Bush rejects port developers
(CNS): Cayman’s premier has terminated a framework agreement between government and GLF Construction regarding the development of the George Town Cruise berthing facilities because he said the developer had not proved that it had access to the money to build it. According to correspondence given to CNS which was sent by the premier to the company’s CEO, Francesco Senis, GLF will no longer have exclusivity on the cruise port project, and if another firm steps in with designs and financing, the government will work with them. Revelations made by CNS on Wednesday morning that the deal with the second set of developers appeared to be off have been confirmed.
McKeeva Bush wrote to Senis on 14 April in response to his request for a meeting to move to a master agreement.
On 12 April Senis wrote to the premier stating that the company had completed a master plan which had been fully tested at the simulation centre in Florida, that it had prepared a cost estimate and had a commitment for project financing in place from Citibank, as well as having received verbal commitments from the cruise associations on minimum passenger numbers. The developer said that once the final agreement with government was signed it would be ready to mobilize six weeks later and had requested a meeting for the end of last week.
However, in his response on 14 April the premier said that up to and including the date of the letter, “GLF has not demonstrated any positive proof that it is able to finance the port expansion project,” he wrote, adding that the Cayman Islands Government did not consider the commitment it had as proof of the necessary financing to warrant the signing of the definitive or (master) agreement.
As a result, he said, government, in agreement with the Port Authority chairman, was terminating the framework agreement which had been signed on December 2010.
The framework deal referred to by Bush has not been made public and it is unclear what the details of the contract were between the three parties but is believed to have been for a period of four months.
In his letter Bush revealed that government would now be giving consideration to alternative proposals, but if it wanted to GLF could still participate. However, the developer would no longer have an exclusive deal with the Cayman government and Port Authority.
When CNS approached the premier on Tuesday about the speculation that government had ended the talks with GLF, he said he planned to make a statement about the future of the cruise berthing facilities shortly. So far, however, government has made no comment about the change in plans or which developer it is now aiming to work with.
At the beginning of the year, speaking at the Cayman Business Outlook conference, Bush had said that Chinese investors had expressed an interest in building the port and he had said that if things did not move ahead quickly with GLF he would be considering their proposals.
Ezzard Miller, the political representative for North Side who has also seen the correspondence, said he was very concerned about the premier’s actions as it appeared on the surface that GLF had met the terms of the deal.
“It appears GLF was on track to deliver in accordance with the agreement,” Miller stated. “The premier and MLA Cline Glidden have both recently said that tremendous progress was being made and the developer was ready to start construction in a few weeks. So what has changed?” he asked.
The independent MLA said the concern was that the premier had acted unilaterally. He questioned the legal implications for the country if the premier was unable to produce the minutes of the meetings with the port board where the matters were discussed, or the warning correspondence sent to the developer.
“If he can’t produce this he should resign as premier, having exposed the country to potentially serious legal ramifications with an international corporation such as GLF,” Miller said, adding that one wonders how the premier expects legitimate companies to do business with the Cayman Islands given such actions.
Miller encouraged the local arm of GLF and its partners Royal Construction to pursue all legal avenues in an effort to restore sanity to this contract. “They have an obligation to the Cayman people to pursue the legal options in order to ensure that such important decisions are not made with a banana republic mentality,” he said.
Speaking to CNS on Tuesday, a local spokesperson had said that as far as GLF was concerned the deal was still on track and he failed to see how government could not be happy with what the developers were doing. He also pointed out that the company had already spent around $1 million on the project.
GLF, in partnership with local construction firm Royal, were the second group of developers to begin negotiations with the government and the Port Authority as a result of the negotiations with the first choice developer, DECCO (the Dart Group’s construction firm), breaking down, reportedly over the length of the port lease.
See the correspondence between the premier and GLF below.
Category: Politics
I think we should just go back to GLF and ask them to move forward with the port. Supposedly the MOU with the Chinese has expired anyway.
Come On McKeeva, this is the right thing to do.
THE TIME HAS COME TO REJECT BUSH
Caymanians, voters and residents, it is time to reject our Dictator and send the message that our country is a democracy and will not tollerate this autocratic one man rule.
This smells like corruption and another secret hidden agenda like all the others. It’s time to apply our anti corruption laws and change Government back to honest representatives who love their country and represent their people.
