PROGRESSIVES SHRED DECISION TO SCRAP RE-GEN PROJECT

The main opposition Peoples Progressive Movement (PPM/Progressives) has blasted the United People’s Movement (UPM) government’s decision to scrap the ReGen waste-to-energy project at the George Town landfill.

Following a series of probing questions in Parliament, the Progressives issued a press statement targeting what it called the governments failure over the issue.

“The Government’s decision to abandon the ReGen project is not just a failure of good governance and political will but a pressing issue that demands immediate attention. It represents a devastating setback to the sustainable development of the Cayman Islands,” the party stated.

According to the letter signed by Progressives leader Roy McTaggart, while they understand the need for financial prudence, the Government’s abrupt cancellation of the ReGen project without presenting a viable alternative is a significant setback for the Cayman Islands.”

It said the landfill remains an environmental and fire hazard, and with its capacity nearing exhaustion, this decision puts the community at immediate and significant risk.

“The Minister stated that the landfill still had another 5-6 years of capacity.  With recent population growth and increasing waste volumes, this must be at the very upper end of estimates. Even if she is correct, the Government must locate another landfill somewhere as it is now inevitable that Cayman will need more landfill space.”

The opposition party argues that it will take time to find and prepare any new landfill area, and poses the question: “Have they identified a location?  Which community on our Islands now faces being blighted by a new landfill location because of this Government’s failure?”

It also dismissed the claim by Hon. Min. for Sustainability and Climate Resiliency, Katherine Ebanks-Wilks’ that the project had become too expensive. According to the Progressives, that “resulted from the dithering and delay from the PACT and the UPM Government over the past three years. The fact is that this Project has never been a priority for the Government.

While in government, the Progressives had initiated the start of the planning and negotiations for the waste-to-energy project in 2017, the largest infrastructure undertaking ever in the Cayman Islands.

“The Progressives, who initiated the negotiations, have consistently prioritised the ReGen project as a solution to the waste management issue,” the party said defending its record on the matter.

It says the projected costs have now reportedly escalated from an initial $670 million to an unsubstantiated $2 billion, for which it blamed the last two governments.

“There is no doubt that the Government irresponsibly delayed the Project following the election, and no progress was made to meet the deadline for financial close that had been agreed. The then-premier told the Country he had other priorities.  The Country has been left to count the cost of PACT getting the priorities wrong.  That mistake caused the Country to lose the cost certainty contained in the agreement signed by the Progressive administration. ”

The Progressives say they pointed out then and have repeatedly warned since that “the consequence was inevitably skyrocketing costs and increased risks - the very things the Minister has now said have prompted her decision to abandon the Project.”

The party also said that it is unimpressed by the Min. Ebank-Wilks statement that the Government will now go back to the drawing board by revising the solid waste management strategy and then starting a new tender process from scratch. 

“Quite apart from the ongoing risks that the time this will take will cause, has she thought through the deliverability of that approach?  Who in the market will want to tender for the new Project after witnessing this failure to get the ReGen project over the line after seven years of negotiation?”, the PPM/Progressives wondered in their statement.

According to the Progressives, at the very least, potential contractors will attach a significant risk premium to any bids they make.

“There are significant questions that the Minister must answer. ..The Minister’s decision to abandon ReGen has created more uncertainty and risk for our Country.  We must ensure that the right path is now taken out of the chaos caused by the Government’s dithering and delay.”