From:

Hon. Moses Kirkconnell, Deputy Premier & Minister for Tourism

Remarks executed at CBF Press Conference

The
Premier has provided a great deal of information about the preferred
bidder – Verdant Isle Port Partners – and also about the
procurement process that has been followed. Those are two very
significant points and I think it bears repeating that the preferred
bidder comprises a consortium made up of a trusted developer that is
a household name in our Islands, in collaboration with cruise lines
who have been our partners in the cruise industry for decades.

The
consortium also includes Orion
Marine Construction, formerly Misener Marine, who
haspreviously
worked on the port in the George Town harbour, and in Cayman Brac so
they are very familiar with our marine environment.

Understandably
the potential impact to the environment has been a cause of concern
because our natural environment is integral to the viability of our
tourism product. As a responsible government we made a commitment
from the outset of this project that we would ensure any plan that
was approved would be built in a way that minimizes the environmental
impact, while delivering the greatest benefit to our people and to
this country.

I
believe we have delivered on those commitments.

The
footprint of the new pier design is more environmentally friendly
than the 2015 scheme submitted for environment impact assessment.

The
new design has the piers pushed out into deeper water which means we
will need to do less dredging and less coral relocation. There
will be no dredging in Hog Sty Bay.

The
facility still consists of two-finger piers which will be resting on
pilings to allow the sea and marine life to move freely underneath.
Pilings are commonly used all over the world in the construction of
piers and bridges situated over water. So the method is tried and
tested.

Over
20 years ago, a similar pier on a much smaller scale has been
constructed in Cayman Brac on pilings and there has been no negative
impact to the surrounding area. Water and marine life continue to
flow freely between the pilings without being impeded.

Additionally,
the proposed CBF will not increase the likelihood of flooding in the
areas to the North and South of the new development. Wave walls have
been incorporated within the footprint of the design which will
further reduce potential flooding and wave overtopping into the road
during extreme weather conditions and will add more protection to the
central George Town area.

As
the Premier has said, the cruise berthing project has taken six years
to arrive at this point. At various stages in the process I have
repeatedly said that it was necessary to arrive at this stage in
order to have factual information in hand regarding the design and
cost of the project available.

I
am now very pleased that not only can we show the proposed berthing
facility design, we can share more detailed information regarding the
costs and affordability, which has also been an area of concern and
speculation.

Development
Cost

The
successful bid establishes a cost for the project to be in the range
of CI$200M and this includes the enhancement of the cargo port. This
cost is in keeping with the budget estimate produced by the
consultant team and is roughly half of what opponents to the project
claimed.

Had
we not needed to upgrade the cargo port the cost to provide the
country with a first class berthing facility would be reduced. But
our port is 40 years old and operates under conditions that are
cramped, inefficient and less than ideal. It needs to be upgraded to
be able to handle the higher volumes of cargo we need to provide for
our growing country.

If
the berthing project did not proceed, the Port Authority would
require capital investment to upgrade the cargo area, because it
would still need to be done. The difference is, the cost would be met
by the public purse instead of a new revenue stream.

Design,
Build, Finance, Maintain Financial Model

So
speaking about costs, the berthing facility is being financed by the
preferred bidder and their investment will be repaid over a period of
25 years from cruise passenger fees. Passenger fees are bundled into
the cost of a cruise in much the same way that passenger taxes are
bundled into the cost of airline tickets.

The
portion of the fee which currently pays for tendering services will
be used instead to repay the preferred bidder for financing
construction of the berthing facility. The share of the existing
passenger fee currently paid to the Port Authority and the
Environmental Protection fund will remain unchanged.

After
25 years when the investment has been repaid, that portion of the
passenger fee will be remitted to the Port Authority, increasing the
revenue that PACI receives per passenger.

And
as has been said many times - The Port Authority will continue to
operate and manage the cargo port as well as the new cruise terminal
and there will be no increased upland development.

This
means cruise lines will not own or operate any retail or commercial
space within the cruise terminal. From the inception of the project
Government has maintained that George Town is our upland development
to ensure that the money cruise passengers spend while onshore
continues to provide maximum benefit to the local economy.

Job
Creation and Security.

I’d
now like to say a few words about job security and creation. The
reason this country needs a berthing facility is to make our cruise
tourism industry sustainable into the future. We have a great cruise
product and we have to provide the ability for it to grow and
continue providing jobs and opportunities for our people.

I
have been asked what will those jobs be? In short, they will be the
same types of jobs that support the cruise industry today…. Only
more of them!

With
more cruise passengers there will be a need for more entrepreneurs,
taxis and tour operators. More staff will be need in retail
establishments and restaurants. And obviously hundreds of
construction jobs will be available during the build out. Students
coming out of school will have opportunities to join businesses that
are growing because the cruise industry is thriving and providing
opportunities. This is the type of activity that helps to build our
economy and keep it growing.

Cruise
Berthing Facility Benefits

I
would like to say that the selection of the preferred bidder
represents a significant step forward to achieving our commitment to
provide this country with a modern cruise berthing and enhanced cargo
facility that caters to the essential needs of the country.

The
evolution of the mega ship has changed the face of cruising in the
Caribbean and we ae faced with the choice of either preparing to
embrace this reality or accepting that we will be left behind.

After
40 years of being in the cruise tourism business Cayman is distinct
within the region for not having a berthing facility. Rather than
being an attribute, this presents a serious risk and will ultimately
place our cruise tourism industry in jeopardy.

The
cruise lines are our customers as well as our industry partners and
it is in our country’s long term best interest to provide a
berthing facility that will positively impact employment and
ultimately inject millions of dollars into our economy.

Correcting
the misinformation

Now
that the preferred bidder has been announced, I am pleased that we
have this opportunity to address the misinformation that opponents to
the project have deliberately circulated to cause fear and confusion
in the minds of the public.

1. China
   Harbour are not the preferred bidders
   and no secret deal was ever made by this Government with CHEC.
   
   
2. The
   cost of the project is not 300-400 million.
   It is not even 250 Million! Our children’s futures are not being
   mortgaged and the Country’s finances are not at risk as a result
   of this project.
   
   
3. The
   fact is Government is NOT providing any loans, bonds or guarantees
   for this project.
   
4. There
   will be no upland development.
   We have said from the beginning that George Town is our upland
   development and the money that passengers spend will continue to
   circulate here at home and provide benefit to our local economy.
   Cruise lines will not own or operate any retail or commercial space
   in the cruise terminal.
   
5. The
   Port Authority will continue to manage and operate the port.
   The berthing facility and cargo port will not be given over to any
   third party for the next 25 years. It will still be managed and run
   by the Cayman Islands Port Authority just as it is today.
   
   
6. 
   The
   berthing facility will not cause flooding in George Town.
   The wave walls that are being built as part of this project will
   REDUCE potential flooding and will add MORE protection to the
   Central George Town area. Furthermore there will be no dredging in
   Hog Sty Bay.