MoT seals consultant contract
(CNS): PriceWaterhouseCoopers (PWC) has won the bid to provide government with financial consultant services for procurement of a cruise berthing facility, specifically through a private public partnership arrangement, including the business case and financial tender documents. The tendering process began on 3 May under the former tourism minister, Cline Glidden, after three and a half years of bungling by his predecessor, McKeeva Bush, had left the country no nearer to acquiring a cruise port. The construction contract is expected to be awarded for the proposed cruise berthing project in 2014. Deadlines for each of these steps will be firmed up in the coming weeks, according to Chief Officer Stran Bodden (pictured signing the document).
The previous PPM government had begun negotiations with Atlantic Star to build a cruise ship dock and establish new cargo facilities close to the existing cargo centre. However. these negotiations stopped when the UDP won the May 2009 general elections and the new government’s plans for a cruise dock was put to tender.
DECCO, the Dart Group’s construction company, came out top in the first bid. However, the islands’ largest investor pulled out of negotiations with government when the parties reached stalemate over the period of time Dart wanted to lease the upland development area in order to recoup its investment.
GLF Construction was the next bidder on the shortlist, so when the DECCO talks collapsed, Cline Glidden, who was the government’s lead negotiator at the time, moved into talks with the Italian-based firm and their local partners, Royal Construction. Just weeks before the company was ready to mobilize, then premier Bush, going over the heads of the port board and his own back-bencher, announced his decision to terminate those talks as he did not believe GLF had the cash, and moved into negotiations with China Harbour Engineering Company (CHEC).
The Beijing-based firm, however, was not next on the list as it had never taken part in the original bid and the plans included considerable upland development that did not form part of the original tender.
Under significant pressure from the UK, amid concerns that the procurement process had fallen far short of international best practices, in November 2012 Bush finally dropped his insistence that the port should be built by CHEC. After he was ousted from power in December 2012, Glidden took over his tourism portfolio and in May, just weeks before the election, issued a request for proposal (RFP) for financial consultancy services for the project.
With a new Progressive Tourism Minister, Moses Kirkconnell, following a change of government, the ministry then evaluated the bids that were submitted on 24 May. The minister announced that he was picking up the formal process that began under the minority short term PNA administration and that the business model, when complete, would form the basis for the project.
Deputy Premier Kirkconnell has said that the cruise facility in George Town would be piers only with no upland development, as the government wanted to rebuild George Town. He has also said that government must set out its needs for this project and not have the developer tell government what it would do.
Following the signing of the contract on Tuesday morning, 1 July, Kirkconnell said it showed government was taking another step in international best procurement practices. “It reflects government’s commitment to be open and transparent in all processes in developing the cruise berthing facility,” he said.
PWC, named the successful bidder last month, will commence work early in July. On Tuesday, Ministry Chief Officer Stran Bodden, on behalf of CIG, and PWC representative David Walker signed the contract at Government Administration Building to formalise the consultancy.
“PWC is tasked with producing an outline business case, the full business case and tender documents for the proposed cruise berthing project,” Bodden said.
Following the issuance of tender documents, and a suitable tender period that will include a timeframe for negotiation, the construction contract is expected to be awarded for the proposed cruise berthing project in 2014, he noted. Deadlines for each of these steps will be firmed up in the coming weeks, he said.
CG reveals port fiasco (CNS, 24 April 2013)
Bush rejects port developers (CNS, 20 April 2011
Category: Local News
KPMG has already done all this work before for Govt and has been engaged in the past by the Port Authority for this purpose. KPMG has all the expertise in this area having been heavily involved in the cruise ports in St Martin and Grenada among other ports in the region so it is senseless and a waste of public money to now engage PWC who have no experience in this field or industry. We are rdoing work which has already been done. KPMG through KPMG Curacao has the the expertise and history, so why not use it.
You’re telling me that with the army of staff in government, they still have to hire people from the outside for advice!! Aren’t there any individual that knows what they are doing in the government?
one step forward…and two steps back…..we're not even at square 1 yet…..zzzzzzzzzzzzzzzzzzz
Hang on, PWC is with one breath hired to determine the business case, and as part of the same deal hired to write the tender documents. Isn't that rather assuming what they will find on the business case review? Or is PWC guaranteeing that they will find and support a business case before they even start? On what basis?
I am with Whodatis on this one looks like a decision has already been made without detailed analysis and this is just wallpaper to keep the UK happy on due process. Hey – guess PWC can also say its value for money whilst they are about it – same principles seem to be in peration as the bypass valuation.
I believe the government's inentions are good, but why would you hire forensic accountant to consult on a marine project, it may have made better sense to hire a marine consultant and give the forensic accountant a lesser role, just my two cents. Anyway I'm hoping everything goes well.
