Chinese chosen for cruise port

Premier McKeeva Bush has announced that he has signed a ministerial memorandum of understanding with a Chinese company to build or expand cruise berthing facilities in George Town, Spotts and West Bay. 

Mr. Bush said he had signed the memorandum of understanding with China Harbour Engineering Company to undertake three projects: to design, build and operate cruise ship docking and related facilities in George Town; to renovate and expand the Spotts Jetty; and to develop a cruise ship pier at the Cayman Turtle Farm in West Bay. 

“Our joint objective, together with the Port Authority of the Cayman Islands, is to work towards signing a contract before the end of November this year,” the premier told legislators during statements prior to a debate on the budget in the Legislative Assembly Wednesday afternoon.  

The Chinese government-owned company will provide financing and technical designs for the projects, he said. 

“They will work closely with the government and the Port Authority on appropriate development plans for the reclaimed upland area in George Town. These large scale construction projects will provide a wide scope for local employment and delivery of services,” said Mr. Bush, adding there would be opportunities for local investors to participate in the George Town Port port project, subject to “appropriate feasibility studies, including the financial review and engineering design”. 

He said the financial review and engineering studies would take account of the “pertinent social, business, and environmental considerations”. 

The deal with the Chinese would be vetted by the Central Tenders Committee, the premier told lawmakers. 

The redevelopment of Spotts dock, at which cruise ships offload passengers when weather and sea conditions make docking at George Town difficult, is expected to start in July, Mr. Bush said. 

The Chinese company has retained local firm Office for Architecture and Design as project managers for the Spotts Jetty works. 

In response to a question from Leader of the Opposition Alden McLaughlin, the premier said the company would be part of a management committee to operate the port in George Town, along with the government and the Port Authority. 

This is the fourth company to be mooted to build cruise berths in George Town. Currently cruise ships dock offshore and tender boats carry passengers onto land. 

Under the People’s Progressive Movement government, a memorandum of understanding was signed in July 2008 with Atlantic Star to redevelop the port. Sixteen months later, the United Democratic Party government signed a new agreement with Dart Enterprises Construction Company, also known as DECCO. In December 2010, the UDP government announced negotiations with DECCO had collapsed and that it was pursuing a cruise berthing construction deal with Florida-based GLF Construction Company.  

The negotiating agreement with GLF was terminated in April. 

GLF weighs options  

The Florida-based operation of the GLF corporation said in April that it had taken  

significant steps to ensure financing for the George Town Port Development project.  

Two days afterward, a letter was sent to GLF from the premier’s office indicating the framework agreement for the port development project had been terminated.  

The local company that was to handle the upland construction of the cruise berthing project indicated it was surprised at the cancellation.  

“We fulfilled every term of the framework agreement,” said Howard Finlason of Royal Construction. “We’re pretty surprised.”  

Last week, a communication was sent from GLF representatives to certain government members and the Port Authority indicating the company’s legal intentions. Mr. Finlason declined to discuss any such developments.  

The premier’s office also declined to comment regarding those communications when contacted by the Compass.  

Premier Bush said in April that the termination of the framework agreement would not preclude GLF or its subcontractors from getting work on the project.  

Mr. Bush indicated in his letter to GLF on 14 April that government appreciated the time and effort spent on the project by GLF and that it was still willing to work with the company, which is a subsidiary of Rome-based Grandi Lavori Incosit SpA. 

“But you will no longer have exclusivity on the project,” Mr. Bush’s letter stated. “Should another company come through with the required design and financing, we will naturally be obliged in the interests of the public, to work with them.”  

Chinese concerns 

Opposition members in the Legislative Assembly questioned if China Harbour Engineering Company was the same company that was being investigated by Jamaica’s contractor general in connection with alleged overspending on a road-building project. Jamaican media reports state the investigation involves the spending of more than US$9 million on one kilometre of road. The premier responded that he did not know, prompting accusations that the government was not doing enough due diligence on the company. 

Independent member for North Side Ezzard Miller wanted an explanation on what a ministerial memorandum of understanding was, saying he had never heard that term before. 

Arden McLean, Opposition member for East End, queried under what authority Cayman was negotiating with a communist country. “I don’t know who is communist and who is not… We will do business with good business people; people that can fulfil their obligations… in a legal manner,” the premier responded. 

Mr. McLaughlin questioned how long it would take for the cruise berthing work to begin, saying he understood it would take two to two and a half years for work to be completed. He added that the lack of progress in completing deals with the previous companies that had been slated to build the George Town cruise piers had led to a “whole range of questions”. 

According to the China Harbour Engineering Company’s website, it is working on more than 100 projects worldwide worth US$8 billion.