Government has said it is moving the ReGen project forward and is committed to complete the financial close on the long awaited solid waste management project no later than 31 October.
Premier Wayne Panton, in a statement Thursday afternoon, said he was “pleased to announce Cabinet has approved a new financial close date and long-stop date to proceed with delivery of the ReGen project in partnership with Dart.”
The long-stop date, it said, will be no later than 31 January 2023, three months after the proposed financial close date.
“A long-stop date is an established practice in contract negotiations; if the necessary conditions have not been completed by this date, the agreement is either automatically terminated or one of the parties has the right to withdraw,” the statement said.
Panton noted, with the project moving forward there, it will be several years out before the new infrastructure is up and running.
The project timeline now estimates the energy recovery facility will be commissioned in 2026.
“In the interim, preserving space at the existing landfill through waste reduction will be a top priority for the joint project team,” he said.
Panton, who assumed responsibility for the project when it was moved to his Ministry of Sustainability and Climate Resiliency last October, said a key concern for him was ensuring the Sister Islands’ landfill sites are addressed.
“For ReGen to benefit everyone in the Cayman Islands, it’s important to ensure plans are in place to provide sustainable waste management for Cayman Brac and Little Cayman,” he said.
Cabinet greenlights moving forward
Cabinet, in its 5 April meeting, approved an extension to the financial close deadline and long-stop date for project agreement negotiations between government and Dart for the development of ReGen, Cayman’s Energy and Recycling Centre.
“In order to meet our national sustainability and infrastructure objectives, delivering a financially viable, long-term solution for solid waste management is a key priority for the Cayman Islands Government. We cannot continue to rely on landfilling as the primary method for dealing with our trash,” Panton said in the statement.
Sustainability and Climate Resiliency Chief Officer Jennifer Ahearn said next steps for the project are “for the Government team to report back to Cabinet as soon as possible on the policy decisions and directives that will be required to achieve financial close. Over the next six months, the team will provide regular updates to Cabinet on the negotiations.”
The public-private partnership between the Dart-led DECCO consortium and the government was formalised in March 2021 under the Progressives-led administration, weeks before the 14 April general election.
In order to meet our national sustainability and infrastructure objectives, delivering a financially viable, long-term solution for solid waste management is a key priority for the Cayman Islands Government. We cannot continue to rely on landfilling as the primary method for dealing with our trash. Premier Wayne Panton
The 25-year contract with Dart was to design, build, finance, maintain and operate a new integrated solid waste management system, and complete the ongoing remediation of the George Town Landfill with a projected delivery date of 2024.
When the Progressives-led government signed the ReGen contract with Dart last year, both parties became contractually committed to implementing the project.
The PACT government, having taken office, was expected to finalise the financial close on the project by a 30 Sept. 2021 deadline. However, Premier Wayne Panton, in an October statement, said that deadline had been “at best, an ambitious target”.
In February 2022 Auditor General Sue Winspear confirmed to the Cayman Compass that she was undertaking an audit review of the contract.
The statement also added that the Governor’s Office has “also committed to requesting a further review of the financials through the Foreign Commonwealth & Development Office.”
However, it said, this additional review is not anticipated to impact project timing.
Last month Department of Environment Director Gina Ebanks Petrie confirmed that work on multi-million dollar project’s Environmental Impact Assessment the George Town landfill was put on hold as the PACT administration continued to negotiate with Dart to close the deal.
Dart President Development Delivery & Infrastructure Cameron Graham said, in the statement, that Dart is committed to delivering the ReGen project “and achieving the sustainability benefits associated with a modern energy recovery and recycling centre”.
He welcomed the Cabinet decision.
“[It] means we can restart work on the Environmental Impact Assessment for the ReGen project and progress important negotiations to achieve financial close by the new deadline. We look forward to moving the project forward in partnership with the Cayman Islands Government. A cleaner, greener Cayman Islands benefits us all,” Graham said.
Ahearn iterated the importance of the project to the country.
“Once complete, the ReGen facilities will reduce greenhouse gas emissions, contribute to our national renewable energy target, improve recycling performance and divert up to 95% of our waste from being landfilled, contributing significantly to our efforts to cultivate a lasting legacy of sustainability in the Cayman Islands,” Ahearn said.
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