I know many of you will not agree with this comment but I HOPE that the cruise ships do NOT get the contract to build this dock.They will not be very easy to deal with and we will be far better off if some local "money"people would band together to get this done.This way WE control who can come here and not the cruise shippers.Just my two cents worth.
I understand your sentiment, but even if WE control who CAN come here, it is the cruise lines that control who WILL come here. If the cruise lines have a vested interest in the dock, they will continue to bring visitors to our shores. On the other hand, if local investors build the dock and the cruise lines choose to take their passengers elsewhere (Cuba?), the investors lose their money, and Cayman loses the business.
I appreciate your comments BUT am still worried about the TOTAL control that the cruise industry might try to gain at our expense.A/A tried something similar at Owen Roberts back in the time of Thomas Jefferson the Minister responsible and they were turned down for something quite like this.I still feel we only need one pier and must control how many ships can visit on any one day.Seven days a week would be fine at say 2-4 ships max.We cannot handle any more regardless if we want to give them a good experience and have them come back as stay over visitors.That is key in restoring our numbers so that everyone can get back to full time work.Trickle down effect will be felt island wide.
If there was local "money" people interested in trying to help Caymans plight don't you think they would have tried already? Maybe its because being local they understand what role CIG usually plays in these things and don't want to lose their "money"? Either that or they are the "money" people because they are hooked in to the CIG "money" dispersal system. Since ALL the "money" and more has been dispersed already by CIG the ONLY way this could get done is by funding by a private interprise that is foolish enough to now do business with Cayman or smart enough to make sure they are not the ones who will lose out. And yes, they will want to be the ones who control how and who does the work and makes the profit. Does that make sense? Recent history has only shown that Cayman doesnot have the money or ability to make anything of this scale happen.
Just exactly who is it that you would like to control coming here? What a very discriminating and perhaps racist comment.
If we have the Piers – more people would get off. The news says we have 8 ships with around 2500 per ship that is 20000 people for the week. Has anyone checked how many get off. The Elder people do not even get off – they are the ones who have the money not the young guys who are still studying or raising a family. Once more people get off the ships and like the island they will come and stay at the hotels. Elder people are very sceptical to use tenders in case of injury.
Old people are cheap. The less of them clogging the streets of GT the better.
Re: Cayman's appeal as a tourist destination…
I am not sure where some of our posters are getting their information, but I choose to give more credit to the thousands of visitors and organisations that have just recently rated our sites and amenities as some of the best in the region – and world for that matter.
I guess some of us have short memories.
I don't.
Cayman is a beautiful country … all three of her islands.
Whodatis: I am an expat of many years' standing here and also have Cayman Status. I love Cayman, have done so from the getgo many many years ago, probably before you were born. I also have found the majority of Caymanians (every country has its dregs/riff raff) wonderful to live with. I am married to one of them. I intend to be buried here.
But…and it is a big but,….Cayman -for all its undoubted virtues – is in no way "beautiful" compared to the "best in the region….and world for that matter" you mention. I have read in some hostile blogs about you that you have a UK parent. Did you never travel? Forget the UK which you seem to hate. What about other countries of magnificent splendour in all the continents?
It reminds me of a Sterling Dwayne talk show a year or two ago when the head of the Civil Service Association said passionately: "Caymanians are the most intelligent people in the world". Dear old Sterling Dwayne mumbled (as usual) his approval and one other young guest, now (worryingly) one of Government's most senior civil servants said audibly on air, and I quote "Das right". What is wrong with that? Of course, Cayman has its share of really bright people but if I heard a Scotsman, Irishman, Englishman, American, Canadian, Bajan, Jamaican, Tanzanian, Kenyan etc etc utter that nonsense about them being the "most intelligent in the world", I would call them out for B.S. Caymanians need to stop OVERSTATING their country and their people and accept they are not supermen but part of a wider wonderful world. Yes, I agree we are blessed in many ways to be living here, but let us not in our myopic "little village country kitchen" way make silly statements such as we are"the most intelligent people in the world". No country can make such a statement unless it wants to be laughed at as ignorant and unlearned.
well said….. i have never met a people with a more inflated sense of self worth…… which is truly laughable when you look at the acheviements and true beauty of other island nations…
fair play too for calling out the constant stream of mumbled nonsense we have to listen too constantly on talk today….
Ummm … first of all, you are sending a LOT of criticism my way that actually has absolutely no relevance to me or my post. So … I really can't help you with the majority of your comment.
As for the beauty of Cayman … I don't know what to tell ya buddy – the country is beautiful … people love these islands – the proof is in the damnpudding.
I don't know who you (and your supporters) think you are that your opinion(s) trumps that of, by now, millions of other people – but let me be the first to inform you – you are sadly mistaken.
By the way, yes I have traveled and have seen much of the world, with plans to see a lot more, however, how the beauty of other countries negates the beauty of Cayman is beyond me.