Cline Glidden’s project management skills are proving to be a wonderful asset.
Does someone have Ms. Mary e-mail address ? We could send her copies of the letters !!! …..
The UK through the Governor should sit this man down and tell him to read their lips, “NO CHINESE!” We are a British territory and we voted to remain with Britain as a British Overseas Territory, not a territory of China and not Hong Kong.
The people of Cayman elected this problem and the people of Cayman need to call a referendum to remove this problem. To hell with waiting for elections another two years away. There is a backbench and opposition. Please start leading the way and lets end this embarrassment NOW!
THIS IS GREAT NEWS Because it means that nothing will get done until we have a new Government after the next election. Extensions can be given to others giving them many years to put their large projects together. An experienced large project manager would clearly know that a project of this magnitude being the largest project in the history of the country cannot be wrapped up and commenced in only 4 months. The Fact that GLF were not given the time and the Premier "as usual" has intervened as the Dictator he is, running his autocratic rule says allot about the secret hidden agenda that we will shortly be announced. XXX Welcome to the world of the UDP – no transparency and good bye democracy, hello dictatorship and the one man rule. THANK YOU VOTERS, AND YOU ALL KNOW WHO YOU ARE, who are ultimately responsible for placing us all in this sad state of affairs.
IF – and that must be a big “IF” – GLF did not have a firm financing committment in place then The Premier had the right to terminate the contract. HOWEVER, in this precarious commercial environment his action could be regarded as being overly hasty and, even moreso, in light of the many extensions and varying levels of support given to developers who have received assistance in getting their financing; tax concessions and plans in order (including the bizarre 6 year extension of support currently being afforded to one developer to get an East End Port built).
IF however GLF did have a firm financing agreement in place, then The Premier surely needs to divulge if there was some other pressing agenda here. Perhaps there is a better suitor waiting in the wings or, perhaps he was aware of something else that made him distrust that GLF had the ability to fulfill their committment to invest a paltry couple of hundred million dollars in Cayman. One would have thought that a letter of committment from a reputable Bank would have been ample proof to The Premier that GLF had sufficient funds available?
The dump is on fire and until the smoke clears we will remain in the dark, baffled as to how The Premier can balance his regular, public evocations imploring foreigners to pump their investment dollars into Cayman, when he demonstrates that this Government has the capacity and readiness to execute the most brutal kick in the financial groin to any foreign company that is even one day late with meeting a deadline. The intent of the kick rendered to GLF was of course only to dislodge their exclusivity package, not to dismember them competely.
In the meantime local business and the economy as a whole remain on their knees.
Excellent comment but would any corporation, especially one as large and successful as GLF, enter into a contract which allows the other party to unilaterally remove perhaps the most important clause in any contract, namely exclusivity? I certainly would not, especially after spending over a million dollars out of my pocket? Is that why GLF continue to claim the contract is still binding and has not been legally terminated? There has to be another agenda here which is not being disclosed. Interesting times.
Two years and one in power and the UDP government still shows NO sign of work! If they were one of my employee’s I would have FIRED them by now.
Sorry but, everyonejust face it.
(Before I get cursed out by the UDP posse, let me just state that I voted for straight for these officials. BIG MISTAKE!)
haha… just another day in wonderland…..everything gets stranger and stranger….
Why are extensions allowed on other developments even when the commitment size used for negotiating large concessions is reduced significantly?
There is something odd about this being canceled after a very private and really unnecessary trip to Venice.
Maybe not – how many stories tall is the building going to be and many condos are up for sale?
My mistake…I see an extension was already allowed and agree that there does not seem to be any support of established financing but instead only very preliminary statements of interest.
According to the news report, the agreement was for 4 months and it was terminated outright, no extension provided, which makes this curious as they bend backwards to give concessions and extensions to other developers on even more controversial projects. More things are afoot than any of us know.
I stand corrected and again agree with my original post. With this kind of waffling I should be well suited for a career in Cayman politics.
This is embarassing.. no, come to think of it actually the first time the port deal fell apart was embarassing.. this is TOTALLY embarassing
Here’s two thoughts worth their weight in gold
(1) I’d be surprised if the U.K Government wasn’t closely watching the varied levels in incompetence… Can you say " Turks & Caicos Part 2" ??
