Premier Wayne Panton has announced a new deadline for the long-awaited ReGen project, assuring that “negotiations between the Government and the Dart-led consortium are progressing steadily.”
Panton, through a statement issued Friday afternoon, said financial close for the project is now expected by 30 Sept. and the public-private partnership team recently agreed to a new project long-stop date of 30 Nov.
As he provided an update, Panton noted that the project agreement signed in 2021 “contained dozens” of conditions that still needed to be negotiated and agreed upon.
“Since that time, the joint project team has reduced the outstanding items down to a small number of items remaining to be addressed by the new financial close deadline. We are on a solid footing to conclude negotiations and move from the procurement phase of the project to the implementation and construction phase,” he said.
Revised deadlines, public consultations
The ‘long-stop’ deadline date for financial close has been moved a number of times over the last year – from 31 Oct. to 30 Nov. 2022, then to 31 Jan. 2023, then 31 May, and last announced as 31 July.
Initially, following the signing of the deal by the Progressives government in March 2021, the deadline of 31 Oct. 2021 was set, but that was pushed to 2022.
The cost of the project has also been in dispute.
Former Finance Minister Chris Saunders claimed it would ultimately cost Cayman $2 billion, but Panton has said the cost is closer to $1.5 billion.
Defending the lengthy negotiations, Panton said that reflected both the complexity of the project and the team’s desire to ensure this deal represents value for money for the people of the Cayman Islands.
“We know ‘doing nothing’ is not an option but we also know that, for ReGen to truly be the future of sustainable waste management in the Cayman Islands, it needs to be affordable now and in the long-term. These facilities represent a significant investment in the future well-being of our country and, as with all major project decisions, we are taking our fiscal responsibility seriously,” he added.
The premier did not go into detail on the outstanding matters to be finalised.
‘Costs being finalised’
“Neither the Cayman Islands Government nor Dart are able to discuss specifics of the negotiations at this stage due to commercial sensitivities,” the statement added.
The financial modelling for the project was updated at the beginning of 2023, according to the statement, adding that at this stage, costs are still being finalised.
It added that there are two key figures associated with the project: The contract cost that would be payable to the Dart-led consortium; and the total, projected cost of all the components that make up the entire waste collection and management system over the 28-year life of the contract (three years of construction and 25 years of operations).
The projected cost includes ReGen and the estimated cost of the Department of Environmental Health’s continued role in the delivery of an integrated sustainable waste management system for all three Cayman Islands, it added.
Dart executive director Cameron Graham, commenting on the latest development of the project, said, “The Dart Consortium has continued to work diligently in partnership with the Government across all areas of the ReGen Project Agreement (PA) to ensure the Government has the information required to achieve financial close by 30 September”.
The “unique project,” he said, requires continual communication with project partners, contractors and inter-government agencies to ensure its successful development and it is reassuring that all parties have remained aligned throughout the protracted negotiation process.
“With a clear pathway to financial close, we are excited to execute the PA and transition to the detailed design, construction and ultimately operation of ReGen that remains critically important infrastructure to the sustainable development of the Cayman Islands,” he added.
Public meetings on the Environmental Statement:
- 28 Aug. – 6-9pm at Harquail Theatre
- 29 Aug. – 6-9pm at John Gray Memorial Church Hall
- 30 Aug. – 6-9pm at Mary Miller Hall, Red Bay Primary School
Dart, the statement said, is making progress on the Environmental Impact Assessment for the project and the public consultation for the draft Environmental Statement is scheduled to launch this month.
The draft Environmental Statement will be available on the ReGen and Department of Environment websites from 18 Aug., and hard copies of the document will be hosted in community spaces across all three islands from 18 Aug. for public viewing.
For details, visit the ReGen website.
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