Analysis: What was missing from government’s spending plan?

While the government’s two-year budget, unveiled Friday, has a long list of high-value projects, there were some much-talked-about big-ticket items that didn’t make the cut.

Equally, there were a handful that were in the budget, but with relatively small amounts allocated, indicating they are not likely to proceed beyond the planning phases in the next two years.

As part of the Cayman Compass budget briefing, we look at six key projects that were not included, in any significant ways, in the spending plans, and where they stand currently

1. Beach renourishment project shelved?

Highlighted as a ‘national priority’ in 2021 by a task force including then-Premier Wayne Panton, Tourism Minster Kenneth Bryan and Planning Minister Jay Ebanks, the plan to replenish the severely eroded Seven Mile Beach with new imported sand was allocated $21 million in the last budget.

The project stalled, however, after an initial wave of enthusiasm, and was kicked across from the Ministry of Sustainability to the Lands Ministry to begin a business case process for the project.

The allocated money ultimately went unspent and there was no mention of the project in the new policy plan.

Bryan, in his budget address, said he would look to work with the Ministry of Sustainability to find a ‘win-win’ solution for beach replenishment.

“The question of beach replenishment is a prime example of how government and industry can work together to come up with mutually beneficial solutions to this environmental issue that gravely impacts our tourism product and potentially our revenues from the industry.”

2. Referendum off the agenda?

It’s been so long since the proposed referendum on gambling and cannabis decriminalisations were discussed, that they appear to have dropped off the agenda completely.

Billboards asking the public for input have been replaced by calls for immigration reform and the planned public votes didn’t merit a mention in this year’s national budget address.

While it remains possible that this could resurface as a potential question on the ballot at the next election, it seems unlikely given the amount of legislative and logistical legwork such a move would require.

Bryan, in his address, called for a referendum on the cruise pier project at the next general election; though again, there is no specific plan for that to take place.

3. Landfill deal remains in the background

Any mention of the long-awaited ReGen project to replace the overflowing landfill with a waste-to-energy plant, recycling and composting facility, was conspicuously absent from the premier’s policy statement.

The Compass understands talks are still ongoing to close on the deal with the Dart group and that this is still government’s preferred, and possibly only, option for the landfill, which will run out of space within a few years. There was money in the budget for better management of the existing site and a new headquarters for the Department of Environmental Health, suggesting the project will ultimately proceed.

While there was no funds specifically allocated to that project in the budget, it is a public/private initiative with the upfront construction costs funded by the private partner. The project won’t start costing government money until 2027 or 2028 when it starts to pay ReGen an annual fee to manage and dispose of the islands’ waste.

“The United People’s Movement is thoroughly committed to seeing this project through to completion,” said Katherine Ebanks-Wilks, the new minister of sustainability.

She acknowledged another deadline for financial close on the deal had been missed and insisted government was working to ensure the deal is “the best it can be for the people of the Cayman Islands”.

That prospect looms as a potential high-value expense in future budgets that will need to be accommodated.

4. Cargo port project in planning stage

Earmarked as one of a handful of needed construction projects, the new cargo port didn’t make the ’24/’25 budget in any meaningful way.

While a strategic outline case has been completed and work continues on a full business case for the project, it appears unlikely that shovels will be in the ground within this budget cycle.

It is not mentioned in the capital budgets for the Ministry of Tourism and Ports or for the Port Authority, which indicates in its budget statement that it aims to, “improve the efficiency of cargo operations by continuing the phased implementation of our master development plan which involves the modernization and expansion of the existing facilities”.

Bryan, who is also minister for ports, indicated it remained a priority for government and said KPMG had been recruited to complete a business case.

5. Prison project still in planning phase

Branded as “barely fit for human habitation” in a 2013 inspection report and the subject of numerous concerned missives from the Human Rights Commission, Cayman’s Northward prison is widely accepted as being in need of a serious upgrade.

Just over $20 million was allocated in the 2019 budget to get that work started, but despite numerous reports highlighting the state of the cells and challenges handling prisoners with mental health issues, among other concerns, the prisons have not had the overhaul recommended.

Some renovations and policy changes have taken place to make life better for prisoners, but the need for a new facility remains unaddressed. The budget for the next two years includes just $1.5 million a year towards the project.

6. Limited funds for public transport

The long-awaited Deloitte report released at the end of last year said Cayman’s private bus service should be scrapped and replaced with a modern government-run public bus network.

An overhaul of the service, likely to cost at least $25-30 million, according to the consultant, could help to reduce cars on the road by 20%.

But there is no sign from the budget documents of any imminent plan to proceed with that approach or significant funds dedicated to it.