(2) How about a vote of no-confidence in the L.A. Surely this isn’t a hard argement to make and support on both sides of the aisle .
Forget the port, forget Daylight Savings Time, forget gambling and casinos…do you want Cayman to be just another cookie cutter port for cruise ships having the same attractions and looking the same as every other port of call?
Or do you want a unique Cayman special unto itself and someplace that stands out apart from the rest of the ports?
You hear Caymanians crying out for their identity but at the same time a portion of the business community who want to make Cayman exactly like the rest of the world.
Beware of the greedy my friend as they talk of these great benefits from elsewhere.
Yet another job for the Chinese. Soon they will have both feet firmly planted on this island. We will be stuck with them like the Bahamas
“As a result, he said, government, in agreement with the Port Authority chairman, was terminating the framework agreement which had been signed on December 2010.” Stefan – stop being used by this XXX, stand up like a man, tell the world as you have told others – the decision was not yours or the Board, it was a decision by the Premier’s Controllers and he had no choice but to act against his long time friends. Board members stand up like your forefathers would have done, do not resign, tell the Premier that as long as you are on the Board then you will only do what is correct, not the dirty work for the Premier or his Controllers. When the fertilizer eventually hits the fan then many people are going to be embarrassed as they regret following Premier Bush’s Controllers XXXX. UDP people please turn around while you still can do so, you have followed this man and his Controllers too far down this damming road.
Just sell it all! If China is so anxious to invest in Cayman, then Mac, do the right thing!! Sell everything to them. Dissolve the LA; tell the Home Office to begin dealing with the Chinese representative to the U.N., then take your money and move to . . .
What’s the alternative to Bush? Isn’t funny that you can’t even find a dozen or so decent Caymanians to run thier own country – no wonder you desparetly need expats! There is a serious lack of skills in the areas of good governance and managment on this island.
time for direct rule!
ZZZZZZZZZzzzzZZZzzzZZZZZZZZZZZZZZ
It looks like GLF gave nothing more than an assurance that they had a commitment for funding. The government is entitled to ask for something more substantial than that.
But then it should allow GLF some time to provide it, and tell them what will happen if they don’t.
I hope Mac provides some clarity whether that process was followed. If he doesn’t it looks like he abrubtly and unilaterally terminated the contract so he could give it to his friends.
Frankly I’m sick of hearing about this project. I wish they’d either get on with it or stop talking about it.
Not a surprise for most of the private sector.
Many people told them that this would not work, this company is a construction company, not a developer. They went and saw some local banks and it was clear that they did not have a clue on how to finance this.
Is Cohen all over again.
It looks like if anybody promises something that sounds good to the Premier (like financing at US rates – Cohen, or developing a port that can pay for itself without commercial retail) he jumps on board without checking the viability.
He should have an FS capable of looking at the numbers and telling him that he is being sold colored glass.
There is no doubt that the FS is incapable of that, whether the Premier even asks him is irrelevant at this stage.
Why should Mac need an FS to tell him anything when he is the Minister of Finance?
Well… at least McKeeva and some of his posse got a nice trip to Venice. It’s a pretty city.
If you read the actual letters which CNS attached, you will see that the Developer/Contractor was not given the opportunity to move forward, it is not that they could not handle the job.
This is like watching a 5 year old run a country of 4 year olds. Doing any business with the Cayman Government is a court case waiting to happen. And Happen and happen.
Good luck to
Tom Jones and now GLF construction. 2 words explain it all. Banana republic.
Two issues, undisclosed documentation and legal liability. Once again Mr. Bush is attempting to be his one man Government and failing. Something as large as a cruise dock for the country should be handled by a cabinet. The country has seen nothing concrete from Mr. Bush for 2 years now. Decision making must move towards a Government not one man.
At least Mac got his trip to Venice first
I see several flaws here. The first is that if the Government would go thru the proper process meaning have an indepedent board do their work such as conflics or proper capability of self financing etc. this kind of thing would be less likely to happen. No our present gvt. want to control everything and elect bord members npt properly qualified. To be a supporter ot your party or a businessman is not enough. Enginer, project manager, financial watch dog investigators would be the way to go. Now everytime it;s delayed, it will cost more and another waste of time, energy and money. When will how premier learn ?
jibber. jibber. jabber jabber jabber.
