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(CNS): Technocrats from the climate ministry have said that there is “almost continuous dialogue” between the Cayman Islands Government and the Dart-led consortium on the dump project. But the ReGen deal has still not concluded, and while the CIG refutes claims made by former deputy premier Chris Saunders that it will cost $2 billion, no one is saying exactly how much the waste-to-energy facility and annual operating costs will be for the public purse.
A statement from the Ministry of Sustainability and Climate Resiliency implied that claims made by Saunders after he was fired by the premier were inaccurate. But they have not confirmed any figures relating to the project, which the premier has previously indicated will be around CI$1.5 billion. According to a summary note about a Cabinet meeting held at the end of March, the government’s inner circle had seen the latest updated report relating to the financial close.
It is now almost six years since the Dart-led consortium was selected as the preferred bidder to design, build, finance, operate and maintain the new waste management facilities. Since then, the financial modelling has been updated, most recently at the beginning of this year, but while the costs have soared in comparison to the original estimates, no final figure has been confirmed.
“At this stage, final costs are still being negotiated,” officials said in a statement this week. The costs include building the WTE facility, general waste management over the 25-year life of the contract, and the Department of Environmental Health’s part in collecting garbage.
The government currently spends around CI$11 million disposing of the massive amount of rubbish generated in the Cayman Islands. This is partially offset by third-party revenues, but it is clear that future costs will be much more.
“The estimated cost to construct ReGen has increased since the Dart-led consortium was selected as the preferred bidder in 2017,” officials said. “In 2021, the construction costs for the new facilities were projected to be CI$205 million. This is an increase over the initial contract amount and is largely the result of a policy decision by the previous administration to increase the capacity of the facilities in response to improved data on the amount of waste that would need to be treated.”
Global supply chain issues and procurement challenges are also being blamed for the increase in costs. While Dart will, in the first instance, finance the construction of the WTE, once complete, the public purse will pay a unitary charge per ton of waste processed through the new facilities.
At the end of the contract, the government will take ownership of the facilities.
A report by the Office of the Auditor General on the whole deal will be made public after the negotiations are over, but not before, as the government claims the document contains commercially sensitive information being used to inform the discussions and get value for money.
“Achieving an integrated solid waste management system is fundamental to safeguarding human and environmental health in our community and ensuring the sustainable development of the Cayman Islands,” the ministry state, adding that landfilling is unsustainable.
“Ensuring this incredibly important, and much-needed, national project is a value-for-money proposition for the country is a key priority for the Cayman Islands Government. While the government is confident in its ability to manage the existing landfill footprint to its fullest until the ReGen facilities are commissioned and operational in 2026, there is no doubt that the country urgently needs an integrated solution for solid waste management that will significantly lower the amount of waste being landfilled,” officials stated.
As talks between the government and Dart roll on, the environmental impact assessment for the project is still moving forward. Air quality and noise pollution data collected during the EIA is currently going through analysis and modelling, while a traffic study to assess potential impacts on road use during construction and operations is now complete, the technocrats said.
A drilling programme to investigate hydrological and hydrogeological conditions at the site has also been completed. Meanwhile, the Environmental Statement will be subject to a public consultation period, currently anticipated to take place this autumn before it is finalised.
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