ReGen deadline extended again

Finalisation of a deal to reach financial close for the ReGen project between a Dart-led consortium and the government has been pushed back another two months.

The ReGen deal involves replacing ‘Mount Trashmore’ with a waste-to-energy plant, recycling facility and a much smaller lined landfill.

Last year, government stated it expected the deal to be completed by 31 May, but according to a statement issued Monday night by the Ministry of Sustainability and Climate Resiliency, which is headed by Premier Wayne Panton, completion of the negotiations is now “before 31 July”.

“We are at a critical stage in contract negotiations,” Panton said in the statement. “Both the Government and the Dart-led consortium are working hard to finalise the last few details remaining to secure financial close. Recognising that these remaining details will not be wrapped up and the necessary approvals obtained by the 31 May date announced last year, both parties have agreed to push the long stop date to 31 July.”

He added, “The length of the project negotiations reflects both the complexity of the project and the project team’s desire to ensure ReGen is done right. This project includes the construction of infrastructure we expect to deliver decades of sustainable waste management to the people of the Cayman Islands.

“We know how urgent our solid waste management challenges are and that we have limited capacity on the current site. We are taking our obligation to address these challenges in a fiscally responsible, timely and sustainable way very seriously.”

The “long-stop” deadline date for financial close has 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 now 31 July.

Initially, following the signing of the deal by the Progressives 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.

While the negotiations to finally seal the deal continue, the main mounds at the George Town landfill have been capped, leading to the rubbish being taken to the site being added to new garbage mounds. Last year, the landfill dealt with 133,000 tons of garbage.

An environmental impact assessment, which began in September last year, is ongoing. That is expected to be completed later this year.