Complete and utter nonsense, both on the part of McKeeva Bush and the voters of this islands who whine and moan and do nothing.
I agree the time for Jibber Jabber is past.
Let us march so we can see the identity of who really cares for our islands.
Time fe march bretheren!
well, get marching bro. You said it yerself… it’s time! Go on, get up and take a few steps.
I cannot organize the march – cannot afford for my work permit to be cancelled or be deported like occured before to some people who did not commit a crime. When you have kids and other responsibilies if limits what a person can do. BUT I can do some thing and that is what I am doing right now.
Now I hear that a march is being planned and I will quietly assist them. Watch this space arround the beining of May.
If you want to get information about MARCH FOR CAYMAN then send an emial to caymanaction@gmail.com
If you work at government or any other oppressive organization do not use your employers email server, do not use any of the local communications companies becasue it it is too easy to spy on your account there, use Gmail, Yahoo, or some other email service to request information.
This is now the real oppressive Cayman Islands let us fight to clean it up.
To me its always been like a 5 year old leading a bunch of 4 year olds around the playground while Mama UK Talks on her phone all day. Bad as Bush is as a leader the people who make him so and continue to put up with him are the only reason he is where he is doing what he does. There will be no measurable change until the people themselves grow up. Now that there is no more borrowing and no stop in spending the time to grow up is coming soon. With education still in the dark ages on Cayman how well do you thing they will do in the global job market then?
They got what they wanted (The Big Log) and we lost what we had. Stop, look, listen, read, comprehend, what else could we expect but disaster in the making. Only a clean sweep, might save us from the brink of no return.
One bigggg question, where is the silent Governor? What is he waiting on to make things right? When is the march to the new GAB going to take place? Help, Help, Help, we need help to get us out of this big mess. Is this good governance? We need answers.
A very sensationalistic article, CNS. And Hazzard’s comments obviously do not help either.
I encourage everyone to read the letters: if GLF have failed to produce evidence of financing before the expiry of the contract, the Government was surely obliged to exercise its right to terminate, particularly if there is a better offer on the table. And why should we stick with a company that has had 4 months to produce the evidence, but failed to do so? That surely doesn’t bode well for them actually completing the project on time
Perhaps the $1M that GLF has supposely spent testing etc was their attempt to show thier intent on whether this project was actually viable to them / bank. If you were to borrow a sh*t load of money like they would have to in the first place, a bank / monetary institution would want to see eveidence first that you would be able to carry out what you had signed up for.
I think in the Land of Contract they call it Consideration. In the Land of Mac they dont understand that word.
I might be wrong, but 4 months of tests / $1M spent could be seen as “positive proof” of their intent.
I wonder if we can terminate Mac’s contract as Premier for not evidencing any “positive proof” that he actually does anything apart from travel.
No institution will sign a contract to lend money to a project unless the Developer has a binding contract with the Owner – that contract is what gives the Developer the right to go ahead and sign a contract with the financing institution. Just like when you apply for a house mortgage, the bank will prequalify you for the loan, but will not actually hand the money over until you show them you have an actual agreement to purchase with the Owner and you have already made the deposit and met their requirements to get to that stage. It is that simple. The news report suggests GLF completed their requirements and spent over a million dollars in preparation to get to the stage of contract signing with Govt, and they have several proposals from financial institutions willing to finance the project – they would not have gone ahead and spent so much of their own money if they had any doubts as to whether they could access the money to do the job. Would you? They have done far large projects so it does not appear that financing is really the problem here.
Agreed. Obviously no problems with financing, look at their list of projects:
http://glfusa.com/projects.php
Something does not add up. Just over a month ago, it was reported in the Press that both Govt. and Port Authority Representatives were pleased with the progress achieved in a short time by the Developer, that the project design was well-advanced, the negotiations with the cruise lines were going well, and they were enthusiastic about the simulation exercise that took place in Florida. By all accounts, things were progressing well. It was anticipated that the project could commence as early as June.
