Ports Deal Signed

Port Authority Chairman and Leader of Government 
Business the Hon McKeeva Bush (centre) signs the 
loan agreement for the new cruise terminals in 
George Town and West Bay as the Ministry of Tourism 
Permanent Secretary Charles Clifford (left) and Port 
Authority Director Paul Hurlston look on

Monday, March 15, 2004

The Cayman Islands Port Authority officially signed a loan agreement to fund the construction of the Royal Watler Cruise Terminal in George Town as well as the West Bay Cruise Terminal in a brief ceremony last Thursday afternoon. 

The Hon McKeeva Bush, acting in his capacity as Chairman of the Port Authority, signed the deal with representatives of the Royal Bank of Canada and Scotiabank, which will each put up half of the funds for the US$26 million two-facility project.

Construction on the the Royal Watler Cruise Terminal, which will cost US$17.5 million, includes a 200-foot pier and a variety of related cruise facilities. It is expected to begin in about 10 days, according to project manager Burns Connolly, of the Burns Connolly group. 

US-based Misener Marine was awarded the marine portion of the George Town project that will involve the reclamation from the sea of approximately three acres of land. The company will set sail from Tampa next week with two barges filled with the necessary equipment, materials and manpower to undertake the construction. 

Originally scheduled for opening in late September to early October, the delay in getting the loan agreement signed might setback the completion somewhat. However, the terminal is still expected to be finished in time for the 2004-2005 peak cruise ship season. "It really depends on the weather," said Mr Bush, "But there is a good God, and he knows there's a general election this year, so I'm confident the weather will allow completion on time."

Revised plans detailing the project have now been filed with the Planning Department, according to Mr Connolly.

The schedule for the West Bay Cruise Terminal has to be determined, as do the exact parameters of the $8.5 million facility. Mr Bush explained that land acquisition for the terminal was still ongoing, and that the final scope of the project depended on the amount of land obtained. He said that an announcement concerning the facility would probably be made in a couple of weeks. Regardless, the West Bay facility is also expected to be completed in time for the 2004-2005 winter season.

The Royal Bank of Canada, who is acting as the lead bank for the loan, invited Scotiabank to participate. 

Although the loan is being made to the Port Authority, the Florida Caribbean Cruise Association (FCCA) will repay the loan with a US$1 tariff charged to each cruise ship passenger of its 11-member cruise lines that visits the Cayman Islands over the next 15 years.

Last year, over 1.8 million cruise ship passengers visited the Cayman Islands, and this year that number is expected to exceed two million.

Post Authority Director Paul Hurlston explained that there is a floating interest rate on the loan, and that a reconciliation account would be kept for any quarterly overage or underage that might occur when making the regular amortized loan payments.

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