The Cayman Islands is in discussions with the United Kingdom foreign office over potential solutions for the George Town landfill, Peter Hayes, Foreign and Commonwealth Office Overseas Territories director, said Monday.
Mr. Hayes, who is visiting the Cayman Islands this week, said he is keen for the territory to explore all possibilities, including a waste-to-energy plan for the landfill, which now stands 80 feet high in the center of Cayman’s largest business and residential district.
“I think [waste-to-energy] is certainly worth looking at,” Mr. Hayes said. “At the end of the day, it will come down to economics.”
Premier Alden McLaughlin said during a speech last month to the Cayman Economic Outlook forum that part of the reason a lengthy review process is under way for the landfill project is because of terms contained in the U.K.-drafted Framework for Fiscal Responsibility.
Cayman essentially has “no choice” on the process, Mr. McLaughlin said.
Mr. Hayes agreed that the framework sets out certain rules for major public project procurement, particularly if those projects are to be financed by public-private partnerships. He said a problem as large as the George Town landfill doesn’t get solved overnight.
“What is a good thing…it’s actually got public awareness now,” Mr. Hayes said. “It certainly is a problem with a number of the territories where, frankly, waste management is pretty primitive, put your waste in a hole somewhere.”
He said several of the territories are starting to address their waste problems through a number of methods, incineration, crushing glass, even using certain waste for fill on road projects.
According to the Framework for Fiscal Responsibility, which is now enshrined in the Cayman Islands Public Management and Finance Law, there are five “key” stages to be undertaken by Cayman in public projects. Those include: the creation of appraisals and business cases, procurement, contract management, delivery of services and evaluation.
“The Cayman Islands government will ensure that all projects, whether funded from recurrent surpluses, conventional borrowing or…alternative financing transactions, are suitably appraised before the procurement stage to ensure value for money and that a robust cost-benefit analysis has been carried out,” section 14 of the framework states.
If the project is a public-private partnership, other rules are applied, including requirements that Cayman obtain independent account, legal, financial, economic, environmental and other technical advice. Public-private partnerships will only be considered where there is a “sound underpinning” for the project before financing means have been determined.
The terms of the framework allow the Cayman Islands to borrow money in “exceptional circumstances” for a public project, but those terms would have to be agreed to in writing by the U.K. foreign secretary.
Otherwise, the proposed project would have to yield sufficient revenues to fund additional debt service costs, or government would have to demonstrate that it has sufficient operating cash to fund the project.
Related Videos
The Cayman Islands is in discussions with the United Kingdom foreign office over potential solutions for the George Town landfill, Peter Hayes, Foreign and Commonwealth Office Overseas Territories director, said Monday.
Mr. Hayes, who is visiting the Cayman Islands this week, said he is keen for the territory to explore all possibilities, including a waste-to-energy plan for the landfill, which now stands 80 feet high in the center of Cayman’s largest business and residential district.
I think waste-to-energy is certainly worth looking at, Mr. Hayes said. At the end of the day, it will come down to economics.
It seems like people in high places could be reading the comments posted on this forum LOL !
In any event, if the UK Govt. is monitoring the situation they are taking care of their responsibilities and that has to be a good thing.
Another consideration is the options of a UK-based firm as a contractor in whatever solution is considered.
I am, in no way, advocating any contracts for UK-based firms involved in waste-management but…
I can almost guarantee the way the UK Govt. does business will have them looking more favourably on any fiscal arrangement made with a UK-based waste management firm; they might even be willing to help fund the project.
If the CI Govt. gets guarantees that the work will be done by Caymanians, this project could be a major boost to Cayman’s economy and provide jobs for local Caymanians.
I sincerely hope that Mr hayes is provided with the full details of the Dart offer, although no doubt our current Government will neglect to inform him that there is an offer on the table that will not cost the country a cent to remediate the dump, but they are ignoring it for the fear of upsetting 200 voters in their core district.
The one common denominator in this whole thing is that in the end it will all come down to economics. While in talks with the UK about this Mr Hydes has to know the sorry shape Cayman is in financially. I find it hard to believe that the UK will give Cayman funds to help resolve the dump issues nor will they in my opinion agree that this is an exceptional circumstance and allow more borrowing to remediate the GT dump, especially with an offer from a private party to do it at no cost to the public purse. Also, waste management has no potential to yield sufficient revenues without seriously implementing and enforcing garbage collection fees I wonder how happy the people of Bodden Town will be when they as well as everyone else have to pay huge fees for trash pickups thanks to their selfishness.
Mr. Davis.
Do you understand the concept of ‘trade-offs’ ?
There are a number of factors in this entire situation where the ‘trade-off’ elements are very favourable for the CI, UK and any private entity partnered with to complete a major project which carries a huge environmental impact.
This ‘dump issue’ is one that Cayman HAS to solve…there is not an alternative option.
If you have any idea about how the UK Govt. operates you would see that it is no coincidence that the FCO is now getting involved.
If the CI Govt. see this, they will negotiate a deal where they can benefit from UK involvement. I’ll say no more…its like giving trade secrets away for free.
And the CI Govt. is certainly not paying me for advice LOL.