A ministerial memorandum of understanding that proposes a Chinese state-owned company build cruise berths in Cayman does not need the approval of the governor or the UK government, the Governor’s Office said.
During a parliamentary debate on the 2011-2012 budget last week, Independent Member of the Legislative Assembly Ezzard Miller told Premier McKeeva Bush he believed the Constitution stipulated that the Cayman Islands government needed the approval of Governor Duncan Taylor or the UK Secretary of State to negotiate with a foreign government.
In a response to the Caymanian Compass on Thursday, Steve Moore, head of the Governor’s Office said: “Having now looked into this matter, including with the FCO [Foreign and Commonwealth Office], I am satisfied that it does not fall within the ambit of external affairs as contemplated under section 55(1)(b) of the Constitution. As such, UK consent or approval is not required.”
He said the reason no approval was required was “because the MOU concerns a relationship of a commercial nature [a contract matter] rather than an agreement between governments in the sense of a treaty or other international instrument”.
Premier Bush announced last week he had signed a ministerial memorandum of understanding with China Harbour Engineering Company to build cruise berthing facilities in George Town, Spotts and West Bay.
A ministerial memorandum of understanding is a nonbinding agreement that has not yet been taken to Cabinet.
The agreement was signed on 13 June and terminates at the end of November 2011.
49-year concession
The memorandum of understanding proposes to give China Harbour Engineering a concession period of 49 years for the cruise port.
According to the memorandum of understanding, the Chinese company would share with the Cayman Islands Government the passenger fees levied from cruise lines on each passenger who enters Cayman.
The Chinese company agreed to advance US$3 million to begin work on the Spotts Jetty by 15 July.
According to the memorandum of understanding, if contracts have not been signed relating to the building of cruise ship piers at George Town and West Bay by the end of November, “[China Harbour Engineering Company] will be reimbursed through the Ministry of Finance of the Cayman Islands for all funds advanced by CHEC on the Spotts Jetty project to that date.”
Under the agreement, China Harbour Engineering would design, build and operate transfer finger piers in George Town and also at the Cayman Turtle Farm in West Bay, along with related facilities. It would also upgrade the existing facilities at Spotts Jetty.
The memorandum agrees to negotiate exclusively with China Harbour Engineering on the concession agreement of the project during the period of the MOU, which ends on 30 November.
The company would be offered import duty tax exemptions on goods supplied for the project and the government would make the areas for the development of the project available at no cost.
China Harbour Engineering agreed in the memorandum to finance the projects and complete a feasibility study on investment in the developments by the end of July and begin implementing the projects no later than the end of November.
It also agreed to subcontract work out to local contractors.
Related Videos