At no point did I say "Cayman is the most beautiful country in the region / world".
I simply stated that Cayman is a beautiful country – which also happens to be the verdict of many visitors – who I can only assume have done a fair bit of traveling themselves.
Therefore, in conclusion I shall now reiterate my intial declaration;
"Cayman is a beautiful country."
P.S. Why do you believe I hate the UK? (Accompanying examples would be greatly appreciated.)
By the way, here is a bit of that pudding I mentioned earlier …
Trip Advisor awards – (as anyone in business knows – customer opinions trump all others.)
Cayman has a very poor quality tourist product, compared to most of the region or otherwise. Grand Cayman is not an attractive island and unpleasant developments have ruined the only beach, a beach which is not that special. Little Cayman is lovely and has the best diving but it is only capable of handling a few visitors and anything else would destroy it. The Brac is forgettable and offers nothing to a well-heeled international visitor. Cayman may be wonderful if you come from suburban Indiana and the closest you have previously come to internation travel is the World Show Case at Epcot.
At least we will all see if they are now ready to take advice from those smarter then them. That would be a big step forward. I hope so for Caymans sake
All focus should be on a workable public business case, which is yet to materialize. If we can't come up with something workable using someone else's money, this will never get beyond paper, having already cost the nation millions. We have no money and cannot borrow any more for future mistakes. Concurrently, we stand to loose unknown amount of financial services business in next few years which will further constrict CIG revenue assumptions. PPM refuses to cut headcount – even those 16 dept heads that for 9 years have chronically failed to deliver the very financials they are responsible for. This is not business as usual – our government needs to arrest their plans to spend money we don't have. There should be no more talk of that. The next 4 or 5 administrations to come will have a similar financial paralysis until someone actually reads the Miller Report and adopts the recommendations.
Some people are just deaf ,blind and mentally challenged. Mckeeva was suppose to have built the piers when he built Royal Watler. How long ago was that? We have had people talking about building this dock facility for 20 years. Where were you? My dear friend please remember when hurricane Ivan was done , there was no hotels no condos to sustain our lives with the essentials. Isn't that true?
So what makes you think in the near future it will be any different? Ritz carlton was sold because they were in financial difficulties. They are the best hotel in Cayman. They pay salaries of $3.50 plus tips. That can't pay nothing. What happen to the rest of the hotels before Ivan? Westin, Marriott courtyard ,etc. If Hyatt was doing so well why didn't he build it back? Sometimes people are in a fog or drink too much . Get a cup of coffee and rethink that again.
We almost got a cruise line facility until Mac TOOK it away and gave it to Ellio. Cline had itsecured and something happened between MAC and the chinese and OOPs no more contract and gov't had to pay GLF.
Isn't it time that we do this right??
We need to turn this corruption around so we can stop paying out 60 million and growing gov't money to people who need and depend on cruise ship business.
By the way are you ONE of the people that own a business making money from hotels and condos? Well heres a question . Can 100 families benefit from your business in JOBS and make US$150 a day minimum from your business? Cause we need a job now. They will line up at your door. NO heh , You one of those companies that pay below subsistence pay below cost of living .
All of you that think like this should go work for these companies and get paid $3.50 per hour and see how you feel when your kids can't get breakfast in the morning before going to school.
why is it always the people whowon't work that are complaining about levels of pay?????
the people working in the hospitality industry are certainly not complaining…
what is better $3.50 per hour or $0 per hour?
So its better to complain and make nothing. Gotcha. Explains it all.
And people paid 3.50 an hour at the hotels also get something called commissions, or said another way, tips. That means you carry home cold hard cash every single day on top of your hourly wage which you get at the end of the month. However, here is the trick, you have to work for a tip.
Isn't this what this forum is for , To debate , to educate , to bring together a vision for the future . To lift people from the US$3.50 per hour class?
You my dear friend would not take the job ,if you lost yours today with the "tip". You would be complaining and hiding away from all your friends and family. In fact you would run to your family for support. So give me a break.
I have been working since I was 14 years old and have always had a job to go to . Even when I had foolish bosses who think they know everything. I'm 60 years old and working in the cruise business for 25 years. I could stay home and get CI$ 700-800 per month plus what I'm making from my business. Its not right I have always worked and made good money .I am not suffering in my business because of money.I am fighting for a proper cruise ship dock that should have been built 30 years ago in Red Bay. We are destroying beautiful dive sites . But if that is what south sounders want then so be it. The dock must be built in George Town then. It will be there legacy to their children and grand children. There is hardly a fish or reef in south sound compare to George Town Its not right to force people to work on starvation salaries either.
So whether you like it or not a minimum wage will come before I die and If you are one of those businesses that pay starvation wages I hope Gov't closes you down .
Not every job has to support a full family. Some are only worth enough to support one 20something. If you want to support a whole family, it works better to get the better job first.
