expansion project should be concluded by the end of December.
‘Like the berthing facilities project, the Owen Roberts International Airport redevelopment project is a critical component of our tourism product, which must be upgraded and significantly improved if we are to remain a serious player in Caribbean tourism in the future,’ said Minister Clifford.
The Cayman Islands government recently asked chief officers to reduce their budgets by six per cent across the board for the current fiscal year, following predictions that revenues to government will drop some $15 million below estimates.
Minister Clifford said to date there has been no effect on the project to separate cruise and cargo facilities and to construct berthing facilities.
‘The project is proceeding as planned and it is important to remember that the capital outlay for this project will be the investor’s and developer’s responsibility and not the Government’s.
‘It is anticipated that by the time the project is completed and the repayment on the financing is commenced, the global financial crisis will be behind us and our destination will emerge in a very competitive position.’
While no official figure has been given for the cost of the project, the Minister, in a previous interview, made an estimate that it could take US$150 million to relocate the cargo facilities and an additional US$80 million to develop the cruise berthing facilities.
Negotiations between the Government, the Port Authority and property developer Atlantic Star Ltd. are going well, he said.
‘Our financial advisors are in the process of preparing recommendations on various strategic partnership models,’ he said.
The Environmental Impact Assessment for the project is to start shortly.
The Department of Environment, in a statement, said it has reviewed the statement of qualifications for the three consulting firms submitted by the applicant [Atlantic Star Ltd. and the Port Authority] and have made a recommendation on the Department’s preferred option.
‘The matter of the consultant selection is now with the applicant. As soon as a final decision is available, the public will be informed,’ it said. ‘The next step in the process will be to determine the Terms of Reference for the Environmental Impact Assessment, which will involve consultation with key stakeholders.’
The Minister noted that the DoE has recommended an EIA consultant company, which has been accepted and the EIA is expected to start in November. But he did not reveal the name of the company.
‘The EIA will trigger the start of the public consultation exercise on the project so the public can look forward to notices of public consultation meetings in November,’ said the Minister.
Regarding the expected time to complete the EIA, this cannot be estimated until the Terms of Reference are determined, according to the Department of Environment.
Meanwhile, Minister Clifford said that while the airport expansion project is behind schedule for a number of reasons, it is definitely not on hold.
‘The financing arrangements are being negotiated and should be concluded by December this year. It is important to note that it was never intended to finance this project through central Government but rather through direct financing to the Cayman Islands Airports Authority and the Authority would be responsible for the repayments on the loan,’ said Minister Clifford.
Phase One of the airport redevelopment process was scheduled to begin this past February but the Cayman Islands Airport Authority Board of Directors took the decision to delay the tendering process until the financing arrangement has been finalised.
The expected cost of this project has not been revealed.
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