Eden queries $3.5M allocation for port project
Savannah MLA Anthony Eden has queried the allocation of a total of $3.5 million in the 2020/2021 budget for the cruise and cargo project when government has indicated that no additional public funds would be spent on the $200m project.
However, Premier Alden McLaughlin told the Cayman Compass Wednesday the funds were allocated for pre-contract work for the project over the 2020/2021 budget cycle.
Should the project not get the green light in the 19 Dec. cruise port referendum, those funds will fall away.
McLaughlin, in his budget statement, had indicated that no further funding would be spent on the project.
Eden flagged the expenditure during his contribution to the budget debate in the Legislative Assembly Monday.
He pointed out the sums of $1.9m in 2020 and $1.6m in 2021 were identified in the $1.5 billion budget for preparatory works in advance of the project.
“I assume if government had a successful referendum vote, the contractors would start right away. And with the premier indicating no expenditure by the government, if they could explain this,” Eden said.
He asked that the funds be addressed in the closing of the budget debate.
However, the debate ended without his query being clarified as McLaughlin was called upon to wrap earlier than expected.
Speaking with the Compass on the issue, the premier explained that the preparatory works listed in the budget were not connected to the project’s scope of works.
“The successful bidder will only be responsible for the costs involved in the design, building, financing and maintenance of the facility, not for costs incurred pre-contract,” he said.
Those costs have to be borne by the government.
“We’ve spent more than $9 million on the project so far. All the work, studies, experts, lawyers, accountants have to be paid. This project is six years old now and we still don’t have a contract signed. It’s a very complex project,” McLaughlin added.
Should the project not get the green light in the 19 Dec. cruise port referendum, those funds will fall away.
McLaughlin, in his budget statement, had indicated that no further funding would be spent on the project.
Eden flagged the expenditure during his contribution to the budget debate in the Legislative Assembly Monday.
He pointed out the sums of $1.9m in 2020 and $1.6m in 2021 were identified in the $1.5 billion budget for preparatory works in advance of the project.
“I assume if government had a successful referendum vote, the contractors would start right away. And with the premier indicating no expenditure by the government, if they could explain this,” Eden said.
He asked that the funds be addressed in the closing of the budget debate.
However, the debate ended without his query being clarified as McLaughlin was called upon to wrap earlier than expected.
Speaking with the Compass on the issue, the premier explained that the preparatory works listed in the budget were not connected to the project’s scope of works.
“The successful bidder will only be responsible for the costs involved in the design, building, financing and maintenance of the facility, not for costs incurred pre-contract,” he said.
Those costs have to be borne by the government.
“We’ve spent more than $9 million on the project so far. All the work, studies, experts, lawyers, accountants have to be paid. This project is six years old now and we still don’t have a contract signed. It’s a very complex project,” McLaughlin added.
