Auditor general examining ReGen contract

Auditor General Sue Winspear’s office is carrying out an audit review of the contract between government and a Dart consortium on the stalled ReGen project.

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.

That contract was subject to an audit review, Winspear has confirmed.

“We have undertaken a short performance audit on the ReGen proposed contract and that draft audit report is currently in clearance with relevant officials,” she told the Compass this week. “Therefore, it is not yet either complete or available. When we have gone through the clearance process and do have a final document, we will need to take legal advice on what we can make publicly available due to commercial sensitivities.”

As the ReGen contract has not been finalised, she said, a lot of the report’s contents cannot be made public, to avoid impacting the contractual process.

When the Progressives-led government signed the ReGen contract with Dart last year, both parties became contractually committed to implementing the project.

After a public-private partnership contract is signed, additional steps are required before the project can begin, including reaching a ‘financial close’.

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”.

Delays continue

Parties involved in the ReGen project remain locked in talks, and there is no indication when those will end.

“Discussions with the contractor are continuing and further updates on the project will be provided as we are able to do so,” the government spokesperson told the Compass on 9 Feb.

An advertisement seeking a new senior project manager for the Integrated Solid Waste Management System (ISWMS) was recently posted on the government’s new job-vacancy portal.

That post was held by initially held by Peter Ranger, chief project manager of the Major Projects Office, who passed away suddenly last May.

Deputy Opposition Leader and George Town North MP Joey Hew said the premier has had four months since his October statement to address the financial close of the deal, adding that the ongoing delays in the project are leaving him worried about the safety of his constituents.

‘Free-for-all dumping’

“I have been speaking for weeks now about what looks like free-for-all dumping at the remaining ‘temporary’ mound at the landfill. We have gone back to bad days of dumping and not compacting and covering the garbage. The international standard is to compact and cap every 24 hours – we have gone away from this. This reduces chances of fire, reduces leaching, and extends the life span of the landfill. It also seems we are now mixing vegetation in with other refuse. The lack of what seems to be clear direction and oversight at the landfill presents a possible life safety issue,” Hew said in an email to the Compass.

He believes the George Town landfill could reach full capacity within the next three years, as the delays in implementing ReGen continue. Hew, in whose George Town North constituency the landfill sits and where the ReGen project is planned, said he was concerned that the finalisation of the financial terms of the ReGen contract were dragging on.

“It is a real disappointment that the Government that touts itself on having a sustainability focus is allowing one of the most environmentally necessary projects to wither on the vine. Nothing is happening on the ReGen waste-to-energy plant. At the current rate, the George Town landfill will have three years at best before it is completely full,” he said.

In October, responsibility for the multimillion-dollar project was moved from the Ministry of Health and Wellness to Panton’s Sustainability and Climate Resiliency Ministry.

In that same month, government’s Environmental Assessment Board concluded setting the terms of reference for an environmental impact assessment of the project. That 271-page document, which outlines the guidelines and scope of the assessment, was signed off following a period of public consultation and three public meetings.

Fire concern

Hew contends that a poorly managed landfill is a recipe for another ‘dump fire’.

“It is my constituents in George Town North who feel the real brunt of the flare-ups that become massive fires,” he said. “I hope that the Government understands that they are taking chances with people’s lives.”

The Opposition, which consists of members of the former administration, has been calling on government to inform the public about what is happening with the landfill project since there had been no updates on it since October.

Hew said ReGen is an integral part of meeting the country’s commitment to a greener and cleaner Cayman and “if the Government is serious about sustainable waste management, it will embrace the ReGen waste to energy solution”.

He added, “When complete, the ReGen waste to energy plant and a remediated George Town landfill will reduce greenhouse gas emissions by about 23,000 tonnes per year – the equivalent of removing 5,000 cars from our roads. The ReGen waste to energy plant will also generate about 9% of Grand Cayman’s total electricity. It will be sold to CUC and replace energy created by diesel, helping us get to our renewable energy target.”