GLF port deal was 6 months

| 06/06/2011

(CNS): According to the deal between the Cayman government, the Port Authority and GLF Construction, the framework agreement for the cruise berthing facilities in George Town was for six months and not four unless the deal had fallen apart before those first four months were up. The premier did not write to the proposed port developers until 14 April, which was exactly four months to the date after the three parties had signed the exclusive deal on the preparation for the project. It also states that those involved in the deal should not talk to other parties about the project during the timeframe. In January at the CBO conference McKeeva Bush said Chinese investors had expressed interest in the project and were willing if GLF did not come through.

Released under a Freedom of Information request, page 7 of the document (attached below) reveals that the exclusive agreement with GLF, government and the port would be for four months from the effective date, which was 14 December, and would automatically be extended by a further two months unless the agreement had fallen apart before the end of those first four months of talks. It also states that any party would have to give ten days notice before pulling out if they believed one of the others had not filled their part of the deal.

Prior to the premier’s decision to terminate, GLF had already undertaken the simulation exercise for its plans in Miami, had secured financing with Citibank, secured a passenger guarantee from the cruise association and had entered into talks with the DoE about the environmental impact assessment (EIA). The CEO of GLF, Francesco Senis, wrote to Bush on 12 April stating the GLF was ready to move to a master agreement.

However, Bush wrote back on 14 April saying government and the Port Authority were ending the deal as the government did not believe the firm had the financing in place. He said government would be considering other options for the development of the cruise berthing facilities in George Town and there would no longer be an exclusive deal with GLF.

Bush had also made it clear in late January, during a major speech at the Cayman Business Outlook, just over a month after signing the deal, that there were other investors that had expressed an interest in the cruise berthing development.

Since the termination of the agreement, despite the premier’s letter, the local parties stated that they did have financing in place and had fulfilled all of the terms of the agreement, that they were ready to move to a heads of agreement and prepared to break ground within six weeks of thatdate, which would have been this month. The agreement also states that the cruise berthing was expected to be fully operational by the end of October next year. In the agreement all the parties also agreed that time was “of the essence” and the project was of national importance.

Bush sent his letter to Senis in April and released a short statement soon after to the public stating that the termination was in the “best interest of the country to ensure that this project moves ahead successfully in a much more timely manner”, but he has not yet revealed details of the new plans.

The premier has stated on a number of occasions that the new partners will be developing two other infrastructure projects as well as the cruise berthing facilities. These are believed to be the redevelopment of Owen Roberts International Airport and a pier at the Turtle Farm in West Bay.

The investors, who have already reportedly pressed the premier for an MOU, although it is understood no agreements have yet been signed, are China Harbour Engineering Company Ltd, based in Beijing.

Category: FOI

Comments (23)

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  1. Anonymous says:

    Why on earth would we be doing business with a company that is being investigated for bribery? Oh, silly me…I just answered my own question

  2. WE LOVE CHINA HARBOUR says:

    Port giant in bribery probe yes..its China Harbour!!

  3. Anonymous says:

    This little 2×4 country is looking more and more like a banana republic everyday. Anybody know where I can get some banana plants?

  4. Anonymous says:

    If the period for termination ended 4 months after signing on December 14th, would this not end at midnight on April 13th? The Premier's termination letter was dated and sent on April 14th, 1 day late so, is this letter even legal?

  5. BOBO Construction says:

    – Man look ya, I can built ya a dock ya know bobo, I just need the little works to feed my family and earn a dolla’
    I mans has many years and experience! I mans have built many of; Boat Sheds, fish pots, cas nets, looking glasses, and o yea – I mans have built many ah many $h** & Out Houses.
    I know I mussa qualify with all dat building! 
    Look me up, I”s inna da book! Or I lives down press the big green trees ah press sou-west. Ah ya!!!!

    Signed; Bo Bo Construction -949-BOBO
    / Lookyabobo@caymanfinest.com.ky.you.me.everybodycayman.hog

  6. Attorney says:

    Mmmmmmmmmmmmmmmmmm. 

  7. anon says:

    There is a HUGE difference between a "Landscaper" and a gardner with a lawnmower …

    Pease don't insult my noble profession.

  8. Michel Lemay says:

    Mr. Bush is not quite ready to announce his bombshell. Oh we will get the dock going and he'll have his channel, just a matter of how to present it to the public. Maybe through EE big hole as well. I assure you it will Good news Bad news and like it or not…. in the meantime what to do with the next Budget ? That's another thing and the UK will not make it easy . Get those petitions in and if everybody votes, everybody can't get fired,can they ? Mr. Governor we need you to step in.for proper Governance.

  9. Whisky Tango Foxtrot says:

    I love that the package includes "Attachment 1", a site plan with Decco Ltd shown as the client for that plan.  Only decision now is do the next group of suitors have their "Attachment 1" as GLF's new site plan or stick with Decco's old one?  LOL.  

  10. Anonymous says:

    As The Chuckster said in his statement about McKeeva's cruise ship blunders……Premier McKeeva Bush's decision with respect to GLF's involvement in the cruise berthing project "is suspicious at best".

    Auditor Gneral can prepare for this one trust me !!!

  11. Anonymous says:

    And this is why he really needs consultants…who would want a landscaper to interpret legal documents or negotiate multi-million dollar deals? 

    • Anonymous says:

      The people who voted for him.  Why?  Now THAT is the multi million dollar question.

  12. Anonymous says:

    Can anyone tell me what Mac has actually done for these islands since he has been elected?

    Can anyone tell me what Mac hasactually done for himself since he has been elected? 

    • KFJ says:

      Ask not what you can do for your Country – ask what your Country can do for you.

  13. Anonymous says:

    same old…same old…. nothing is getting done!

    cayman is slowly dying day by day……

    we need direct rule asap…at least then some tough decisions will be made….

  14. Anonymous says:

    Just do something already..We are dying out here from lack of business!!

  15. Anonymous says:

    Down with Mac. Anyone, with half a brain, can read between the lines. Its no wonder Mac doesn't like the freedom the internet provides.

  16. peter milburn says:

    Same old same old.Different day.I am surprised that anything gets done in Cayman.

  17. Anonymous says:

    Business as usual with a third world country.  Do the people of Cayman deserve better? They have already voted no.

  18. CC says:

    Build a simple dock, ditch the tenders, and stop tyrying to build acres of retail space and casinos.  Keep it simple and the cruise ships will come back.  Big Mac, STOP the greed and cronyism (please).  There, we've asked nicely, now do your job (please).