GLF are reportedly now ready to mobilize within 6 weeks, are well-advanced in negotiations with the cruise lines, have several financing options available to them, and stand ready to finalize their arrangements once Govt. signs a contract to enable GLF to move forward. So what is the problem? Google GLF to see the massive resources at their disposal and the significantly larger projects completed globally by them – is there really any doubt as to whether they can finance this project? Google Royal to see their impressive track record locally over the past decade.
Was there prior consultation and due process that led to the decision to terminate, and was it decided by majority vote? If so, transparency please – who, what, when, how and why – the people have a right to know. It is scary to think this could have legal repercussions for Cayman as suggested by Mr. Miller. It seems progress has now been set-back, which is not good news for an economy already floundering and which sorely needed the kick-start this project would have provided. At this rate, how likely is it that the project will get underway any time soon? Meanwhile the people and local businesses continue to suffer.
Just like Linny, Mac has made too many promises to too many people now the power battle is on to see who of these unknown Mac Controllers will win the power battle.
Unlike Linny however once Mac is deposed from the Premier position he cannot go to the Speaker position because the Speaker position need procedural knowledge and we all know that Mac knows not even how to spell procedure.
Then of course there is the problem of what to do with Madam Speaker, his official speech writer.
Why doesn’t not so Big Mac dress up as Ronald McDonald he might just be able to pull off a deal in keeping with his true character?
It seems like he thinks this is like building a house. This is a complex job no doubt and he aught to stay out of it. He is a law maker and a policy maker and that alone appears to be more than he can bear. From the tone of the letter, it appears like he formed an impression and without apparent verification and apparent legal advice, he stepped in and ended negotiations without considering the legal ramifications of his actions. No reasonable man would do something so drastic, but then again, a donkey has no purpose in a horse race and God knows the Chief Officer aint no horse either. Cayman, we in trouble and all because nuff people put on blinders and got fooled by a set of Jackasses in the last elections! Truth is though, as long as we are playing the same game with the same rules we are going to get the same results. Please Mr. Governor, step in before it is too late for all of us and put the brakes on this circus. Please amend the constitution to clearly spell out what MLAs can and cannot do, and what COs and other Chief Executives can and cannot do. There has to be clear demarkations between those who make laws and policy decisions and those who execute them, otherwise we will always have a recipe for corruption and incompetence. Politicians should make laws and policies for good governance, but should never execute contracts. Politicians should never be judge and jury.
It is sad that us voters (including me) who voted for the Constitution have come to realize that this Constitution legalizes Dictatorship governments.
We were all tricked into voting “YES”, now we need to demand a true people power constitution that ultimately WE control.
Now our Dictator McB wants to kill off all of the institutions protecting us – it is time we do what the people of the Middle East have done – Demonstrate LOUD and STRONG before it is too late.
There is nothing in the old constitution that would have prevented him from doing exactly what he is doing now. In the new constitution we at least have the power of referendum that can be used to recall him.
Sounds good but simply NOT True! To hold a referendum you need a law to be approved in the LA. I cannot see any Govt bringing a referendum law to the Parliament and the purpose of the referendum is for people to vote them out in a recall.
You were NOT tricked. The Human Rights Committee led by Sara Collins and Melanie McLaughlin, both very bright Caymanian lawyers warned up and down.
There were other local activist groups warning you too.
You decided to follow the politicians instead of the people giving you independent, unbiased FREE legal advice.
Tek wha yu get.
This must baffle corporations trying to do business with the CIG. They forward a letter on Apr.12 stating that they “have received letters of commitment” from Citibank and other equity firms and therefore requested a meeting.
On Apr.14 they receive a letter from the Premier on behalf of the CIG stating that they have been unable to prove the financing is in place. Therefore the Framework Agreement is being…. terminated?
Previously they also had an understanding with DECCO which was…. terminated.
Although dredging the North Sound and an oil refinery in East End is still somewhere on the table. Or under it or somewhere.
Venice was nicethough. So was Dubai. And China. And India. Vancouver was chilly. London was about the same. New York was way cool. Barcelona was fabulous.
All I can say to GLF or DECCO and HAN or Shetty is welcome to our nightmare.
