Date: November 1, 2011
President James O’Neill, President-Elect David Kirkaldy, Secretary Colin Reid and CEO Wil Pineau have been invited by China Harbour Engineering Company (CHEC) as part of a Cayman Islands delegation to visit three of the company’s major projects in Jamaica on 9-10th November. CHEC is funding the trip which includes all travel, meals and accommodation expenses. The trip will include a tour of the Palisadoes Shoreline Protection and Rehabilitation Works, the Christiana Development Road Project and the Rio Grande Bridge Project.
“Representatives of China Harbour asked to meet with the Chamber executive during a recent trip to Grand Cayman. They discussed the MOU with Government and provided general details about their proposed projects here. There were many questions raised during the meetings and the China Harbour representatives felt it would be best for the Chamber to be included in a delegation from the Cayman Islands to tour the CHEC projects that are under construction there,” said Chamber President Jim O’Neill.
“We will prepare a report upon our return that we intend to release to the Chamber membership. We made it abundantly clear to the China Harbour representatives that we will only accept the invitation if we are allowed to write an independent report that is shared with the Chamber membership. The development of a cruise berthing facility is of utmost importance to the cruise ship industry and infrastructural development as confirmed in the Future of Cayman Strategic Report. We look forward to providing the membership with a full update of our fact finding visit upon our return,” he said.
The Chamber representatives attending have declared that none have any personal stake or interest in any business working with or for China Harbour. The trip is for fact finding purposes only. The Cayman Islands Government signed a Ministerial Memorandum of Understanding (MOU) with CHEC on 13th June 2011 to undertake the construction of three projects:
• To design and build cruise ship docking and related facilities in George Town;
• To renovate and expand the Spotts Jetty
• To develop a cruise ship pier at the Cayman Turtle Farm.
The MOU proposes to give China Harbour Engineering a concession period of 49 years for the cruise port. According to the MOU, the Chinese company would share with the Cayman Islands Government the passenger fees levied from cruise lines on each passenger who enters Cayman. The Chinese company agreed to advance US$3 million to begin work on the Spotts Jetty by 15 July. According to the MOU, if contracts have not been signed relating to the building of cruise ship piers at George Town and West Bay by the end of November, CHEC “will be reimbursed through the Ministry of Finance of the Cayman Islands for all funds advanced by CHEC on the Spotts Jetty project to that date.” Under the agreement, CHEC would design, build and operate transfer finger piers in George Town and also at the Cayman Turtle Farm in West Bay, along with related facilities. It would also upgrade the existing facilities at Spotts Jetty.
The memorandum agrees to negotiate exclusively with CHEC on the concession agreement of the project during the period of the MOU, which ends on 30 November.
The company would be offered import duty tax exemptions on goods supplied for the project and the government would make the areas for the development of the project available at no cost. CHEC agreed in the memorandum to finance the projects and complete a feasibility study on investment in the developments by the end of July and begin implementing the projects no later than the end of November. It also agreed to subcontract work out to local contractors.
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