Brac high school could be three times as expensive as John Gray

A new high school on Cayman Brac will cost three times as much per student as John Gray High School, according to a leaked report.

The controversial project – for a maximum of 200 students – would cost $45 million to design and build, the document states.

Those costs rise to $60 million when consultants’ fees and an accommodation block for construction workers who will build the school are added into the mix.

Notes from Cabinet indicate the final business case report was approved at its 15 Oct. meeting. 

That means a contract can be signed and work could begin on the school as early as this year.

The report represents the first publicly available information on government’s financial and strategic case for the controversial project.

Four MPs – André Ebanks, Katherine Ebanks-Wilks, Sabrina Turner and Heather Bodden – resigned from government last week, citing a number of differences with their Cabinet colleagues, including concern over the “escalating costs” of the Brac school. 

The project’s cost estimate doubled from an initial $25 million indicated in a strategic outline case in 2023. By the time it was approved and budgeted late last year by the United People’s Movement administration, including those four MPs, it had snowballed into a $50 million project.

The final business case report indicates the cost is still within that ballpark figure.

However, given the track record of escalating costs for government infrastructure projects – including two previous high schools on Grand Cayman which ended up costing over $100 million each, the Owen Roberts airport expansion which ran $23 million more than originally budgeted, and the East End mental health facility which is already millions over budget and still not opened – there were fears that the price could rise even further over time.

The report indicates a cost-cutting process, including ditching plans for the school gym to double as a hurricane shelter, took place to get the budget down to around $45 million. 

A separate plan, already under way, to build an $8.5 million accommodation block for construction workers, was also hived off into its own project.

With those changes, the final business case indicates that the project falls within the ‘affordability envelope’ outlined at the outset.

The report’s authors suggested costs could have been cut further but for a non-negotiable requirement to include an international standard basketball court and gymnasium – which will double as a dance studio.

However, the document states that the project’s steering committee – made up largely of officials from the Ministry of Education and Public Works Department – considered this vital to a ‘sports tourism’ strategy for the Brac.

‘Room for doubt’

While the final business case study indicates the winning bid is affordable, it does leave room for doubt about the value for money of the project.

In particular, it highlights an unfavourable comparison with John Gray High School, recently completed at a stated cost of $97 million.

The higher cost of building on the Brac, inflation, and the smaller student population of the school were highlighted as reasons for the substantial difference.

“The average cost per student is significantly higher than it was for the new John Gray High School.

“The [below] table does challenge whether the project can be determined to be value for money and whether further value engineering should be considered,” the document states.

Contractor selected

The document indicates that Arch and Godfrey and McAlpine have been selected as the preferred bidder in a joint build venture.

Their bid of $44.7 million to design and build the school and gym represented the best value and fell within the budget previously agreed by Cabinet.

Previous government projects have typically gone well beyond the budget and timelines outlined pre-build. The business case suggests costs could rise to as much as $60 million overall, including the accommodation block and consultants’ fees.

That figure also incorporates a $3.3 million contingency as a hedge against ‘optimism bias’ in the bid process.

Multiple previous government projects – including the two Grand Cayman high schools – have exceeded their initial cost estimates by significantly larger margins.

Some redevelopment needed

There appears to be little doubt about the need for renovation or replacement of classrooms on the Brac.

The report indicates the 50-year-old Layman Scott High School buildings are in a state of disrepair and “reaching the end of their useful life”.

The dispute within government – and to an extent in the community – is around the scale of the project and whether such investment is necessary for the 144 students on the Brac. The report indicates a decreasing demand for school spaces, projecting a likely attendance of 114 students by 2028. Despite this, the school has been designed for a capacity of 200, in case of future population growth.

There is also concern that the inflated price tag may prevent other vital infrastructure works from proceeding.

The report implies that a less-extravagant option to improve and expand the existing facility may have represented better value for money.

Sports tourism strategy

However, the government-led steering committee insisted on the inclusion of facilities, particularly an “international standard” basketball court that could also be used for sports tourism, the report indicates. Similar justification is made for the accommodation block for construction workers which the document states is also intended to house visiting athletes.

“The intention is to promote sports tourism in Cayman Brac, supported by the existing sports facilities, the new Gym and the Accommodation Block,” the report says.

Despite significant investment in a football stadium, track and swimming pool already on the Brac, there has been limited sports tourism to this point and limited local use of those facilities.

The report notes there is no certainty that any benefits will emerge from this strategy.

“While the Ministry of Education/Steering Committee is optimistic that the Gym facilities will be used for future development and potential sports tourism, forecasting and valuing the impact of these potential benefits is highly subjective and ultimately unknown,” it states.

$2.2 million for land

The new school will be built on land on the Bluff near the sports facilities.

Planning approval was granted by the Development Control Board in December. Land records indicate the property was purchased from former leader of government business Kurt Tibbetts, and Mark Tibbetts, district commissioner for the Sister Islands, for $2.24 million in October 2021.

Those costs are also excluded from the overall headline figure.

The plan includes a two-storey teaching block, indoor dining hall, bus and parking area, TVET workshop, steel pan room, classrooms, a nurse’s office and a gym incorporating a full basketball court and dance studio.