Absolutely disgraceful!!! What an embarrassment to the reputation and people of these fair isles!!! Caymanians, how much longer must we wait and be dumped upon before we rise and reject this insane government? How much more damage can our little country suffer before it is too late to repair? A lost reputation is the worst that can befall us. We have been known over the years as a hard working and honest people, who honour our obligations. Can we just sit idly by and let this XXXXX and his followers do more damage to us as a country? The answer from any sensible thinking individual has to be an resounding NO!
MacMan continuing as Premier is a recipe for completely destroying what little International Reputation that Cayman has remaining!
Please tell the people of the Cayman Islands – Who was the clever clever person that wasted months BEFORE checking on financial capacity?
GLF are doing a 14 billion dollar project in Venice and the Premier is not satisfied they can finance the port – hogwash..things are afoot!
Does this project include penthouse condominiums?
So clearly all the due diligence was done on this deal before the pie in the sky announcement – Fire, Ready, Aim – all over again
XXXX?!!! McKeeva please RESIGN!!! Why is he so determined to get a project for these Chinese investors?? Vetos valid tender from local banks, makes secret deal with Cohen, now vetos GLF contract on tenuous basis, cancels school contract and exposes to lawsuit And arbitrarily pulls WTE tender Let’s start a petition to remove this joker and put him out of our misery!
Waaaiiiittt for it !!! Who is hidden behind door number 3?
I bet you its none other than …………DART
Decco is owned by Dart as far as I understand, Correct me if I’m wrong..
DECCO = Dart Enterprises Construction Company
Everybody hush – De Pream Eer went and look at dem tings in Venice and had hisself a nice gone dola ride and he discova dat dem gone dolas is not so big as dem Disney ships. He tott about dat on dat first class flight back and he say No Sah I got to go on some other trip an fine what dey do wit da big ships -da deal off.
Can Someone Translate this please, you know for all of us who were only taught to speak English.
Thanks…
What? maybe you are too slow for this forum. Try this
http://www.fisher-price.com/us/fun/games/abczoo/default.asp
Nope, sorry.
I have ran it through every on line translation site I can find and it has come up with nothing every time.
Even the ‘welcome to Klingon’ web page sheds no further light either.
I can only presume that it is made up as the speaker goes along and has no known cultural base.
Here, let me translate ‘bayer dialect.
Quote:
Everybody hush – De Pream Eer went and look at dem tings in Venice and had hisself a nice gone dola ride and he discova dat dem gone dolas is not so big as dem Disney ships. He tott about dat on dat first class flight back and he say No Sah I got to go on some other trip an fine what dey do wit da big ships -da deal off.
Translation:
Everybody quiet. The Premier went and looked at the work GLF was doing in Venice and while there had himself a nice ride on a gondola. Of course he discovered that gondolas are not that big, not as big as a cruise ship at least, like one of those from the Disney Cruise Lines. Well, he thought about these gondolas being slim and flat-bottomed (not fat-bottomed mind you). All of this thinking done while flying home, relaxing in first class. He came to a decision and thought to himself, ‘no sir’, I’ve got to go on another trip and find a different solution for what others do with large cruise ships and berthing facilities. This GLF deal is off!
I heard the premier on Radio Cayman’s Talk Today & I was appalled at his uncouth behaviour, it was shocking. Judging by his disgraceful manners towards everyone who questioned him, especially the lady caller who he threatened to take to court, I would not be surprised if the reason why this port development deal fell through was because of him (his uncouth behaviour & unreasonable demands).
I am very saddened,
YUTE
So the trip to Italy was a waste of money again, and that is money that Cayman does not have!
Well, we let him do as he wants with no consequences and he will continue to travel 1st class all over the world and comes back with nothing to show for his travels.
Just par for the course!
And Cayman rejects McKeeva Bush.
Envy is a serious decease which has become an epidemic in Caymanb.
Envious of Premier Bush – now that is a laugh!
Being paid a huge salary for doing nothing but travelling 1st class around the world and staying in 1st class hotels. Having a personal driver and house keeper/cook and not having to pay utilitiy bills. To not actually have to do any work, but only to appear to do some.
All of which is payed for by the people of Cayman.
Now why would anyone be envious
If this decision leads to legal cost to the Cayman Islands for breach of contract, a public commisioned needs to be formed to investigate and report on, exactly how much money the UDP Government has cost Cayman, due to reckless and ill advised decisions such as this one.