Doing it right is what it is all about. Very good move Mr. Kirkconnell. What a difference in representation. They are so good that they put the bloggers to rest.
Quite right Whodatis. The way things are going this will just about get finished as Cuba opens it's doors to US tourists and guess where the cruise ships will go then? Given a choice between GT and Havana I'd take the latter any day. Sadly, I think the opportunity to revive the stayover tourism business has already passed. The islands are now at least a decade behind the local competition and that gap will take a lot of closing.
The extension of airport is basically being pushed for the Shetty Hospital project, as such, we will be better of waiting to see if their projections are on target before we put limited resources on that project, for the benefit of another developer.
what resources?… cayman is broke and has no money to do any major capital project by itself….
(If I may repost myself:)
Re: Piers
This is not a George Town issue or "business community" issue – this issue concerns every Caymanian.
Personally, I think a comprehensive study (beyond an EIA) should be carried out, presented to the people in full, and finally, a national referendum be held to arrive at our final decision.
I say this because when one takes a step back and realizes the irreversible potential for disaster if we get this wrong – it clearly becomes a national matter.
A matter that could determine our future as it regards tourism, the national economy, our threshold for natural disasters and subsequently our national security.
*For what it's worth, I am currently not convinced that we should construct the piers with environmental concerns (e.g. scuba diving and SMB) topping my list of objections.
I believe we ought to focus on expanding our airport and runway to further enhance our already thriving stay-over tourism product at this time. Let us get some of the bigger planes arriving from Europe, Eastern Europe and Asia. At the same time, we should probably focus on developing our cottage / boutique hotel industry (with offers of package deals) which will enable more Caymanians to participate in our tourism product.
**
Forgot to include the tourist market in Latin America, the Middle East and Africa in my initial post.
You know – let us try and target the economies of the world that are functioning as they actually should and not just the flat-liners.
Whodatis,
I share your concerns, in regards to the expansion and re-development of our airports. Especially at this time, where it seems like we are going to lose most of our financial businesses. We have to now concentrate on our first industry…tourism.
In regards to the EIA study of the port development, I cant worry much in that aspect, as it is an engineering issue. There are models of past marine development, which have worked perfectly, without any adverse results.
Before the Caymanian people apply any negative, scaremongering remarks. We must first see the method or concept, of how these piers will be embedded in our sea floor, and the schematics of how the dredging will be done. There might not be any lost of sand from our beaches…who knows?
Looking back 35 years of past developments we have been lucky.
I want to thank Mr. Moses and Mr. Strand Bodden for moving forward with this project. I also hope that the board that Mr. Moses has picked, are individules that will work for their country…and not run around with an ego…just to say they are on a board.
Says the the one trick pony
yeah…soon come….. contract to be awarded on 2014????….
looks like the ppm are to content to snooze yet again……
yeah…soon come…mac trial set for march 2014????…
looks like the powers that be are quite content to expose us to bungling bush for another whole year…
There has never been cash for this! Already cost the nation millions in legal and penalties. Still no workable business case!
I guess now we stand back and enjoy the new spectator sport of Caymanian vs. Caymanian.
(smh)
"Caymanian vs. Caymanian";
Unfortunately, this issue is in fact, much more prevalent, serious, divisive and destructive than the "Caymanian vs. Expat" issue.
You are so right.
"Unfortunately, this issue is in fact, much more prevalent, serious, divisive and destructive than the "Caymanian vs. Expat" issue."
It has always been this way and I fear, will aklways be that way. I am very much Caymanian and know this to be the case. Caymanians put down and keep down each other to the point where growth is stiffled and lives are snuffed out.
Who can help in such a situation?
So, who are you really mad at?
I think you are being kind to McKeeva calling it "bungling". That implies it was mere incompetence…
You had to imply your nasty remarks about Makeeva…didnt you? when will this devision ever stop, amongst our Caymanians?
Do you have any positive constructive ideas, in regards to the continued development, of our Islands?
Not really. You could build the world's best berthing facility but George Town would still be a dump, and the cruise shippers would still be harassed and overcharged by touts selling lame excursions. I think the tourism product here needs some investment and the operators need regulation so that only the professional ones are allowed near our guests. But the whole system is corrupt to the core so it's never going to happen and it may already be too late anyway. The main thing on display to cruise shippers at the moment is avarice. As someone said already the cruise ships come to Cayman because of the lack of alternatives. Once Cuba opens up I think Cayman's cruise ship industry will be hoisted by its own petard.
The division comes when a Caymanian becomes as smart as an expat. Then he/she becomes the enemy too. Na vote for Bush? Na vote for corruption? Na happy with where de money went? You are a devil worshiper fo sure. Dat na right?
I really cannot help wondering why on earth Cayman is being made have to contend with "bungling bush" for yet another nine months.