The Central Tenders Committee has for the second time awarded a contract to local firm Cardinal D. Ltd. to remove scrap metal from the George Town landfill.
The company will buy the scrap for $70 per ton, according to brief details of the contract released on the Central Tenders Committee website.
Cardinal D. won an earlier contract to remove 6,000 tons of scrap in May 2010, paying the government $50 per ton for the scrap metal, which was shipped to China.
According to the contract tender document, the contract involves the removal of loose, unprocessed or semi-processed appliances, between 1,500 and 2,500 derelict vehicles, fuel tanks, tire rims, metal furniture, fixtures, construction debris and other items containing metal such as brass, copper, aluminium, steel, tin, and cast iron.
The tender invitation also includes the removal of scrap metal from the dumps on Cayman Brac and Little Cayman.
Despite the tender invitation document stating: “The Department of Environmental Health is anticipating that the tenderer will have most of the loose scrap metals processed and removed from the sites in an efficient and timely manner, considering the commencement of the hurricane season, in June 2011,” no winning bid was chosen until the most recent meeting of the Central Tenders Committee on 14 July.
The Central Tenders Committee received eight tenders for the scrap metal removal for this contract in February.
The tender invitation stipulated that the government could not guarantee exactly how many tons of scrap metal remained at the landfill and invited bidders to make their own assessment of the amount.
Under a contract signed in early 2009, Cardinal D., with the help of sub-contractor Pan-Caribbean Energy Ltd., removed 6,000 tons of scrap metal from the dump and sold it to Hong Kong-based Hong Luen Metal Trading Company.
Attempts to remove scrap metal from the George Town Landfill, known locally as Mount Trashmore, has been an ongoing issue since 2007 when a joint Caymanian-Canadian company, Matrix, signed a $1.25 million contract to get rid of the metal rubbish. It ultimately paid a quarter of that sum to the government for the scrap metal and removed some 6,500 tons. Its contract was cancelled in September 2007.
Following that, two tender bid invitations attracted no suitable bids, but six companies responded to an invitation for bids in December 2009 and in February the following year, Cardinal D. was awarded the contract.
In August last year, another contract to remove the remaining scrap metal was awarded to local company Island Builders Co. in association with US firm Resource Exchange of America and its subsidiary Asset Recovery of America, which offered $36.16 per ton for the scrap, at a total of $289,280. That deal fell through in November when the relationship between Island Builders and Resource Exchange of American broke down.
The contract was then rebid in January this year – for the fifth time in four years.
Last month, the government and Dart announced they had signed a deal that included Dart taking ownership of the George Town Landfill, leading to its closure, capping and remediation. Dart would also give government 110 acres of land for a new solid waste disposal facility in Bodden Town and to construct the first phase of that facility.